Trends in pellet heating in Europe in 2021

Excerpts of a statistical report from Bioenergy Europe and the European Pellet Council

This pellet statistical report is produced by Bioenergy Europe, a “non-profit, Brussels-based international organisation bringing together 41 associations and 122 companies, as well as academia and research institutes from across Europe.”  We find it extremely valuable and timely, in part because it shows the extensive use of domestic and imported pellets for residential and institutional heating.   

 

News coverage in North America almost exclusively focuses on the industrial pellets exported for electric generation, primarily in UK.  This report shows a much broader and more diverse pellet market that also relies on premium heating pellets, which are made by plants using far more residuals than the plants operated by companies such as Enviva which are now relying extensively on whole logs.

AGH calls on the scientific community, environmental groups, policy makers and the media to look at the end use of pellets, and the highly variable carbon impact of using pellets at 80% efficiency, compared to 35% efficiency.

Bioenergy Europe released parts of their report to the general public, which can be downloaded here where many of the sections are blurred. We only excerpted portions of this report below that deal with pellets used for heating.

Forward (excerpts)

The sales of residential pellets heating appliances showed very encouraging trends in countries like Germany, France and Austria, proving that, when the governments actively invest in phasing out fossil fuels, pellet systems directly appear as a credible, affordable and sustainable solution. In 2021 we have been recording even more encouraging sales in those countries. 

First, the 2020- 2021 heating season lasted much longer than usual, which, together with homeworking requirements in many countries, led to an increased pellet use in the residential market. Secondly, this long heating season, coupled with high electricity prices, encouraged many industrial operators to use more pellets than usual. … it is incredibly impressive to see how pellet prices compare to fossil fuel prices, which are currently hitting historical record highs. Together with increasing appliance sales, this shows again how bioenergy can help to fight energy poverty in Europe. 

 

World pellet consumption (excerpts)

In North America, the use of pellet has not witnessed a dramatic growth in the recent years despite different initiatives to grow the market both in US and Canada. Still, a niche market is consolidating its expansion: the pellet barbecues. The increasing sales of these barbecues lead to increasing sales of high margin pellets (e.g. 3 producers of 10.000 tonnes in Canada). 

In South America, the use of pellet, mostly for residential and mid-scale heat production, is expected to grow in the future 

European pellet consumption for heating 

The annual increase of the pellet demand in the residential/commercial sector was smaller in 2020 than in 2019: +3,8% in 2020 (vs 2019) and +5% in 2019 (vs 2018). It can be explained by the fact that 2018 has benefited from fairly good heating seasons while 2019 was deeply impacted by the low 2019-2020 heating season and a low start of 2020-2021 heating season. Furthermore, the not so strong increase in sales of heating appliances did not compensate for this low demand. Despite this, France and Serbia are highlighted as growing examples, as they have both registered the biggest increase (in absolute terms) in residential/commercial pellet consumption. 

Still, in 2020, the residential and commercial consumption increased together by 152.339 tonnes. Commercial pellet demand decreased in 2020 (-4%) while the residential showed a weak growth (+2%) and in absolute terms: + 289.686 tonnes for residential use and -137.287 tonnes for commercial use. 

 Heating degree days (HDD) is used as a proxy to estimate the heating energy needs - the higher the HDD for a season, the higher the need for heating. Therefore, we can see that the heating season of 2012-2013 was generally characterised by colder temperatures (i.e. higher HDD), creating some disruption on the pellet market that was not fully prepared, leading to market tensions and even small shortages. For this reason, pellet market players then tried to organise themselves to prevent this situation from repeating itself by increasing their production and stock. Unfortunately, from 2013 to 2016, Europe experienced three consecutive mild winters, leading to a rather disappointing growth of pellet consumption in the heat market inducing the accumulation of pellet stock in some regions. Thankfully, the following heating seasons were colder, resulting in better pellet use for heat showing a growth of around 12% over the 2016- 2017 period. 

This sudden rise in consumption generated again some tensions in the supply leading to shortage in some areas and generating a price increase in 2018. The heating season of 2018-2019 was slightly milder than the previous ones but only marginally colder than the ones from 2013 to 2016, leading to a modest growth of the pellet consumption for heating. The 2019-2020 season followed the same pattern as the previous season and a reduction in consumption also appeared. The 2020-2021 season started very similarly to the previous but then lasted for much longer. Indeed, in many areas, the energy demand was still rather high in March and April, which unexpectedly supported the pellet demand, allowing most of the market players to empty their stock. 

