Wood pellet market in Ukraine - overview
Appr. 25 companies are involved in production of fuel pellets (including pellets produced from straw and husk) in Ukraine.
The Ukrainian industry of fuel pellets and briquettes production is export-oriented: in 2008 the total production of solid biofuel (made from wood, straw and husk) amounted to 77,000 tons, while 48,000 tons of fuel pellets and 25,000 tons of briquettes were exported (source: Fuel Alternative).
Local market of solid biofuel is at its early emerging stage, but increasing natural gas prices open considerable opportunity for Ukrainian producers and consumers of fuel pellets and briquettes. Private houses/cottages and public utilities are expected to be one of the key sectors to increase demand on solid biofuel.
On 21 May 2009 the Parliament of Ukraine passed the Law, which provides for 10-years period a tax exemption for profit from production and sales of bio fuel, including wood pellets. The Law comes into force on 1 January 2010 (the estimated benefits of the Company from tax exemption is appr. USD 1 mln. per annum).
In 8 months 2009 Ukrainian export of fuel wood (logs, billets, pellets and briquettes) amounted to USD 22.7 mln., that is by 7% lower com pa In g to respective penod of 2008 (2008 year -USD 35.8 mln; 2007-USD 31.7 mln).
Poland, Slovakia, Italy and Turkey are main importers of Ukrainian fuel wood (logs and billets), while Poland and Germany are the largest importers of Ukrainian pellets and briquettes.
Total size of global wood pellets market is estimated at the level of 10 mln. tons, the largest part of which is consumed in EU: Sweden, Denmark, Italy, Germany, Austria.
According to industry experts, in EU market of pellets will increase by 25% diven by:
- Euro parliament's directive on development of renewable energy passed in December 2008. According to the directive EU-27 countries are to increase share of renewable energy to 20% of total energy consumed by 2020,
- complications with supply of Russian natural gas to EU through Ukrainian territory.
Any copying and distributing the material of Ukrainian Biofuel Portal
without active hyperlink is stricly prohibited !
Copy & Paste This Code to your website:
Views: 7255 Published: 27-08-2010
Average Rating:
Wood pellet market in Ukraine - overview
)
Breakdown of fuel wood export from Ukraine (in tons)
