Categories: General Date: Jul 3, 2018 Title: Pellet Continental 3.7.2018
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Pellet Continental Europe – The European Commission, the European Parliament and the Council have come to an agreement on the Renewable Energy Directive (RED II), setting the new binding target of 32% for 2030 for renewables in the EU’s energy consumption, with an upward threshold by 2023. In the heating & cooling sector, a 1.3 percentage point annual growth target in the share of renewables was also added, for a five-year period starting from 2021.
The spot trade of industrial pellets has become practically non-existent in the slower summer season with major utilities taking downtime. The Drax unit #4 is currently undergoing a conversion to biomass and is expected to be online in August.
Good pellet demand shows also in raw material prices: the sawmill residue prices were up in June, year-over-year in Germany. Demand is expected to ease in summer time which is the typical maintenance downtime season at pellet mills. In British Colombia, wood supply situation has tightened due to logistics problems as well as to last year’s forest fires.
The world’s third largest pellet producer Pinnacle has announced it has entered into new large, long-term industrial wood pellet off-take contracts with South Korean CGN Daesan Power as well as with Japanese Toyota Tsusho Corp.
The PIX Pellet Continental index for medium-scale use for June retreated by 1.22 euros, or by 0.59%, and landed at 205.48 EUR/ton.