Pellet – the fuel of the future?

From 2024, during the modernization of heating systems, the share of energy used for heating buildings and obtained from renewable sources must amount to at least 65%. With the recent turbulence on the market, price surges of fossil fuels as well as uncertainty regarding their availability, the question arises as to which type of heating is both practical and economical.

Considering the fact that throughout Europe wood is classified as a renewable fuel, the choice of heating using a pellet boiler seems to be a good solution. This is supported by arguments which we will describe in the further part of the text.

Advantages of pellet

• pellet is an ecological fuel with low dust emissions, and its CO2 balance can be considered fully neutral, because when burned it produces only as much CO2 as the tree absorbed from the atmosphere during its lifetime.
• it is made from wood waste generated after sawing and cutting processes in sawmills.
• it is an independent fuel and is not subject to conditions characteristic of fossil fuels, e.g. import restrictions.
• excluding the so-called “force majeure”, pellet availability is guaranteed by numerous producers, including regional ones, who by investing in pellet mills of small and medium capacity meet the needs of local consumers. Its availability is practically unlimited.
• it can be an economical alternative to coal, gas and oil.

Pellet as a cheap and ecological fuel

Let us analyze this last aspect. Assuming during the heating season (6 months) an indoor temperature of 21℃, to heat a well-insulated house with an area of 150m² equipped with a class 5 boiler (efficiency 90%), we need approx. 4500 kg of pellet.
In the case of a new generation coal boiler, we will need approx. 4000 kg of eco-pea coal. Assuming that the price of 1 ton of eco-pea coal is currently approx. PLN 2000, and pellet approx. PLN 1800, we obtain a cost of PLN 8100 for pellet heating, and approx. PLN 8000 for coal heating. The difference is seemingly insignificant; however, it should be remembered that due to its harmful impact on the environment, coal prices may rise in the coming years. Additionally, we must remember that the National Air Protection Program does not foresee the use of coal as heating fuel in cities from 2030, and in rural areas from 2040. A great advantage of pellet is its cleanliness in use – it simply does not make a mess. From 1 ton of burned pellet, no more than 5 kg of ash remains, whereas
in the case of eco-pea coal it is at least 40 kg, and in the case of nut coal from 70 to 120 kg.

In countries such as Germany and Austria, price disparities between energy carriers are greater than in Poland. The cost of generating 1 kWh from pellet is approx. 30% lower than in the case of natural gas and heating oil. In addition, there are government support programs. It cannot be ruled out that similar price differences will soon also appear in Poland.

Summary

In Poland, approx. 40 million m3 of wood is cut annually.  This is the equivalent of 40 million trees and this amount constitutes roughly 75% of the annual growth, which means that trees annually absorb more CO₂ than burned pellet and wood emit.

The future of pellet is secure. The largest pellet producers in Europe, namely Germany, France, Italy, Denmark and Austria, are increasing production capacity and building new plants. In Austria,
within the next 3-4 years, 11 additional pellet production plants are to be built. At that time, the production capacity of these 51 locations will allow for the production of 2.2 million tons of pellet. This represents an increase of 30% compared to 2022.

In Poland  in 2021 approx. 1.1 million tons of pellet were produced, which represents an increase of approx. 50%
compared to 2015. Data for 2022 are not yet available, but one can expect the highest percentage increase in recent years, reaching even 30%.

Pellet has a very large development potential in terms of industrial use,
and the objectives of the European Commission's policy enforce the replacement of old coal boilers with heating installations powered by pellet.