New Publication – Margin potential for a long-term sustainable wood pellet supply chain

The existing wood pellet markets face increasing competition – both the large-scale use for co-firing with coal or standalone bio-powerplants (price pressure from other low-carbon electricity technologies) and the residential use (competition from e.g., district heating, heat pumps, biogas and biomethane, as well as renewable power-to-gas). On the other hand, wood pellets are seen as a key supply option for Bioenergy with Carbon Capture and Storage (BECCS), and Bioenergy with Carbon Capture and Use (BECCU) which may be needed to achieve net-negative greenhouse gas emissions. Given this background, the study presents a cost baseline for pellets, analyzes potential supply cost reductions, and evaluates the future market prospects of wood pellets in industrial low- and high-temperature heat, industrial processes (e.g. steelmaking), and for BECCS/BECCU.

MAIN REPORT – Fritsche-et-al-2019-IEA-Bio-T40-Margin-Pellet-Study

ANNEXES – Fritsche-et-al-2019-IEA-Bio-T40-Margin-Pellet-Study-Annexes

TWO PAGE SUMMARY – Fritsche-et-al-2019-IEA-Bio-T40-Margin-Pellet-Study-Summary