Wood pellet demand expected to jump 85% by 2024 as EU, Asia surge

In Massachusetts, RISI has released a new study which estimates that  global wood pellet demand is projected to grow from an estimated 23 million metric tons in 2014 to 50 million tons in 2024. Among factors in the increase: entry of Korea and Japan into the market, “creating a greater impact on global trade flows” according to study author Seth Walker,  a Bioenergy Economist at RISI.

“We’re seeing strong demand in the European heating sector as high energy prices drive consumers to look for fuel alternatives. Also, policies that promote the generation of renewable energy are spurring the use of pellets as a substitution for coal in power plants,” Walker added.

The Global Pellet Demand Outlook Study focuses on the European industrial market, European heating market, North American heating market, and Asian industrial market. Industrial users analyzed include: Dong Energy, Drax, E.ON, GDF Suez, KEPCO subsidiaries, Ontario Power Generation, RWE, and Showa Shell