Wood pellet Russia First Quarter Trend

Wood pellet Russia First Quarter Trend

➤ Russia: Wood pellet exports increased by 28% in 2019, nearly 2 million tons

- Russia's wood pellet exports showed the highest growth engine among all export-oriented wood industrial products in 2019, with +28%, totaling 1.94 million tons.

- According to data from the Federal Statistical Office (Rostat), production reached 1.6 million tons in 2019 (1.4 million tons in 2018). Official statistics, however, do not objectively reflect output. Russia's actual output could reach 2.3 million to 2.5 million tons.

- The largest export areas are the Arhangelsk region (ULK Group and Titan Group account for 85%). Irkutsk is the second largest wood pellet supply area in the export market (45% from Ind Timber and Omfal).

 

➤  Festovski LPK

- Construction of the wood pellet plant is currently being completed in the corporate realm, and its production capacity is 60,000 tons per year.

- In 2020, the Festovski LPK will have to produce 45,000 tons of wood pellets.

➤ Lesotho Birsk, Fuel pellet Plant 2 Phase Operation

- Phase 2 of the KsilotekSibir LLC fuel pellet plant started five months before the project schedule at the manufacturing site of Lesosibirsky LDK No. 1 JSC, an asset of the Segeza Group (part of Sistema JSFC). This new factory realized the company's total pellet production capacity at 110.5 million tons per year.

- Currently, the Rescovirsk plant sends three container trains a month to port for further shipment to Denmark and other EU countries. This equipment is intended to manufacture 6mm and 8mm diameter pellets from wood production and processing waste – natural humidity sawdust and wood chips. By converting these products into biofuels and heat, wood logging byproducts are disposed of.