The Renewable Energy sector is starting to grow in Cyprus, but the biomass sector is not developed significantly. Consequently, wood pellets are not recognized as an alternative fuel for energy production at the moment and the domestic pellet consumption in Cyprus is insignificant. There is also no pellet production in the country.

The Institute of Agricultural Research of Cyprus carries out research in order to determine the energy plants that can be cultivated in Cyprus for biofuel production, including mixed biomass pellet production.