Spain produced a record 768,000 metric tons of wood pellets in 2022, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. Domestic consumption and exports were also up when compared to 2021.

According to the report, Spain is among the top ten producers of wood pellets in the European Union but has not been a top consumer of wood pellets. Domestic consumption, however, increased last year, primarily due to higher residential use and improved competitiveness against alternative energy sources. Biomass tax reductions as well as incentives to install biomass stoves and boilers also helped boost consumption, although incentives for biomass consumption are relatively low when compared to other EU member states.

Biomass and residues accounted for lessthan 2 percent of primary energy consumption in Spain last year. The report cites data noting that there were 238 biomass-based electricity production plants in Spain last year. These small-scale plants had a combined installed capacity of 1,026 megawatts (MW). The use of biomass in heating applications is more common in Spain. Residential heating accounts for nearly 70 percent of the country’s wood pellet consumption.

According to the report, Spain had 83 operational pellet plants last year, up from 75 in 2021. Total capacity is estimated at 2 million metric tons per year. Total pellet production in Spain is estimated at approximately 768,000 metric tons in 2022. In addition to wood, pellets are also produced from olive kernels, tree nutshells, and sunflower kernels, with total pellet production estimated at approximately 2 million metric tons last year.

Spain is a net exporter of wood pellets, with exports largely exceeding imports. According to the report, expanding pellet demand in other EU member states, combined with a shortage of wood pellets to supply to the EU from Ukraine and Russia in the aftermath of Russia’s invasion with Ukraine combined with current measures against Russia has triggered a steep increase in Spain’s pellet sales in EU countries. The report estimates that exports were at approximately 200,000 metric tons last year. Pellets imported into Spain largely come from neighboring Portugal, according to the report.