The cost of wood pellets in the UK is rising, as pellets are no longer being sourced from Russia.
UK Pellet Council chair, Mark Lebus, said the organization is working with overseas partners to help ensure a continuous supply of biomass wood pellets for UK customers, as wood pellets will no longer be sourced from Russia or imported from Russian producers.
“Given the previous levels of Russian exports, this will, of course, have an impact on supply worldwide. Not just to the UK, but for other countries too who are all now competing for the same premium product from similar suppliers,” commented Lebus.
“With UK and international sanctions in place, we estimate that total European production may be reduced by some 12-15%. So, there may be some short-term price rises due to the ongoing situation and heightened competitiveness between countries.
“UK customers may have experienced the price per tonne rising by approximately 25-40% (cost average £360-385 [€428-458]), although most accept that this is still much lower than consumers using oil or gas-fuelled systems. Current wood pellet prices are also in line with costs across Europe.”
Lebus emphasized that wood pellet prices increases are only expected to be a short-term problem while new supply chains and arrangements are put in place.
“This will be mostly over the next six weeks and with heating demand from customers naturally falling as we head into the spring and warmer months. New imports coming into the UK, for instance from the Iberian peninsula, should ensure most end-users see minimal disruption.”
Source: Bioenergy Insight (2022)