The Norwegian wood pellet market is very limited considering the amounts of forest in the country. The reason is that Norway has based the electricity production on hydropower and that Norway is also self-sufficient with oil and gas from the North Sea.
Almost all electricity is generated at hydro power plants in the north. Electricity is used for heating purposes in 75 percent of the houses. Annually only around 40,000 tonnes of wood pellets are used in Norway. Pellets are used solely for heating purposes – in pellet stoves and in a few district heating systems. The national energy policy includes measures that will support use of bioenergy and the consumption of pellets can be expected to increase in the coming years.
The pellet production capacity is more than 160,000 tonnes annually, however only a small share of this capacity is currently used as the feedstock availability limits the production. In 2008 the Norwegian wood pellet production was 35,000 tonnes. In close future – from 2010 – Norway can be expected to become a large exporter of wood pellets as the production capacity is currently increasing. Especially a mega-size plant with an annual capacity of 450,000 tonnes will change the current picture.
Please refer to the Publication section for a comprehensive report on the Norwegian pellet market.