Wood pellets production

Woody biomass from industry comes from the wood processing (55%) and wood converting industry (45%). The main resources for wood from industrial residues are from the sawmill industry.

Wood from industrial residues

Pellet market, production and use

Generally, the market for wood pellets is developing. But even so, the German pellet market needs to overcome some barriers. So far, no market structure has developed. Some pellet producers, especially in the Southern Germany, have difficulties to market their pellets. Moreover, in Northern Germany, an inadequate supply of pellets also hinders an increase of combustion systems. The main market barriers are the inadequate supply chain and the poor marketing of pellets and combustion systems. As pellets are mainly made from industry by-products (sawdust), one further market barrier is the increasing competition with material usage (derived timber products industry, pulp industry).

Pellet producers are mainly situated in Southern Germany, although, at the moment, there is some interest directed at some locations of big sawmills in the north. For example, German Pellets is a pellet producer in Wismar. Production started in 2005 with about 60,000 tonnes and is set to increase to 240,000 tonnes. In Schwedt, a pellet factory has started the production in April 2006 with 100,000 tonnes.