Why is there such a shortage at the beginning of the season?
In every kind of scarcity, there is a side of self realization. Fear appears (partially reasonable). They are transmitted, amplified and lead consumers to buy in anticipation, which causes shortages in some places and increases the sense of panic. Several examples come from individuals who have stored the required amount of particles throughout the winter (or more), rather than from regular hoarding. It is difficult to accurately measure the severity of this phenomenon, and it is also difficult to control it (many dealers restrict sales, but we cannot prevent people from visiting dealers...); But it is undeniable that this phenomenon has caused the current shortage. For several months, the wood industry has been producing particles in an unprecedented way,
Is there really a lack of particles?
The demand for particles is experiencing very strong growth. Many reasons:
1、 Increase in the number of particle heaters: According to the report of Observer Network, from 2020 to 2021, the sales volume of particle heaters will increase by 41%, and the sales volume of particle boilers will increase by 120%, to 180000 and 32000 respectively. This is a positive situation, as the particulate industry is an integral part of the energy mix to achieve the goal of reducing greenhouse gas emissions.
Then there is the increase of usage: even at the current price, particles are still more competitive than other energy sources, and logically speaking, consumers tend to use their appliances more to reduce their bills
Finally, due to the strong demand from some European countries (the United Kingdom, Benelux Economic Union, Denmark), facing the high natural gas price, we choose to strengthen the use of particle fuel power plants. This is undoubtedly the most regrettable phenomenon, because the electricity generated by using particles is far less than 90% of the efficiency of heating equipment.
At the same time, the supply is increasing significantly, especially in France, but according to the possible winter conditions, it is necessary to supplement imports in the 2022-2023 season. Some solutions are already emerging. In the long run, from the perspective of local production in France, the industry plans to increase production by another 1 million tons between 2021 and 2024, and double the production capacity by 2028 (source: ProPellet). Therefore, these trajectories seem to be able to meet.
Is wood pellet heating still competitive?
There is no denying it. Due to the tariff shield, the price difference between short-term individuals in France and other energy sources has decreased. In spite of the freezing of natural gas and electricity prices, besides logs, particles are still the most economical solution.
If we refer to Germany (from Poujoulat), it has eliminated the "energy shielding" effect. At present, the price of natural gas is about 34 euro cents per kilowatt hour, fuel oil 18 euro cents, heat pump 16 euro cents, sawdust particles 15-16 euro cents and 8 euro cents for logs.
So, should we hesitate or not equip ourselves with furnaces or particle boilers?
If we put ourselves in the position of people equipped with oil fired boilers, that is, to replace them with particle boilers and can not quickly find available particles, it is difficult to avoid this problem or find it irrelevant. However, it is more important than ever to choose wood (including particles) as a heating solution.
This is a local and sustainable solution that can meet the key challenges of energy independence in the coming years. Its sector is composed of companies that are very capable of providing employment opportunities. Its costs will remain competitive and the industry has proven its ability to support growth in the coming years.
Of course, in the short term, it is expected that the energy tension in electricity, natural gas and sawdust particles will require everyone to take responsible actions: reasonable and limited heating and consumption, not excessive storage. But we see every day that professionals in the wood industry are "ready" to play their role in the face of energy challenges.
