Development and promotion of a transparent European pellets market

Development and promotion of a transparent
European pellets market –
Creation of an European
real-time pellets atlas
Dr. Alexander Hoeldrich
WIP GmbH & Co KG
16th European Biomass Conference, Valencia, Spain
www.wip-munich.de
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• Main objective
Development and promotion of transparent
market structures for trade facilitation
• Work description
European data collection from pellet producers,
traders and consumers on prices, quantities and
qualities by quarterly surveys
• Geographical coverage
EU 27 (plus CH, NO)
• Project Duration
Jan 2007 – Dec 2009
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Consortium
www.wip-munich.de
• plus
subcontractors:
• SVEBIO, Sweden
• CARMEN,
Germany
• proPellets,
Austria
• to be selected
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•
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•
•
•
•
•
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Target Groups: All pellet actors, mainly:
Pellet producers
Pellet traders
Pellet consumers
Barriers
Information gaps
Supply bottlenecks, production surpluses
Uncertainties in quality assurance
management
•  Lack of market confidence
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Phase 1
Project management and coordination WP1
Development of a methodology WP2
Phase 2
Wood pellets
data collection WP4
Mixed biomass pellets
data collection and
feasibility studies WP5
Phase 3
International
pellets trade WP6
Pellet markets WP7
Phase 4
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Internet platform, dissemination
and communication WP3, WP8, WP9
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Activities and Outcomes
• A web-based information platform on important
fuel pellet market data
• Recording and evaluation of the acceptance and
implementation of CEN quality standards
• Four pre-feasibility studies for mixed biomass
pellet (MBP) utilisation in PL, SK, GR, DE
• A handbook in five European languages
(Danish, English, Polish, Italian and French)
• 5 Workshops
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Methodology
• Collected data consists of the following items:
• The contact data,
• the business operating area,(i.e. whether the actor is a
producer, trader, retailer or a large scale end consumer),
data for production e. g the production capacity,
• data about the storage,
• data for sales, e. g. Total sales (tonnes), loose to small
consumers (< 3000 tonnes), bags (< 25kg to small scale
consumers), large scale consumers, etc.,
• data for purchases, and
• harbour prices for large-scale bulk deliveries, the
CIF ARA (Cost, insurance and Freight, delivered to the
Amsterdam. Rotterdam and Antwerp region) price.
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Methodology
• Query with a
questionnaire
• A data base
• Wood pellets
(industrial/non
industrial)
• Mixed
biomass
pellets
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www.pelletsatlas.info
The former
www.pelletcentre.info
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Also prod.
Volumes &
prices.
Most
recent 2
month
protected
Incentive
for full
access:
Participate
in survey!
www.wip-munich.de
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www.wip-munich.de
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€/tonne wood pellets
Natural gas
Heating oil
Wood pellets
€cent/liter oil or 10 kWh gas
Results: Price Comparison Germany
Not the same in all European countries!
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[%] VAT
Various VAT in Europe
30
25
20
15
10
5
0
a rk ny en aly nd nd ain in nd ary m lic ia ce ce via ia ds gal ia
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The Oil price
Source: German weekly
newspaper: Die Zeit
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tonnes wood pellets
Developed wood pellet markets in Europe 2007
2.500.000
Production [tonnes]
Production capacity [tonnes]
2.000.000
Consumption [tonnes]
1.500.000
1.000.000
500.000
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About 9 million tonnes production capacity in all EU 27+2
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wood pellets [tonnes]
Consumption wood pellets 2007
2.000.000
1.600.000
1.200.000
800.000
400.000
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wood pellets [tonnes]
Comparison Production Consumption 2007
2.000.000
1.600.000
1.200.000
Consumption
Production
800.000
400.000
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Wood pellet prices in Europe (1)
280
Pellet price (€/tonne)
260
240
Strong Wood
pellet demand in
Italy affected
Austrian &
German markets
in winter 06/07
(but not in
07/08)
Austria
Germany
Italy
220
200
180
160
140
120
jan-05
Loose delivery of 5 tonnes wood pellets to
households, max. distance 50 km, incl. VAT
jul-05
www.wip-munich.de
jan-06
jul-06
jan-07
jul-07
jan-08
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280
Sweden
Pellet price (€/tonne)
260
240
220
Denmark
Austria
Germany
Italy
Scandinavian
prices
remained
unaffected at
high levels…
200
180
160
140
120
jan-05
Loose delivery of 5 tonnes wood pellets to
households, max. distance 50 km, incl. VAT
jul-05
jan-06
www.wip-munich.de
jul-06
jan-07
jul-07
jan-08
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280
Pellet price (€/tonne)
260
240
220
Sweden
Denmark
Austria
Germany
Italy
Greece
Poland
200
180
160
140
… while
southern /
eastern
producing
countries
show low
price levels
Loose delivery of 5 tonnes wood pellets to
households, max. distance 50 km, incl. VAT
120
jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 jan-08
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Wood pellet price range Europe
D enm ark
300
Netherlands
280
G reat B ritain
260
Italy
Pellet prices (€/tonne)
> Factor of 2
price
difference
between
some northwestern and
southeastern
countries
S w eden
240
S w itz erland
S lovenia
220
Hungary
200
Aus tria
Ireland
180
S pain
160
140
120
100
17-Jun-07
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P oland
L o o s e d e live ry o f 5 to n n e s w o o d
p e lle ts to h o u s e h o ld s , m a x .
