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Portuguese pellets market: Analysis of the production and utilization constrains

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  • Monteiro, Eliseu
  • Mantha, Vishveshwar
  • Rouboa, Abel

Abstract

As opposite in Portugal, the wood pellets market is booming in Europe. In this work, possible reasons for this market behavior are foreseen according to the key indicators of biomass availability, costs and legal framework. Two major constrains are found in the Portuguese pellets market: the first one is the lack of an internal consumption, being the market based on exportations. The second one is the shortage of raw material mainly due to the competition with the biomass power plants. Therefore, the combination of the biomass power plants with pellet production plants seems to be the best option for the pellets production in the actual Portuguese scenario. The main constrains for pellets market has been to convince small-scale customers that pellets are a good alternative fuel, mainly due to the investment needed and the strong competition with natural gas. Besides some benefits in the acquisition of new equipment for renewable energy, they are insufficient to cover the huge discrepancy of the investment in pellets heating. However, pellets are already economic interesting for large utilizations. In order cover a large amount of households, additional public support is needed to cover the supplementary costs of the pellets heating systems.

Suggested Citation

  • Monteiro, Eliseu & Mantha, Vishveshwar & Rouboa, Abel, 2012. "Portuguese pellets market: Analysis of the production and utilization constrains," Energy Policy, Elsevier, vol. 42(C), pages 129-135.
    • Handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:129-135
    DOI: 10.1016/j.enpol.2011.11.056
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    1. Xian, Hui & Colson, Gregory & Mei, Bin & Wetzstein, Michael E., 2015. "Co-firing coal with wood pellets for U.S. electricity generation: A real options analysis," Energy Policy, Elsevier, vol. 81(C), pages 106-116.
    2. Proskurina, Svetlana & Rimppi, Heli & Heinimö, Jussi & Hansson, Julia & Orlov, Anton & Raghu, KC & Vakkilainen, Esa, 2016. "Logistical, economic, environmental and regulatory conditions for future wood pellet transportation by sea to Europe: The case of Northwest Russian seaports," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 38-50.
    3. Andrzej Greinert & Maria Mrówczyńska & Radosław Grech & Wojciech Szefner, 2020. "The Use of Plant Biomass Pellets for Energy Production by Combustion in Dedicated Furnaces," Energies, MDPI, vol. 13(2), pages 1-17, January.
    4. Nunes, João & Freitas, Helena, 2016. "An indicator to assess the pellet production per forest area. A case-study from Portugal," Forest Policy and Economics, Elsevier, vol. 70(C), pages 99-105.
    5. Leonel J. R. Nunes & Margarida Casau & Marta Ferreira Dias, 2021. "Portuguese Wood Pellets Market: Organization, Production and Consumption Analysis," Resources, MDPI, vol. 10(12), pages 1-24, December.
    6. Andrzej Greinert & Maria Mrówczyńska & Wojciech Szefner, 2019. "The Use of Waste Biomass from the Wood Industry and Municipal Sources for Energy Production," Sustainability, MDPI, vol. 11(11), pages 1-19, May.
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    9. Lenka Štofová & Petra Szaryszová & Bohuslava Mihalčová, 2021. "Testing the Bioeconomic Options of Transitioning to Solid Recovered Fuel: A Case Study of a Thermal Power Plant in Slovakia," Energies, MDPI, vol. 14(6), pages 1-20, March.
    10. Judl, Jáchym & Koskela, Sirkka & Korpela, Timo & Karvosenoja, Niko & Häyrinen, Anna & Rantsi, Jari, 2014. "Net environmental impacts of low-share wood pellet co-combustion in an existing coal-fired CHP (combined heat and power) production in Helsinki, Finland," Energy, Elsevier, vol. 77(C), pages 844-851.
    11. Kristöfel, Christa & Strasser, Christoph & Schmid, Erwin & Morawetz, Ulrich B., 2016. "The wood pellet market in Austria: A structural market model analysis," Energy Policy, Elsevier, vol. 88(C), pages 402-412.
    12. Ferreira, Sérgio & Monteiro, Eliseu & Brito, Paulo & Vilarinho, Cândida, 2017. "Biomass resources in Portugal: Current status and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 1221-1235.
    13. Heiskanen, Eva & Matschoss, Kaisa, 2017. "Understanding the uneven diffusion of building-scale renewable energy systems: A review of household, local and country level factors in diverse European countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 580-591.
    14. Brand, Martha Andreia & Jacinto, Rodolfo Cardoso, 2020. "Apple pruning residues: Potential for burning in boiler systems and pellet production," Renewable Energy, Elsevier, vol. 152(C), pages 458-466.
    15. Bonassa, Gabriela & Schneider, Lara Talita & Canever, Victor Bruno & Cremonez, Paulo André & Frigo, Elisandro Pires & Dieter, Jonathan & Teleken, Joel Gustavo, 2018. "Scenarios and prospects of solid biofuel use in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2365-2378.

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