A direct replacement for fossil fuels

Driving Europe’s energy transition

The value of bioenergy lies in its flexibility and versatility in meeting our customers’ needs. Wood pellets are suitable for fueling existing coal plants, requiring relatively minor capital outlays to convert existing assets. Equally, our customers can use wood pellets in new-build industrial facilities and in smaller-scale commercial and residential heating systems.

Global consensus

Increased momentum for biomass solutions

Our wood pellets are used in a range of energy applications in all three forms of delivered energy, including large-scale combined heat and power (CHP) facilities, district heating, industrial thermal applications, and electricity-only plants. Over the last decade, European countries in particular have turned to bioemergy in the form of wood pellets to displace fossil fuels and to meet 2020 renewable energy and carbon reduction targets contained in the EU’s Renewable Energy Directive I.

Combined heat and power

Efficient and effective

In some cases, wood pellets are used to generate both electricity and heat. These CHP plants extract steam from the initial combustion process for electricity generation to heat buildings or, in an industrial context, to drive manufacturing systems. Wood pellets are most efficiently used in CHP installations.

Coal consumption trends

European markets

Four major European economies already use wood pellets on an industrial scale as a direct replacement for coal in some electric and CHP plants. This has proven vital in reducing coal consumption in Europe.

Source: Eurostat data


Among four major European economies, coal consumption between 2012 and 2018 dropped 60 percent, while biomass consumption climbed 98 percent.


The UK reduced coal demand by 75 percent during this time period, while biomass use skyrocketed a staggering 423 percent.

Noteworthy examples

European and Asian markets

Nordic countries use wood pellets—as well as wood chips—in heating plants of all sizes. Italy, Germany, France, and numerous other European countries have focused the use of wood pellets in home heating but are increasingly considering larger-scale applications as well.

Outside of Europe, Japan and Korea are significant growth markets.