Wood fuel includes wood pellets. Wood pellets are usually made from sawdust that is compacted. Thus wood pellets are predominantly produced as a byproduct of sawmilling and other wood transformation techniques where sawdust plays a role. Wood pellets are extremely dense, allowing them to burn with a very high combustion efficiency. With their regular geometry and fine size, wood pellets lend themselves perfectly for the automatic feeding of combustion chambers. Also, storage and transport are very effective: wood pellets can be stored almost indefinitely and transported over very long distances.
The alternative in the wood industry
The prices of fossil fuels increase globally, causing other techniques and sources to be looked at for an alternative. More and more pellet heaters are installed. Compared to the price spikes in fossil fuels, wood pellets are relatively cheap to produce and transform. Since the industry-wide adoption in 1999, the demand for wood pellets is evergrowing. Especially in Europe wood pellets and energy extraction is becoming a sizable industry for the years to come.
Wood pellet prices are generally the lowest in April when mills are gearing up for their spring production. This year only one pellet mill is dropping its pricing. All the remaining mills are keeping their current pricing or going up, and it’s only March. Three companies have implied that they are having issues with obtaining raw materials and the only mill to drop its pricing is now allocating product to its dealers.