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WOOD PELLET PRICE MOVEMENT



An important driver in the development of the extraction, processing and use of wood fuels are fossil fuel prices, especially fuel oil. Price leap in fuel oil in the previous period is one of the important reasons that more and more users in Slovenia and the surrounding area decided to use wood fuels.

Prices of wood and fossil fuels can be compared in relation to energy price (€ / MWh). This raises the question of how to set the prices of wood pellets in the future? Economic logic tells us that the increasing demand for pellets should expect growth rates. Of course, with the new business opportunities also the number of suppliers grew. We be sure that at the same time also to seasonal fluctuations due to the gap between supply and demand will occur. The prices of pellets compared with oil are likely to increase. Pellets will no longer be half cheaper than oil, but until now the average annual price of pellets is still at least 30% lower.

Still enough that the investment in the processing of the heating system will pay off. Each year, one-third of newly built single family houses decide to use heating products from biomass, of which more than 90% of the fuel used wood pellets. Production of pellets in Europe between 2009 and 2010 has increased by 13% and in 2010 it was 9.01 million / tone. The largest producers are Germany and Sweden.
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