YuLong News

Condition of Portuguese wood pellet production and market

The Portuguese wood pellet sector has undoubtedly been a success story over the past decade, however it has probably reached its limit and there are few opportunities to install additional production capacity. The maturity of the sector requires more concentration and fewer players. This could lead to interesting activity such as reforestation plans, single export brands (for heating pellets), mergers or acquisitions and cost reduction efforts (fibre, transport, electricity). The country's attractive shipping infrastructure–good ports, short journeys in small/medium-sized coasters that serve all European ports – coupled with a raw material mix that will not allow year-round ENPlus A1 production, means that Portuguese producers will always serve both the industrial and heating markets. In particular, there will be
continued opportunities for producers to retain a diverse customer base, for example by selling into the Spanish residential market via inland transportation.



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