Assessment of Trends in the Global Wood Pellets Market and Opportunities of the Russian Federation in this Market

Abstract

In connection with the adoption of the concept of sustainable development and the creation of bioenergy, the world market of wood pellets was formed. Pellets have received the status of a renewable energy source. Developed countries in Europe and Asia have launched a state policy to stimulate the production and consumption of wood pellets. Forest-rich countries, including Russia, have built production facilities and become exporters of "green" fuel. The purpose of the paper is to study the demand and assess trends in the global market of wood pellets, to determine the position of Russia in this market and the opportunities for the development of the industry. The materials of the study were the statistics of the UN FAO for 2012-2020 and the German DEPI Pellet Institute, scientific and industrial sphere publications. The study showed that the global market of wood pellets is growing. This is a buyer's market which is formed by two large regional markets — European and Asian. In 2020, Russia ranked the 5th place among the world producers and exporters of pellets. Russian production is export-oriented, and the domestic demand for pellets is minimal. The dynamics of world prices for pellets has been studied, a significant growth in prices in European countries since the end of 2021 and the factors of price increases have been established. In 2022, after the rise of political tensions and the imposition of sanctions, the situation of Russian manufacturers became difficult. The assessment of export opportunities showed a high degree of uncertainty, and a conclusion was made about a decrease in business profitability, about the possible shutdown and liquidation of pellet production in Russia.