d is ta n c e 5 0 k m , in c l. V A T
Latvia
G reec e
Lithuania
E s tonia
24-S ep-07
01-Jan-08
09-Apr-0 8
R om ania
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Harbour prices wood pellets
CIF ARA spot prices
(excl.VAT) for bulk
delivery of 5000 tonnes
wood pellets by
oceanship, prices
according to pellet
actors from:
Latvia
Pellet price CIF ARA (€/tonne)
200
190
180
170
160
150
140
130
Greece
120
Great Britain
110
Netherlands
100
Jul 07 Sep 07 Nov 07 Jan 08 Mrz 08
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First Workshop in the UK in 2007
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First Workshop in the UK in 2007
• A Pellet Fuel Production Workshop (Task 8.4)
organized by NEF took place in Milton Keynes in the UK
on 22nd November 2007
• As well as a being an informative event the day provided
opportunities for the delegates to answer questions and
to network, which NEF has from past experience found
to be an important way for individuals and organisations
to find potential partners for pellet production.
• More delegates would have attended the workshop if
there had been space.
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Mixed Biomass pellets – an increasing market
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www.wip-munich.de
Straw
Germany
2007
Straw
Germany
2008
Germany
Denmark
Greece
Poland
Lithuania
€/tonne MB pellets
Comparison MBP prices Jan 08
300
250
200
150
100
50
0
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MBP Market
• Small starting production in:
Poland, Czechia, UK, The Netherlands,
Greece, France, Germany
• Producing capacity around 10.000 tonnes per year
• Mainly used raw material: straw
• Other material: residues of the oliveoil harvest; coffee
husk etc.
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MBP Obstacles
The market for MBP is small but developing
• Factors that hamper the market:
legal aspects and technical aspects for the heatingsystems like the emissions NOx, dust or aspects of
the combustion efficiency, the corrosion, the ash
melting points, lower energy content than wood pellets
etc.
• Development of logistic systems for the production of
agro-pellets is necessary too.
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Discussion
• Data quality from survey differs between welldeveloped and developing markets
• Especially large-scale industrial pellet prices are
hard to determine
• Difference in EU price levels illustrate nontransparancy of markets and importance of
pellet logistics
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Conclusion
• pellet markets differ from country to country
• pellet prices for end-consumers can vary over a
factor of two in different European countries
• pellet trade flows are not transparent
• With the public dissemination of wood pellet
production, consumption and especially price
data, we expect that this situation will improve
greatly.
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Special thanks to the associations
EU
Germany
Italy
EUBIA
DEPV; CARMEN eV
AIEL - Associazione
Italiana Energie dal Legno
Sweden
AFAB; PIR; SVEBIO
France
ITEBE
Switzerland
Spain
Finland
Norway
Canada
USA
Canada
Belgium
Denmark
Austria
www.wip-munich.de
Holzenergie Schweiz
ESCAN
Finnish Pellet Energy Association
NOBIO
Wood Pellet Association of Canada
Energex Pellet Fuel, Inc.
Granules Combustibles Energex, Inc
VALBIOM
FORCE Technology
proPellets Austria
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Outlook
• Establishment of a permanent market monitoring
system for all pellet actors
 Long-term objective:
Continuation of monitoring platform after 2009
Next Pellets@las workshop:
• 17th June 2008, Utrecht, the Netherlands on the
global wood pellet trade: markets, barriers and
opportunities, see
www.pelletsatlas.info -> news
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Thank you for your attention!
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