Residential Pellet Consumption

European stove market 

[The full report contains a para on each country, but the following 3 countries were the only ones included in the public facing report. - Ed]

Portugal: The installation of pellet boilers and stoves reached a peak in the winter of 2019-2020. The producers consider that, in the upcoming years, the number of installations will be steady with tendency to decrease in 2025 due to the competition with heat pumps. 

Serbia: A huge increase of pellet stoves and boilers is the result of a huge number of schools (over 200), kindergartens, health care centres and other public and commercial buildings that have switched from coal and heating to pellets. Since 2019, the government of Serbia has supported a vast number of public buildings in replacing heating oil and coal with wood pellets leading to sales increase. 

Spain: The market trends in 2020 were worse than in 2019 with a 16% decrease in the annual sales of pellets stoves. During the pandemic, the installations of stoves have been impacted due to the limited availability of installers, while sales greatly recovered in the second part of the year. 2021 should be rather similar while 2022 and beyond should be more favorable as Renewable Energies supports, and recovery funds will be put into place. 

European residential boiler market

Further reading:

Residential wood heating in Russia, Aug. 2021

Tall wood stoves: an elegant tradition lives on in Europe, Aug. 2020

Stove Eco-labels: US needs to follow Europe, Dec. 2018

Danish stove industry looks to compete, grow in America, June 2019

Photo essay: Wood heating stoves from around the world, Oct. 2014

Households heating with wood or pellets declined by nearly 10% between 2011 and 2016

By Melissa Bollman, Alliance for Green Heat

In 2011, the Alliance for Green Heat reported a significant rise in the number of U.S. homes using wood or pellets as a primary source of heat. According to the U.S. Census’ American Community Survey, residential wood and pellet heat grew 34% between 2000 and 2010, faster than any other heating fuel. Propane and oil heat experienced the greatest declines during the time period, leading the Alliance to speculate that the rise of wood and pellet heating was driven by the economic recession, rising oil prices, and support for renewable energy.

Wood and pellet heating continued to rise during the next few years (see AGH analyses for 2011 and 2012) at an average rate of about 1-2% per year with some states experiencing higher growth. In 2014, the Census reported that an estimated 2.5 million U.S. households used wood or pellets as a primary heating fuel. Since then, however, the number and percentage of U.S. homes primarily heating with wood and pellets leveled off and saw a modest decline. According to the newest American Community Survey, around 2.2 million homes of U.S. homes primarily heated with wood and pellets in 2016—a nearly 12% decline from 2014 and a 9.4% drop from 2011.

Census figures suggest that wood and pellet use has fallen the most in the Southern states of North Carolina (down 17% from 2011), South Carolina (-25%), and Louisiana (-20%). Wood and pellet heat also appears to be on the decline in the Northeastern states of Maine, Connecticut, New Hampshire, and Massachusetts, which may be the result of more homes installing electric heat pumps. While nearly all states reported fewer homes heating with wood and pellets between 2011 and 2016, the largest increases were reported in Delaware (+20% between 2011 and 2016), New Jersey (14%) Utah (11%), and North Dakota (7%).

While wood and pellet use has declined in recent years, electric heat pumps and solar thermal systems are on the rise. American Community Survey results show that U.S. electric heating rose 10.4% between 2011 and 2016, with the largest increases occurring in Utah (+48%), Maine (+36%), Nebraska (+30%), and Vermont (+30%). About 39% of U.S. homes used electricity as a primary heating source in 2016, making it the second-most common source behind utility gas, which is used in nearly half of U.S. homes.

Warmer winters likely contribute to a longer-term decline in wood and pellet stove sales. According to annual data from NOAA, average U.S. winter temperatures increased between 2014 and 2016, which coincided with a decrease in the number of homes heating mainly with wood or pellets. But the big event during the years of this analysis was the economic recession, which lasted from 2007 to 2009. During these years, the number of U.S. homes heating with wood and pellets rose 15%. The use of stoves as primary heater usually goes up when the economy slows down, as people turn on their fossil fuel central heaters less and rely more on cheap wood. When economy is good, families tend to burn more fossil fuels and less wood. Pellet usage may also follow that trend, but tends to be even more volatile than cord wood.


While wood and pellet use has declined in recent years, electric heat pumps and solar thermal systems are on the rise. American Community Survey results show that U.S. electric heating rose 10.4% between 2011 and 2016, with the largest increases occurring in Utah (+48%), Maine (+36%), Nebraska (+30%), and Vermont (+30%). About 39% of U.S. homes used electricity as a primary heating source in 2016, making it the second-most common source behind utility gas, which heats nearly half of U.S. homes.

