Europe’s goal to reduce carbon emissions will ensure a substantial increase in biopellet consumption and create a surge in the global market value, predicts a new report by energy experts GlobalData.
According to the report*, the global biopellet market value, which stood at $3,894m in 2011, will climb at a Compound Annual Growth Rate (CAGR) of 15.7% to reach an estimated $14,530m by 2020.
Furthermore, GlobalData predicts that the worldwide consumption of pellets will reach 16,197kT per annum by 2020, from the 2006 figure of 7,939kT per annum.
This boost is attributed primarily to an increasing demand in Europe as countries look to meet carbon emission targets and increase reliance on renewable sources of fuel.
Germany is one of the continent’s leading users of pellets and pellet heating systems – thanks in no small part to the Renewable Energy Heat Act (EEWarmeG), enacted in 2009, which means residential home owners have an obligation to meet a percentage target of heat generated from renewable sources. The country’s government also provides incentives for investments in domestic pellet heating systems in a scheme that has initiated a boom in equipment sales.
This increase in European consumption is also affecting biopellet production around the world. Canada, who only consumes 12% to 15% of its own pellets, used to export a substantial portion of its excess to the US; but, as demand in Europe dictates, countries such as Sweden, Germany and Denmark are becoming key export locations.
The US is also hoping to take advantage of European demand by extending pellet manufacturing facilities across the country. These sites are currently concentrated in the north-eastern and north-central states, but sites are also being commissioned across southern states such as Alabama, Virginia, West Virginia and Kentucky to meet international and domestic need.
NOTES TO EDITORS
*Biopellet Energy Market - Global Market Size, Average Price, Competitive Analysis and Key Country Analysis to 2020
This report details biopellet manufacturing technology along with the key drivers and
challenges in the global biopellet market. The research provides historical and forecast
analysis of the global biopellet production, average prices and market size. The report
also provides the competitive landscape of major biopellet manufacturers. The
countries covered in the report are the US, Canada from North America; Brazil from
South and Central America; Germany, Sweden and Austria from Europe; Japan from
The report is built using data and information sourced from primary and secondary
research and in-house analysis by GlobalData’s Team of industry experts.
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