Biomass pellets market in Greece - Overview and Features

In Greece, the biomass pellets associated activities (production and/or trading) are rather limited. Specifically in 2008, according to the European Program Pellets Atlas, Greece produced a total of about 27,800 tons of pellets, while the installed capacity amounted to 87,000 tonnes.

The total consumption was about 11,100 tonnes, which means that the per capita consumption was about 1 kg, one of the lowest in Europe. In order to underline how small are these numbers it ​​is worth mentioning that Sweden, which has the largest European growth of biomass pellets, produced in 2008, approximately 1.4 million tons of pellets, while per capita consumption amounted to 201,5 kg.

Greek consumption is not covered by domestic production and, therefore, required the importation of about 445,000 tonnes.

It should also be noted that so far biomass pellets are hardly utilized in residential scale heating sector, mainly due to the ban on burning biomass heaters in large urban centers (Athens, Thessaloniki and Salamis) which is in force during the last 18 years. Currently, under the CMD "Regulation of issues related to the operation of stationary sources of combustion for heating buildings and water" the termination of this unreasonable ban has been decided, a progress which is expected to increase the consumption of biomass pellets in residential heating systems.

In 2008, just a small quantity of biomass pellets was exploited in domestic industrial plants. On this basis, therefore, it was observed an excess quantity of about 17,000 tonnes, which was exported, mainly to Italy.

Table 1: Biomass Pellet Producers in Greece

The first plant pellets in Greece opened in 2006 and 5 more plants were installed until 2010 (see Table 1). It is worth noting, moreover, that according to a report made by Mr. C. Nasikas, a Board member of the Hellenic Biomass Society (Hellabiom), in Kathimerini newspaper (01/10/2011), they are currently being built further 14 pellets plants in Greece so as to meet the expected increase in domestic demand.

So for the first time in Greece, a significant and quite promising progress in the biomass pellet sector is taking place. This estimate is supported even by the following:

1. The national plan for integration of RES in the energy balance: In Greece, according to Law 3851/2010 (in the adoption of specific development and environmental policies set by Directive 2009/29/EC), the national target for participation of RES in final energy consumption comes up to 20%, which is further analyzed in 40% proportion of renewables in electricity generation, 20% in heating and cooling needs and 10% in transport. More specifically, under Article 10 ("Application RES in buildings") of that Act, not later than 31.12.2019, all new buildings should cover the entire primary energy consumption in energy supply systems based in renewable energy, cogeneration, district heating systems and heat pumps. For new government and public buildings, the abovementioned requirement should enter into force no later than 31.12.2014.

Today the total gross energy consumption in Greece is estimated at 22.4 Mtoe. According to the Greek Ministry of Environment, Energy and Climate Change, bioenergy in 2010 held approximately 9% of total consumed energy (biomass and biofuels are, together, about 5% of total). With the implementation of the goals set for biomass penetration in the building sector, a partial independence from imported fossil fuels can be achieved, thus supporting Greek economy.

2. Availability of raw materials: In Greece, the agricultural sector is quite developed and contributes more than 5% of GDP, more than the EU average (1.8%).

Specifically in Greece, according to Eurostat, the total agricultural land area is 3,82 Mha, covering around 30% of the total territory. Arable lands occupy 16% of the total land and permanent crops 9% (second highest rate in the EU-27 together with Italy).
So it becomes clear that each year they are produced as by-products of agricultural activities significant quantities of plant biomass, which operates as a material of zero value and discharged. The biomass pellet industry can be fed from this raw material and provide it added value so that it can be recognized as a major national energy source.

3. The possibility of exports: the EU-27 the total consumption of pellets is not covered by existing plants and, therefore, large quantities of pellets are imported from outside Europe. Sweden, Denmark, Belgium and the Netherlands introduced in 2008, cumulatively, nearly 3 million tonnes so as to meet their domestic demands. Also Italy, presented the same year imports of around 200,000 tonnes.

On this basis, the opportunity for Greek pellets production plants to operate outside its borders is provided. It should, however, be emphasized that a necessary condition for this is the production of high quality pellets and their conformation with European Quality Standards.

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