Less than 0.5% of U.S. households obtain their heat from solar energy, but the number of American homes using solar thermal technologies more than doubled between 2011 and 2016. The Census estimated that over 150,000 U.S. homes used solar energy as a primary heat source in 2016, while only approximately 122,728 households (50% of which are in Pennsylvania) used coal. This marks the first time solar surpassed coal as a primary U.S. residential heating source in Census estimates. Maryland, Oklahoma, and Louisiana had the largest increases in solar heating between 2011 and 2016. However, solar thermal remains the most popular in California, Arizona, and Hawaii.

The percentage of U.S. homes using other heating sources, namely, utility gas, propane, and fuel oil, has remained fairly constant over the past few years. Although the number of U.S. homes using wood or pellets as a primary heat source grew significantly during the 2000s and early 2010s, the overall percentage of U.S. homes remained fairly constant at around 2%.

Since the U.S. Census Bureau started tracking heating data in 1950, wood heating has had wide swings. Starting at 10% of the population in 1950, it dropped to 1.3% in 1970, an all-time low. By 1990, wood had climbed back to 3.9%, only to drop back to 1.6% in 2000. The recent decline in wood and pellets as a primary heat source could indicate that wood use is starting to level off. However, this is complicated by the enduring popularity of wood and pellets as a supplementary heating source. The newest Residential Energy Consumption Survey by the EIA estimates that an additional 9.3 million U.S. households used wood as a secondary heat source in 2015.

This analysis is based on 1-year estimates from the American Community Survey. The decennial Census, which is used primarily for redistricting, provides the most accurate statistics. The 2017 American Community Survey results will be released in September.

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2012 Census Shows Wood Heating Continues Growth Streak

Alliance for Green Heat, Sept. 25, 2013 - According to recently released U.S. Census statistics, 63,566 more families used wood or pellets as a primary heating fuel in 2012 compared to 2011, which amounts to an increase of 2.6%, making wood again the fastest growing heating fuel in America.

From 2000 to 2010, wood and pellet home heating grew by 34%, faster than any of the other heating fuels, including solar and natural gas. Oil and propane use declined between 2000 and 2010, and the decline continued in 2012.

Today, 2.1% of Americans use wood or pellets as their primary heating fuel, up from 1.6% in 2000. An additional 7.7 % of U.S. households use wood as a secondary heating fuel, according to the 2009 EIA Renewable Energy Consumption Survey.

Nearly 2.5 million households use wood as a primary heating fuel, making it, by far, the dominant residential source of renewable energy in the United States. In comparison, only about 500,000 of U.S. homes have solar panels and less than 50,000 use solar thermal heating. Solar thermal heating dropped by 2% in 2012 from 2011, according to the new Census numbers.

The states with the biggest growth in wood heat from 2011 - 2012 are Delaware (35.1%), Rhode Island (29.6%), Nebraska (24.6%), New Hampshire (18.5%) and New Jersey (17.7%). However, other states experienced declines. Among the important wood heating states of Washington, Oregon and California, the decline was very small, but there were more significant declines in Illinois (5.2%), Idaho (5%) and Colorado (4.8%). Over a 12-year period, the prevalence of wood heating has increased, often very significantly, in every state except Louisiana, Mississippi, Florida and Hawaii.

Since the U.S. Census Bureau started tracking heating data in 1950, wood heating has had wide swings. Starting at 10% of the population in 1950, it dropped to 1.3% of the population in 1970, an all-time low. By 1990, wood had climbed back to 3.9%, only to drop back to 1.6% in 2000. The biggest growth story in heating fuel is electricity, which went from under 1% in 1950 to 36% today.

The environmental costs of using electricity for heating is high in most states, where the majority of electricity is still made with coal. The environmental cost of drilling and transporting other fossil fuels like oil and gas can also be high. Wood heating has an environmental cost from the particulate matter in the smoke, particularly from older stoves in more densely inhabited areas, and, in some states, from growing numbers of outdoor wood boilers. The EPA has proposed stricter emission standards for wood and pellet stoves and boilers and the Office of Management and Budget is reviewing them now.

Some of the growth in wood heating can be attributed to households that already had stoves, but now use them as primary heaters, instead of a secondary ones. Other households may have bought and installed stoves they found on the second hand market, which is legal in all states except Washington and Oregon.

The trend towards greater use of wood and pellets is mainly due to the lower operating costs compared to oil, propane and electricity. Three states – New Hampshire, Massachusetts and Maine – have provided generous rebates for pellet boilers to help residents replace costly oil heating systems and keep their heating dollars local. Maryland recently established a rebate for the cleanest wood and pellet stoves for rural homes that do not have access to natural gas.

