Pellet fever? MKiŚ explains the causes of market tensions

Sales of wood from the State Forests have remained at a similar level for years, and the regulation banning the burning of high-quality wood in the commercial power industry has not had a negative impact on pellet production, the Ministry of Climate and Environment announced on Monday.

The ministry assured that the information about the reduced availability of wood on the market is false. “For six years, sales of wood from the State Forests have remained at a similar level of approximately 40 million cubic meters per year. In 2025, it amounted to 39.1 million cubic meters compared to 40.6 million cubic meters in 2024 and 39.2 million cubic meters in 2023. Such fluctuations of several percent are natural for this market,” the ministry said in its information.

Impact of new regulations on the market

The Ministry of Environment and Environment noted that wood pellets are not produced from valuable wood, but from by-products or waste of the wood industry, e.g. sawdust. In turn, the functioning of the wood sector is influenced by the demand for its production, including: joinery and furniture, both on the domestic and foreign markets. Costs, especially labor and energy, are also important factors.

“The ban on burning high-quality wood in the commercial power industry, introduced by the regulation of the Ministry of Environmental Protection in 2025, has increased the availability of this raw material for the wood industry. This may indirectly have a positive impact on the availability of sawdust used for pellet production. However, the regulation does not directly apply to pellets themselves or individual heating,” the ministry said.

Winter increased demand

According to the Ministry of Environmental Protection, the demand for pellets has increased due to the increasing popularity of heating devices using this type of fuel and the colder winter than in recent years. At the same time, low temperatures limit the production capacity of the wood industry, which limits the supply of waste that can be processed into pellets.

The Ministry of Climate and Environment pointed out that the unlimited development of sources based on wood biomass in the so-called energy mix may in the future result in increased dependence on raw materials imported from abroad.

“At the same time, pellets thanks to their properties it is a relatively safe fuel in individual heating. This is indicated by the results of the Clean Air program. The program offers co-financing for the purchase and installation of heat pumps, modern pellet boilers and wood gasification boilers. An important element of the program is the thermal modernization of buildings, the aim of which is to reduce the consumption of fuel for heating, including pellets,” the ministry concluded.

Temporary stock shortages

Last week, the media reported on shortages of pellets at fuel depots. On Thursday, the Chamber of Commerce for Renewable Energy Equipment and Polish Industry announced that pellets have not disappeared from the market and the supply chain operates despite seasonal fluctuations.

“SSituations in which individual depots have a temporary lack of fuel do not mean a void in the entire supply system. Pellets still reach customers, although in limited quantities. These short-term price tensions and local shortages are part of the seasonal cycle of the solid fuel market and have been known to the industry for years,” the Chamber said in a statement. (PAP)

gkc/ mick/