Wood Pellet Market in Belgium
Characterized by large demand for industrial pellets for co-firing in power production, Belgium is a young wood pellet market with limited production. Belgium covers an area of 30528 km2 in northwest Europe with a population of about 10.7 million. Compared with other countries in Europe, energy consumption in Belgium is comparably high and the economy is energy intensive. Belgium is a resource-poor country. The solid fuel of energy is coal which is almost exhausted. Other energy is mainly focused on nuclear power which covers 65% of its power production. For the forest resources, the forest resources in Belgium is really limited, only 21.6% of its land is covered with forest. So the energy in Belgium can not meet the energy consumption in domestic, so most of its energy supply is mainly based on importing on oil gas and solid fuels.
Wood Pellet Development in Belgium
Wood pellet in Belgium develops with the shortage of energy and the EU Directive of using 13% share of renewable energy in gross final energy consumption in 2020. Pellet market in Belgium started in 2004 and supported by the Green Certificate and Quota System in electricity the pellets were mainly industrial pellets. Electrabel, the power plant in Belgium is the major consumer of industrial wood pellets. It used wood pellets instead of coal in two old coal power in 2005 and the plant in Les Awirs use 100% wood pellets to produce electricity. In 2008, the total demand for industrial pellets was around 800.000 tons and in 2009, industrial pellets only demanded by Electrabel amounted to 1 million tons and it was expected to use 3 million tons of industrial wood pellets by 2014. In addition, a whole supply chain was planted to establish in Belgium. Electrabel signed a three year contract with a Australia company to supply pellets worth 48 million dollars. Except for industrial wood pellets, pellets used in residential sector also has good prospective. In 2006 and 2006, the pellet appliance increased significantly. Only in Wallonia, around 9,000 pellets stoves and 1,000 pellets boilers were used in 2007. Wood pellets used in residential sector will still increasing in the following years.
Market Trend of Wood Pellets in Belgium
Supported by the government policies both on wood pellets used for industrial and residential, wood pellets will have further development in Belgian wood pellet market. Since lacking of raw materials for producing wood pellets, Belgian wood pellets in the following decades may still rely on import from other countries and German will be the main importer to Belgium. In addition, a whole supply chain and a national level platform which ensures the supply of wood pellets.