Picardy: the price of wood pellets is increasing

In recent months, rising production costs have led to a rise in the price of wood pellets, a previously relatively inexpensive heating method. Many people try to fill up in the middle of summer, fearing an even sharper increase in the fall. The industry is confident in production capacity and believes that wood remains the most competitive energy.

The price for wood pellets or pellets rose from 280 to 600 euros per ton in just a few months.

Released: Aug 6, 2022 at 3:48 p.m

reading time:
3 minutes

Waking up at 4am on Friday 29 July 2022, customers at the Brico Dépôt store in Harly in Aisne thought they were getting a good deal. During the week, the store presented a promotion of 5.49 euros per 15 kg sack compared to an average of 8.50 euros. But, ”
due to delivery difficulties and rising raw material prices
” explains the store, the commercial action will not be carried out and the 15 kg sack is finally advertised at 8.90 euros. Faced with the anger of hundreds of disillusioned customers, the brand agrees to sell the goods at the price advertised in the catalogue, but within the limit of ten bags per person.

The event says a lot about the tension that exists in the market for wood pellets, or pellets whose price has skyrocketed, going from 280 to 600 euros per tonne in a few months. As usual, fear of shortages is driving demand and of course affecting prices. However, there are very specific reasons for this increase in pellet prices, starting with the increase in production costs associated with energy prices. In the production of pellets, sawdust and wood chips are crushed, dried and compacted with electrically operated machines. Added to this are the transport costs, but also the fact that countries such as Russia, Belarus and Ukraine supplied 15% of the pellets consumed in France before the war.

According to the industry, the pellet has “never been so competitive”

As owners of pellet stoves, afraid that prices will rise again by winter, we sometimes rush to the specialist store to fill up. ”
We have many requests but for now we manage to follow them
“, assures this employee of “Granulated Delivery”, a specialized company in Méru in the Oise, which nevertheless displays the color on the homepage of its website with this explicit message: ”
Do not wait to save money, the price per ton will reach 1,000 euros in September!
“.

Despite everything, at Propellet, an organization that brings together professionals in the industry, we assure you that nobody will run out of pellets this winter. ”
Prospects for increased production capacity are encouraging and French players are very active to ensure supply and meet consumer needs.
” assures the sector, recalling that this type of heating remains largely competitive despite this increase.

”
The increase in raw material, electricity, transport and packaging costs is a direct consequence of the increase in the price of wood pellets. However, given the economic situation, pellets are growing at a slower rate than other energies and ultimately will never have been as competitive.
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hot topic, taboo topic

By Philippe Fluckiger

” Nothing. We’re expecting a trailer, but we don’t know when it will arrive. And above all, we don’t know the pallet price…” In this large hardware store in the Amiens metropolitan area, the space reserved for pellets is hopelessly empty. Like everywhere else. In the middle of summer, pellets have become as scarce as water in this dry season. And infinitely more expensive. “A few years ago we sold the 15 kg bag for between 2 and 3 euros. We sold the last ones for over €8 and the following ones will surely be even more expensive… ”

Strange ; Ten years ago, the pellet stove was touted as a panacea against rising energy costs. But of course also as an effective means of combating global warming; an abundant, cheap and renewable resource. In less than ten years it has become a rare and expensive resource. Remains – maybe – the renewable. “Initially when we installed a pellet stove, the seller offered a pallet”, recalls a manager at the Bonatic store in Poulainville, north of Amiens. At €10 per sack and 70 sacks per pallet, I’m not sure if a professional would still dare to do something like that. Well, since there’s nothing to offer…

“It’s not complicated, the next arrival is already sold. We have so many reservations that nothing is left., explains the salesman at the hardware store. The same goes for Flandre Énergie in Flixecourt. The location of the pellets has been empty for a while and very smart who knows when it will be refilled. For some retailers, the topic is so hot that it is taboo. No sign name, no photos of empty places. Retail obviously doesn’t like to talk about stock shortages. And even less the inevitable rise in prices that goes with it. But that is exactly what the unfortunate owners of pellet stoves experience every day.