Wood Pellet and Wood Pellet Mill Development in Germany

Wood Pellet Development of Germany 

1. Regulatory framework market drivers and barriers 

The German wood pellet market and application of wood pellet mill have been one of the markets with fastest development in the past years and  still  with  a  significant  growth  potential  ahead.  In  particular  the  market  for  wood pellet mills, pellet  boilers  and pellet stoves  for  small- and medium-scale  applications  has  experienced  a  rapid  increase.  Factors  as  the legal framework promoting the use of biomass pellets in the residential sector and the wide use of pellet mill and pellet plant,  increasing oil and gas prices  gave  incentives  for  house  owners  to  install  wood  pellet  heating  systems.  In  particular,  the market  incentive  programme  (MAP)  a  financial  support  instrument  and  the  Renewable  Energies Heat  Act  (EEWärmeG)  will  give  impetus  for  a  reinforced  utilization  of  wood pellets  on  the  small-scale market. Thus, since 2000 one of the largest wood pellet markets worldwide could establish. And the wood pellet mill and wood pellet plant locations are scattered in a more dense way across the whole region.

 

2. Production capacity and feedstock 

The production and production capacity of wood pellets in Germany is the highest one in Europe due to the extensive use of wood pellet mills and popular establishment of wood pellet plants. At the moment, 63 biomass pellet plants are located in Germany with a production capacity of 3.2 million tons and a respective production of 1.7 million tons in 2010. In comparison, in 2006, only half of the pellet  plants  were  in  place  in  Germany  with  a  capacity  of  900,000  tons.  Currently,  additional biomass pellet  plants  are  in  the  planning  process.  From  the  total  production  volume  about  75%  is  intended  for  the  heating  market  (certified  wood pellets) and the remaining for power plants for electricity generation. The majority of the certified wood pellets is consumed within the country (over 90%); however, the biomass pellets used for power generation are  entirely  exported.  This  is  due  to  the  fact  that  wood  pellets  are  not  used  in  power  stations  in terms of co‐firing in Germany yet. In respect to the raw material used for the pellet production 70% were sawmill by‐products as sawdust and 30% low quality round wood. 

READ: HOW TO START A BIOMASS PELLET PLANT

 

3. Consumption 

Looking  at  the  consumption,  the  figures  for  2010  amount  to  1.2  million  tons  of  wood  pellets consumed in the heating market. Until 2006, the coverage of the national demand was dependent 

on imports. Since then the amount produced and demanded broke even. The development in the number of pellet heating systems – both on a yearly base and cumulative – is shown. Until 2006 a steady growth can be observed. For example, in 2005 and 2006 the sales figures increased by 60%, however after that there was a noticeable drop with a following market recovery. The reason for this development was a depletion of the budget of the promotion programme MAP in the second half of 2006 which is a significant policy instrument to promote the use of pellet heating systems.This was reflected in a rapid decline in pellet stove and pellet fireplaces and boiler sales. A further disturbance of the market could be observed in May 2010 as the programme experienced a budget  freeze  until  July.  These  stop‐and‐go  measures  caused  uncertainties  among  the  investors leading to a smaller number of pellet heating systems installed in 2010.  

In total more pellet boilers than pellet stoves are installed, the ratio is about 65% to 35%. 

READ: WOOD PELLET MARKET IN THE UK
 

4. Trade and logistic aspects 

The main export countries for industrial wood pellets are the United Kingdom, Sweden and Denmark. With respect to the trade of certified wood pellets the main trading partners are Italy and Austria for exporting and Denmark, Russia, the Baltics and Czech Republic as well as Belarus (a rather new trading partner) for importing. In the past the trade of premium wood pellets mainly took place with bordering countries   as   Austria   and   Czech   Republic.   However,   imports   originate   increasingly   from   Eastern European countries like the Baltics and Belarus. 

READ: PELLET FUEL DEVELOPMENT IN SWEDEN
 

5. Pellets quality and standard 

Beginning of 2010 a new standardisation for wood pellets called EN 14961‐2 has been introduced to the German  market.  This  new  standard  is  going  to  replace  the  existing  one  DIN.  EN  14961‐2  is  a  Europe‐wide standard, which assures high quality pellet  production  and supports the harmonisation of pellet production  within  the  different  European  countries.  The corresponding  certification  system  is  called ENplus, which is primarily based on the specifications of the EN 14961‐2 standard. Within this system three wood pellet qualities with different application purposes and thus wood pellet characteristics will be  certified.  These  qualities  are  called  ENplus‐A1,  ENplus‐A2  and  EN‐B.  So  far  already  large  and  well‐known  wood  pellet  producers  as  German  Pellets  produces  its  pellets  according  to  this  new  standard. Table 2.4 shows the quality parameters for ENplus‐A1, ENplus‐A2 and EN‐B. 


 

6. Price trends 

In Germany the wood pellet prices have been fairly steady with price levels of 170 to 190€/t till 2005. In  2006  prices  started  to  rise  with  a  peak  price  over  260€/t  in  December.  In  the  following  years  such  a peak  did  not  recur  and  prices  have  been  rather  stable  even  though  at  a  higher  level.  In  general, seasonally variations with higher prices during the heating period and lower prices in summer can be observed. During 2010 the prices for wood pellets ranged between 218 and 234€/t. 

Prospect of wood pellet mills developing across Germany
We have been dealing with German pellet plant project for a while and our German clients feel satisfied with our wood pellet mill and wood pellet plant. We hope more clients can have the chance of enjoying our high-quality wood pellet mill and wood pellet plant.

------------------------------------------------------------------------------------------------------------------------------------------------------