For more info on 2012 U.S. Census data and on trends from 2000 - 2010, and more details about wood heat in the 2000 – 2010 Census.

Best of AGH Newsletter: March 2011 – March 2012

 The following stories from our monthly newsletter, Green Heat News, were the most popular stories amongst our readership. Our mailing list of about 4,000 people includes hundreds of state and federal regulators and policy makers, over a thousand in the wood and pellet stove industry and hundreds of consumers and non-profits.

March 2011 - EPA Rolls Out Proposals for Wood Heating Units

The EPA has begun to release what will likely be their new proposed emission standards for wood and pellet stoves, boilers and other appliances. EPA is proposing to match the Washington State standards that they adopted in 1995 of 4.5 grams an hour for wood and pellet stoves and 2.5 grams and hour for catalytic stoves. Indoor and outdoor boilers would be held to 0.32 lb. / mmBTU heat output by 2014 and 0.15 lb. / mmBTU heat output for 2016.

Hearing on Maryland Wood Heat Legislation

The Maryland House of Delegates heard testimony on HB 829, the Renewable Energy Act for All. HB 829 was introduced by Delegate Heather Mizeur (right) who represents the Alliance for Green Heat’s district. The bill would provide a rebate to people buying the cleanest wood and pellet stoves, as part of a larger rebate program for solar, wind and geothermal. HB 829 combines important goals in Maryland, including promoting renewable energy, helping low and middle-income residents to affordably heat their homes, changing-out older wood stoves, etc.

April 2011 - Oregon Bans Phase 2 Outdoor Boilers
Oregon recently adopted a rule that prohibits the sale of any solid fuel-burning device that is not certified for sale by the DEQ or by the EPA. This mainly affects outdoor wood boilers and single burn rate wood stoves. These devices are no longer exempt in Oregon. Pellet stoves, masonry heaters, cook stoves, fireplaces and antique stoves continue to be exempt. This policy, similar to ones in Washington State, has the unfortunate result in also banning the cleanest indoor pellet boilers, including those that have so successfully started replacing fossil fuel boilers in Europe.

May 2011 - Solar Pellet Focus
The new pellet boiler OCTOplus by Solafocus recently received the "Energie Genie 2011" innovation award. The boiler combines solar and biomass technology into a fully automated system, with both a pellet burner and a 500-liter (130 Gallon) solar accumulator tank. System advantages include high efficiency (94%), compactness, simple hydraulic integration, an innovative control system, intuitive operation and a large removable ash pan. 

June 2011 - Are We Ready for Large-Scale Deployment of Pellet Stoves?
The EPA is currently undertaking regulations for New Source Performance Standards for wood stoves and for the first time ever, pellet stoves. The Alliance for Green Heat believes that if we want to see widespread deployment of pellet stoves in the US, like they have in Europe, a stricter standard is needed.

July 2011 - Commentary: Innovative Hydronic Heater Bill Stalls
Rhode Island residents and legislators have some innovative ways to combat the residential hydronic boilers that are often highly polluting. H5783 required anyone selling or renting property with a traditional hydronic heater to remove it. The Alliance supported this bill but opposition by outdoor boilers companies prevented its passage.

Biomass: Sustainable, but "Never Carbon Neutral"
Recently, Vermonters have begun to think about forests in a new way: As renewable energy from waste wood products that can heat homes, campuses, and more. How much of the region can-or should be-harvested?

 
August 2011 - Biolite campstove, with USB charging
The Biolite stove is not only being utilized by backpackers who look to cut down on the fuel they carry, but also the companion homestove is revolutionizing cooking in developing countries. The Biolite stove can charge cell phones and LSD lights as well as producing heat that increases its usefulness across the board. 

No Process for Resolving Air Pollution Problems
Many families are experiencing excessive wood smoke from a neighbor's outdoor wood furnace coming into their home. You would expect that there would be some agreed-upon process for resolving this kind of problem. There's not. Some families have been forced to move.

September 2011 - New Developments in European Stove Technology
European wood and pellet stoves are making technological advances, offering more options for consumers. From heating water, to syncing with heat pumps and solar thermal systems, to using ducts to heat adjacent rooms, there is clearly a renaissance of development in both wood and pellet stoves in Europe.

