The Spanish market for wood pellets is just developing, starting around 2005. The production capacity increased significantly from approximately 75,000 tons per year in 2006 to more than 250,000 tons per year in 2008. Production capacities are likely to further increase in the next years, since the construction of new pellet production plants is planned in several regions.

The increasing production capacity is not accompanied by an increasing domestic pellet demand. Domestic consumption remains very low with less than 10,000 tons consumed in 2007 in Spain. As less than 5 % of the total annual production are consumed in Spain; the obvious consequence is that large quantities of pellets are exported.

The pellet price is lower than the European average and quite steady during the last two years. It slightly decreased from € 125 in summer 2007 to € 122 per ton in autumn 2008. So the Spanish market is very interesting at European level, moreover a new pellet plant with a production capacity of 150,000 tons per year is foreseen to start production in 2009.

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