The new EU norm for wood pellets which will come into force from 2010, the increased requirements on the quality of wood pellets and the upstream production chain – these all featured among the topics discussed by industry experts from all over the world at the two-day 9th Pellets Industry Forum.

“The production, trade and logistics of wood pellet fuel are becoming ever more significant. In turn, the demands on international collaboration
increase. The encouraging response from our trade participants reassures Satisfied exhibitors
at Interpellets 2009 Peter Hauk, Baden-Württemberg’s Minister for Food and Rural Development, visited Interpellets us that we have got the concept of the Pellets Industry Forum right,” states Martin Pfränger, project manager of the trade conference whose participant numbers hit a record level of 535. Wijnand Schonewille, a business developer at the Dutch Port of Rotterdam, reaffirmed this: “The Pellets Industry Forum is one of the few large conferences in this field. As a participant I am here for the first time, particularly to find out how the market is developing. Above all, questions regarding the role of the port in the logistics chain are of interest to us.” Michael Williams, Director of Strategy, Planning & Process Management at Westervelt Renewable Energy in the USA also underlined his view: „(...) I came here to learn more about the European pellet market and to get a better understanding of European Companies. On the one hand I get the information I'm interested in concerning demand, pricing, environmental and quality requirements. On the other hand I meet people from other countries. In my opinion the congress is the best networking event for the pellet industry.”

Interpellets 2009 also brought great satisfaction for the 138 exhibitors from 19 countries. “It is mainly the increased presence of mechanical and plant engineering which reflects the rising international demand for expertise in the growing pellet market ,” states organizer Markus Elsässer from Solar Promotion GmbH. Martin Bentele, Managing Director of the German Energy Wood and Pellets Association (DEPV) and the German Pellet Institute (DEPI), summed things up: “The industry demonstrated its capabilities at Interpellets in a comprehensive and convincing manner. It has been shown that heating with pellets can yield the CO2 reductions necessary for meeting climate protection targets in the heating market. From pellet production through trade to combustion technology and accessories, companies are well positioned.”

During a tour of Interpellets 2009, Baden-Württemberg’s Minister for Food and Rural Development, Peter Hauk, appeared impressed by the diversity of the pellet industry. When talking to pellet producers and manufacturers of boilers and stoves, Minister Hauk drew attention to the positive signs for further growth in the pellet industry. He highlighted the opportunities that arise for both the economy and the creation of jobs as a result of these modern, environmentally friendly heating systems.

A delighted Christian Müller, Managing Director of Salmatec Anlagenbau GmbH gave his report of exhibiting at Interpellets: “As a manufacturer of pelleting machines, Interpellets is the annual event for us. The caliber of trade visitors is the most important reason for our attendance: (...) We already had visitors to our booth from Korea, Russia, the Ukraine and Brazil, and will definitely be back again next year.” Robert Velemir, Area Manager for Germany at Piazzetta Deutschland GmbH, a subsidiary of the Italian pellet stove manufacturer, also appeared to be extremely pleased: “We were so impressed with last year’s Interpellets, at which we exhibited for the first time, that we are represented here again this year. We particularly like the clear concentration of the trade fair. (...) The internationalization of the industry and the trade fair is plainly noticeable. Last year 30 percent of our visitors were from outside Germany, this year it is at least 50 percent. One thing is certain as far as next year goes: We will be back at Interpellets!”

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Wood pellets will be the first biomass fuel to be produced in accordance with an EU standard. Until now, countries like Germany and Austria have been using their own standards – in Germany wood pellets are certified in accordance with DINplus, while the Austrian ÖNORM standard is known even beyond the country’s borders. Emerging pellets markets with their own pellet production capacity have used these existing standards as a benchmark, but have also introduced their own regulations and quality assurance systems. In future, all existing standards will be superseded by the European pellets standard’s three quality classes: A1, A2 and B.

