Wood pellets production

In 2001, about 12.3 tons of wood were used as solid biofuel for small-scale combustion systems. In addition to the increases in pellet production, the amount of combustion manufactures has also risen.

In the area of small-scale heating systems, it is estimated that about 9 million solid fuel heating systems are installed in German households today. They are mainly situated in single- and two-family homes. But this stock of small-scale heating systems doesn't give an overview of the effective use. Mostly, fireplaces, chimneys and tiled stoves are used very sporadically, especially during winter time.

The development of pellet fuelled small-scale combustion systems in Germany between 1999 and 2007 demonstrates the positive development during the past last years.

Until 2005 the price level of wood pellets was comparatively stable and low. During 2006 the price of wood pellets increased enormously.



Price development of wood pellets (EUR/t) from July 2006 to July 2007.

Currently, the wood pellet price is about 184 EUR /t (July 2007). Prices have recently dropped from 262.28 EUR/t (January 2007) to 188.15 EUR/t (May 2007). Compared to 2006, pellet prices are rather low and pellet suppliers report full storerooms. Due to the current public discussion about particle emissions, reduced subsidies for combustion systems for households and a discussion on short supply of pellets at the beginning of 2007, both suppliers of pellets and of combustion systems are struggling with a loss of customer confidence and bad turnovers. For example, the German company Paradigma, which is one of the German market leaders in pellet boilers, reports a decrease in turnover of about 70% compared to May 2006.