A notable increase in demand for alternative energy sources and wood briquettes, in particular, this year was caused by the annual rise in tariffs for traditional energy sources, such as oil, gas and electricity as well as tighter rules for environment protection. Another year in a row wood briquettes are getting more and more preference due to their ecological properties and high heat output rates.
In 2013 production volume of solid biofuels in Ukraine amounted to 1.45 million tonnes, including 400 thousand tonnes of wood briquettes and pellets, which is 1.3% more than in 2012. However, according to the import statistics of Ukrainian Biofuel Portal pellets-wood.com, in 2013 import volumes of wood briquettes and pellets amounted to 330.6 thousand tonnes, which is 10 % less compared to 2012 with import volumes of 364.5 thousand tonnes.
For more precise understanding of the bioenergy sector situation, the experts of Ukrainian Biofuel Portal have prepared the database of European wood briquette importers. The database analysis shows that during 2013 Ukrainian enterprises exported abroad about 115.8 tonnes of the product.
The list of the major purchasers of Ukrainian wood briquettes in 2013 includes: Germany (50.6 thousand tonnes), Poland (37.9 thousand tonnes), Belgium (6.5 thousand tonnes), Czech Republic (12.5 thousand tonnes), Slovakia (2.9 thousand tonnes) and Hungary (2.3 thousand tonnes). This is stipulated not only by the geographical proximity of these countries to Ukraine, developed traffic networks, supply logistics and internal markets conditions but also by the attractive prices for the Ukrainian wood briquettes.
For several previous years Poland was known to be a major exporter of solid biofuels from Ukraine. However, in the second quarter of 2013 the Polish government reduced the grants for thermal power plants and the Green Certificate system collapsed. All this led to decrease in demand and, consequently, to lower prices on biofuels. Wood briquette export volumes to Poland decreased by 41%. By contrast, in comparison with 2012, wood briquette export volumes to Germany grew up by 67%. Stable high demand for wood briquettes in Germany and the active search of the Ukrainian enterprises for new markets to replace the Polish one are the main factors for such change.
The experts of Ukrainian Biofuel Portal report the following trends on the wood briquette market in 2014:
The US and Australian wood briquette suppliers remain the major competitors of Ukrainian enterprises as their supply rate are increasing. The number of European wood briquette producers is also growing up.
In addition, the demand for solid biofuels in Ukraine is expected to increase twice by the end of the season 2013/2014. That may make many Ukrainian enterprises to turn to domestic market.
Author: Ivan Prokhorov