For end users, the relevant wood pellets class is A1. It complies with the most stringent values overall and is largely based on the high standard of quality set by DINplus. According to the existing plans, A1 wood pellets must have an ash content of under 0.5% when using wood from conifers and under 0.7% when using other types of wood. Instead of bulk density, it will now be necessary to specify the apparent density: the less space there is between the pellets, the greater the apparent density. This is particularly important for pellet stoves as the apparent density influences the quantity of pellets that are conveyed into the combustion chamber if the rotation speed of the automatic screw conveyor remains the same.

Class A2 covers the wider spectrum of raw materials with an ash content of up to 1%. The European pellets standard thus also integrates the slightly wider requirements of heating systems which are used, in particular, in the southern European pellets countries.

The previously undefined category of industrial pellets has finally been settled. The new wood pellets Class B has an even higher ash content and expanded raw material potential such as bark contents. The new EU standard plans to declare any pellets which previously did not comply with the limits of the existing standards – and were mostly burned in large installations or power plants as so-called “industrial pellets“ – as Class-B pellets now.

As of October 1, there will also be new regulations for homeowners and building contractors: the new Energy Saving Ordinance (EnEV) of 2009 requires that primary energy demand is reduced by 30%. Transmission heat loss must be reduced by 15% through better building insulation. In addition, the Renewable Energies Heat Act (EEWärmeG) has been in force nationwide since January 1, 2009. It obliges building contractors to cover part of the heating requirements for new build with solar energy, biomass, ambient heat or geothermal energy. There are considerable overlaps between these two pieces of legislation: for example, the use of renewable energies such as a pellet boiler or primary boiler with a water jacket reduces primary energy demand, and if the building is also well insulated the heat produced will be enough to surpass this demand.

Interpellets 2009 takes place from October 7-9 and is the only trade fair to feature the full spectrum of the wood pellets industry: from raw material to processing into wood pellets, from transport chain to various storage systems, from a wide range of pellet heaters and boilers to suitable flue gas systems. Interpellets is attended by heating and plumbing technicians, architects, planners, building energy consultants and chimney sweeps as well as representatives from pellets industry wholesalers, manufacturers and suppliers. The trade fair gives them a compact overview of current trends, product innovations and services in the European pellets markets. On Friday, October 9, Interpellets will also open its doors to end users. Around 500 industry experts are expected to attend the 9th Pellets Industry Forum on October 6 and 7. They will discuss current trends such as market development in emerging pellets markets, pellet production and quality and new developments related to raw materials.

The Italian heating market is one of the largest markets for pellets heaters: Currently around 700,000 heaters have been installed almost exclusively in residential buildings all over Italy. The reason: Central heating systems are unusual in Italy; the heating season is only 120 days - much shorter than in Germany, for example. Pellets production in Italy is geared towards meeting the needs of home owners, who typically buy small 15kg bags. Pellets consumption has grown from 150,000 metric tons in 2001 to around 800,000 metric tons last year. Since the production volume of 650,000 metric tons does not cover demand, pellets have to be imported from other European countries.

In addition to those for large pellets boilers, state subsidies are also available pellets stoves. Germany has the "Market Incentive Program for Renewable Energies" funded by the Federal Office of Economics and Export Control (BAFA).  The minimum subsidy for pellets heaters with water jackets is €1,000. For air duct pellets heaters between 5 and 100kW, a fixed rate subsidy of €500 has been available since July 1, 2009, but this must not correspond to more than 20% of the net investment costs. Additional subsidies are available for combination with solar installations.

From October 7 – 9 at the New Stuttgart Trade Fair Center, Interpellets 2009 will present a whole host of wood pellets expertise: information on financial subsidies, advice on pellets heaters and boilers in all performance classes in combination with solar installations, as well as an overview of the entire value-added chain of the pellets industry. A valuable information platform, Interpellets 2009 brings together pellets industry producers, traders and suppliers, who present their technical solutions, services and innovations. Around 500 trade experts are also expected to attend the accompanying 9th Pellets Industry Forum trade congress on October 6 and 7. They will discuss current trends in European pellets markets, as well as the challenges they face and their future prospects.