Pellet production and consumption increase in Spain

The Spanish Biomass Association (AVEBIOM) has published its latest statistical report on the wood pellet market for 2022 and 2023. This report includes data on wood pellet production and consumption at both the national level and by autonomous community. It also includes statistics on the evolution of the ENplus certification system in Spain.

Since 2022, domestic manufacturers have made a significant effort by increasing production and prioritizing service to Spanish customers. As a result, production and consumption curves are converging. The difference is offset by imports from Portugal.

It has become clear that pellet manufacturing in Spain is increasingly concentrated in large-capacity plants, while smaller facilities not connected to wood-related activities are disappearing: between 2021 and 2022, the number of factories fell from 75 to 67. Thirty-six of these hold a valid ENplus certificate and are responsible for 90% of certified pellet production in Spain.

Pablo Rodero, head of certification at AVEBIOM and current president of the EurPellet Council, highlights “the commitment of Spanish producers, who guarantee that 89% of national production is ENplus certified”, and also the training and “responsibility of consumers, who consider it important or very important that the pellet they purchase is of certified quality and sustainability”.

Consumers trust pellets despite the crisis.
Rising inflation and high pellet prices, common throughout Eur , slowed the pace of pellet equipment installation in Spain by 13% in the second half of 2022 compared to the previous year, when sales records for new equipment in the domestic sector were broken.

However, according to the latest survey on pellet consumption in the EU prepared by Bioenergy Eur(conducted at the end of November and forthcoming), the majority of eurand Spanish users confirm that they will continue to use pellets despite being concerned about the price increase in the last season.

In any case, heating with gas in 2022 was 44% more expensive than heating with pellets, and heating with electric radiators, for example, cost three times as much as heating with pellets.

Since 2012, we have analyzed pellet prices both at the factory (monthly) and at points of sale (quarterly). Since April 2023, prices have remained stable at levels similar to those of summer 2022 (€275/ton), and although it does not seem likely that we will return to pre-crisis prices in the coming months, the reduction in exports to countries like Italy and a mild start to the season could lead to a temporary overstock that might result in price reductions at the beginning of the year.

The VAT change for pellets:
The 5% VAT rate on energy supplies ends on December 31st and will increase to 10% for the first half of 2024 for pellets and other solid biofuels, before returning to 21%. This will undoubtedly encourage consumers to stock up on pellets before the grace period ends.

Access the 2023 pellet report
at www.avebiom.org/proyectos/informes/informe-pellets-2023