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Analysis of wood pellet producers database indicates the growth in Ukrainian pellet production

Solid fuel, in particular wood pellets or pellets have gained a great popularity in many countries of the world. Due to the permanent growth of rates on gas and electricity along with a wide usage of natural technologies and popularization of pollution-free energy resources, the recognition of alternative fuel in Ukraine is increasing as well.

Pellets is an alternative kind of fuel which may substitute natural gas to some extent. Among the main advantages of pellets, besides their ecological aspect, a high calorific value and a safety of usage, we could mention a big accessibility of their acquisition by the end consumer.

Within the last three years the companies producing wood pellets and owning sufficient facility for supplying the home market have been created in Ukraine. Mainly these enterprises were founded and now continue functioning according to the foreign contracts.

At present European Union is the main world importer of pellets. At the same time pellets production is also concentrated in countries which abound in forests, such as the USA, Canada, Sweden, Finland and Germany. Meanwhile, due to the growth of solid fuel consumption the exporters have to search for the new wood pellets producers and channels of distribution, when Ukraine features a positive dynamic in pellets manufacturing.

In this connection the production of pellets in Ukraine is primarily focused on export, since their consumption in Ukraine is not big and it makes up about 5% of the total production quantity. However this indicator is continually increasing.

The growth of propositions of wood pellets sale together with high bidding activity on Ukrainian organic fuel exchange let us conclude that wood pellets wholesale buyers from Europe have become more active.

According to the data received from the marketing department of Ukrainian Biofuel Portal, in 2008 Ukrainian market included 34 wood pellets suppliers. At the same time producers were less active in search of the sales channels of their production. And the next year the number of suppliers increased by almost 70%.

The year 2010 was notable for a dramatic growth on the solid fuel market: in comparison with the previous year the number of suppliers increased by 103. Also the active production of pellets began, that is proved by the activity of 38 new companies.

Within the recent year the number of wood pellets suppliers haven't increased significantly compared to the year 2010 only 65 new companies. In the meantime if during the last 6 months of the 2011th year there have appeared 23 more Ukrainian pellets production companies, during initial 3 months of the 2012th year the number of such companies increased by 40.

Therefore, effective on April the 1st, 2012, 317 wood pellets suppliers and also 101 producers are recorded in Ukraine.

The marketing department of Ukrainian Biofuel Portal is constantly monitoring the situation in the wood pellets production and delivery industry and so may grant the information on each particular period. The portal's database presents an integral picture of the condition on the market of the wood pellets delivery and production.

Moreover, along with monitoring the growth of propositions on the wood pellets market Ukrainian Biofuel Portal analyzes the state of the database which includes the producers and wholesale pellet suppliers. And this in its turn allows to determine the average products price offered by producers, and additionally estimate the production quantity and delivery terms.
The database of Ukrainian Biofuel Portal includes a total information about wood pellets producers and suppliers between 2008 and the 1st quarter of 2012. This data could be used both by Ukrainian enterprises together with dealers and European participants of the wood pellets market.

The analysis of situation on wood pellet market, conducted by the portal marketing specialists, which covers the period between the 2nd half of 2011 and the 1st quarter of 2012, shows pellet production and delivery volume growth along with possibilities for development of wood pellets manufacturing in each region.

From the analysis made, it is clear that most companies for the mentioned period, producing wood pellets in Ukraine are located in Donetsk and Kiev regions, the producers in Zhitomir, Lvov, Dnepropetrovsk, Odessa, Poltava, Summy, Ternopol, Khmelnitsk, Cherkassy and Chernigov regions are active as well.

The wood pellet database of Ukrainian Biofuel Portal provides the range of propositions for regions, that will become a good assistance both for working dealers together with wholesale buyers and future consumers also.

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