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Wood Pellets Demand in Denmark is Promising for Exporters

March 25, 2020

Wood pellets have been listed in the latest Foreign Agricultural Service (FAS) Global Agricultural Information Network (GAIN) Denmark exporter guide report as one of the best high-value product prospects for exports to the country. Although Denmark is a small market compared to the rest of the European Union, it is the EU’s second-largest importer of wood pellets totaling 3.8 million metric tons in 2018. The United States is currently the second-largest supplier of wood pellets to Denmark, behind Latvia, and is responsible for 19.6% of total Danish wood pellet imports. Additionally, the import value of wood pellets from the United States has increased rapidly, from $5.3 million in 2015 to over $120 million in 2018.

Fueling the market for wood pellets in Denmark is the country’s renewable energy targets. The Danish government set out a policy to achieve 30% renewable energy use by the end of 2020. As a result, the Danish power sector has been phasing out coal and many plants are moving over to the use of wood pellets for energy production. However, just one Danish power plant is currently being supplied with pellets from North America, so there is significant potential for further exports.

The full GAIN exporter guide report for the country of Denmark can be read here: https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Exporter%20guide_The%20Hague_Denmark_03-02-2020

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