Demand for Biomass is set to Double
The current demand for Biomass pellets is 16million tonnes per year. This is projected to increase to 46 million tonnes by the year 2020.
Since 2000, the world pellet industry has grown by a compound annual growth rate of 23% and the majority of this veracious growth has come from demand in Europe. The future demand is expected to skyrocket in western Europe and China, this boost in consumption is driven by the reduced demand and reliance for Fossil fuel energy and Government policies and incentives to replace fossil fuels with more environmentally sustainable alternatives in mind.
Canada has the largest potential as a wood pellet producer to meet this rising demand. Canada exported 1.6m tonnes of biomass wood pellets to Europe in 2016, most of that going to the United Kingdom as can be seen from the chart, the UK is by far the largest market for biomass wood pellets in Europe and as the UK Government continue with legislation that support the conversion of old coal fired power stations over to biomass then we expect to see this demand go far beyond where it is today.
The European commitment to wood pellets is strong and the United Kingdom is the world leader in wood pellet consumption. It will continue to import vast amounts
of pellets as the power stations in the North of England have been converting from coal to wood pellets. (Reference: Argus Biomass Market report). The price of wood pellets in the market this year has risen from €120 per tonne to over €156 per tonne, that is not to say that this rise in price will continue rising at this rate, but it does point to a very positive outlook for the woodpellet suppliers.
Renewable Biomass Project
Now that the UK and Canada have signed up to an agreement along with 50 other countries including Mexico and France to phase out the use of Coal by 2030. Coal is the dirtiest fossil fuels still in use today and burning it to produce electricity contributes significantly to rising CO2 emissions. Despite President Trumps refusal to commit to the Paris Climate agreement, his actions have actually galvanized other nations into taking action against a major pollutant like coal. "The bottom line is coal is a dirty, unnecessary, polluting fuel that deserves to remain in a more ignorant and backward era.