Finnish Forest Sector Economic Outlook 2008–200940 Western Europe

the largest pellet consumer Wood pellets have become an important fuel in heat production during the last decade. Pellets are globally significant in the bioenergy sector since they are one of the first wood based fuels which are profitable to transport even over long distances. The energy density of pellet is higher and it is easier to handle compared to wood chips or firewood. The user friendliness of pel-lets has been a clear marketing advantage. Especially in Central Europe, pellets are considered an important biofuel. As a result, subsidies to compensate the higher investment costs compared to a e.g. oil heating system are available. The world’s ten largest pellet producing countries together produced approximately 8.5 million tonnes of pellets in 2007 (Figure 1). However, it is notable that the largest pellet users are not necessarily the largest pellet producers. The high energy content of pellets and the growing demand in Europe have increased the exports of pellets across the Atlantic. For example, in 2007, Canada exported roughly half of its production to Euro-pean markets, a total of 765 000 tonnes. Furthermore, pellet trading within Europe is also increasing steadily. The largest flows of pellets are from Germany, Finland