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FOEX Indexes Ltd is an independent company providing audited, trade-mark registered pulp, paper, recovered paper and wood based biomass price indices.

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Jun 6, 2017

Market Comments

PIX Bioenergy - Pellet Continental

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Pellet Continental Europe – In the industrial pellet sector, the Estonian Graanul Invest’s Langerlo project in Belgium has filed for bankruptcy. The 556 MW plant was intended to be converted from coal to biomass, adding 1.8 million tpa to the struggling industrial pellet market starting from 2018. The plant was earlier owned by German Pellets and before that by E.ON. Now the Belgian government needs to find other ways to meet its renewable energy targets. Recently, the industrial pellet supply has finally shown some tightening and prices have moved up a bit.

In the US, Enviva Holdings has reportedly secured the financing and is now going ahead with its 600 000 tpa Hamlet, NC pellet plant. The plant is intended to feed the MGT Teesside CHP plant in the UK once operational in 2020. Pinnacle Renewable Energy has also started constructing a large pellet plant in Alberta, South-Western Canada, with an expected start-up in early 2018.

The prices of sawdust, the main raw material for wood pellets, have moved down a bit in Germany during spring. However, prices are still clearly higher than at the same time in 2016. Demand for sawdust has continued strong and pellet plants are running well.

May is part of the off-heating season. Our PIX Pellet Continental benchmark for the medium-scale use came down by 8.56 euros, i.e. by 4.05%, settling at 202.77 EUR/ton.