Why is the UK wooden pellet value rising?
The wooden pellet value within the UK has risen from round £300/t to over £400/t in simply six months.
One of many knock-on results of the Ukraine disaster is that wooden pellets are now not imported from Russia, Belarus and Ukraine. This has led to a shortfall of three.3 million tonnes throughout Europe and the UK.
In early 2022, Sustainability and High quality Certification (ENplus and FSC®) was faraway from wooden pellets from Russia, Belarus and Ukraine which meant they might now not be exported. And so from fifteenth April they have been now not RHI compliant.
The sudden withdrawal of those volumes had a huge effect on established provide chains and prompted international shortages in a single day.
The broader market is now looking for different provides.
Hugh Montgomery, managing director of Land Vitality stated “The EU and UK is lacking round 25% of its regular quantity of pellets, so there was important value rises heightened by competitiveness between nations.”
Value per tonne has risen by round 25-40%. UK wooden pellet value common is now in step with costs throughout Europe.
Whereas the UK biomass warmth business primarily companies rural and off-grid, home and industrial customers, it operates in a worldwide business.
Right here at Woodlets, we produce 100% of our volumes from our plant in south west Scotland and we supply all of our wooden from inside 60 miles of our manufacturing facility. We supply the globally recognised badges of high quality and sustainability in ENplus and FSC® guaranteeing compliance with BSL. We’re additionally energetic members of the Dumfries and Galloway Biosphere – a mark of our dedication to the area people and our space.
Briefly:
- Costs within the vitality market are persevering with to rise and that is prone to proceed.
- Woodlets’ manufacturing and distribution prices are rising, however we’ll proceed to provide.
- We’re investing in new automobiles and gear to maintain shares shifting effectively throughout busy durations.
- Land Vitality has the bottom CO2 of any producer or provider within the UK.
- We’ve elevated our pellet storage capability to create a buffer inventory ought to the winter flip considerably chilly.
UK Pellet Council chair, Mark Lebus, stated ‘The federal government division of Enterprise Vitality & Industrial Technique (BEIS) should realise that there’s a chance within the UK to help and strengthen a home-grown wooden pellet manufacturing market which see the UK changing into principally self-sufficient for biomass wooden gas, and, subsequently, much less reliant on imports and vitality value hikes.’
‘By rising home manufacturing in-line with sustainable forestry administration and DEFRA’s tree planting and new woodland creation ambitions, the UK might take ‘large strides’ in reaching its net-zero objectives.’
‘At the moment, the UK can’t present the required volumes and, subsequently, we import on a substantial scale and have change into drawn right into a rising vitality disaster.’
Woodlets – Residence-Grown Sustainable Warmth. Purchase Now
‘The one provider to ensure a UK-produced pellet is delivered’
