The situation of the Portuguese pellet market is comparable to Spain in many aspects.
Since 2005, significant pellet production capacities have been installed. Several major production plants have been commissioned in 2008, increasing the total capacity to around 400,000 tons. However, the actual production in 2008 was around 100,000 tons as some of the major plants will start production in 2009 only. In addition, the existing producers face challenges such as low feedstock availability and lacking domestic demand. Besides some smaller producers, mainly large-scale plants are in operation.
Currently, more than 90 % of the produced pellets are exported, mainly to Northern Europe. The domestic pellet consumption in Portugal is very limited. The annual consumption in 2008 is estimated at 10,000 tons.
Please refer to the Publication section for a comprehensive report on the Portuguese pellet market.