Pellets and wood pellets: what future for the price?

[moinsdewatt]

Wood pellets will exceed half a million customers in France in 2015

Posted by Frédéric in July 28 2015 the DOUARD

In 2014, the French fleet of heating appliances exceeded 400 stoves and 000 wood pellet boilers. For 50 years, the annual growth of wood pellet appliances has been 000% for stoves and 10% for boilers (source Observ'ER). However, the market remains to be conquered since wood pellet heating still represents only a small part of the overall heating market today.

In 2015, the milestone of 500 wood pellet users should be exceeded!
Production of wood pellets, meanwhile, exceeded one million tonnes in 2014.

Over the past 10 years, the annual increase has been 45%.
Wood pellet production in 2014: 1 t
Wood pellet consumption in 2014: 900 t (source SNPGB)

These figures confirm that this young sector is developing at a sustained pace.
This is explained by the fact that wood pellet heating clearly meets consumers' expectations thanks to strong arguments in terms of COMFORT and PERFORMANCE
while using CLEAN, LOCAL ENERGY. In addition, the price of the pellet remains undeniably COMPETITIVE.

http://www.bioenergie-promotion.fr/4179 ... e-en-2015/

[moinsdewatt]

The price of pellets, lower and more stable than that of other energies

Posted by Frédéric DOUARD on February 23 2017

The latest price index shows that the price of wood pellets is competitive and stable compared to other energies. Indeed, the price of electricity is 163% more expensive than pellets (in bags), fuel oil and gas are respectively 29% and 14% more expensive than pellets (in bulk).

Why does the price of pellets remain lower and more stable than other energies?

Electricity : increase in investments in power stations and in public networks (for the moment in France, electricity is the cheapest in Europe).
oil : increase in carbon tax and agreement concluded by OPEC member countries for a reduction in the production of barrels of oil. The price of fuel oil has therefore started to rise again.
Gas : increase in regulated prices + increase in carbon tax
The pellet is a local and renewable energy. Its price is independent of the price of oil, it is therefore sheltered from the jolts of the big world markets of fossil resources.

Since 2007, the development of the price of pellets has barely been greater than that of inflation. It is one of the energies whose price is the most stable.
In addition, wood pellet heating is not impacted by the carbon tax. The carbon tax (or more precisely the Climate Energy Contribution) aims to discourage consumers from choosing “polluting” energy, this is the “polluter pays” principle.

Since its implementation in 2014, this tax has increased from € 7 in 2014 to € 30 in 2017 to reach € 56 in 2020 and € 100 per tonne in 2030. The impact on the price of heating will be heavy and will become a signal - strong price to change consumer behavior.

Beyond its economic argument, wood pellet heating is a serious ecological solution to the problems of air quality and energy independence while meeting user expectations in terms of energy performance and comfort.

https://www.bioenergie-promotion.fr/498 ... -energies/

[Christophe]

Thank you for this "historical update"

[Did67]

I remember these alarmist discussions when there was, in 2013, a sudden (relative) rise in the price of pellets ...

From these "discussions of counters" from which it emerged that "obviously the price of pellets would follow the price of fuel" ...

From these endless discussions with PAC fanatics ...

I had then defended the opinion that no, the pellets did not follow the price of fuel (unfortunately, when it drops suddenly!). AND that the energy that would increase the most would be electricity ...

It is indeed nice to relaunch this thread with data in "long series": the mass is said!

[moinsdewatt]

Pellet production in France is now 1 million tonnes per year.

Pellet production that follows demand

Pellet production in 2015 reached 950 tonnes compared to 000 tonnes in 1. The forecast for 040 is 000 million tonnes. The increase in production was strong until 2014, then decreased in 2016 to adapt to demand following two successive mild winters.

The French model of self-sufficiency continues and consolidates since the factories have the capacity to serve a significant growth in future consumption.



Production of wood pellets in France (tonnes)

source: http://www.propellet.fr/page-propellet- ... le-94.html

[Christophe]

What market share represent these 1 million Tons in comparison with the consumption of FOD (heating oil) and gas (natural and propane)?

[moinsdewatt]

In France, around 4,2 million households are equipped with an oil boiler.
et

...... In 2016, fuel oil consumption in France rose to 7,4 million cubic meters, compared to 7,8 million in 2015. .....

source: http://www.lefigaro.fr/societes/2017/02 ... -froid.php

[Did67]

1 million tonnes of pellets = 500 tonnes of FOD (ladle) in energy equivalent.

We are therefore in a ratio of 0,5 to 7,4 or 1 to 15 [it would be necessary to correct by density, but for an "order of magnitude", that will suffice!]

Come on, it's not complicated, by multiplying the 7,4 million m3 by approximately 0,85, that makes 6,3 million tonnes of FOD, approximately.

So 0,5 for 6,3 ... or 1 for almost 13 ...

[moinsdewatt]

Atlas of wood pellet producers, French production rose to 1,28 million tonnes in 2016

Posted by Frédéric DOUARD on May 26, 2017

Our 2017 survey of pellet producers confirms that 2016 production in France exceeded 1,28 million tonnes, i.e. 300 tonnes more than in 000 (+ 2015% increase in volumes). This result is the logical consequence of the continuous increase in production since 31, but also of the return to normal after two abnormally mild winters.

The survey was conducted among all 106 French producers, which you will find details on in the pages of our atlas.
......................

https://www.bioenergie-promotion.fr/511 ... s-en-2016/

[Did67]

FYI, and echoing a debate there was here a few years ago, like "anyway, the price of pellets will go up and line up with the FOD", I ordered there a few days at less than 220 euros per tonne. I don't know yet if I benefit from a discount for cash payment on the promotional price. If so, it will be 217 euros per tonne including tax delivered (base 8 tonnes; I emptied my silo and refilled it for 2 years).