Paper details

Title:

The Russian Wood Pellet Business: Exports to the Nordic Area

Author(s):

Proskurina, S., Vakkilainen, E., Heinimö, J., Mikkilä, M.

Document(s):

Abstract:

The Russian wood pellet business has expanded rapidly in the last decade. The first pellet production plant was built in 2003 and within ten years Russia has become an important exporter of pellets, mainly to the Nordic and Baltic area. The aim of this paper is to present an overview of the current status of Russian wood pellet exports. The paper identifies the main pellet suppliers by region and volume, and describes domestic demand for wood pellets. In addition to reviewing the current pellet market status in Russia, the paper addresses challenges facing the Russian wood pellet business, both domestically and in key export markets. The paper is based on a review of published scientific literature, the latest Russian official documents and reports, and the IEA Bioenergy Task 40, Global Wood Pellet Industry Market and Trade Study. Attempts have been made to reconcile the varying and conflicting data given in different Russian documentation sources, thus permitting a more accurate representation of the Russian pellet business, an important player in global pellet trade. Despite its importance, there is limited work available on the Russian pellet industry. Thus, this paper contributes to greater understanding of the Russian pellet business. Based on an up­to­date analysis of the market situation, challenges and opportunities are presented for future scenarios of Russian pellet exports. The study further demonstrates the important role that Russia plays in the global pellet market. This paper finds that although the Russian pellet business developed very rapidly during 2004­2009 the industry now faces considerable challenges. Due to an oligopolistic market structure and a lack of opportunities for small and medium­sized companies, it is expected that, despite its obvious potential, the Russian wood pellet industry may not develop significantly in the near future.

Keywords:

pellets, market, Russia, challenges

Topic:

Biomass Policies, Markets and Sustainability

Subtopic:

Markets, Investments & Financing

Event:

22nd European Biomass Conference and Exhibition

Session:

4AV.3.13

Pages:

1526 - 1534

ISBN:

978-88-89407-52-3

Paper DOI:

10.5071/22ndEUBCE2014-4AV.3.13

Price:

FREE