Hydronic Heater Ads Misleading Consumers
Through the hydronic heater Phase 2 Partnership Agreement, outdoor boilers were testing at up to 99% efficiency. The Alliance for Green Heat calls on the EPA to disassociate the Phase 2 program from the now discredited efficiency numbers that are still being used by some manufacturers.

Reliable Pellet Stoves
Objective ratings of pellet stoves are nearly impossible to come by, but Scott Williamson, an independent pellet stove technician, kept meticulous repair histories from more than 5,000 house calls. He rates what he found to be four of the most reliable pellet stoves. He includes a Harman, a Lopi, an Enviro and, pictured left, the England Stove Works model 25-PDV. 

October 2011 - Residential Heating Fuels Show Diverse Growth Patterns 

Wood was the fastest growing heating fuel nationally but in some regions, electricity, natural gas, propane and even oil are experiencing rapid growth. Wood grew the fastest (+34.6%), followed by electricity (+26.8%) and natural gas (+4.9%), and both propane (-16%) and oil (-21.9%) declined. But regional differences abound. The map on the right shows where oil heat grew fastest in black, electricity in blue, gas in brown, propane in orange and wood in green. 

2010 Census Shows Wood is Fastest Growing Heating Fuel in U.S.
Recently released U.S. Census figures show the number of households heating with wood grew 34% between 2000 and 2010, faster than any other heating fuel. In two states, households using wood as a primary heat source more than doubled - Michigan (135%) and Connecticut (122%). And in six other states, wood heating grew by more than 90% - NH (99%), MA (99%), ME (96%), RI (96%), OH (95%) and NV (91%). Numerous outlets, including the AP, USA Today and many other papers, covered the analysis done by the Alliance for Green Heat.

How to Get the Best Firewood for Clean and Affordable Energy
A clean burning, EPA certified stove is only half the equation. John Gulland, member of the Alliance's Board of Advisers, spells out why firewood is equally important to heating your home. 

Nov/Dec. 2011 - How to Choose the Right Woodstove
Deciding which woodstove to buy can be tough, even if you've been heating with wood for years and are simply looking for a replacement stove. John Gulland, writing for Mother Earth News, brings a fresh, important and independent perspective to the subject. 

Senators Propose New Tax Credit up to $5,000
Senators Snowe, Bingaman and Feinstein introduced the "Cut Energy Bills at Home Act" which would give up to a $5,000 tax credit for performance-based home improvements. The bill, as written, makes biomass heaters eligible if savings can be calculated with approved energy efficiency software packages, such as RESNET, BPI or alternative software. The Alliance for Green Heat is working with Congressional offices and efficiency standards organizations to ensure that there will not be unforeseen barriers for biomass heaters. Currently, most energy efficiency software does not have sufficient ability to analyze performance and savings of biomass heaters.

February 2012 - Next Generation Wood Stove Design Challenge
The Next Generation Wood Stove Design Challenge will be launched later this month and run through the fall of 2013. We have been building an impressive list of partners to support it, lawyers to make sure we have dotted our "i"s and crossed our "t"s, and, maybe most importantly, reaching out to dozens of university engineering departments and stove manufactures.  

Why Wood Stove Change-Out Programs Underperform
Change-out programs are now commonplace in the wood stove community, but often provide fewer benefits than expected and are very expensive. In assessing the effectiveness of change-out programs, the Alliance for Green Heat found a lack of rigorous analysis or debate about how to best achieve air quality improvements. In response, we offer four strategies that might improve change-out programs.

ÖkoFEN Developing Residential CHP Boiler
ÖkoFEN is working on the development of an heat and electricity-generating pellet boiler for private homes. The small CHP plant works with a stirling engine integrated in the pellet heating system. It is expected to deliver 1 kW of electrical energy and to cover the majority of the daily electricity consumption in a household. The stirling engine has low noise and emission levels and is extremely low carbon when operated with sustainably produced biomass.

March 2012 - Year After Year "Miracle" Amish Fireplaces Find Unwitting Buyers
Don't be fooled by advertisements claiming to sell Amish "Miracle Heaters". The company, Heat Surge, runs expensive, full-page advertisements for these heaters in prominent magazines and had a booth at the Atlanta Expo to sell their wares to hearth dealers. Despite claims, the company's heaters that sell for $200 or $300 put out the same amount of heat as a regular $40 electric heater.

The 2012 Atlanta Hearth Expo
If you like wood and pellet stoves, Atlanta was the place to see clean ones last week, like the ones that are burning in the picture to the left. But if you were looking for innovative new stoves, you would have been disappointed. Many manufacturers are still waiting to make sure they know what the new EPA emission numbers will be before bringing out new products.