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Pandemic hits biomass too: prices never so high since 2018
The cost of wood has risen
The cost of wood has risen
The price of pellets has risen sharply over the past year. Not only that, but the price increase has been followed by increasing difficulty in obtaining pellets. But how could this happen?
The first answer comes from the raw material of pellets, wood. Since the economic recovery in 2021, the price of wood has returned to pre-2018 values, with an increase of up to +300%, which has caused a decrease in purchases and orders.
As a direct consequence of this increase, many pellet producers, who had signed supply contracts with retailers at a fixed price, preferred to return the down payments rather than lose the money.
Logistics in trouble and empty storage facilities
Logistics in trouble and empty storage facilities
The transport of pellets plays a major role in determining their price. The pandemic and the anti-contamination regulations set by the various countries, not least the introduction of the green pass obligation, are causing difficulties for road transport by reducing the availability of trucks and drivers. Transport by sea is also affected by these logistical difficulties.
Paradoxically, the availability of stored pellets is estimated to be low overall. Some operators even believe that once current stocks are exhausted, it will be impossible to make new deliveries during the heating season.
There is also talk of a so-called shortage: the main concern is that the soaring price of pellets will lead to a real shortage of material. This scenario, to tell the truth, has been feared for years but has never occurred.
An opportunity to rediscover other biomasses
An opportunity to rediscover other biomasses
With the exception of olive pomace, which seems to follow the same path as pellets in terms of material scarcity and price increase, this crisis can be an opportunity to get informed and try other biomass fuels.
Lesser-known biomasses vary in price mainly according to the season and the distance between where you are and where the biomass is produced.
We have a fuel to start with: maize grain. We have talked about it in this article.
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