European Union: Wood Pellets Annual

In 2022, EU wood pellet consumption hit a new record of 24.8 million metric tons (MMT) mainly due to increased residential use. In 2023, EU demand is expected to further grow to 25.6 MMT, based on a further expansion of the residential markets supported by Member State (MS) incentives and the implementation of the third Renewable Energy Directive (REDIII). EU demand for pellets has significantly outpaced domestic production for the past ten years, which resulted in increased imports from mainly the United States, Russia, Belarus, and Ukraine. In 2022, EU wood pellet imports totaled 5.89 MMT with a value of $1.32 billion. The EU adopted import ban for wood pellets from Russia since the summer of 2022 has created an opportunity for transatlantic trade of wood pellets.