The wood pellet market in Bulgaria is just starting to develop. Domestic consumption is mainly hindered by high investment costs in pellet appliances. Accordingly, the pellet consumption in the residential sector is insignificant. Few pellets are sold in small bags either directly at the pellet plants or through retailers. Prices for bagged pellets were slightly above € 150 per ton in early 2009 (excl. transport, incl. VAT). There is no market for loose pellets and also pellet use in large-scale applications is negligible.

Pellets are produced by 17 small-scale manufacturers with a total estimated production capacity of about 62,000 tons/year. Since the domestic demand is small, 80-90 % of the pellets are exported, mainly to Italy by truck transport.

Due to the existence of a well-developed wood processing industry and the abundance of unused quantities of dry wood shavings it is expected that pellet production and use will gain speed in the next years. Furthermore, with the “National Long-Term Programme to Encourage the Use of Biomass for the Period 2008-2020” the Council of Ministers through the Minister of Economy and Energy established a favourable policy framework to support further growth of biomass (and pellet) use for energy purposes.

Please refer to the Publication section for a comprehensive report on the Bulgarian pellet market.