Dutch biomass consumption to reach 2.3 million tons by 2020

Biomass consumption in the Netherlands is expected to grow from approximately 1.8 million metric tons in 2018 to about 2.3 million tons in 2020, according to a report filed by the Dutch government with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.

According to the report, the expected increase is based on allocated Dutch government subsidies. The government also said an increasing volume of biomass is expected to be imported, either in the form of wood chips or pellets.

The report notes that the Dutch industrial market for biomass can be divided into two main segments: power plants that cofire biomass with coal, and biomass plants that generate heat and/or power.

Power plants that cofire biomass with coal are located at ports and are likely to source biomass in the form of imported wood pellets, the report said. The subsidy these plants receive from the Dutch government is based on the relatively high price of pellets when compared to other types of biomass. The report also indicates that pellets used by these facilities must comply with Dutch government sustainability requirements and a covenant agreed upon with environmental NGOs. The report states that the main constraint limiting pellet imports from the U.S. is the lack of forest level certification, along with additional requirements enforced by the covenant.

The report divides biomass plants generating heat and/or power into two subcategories: facilities with a capacity of more than 5 MW, and facilities with a capacity of less than 5 MW.

Biomass plants with a capacity of 5 MW or more must comply with the Dutch government’s sustainability requirements. According to the report, these larger facilities are often located at inland ports and are likely to source biomass locally in the form of chips or pellets. The main constraint with the purchase of U.S. pellets or chips for these facilities is their relatively high price when compared to locally sourced biomass.

Smaller facilities with a capacity of less than 5 MW do not need to comply with the Dutch sustainability requirements. According to the report, these facilities are primarily located at ports and are likely to source biomass from abroad, in the form of chips or pellets. The report also notes the current main constraint for switching to biomass for these facilities is the lack of a favorable disposition by the public.

Within the report, the Dutch government said it expects demand for solid biomass to increase by approximately 500,000 tons over the next two years. The increased demand is expected to attract biomass from other EU member states in the form of chips, and imports from other countries in the form of pellets. To date, the report states the Dutch Enterprise Agency has granted subsidies for more than 200 projects using solid biomass for energy production.

The Netherlands consumed approximately 1.7 million tons of nonpellet wood biomass in 2018. The country produced 1.5 million tons, exported 350,000 tons, and imported 550,000 tons. Consumption of wood pellets in the Netherlands reached 155,000 tons in 2018. The country produced 5,000 tons of pellets, imported 400,000 tons and exported 250,000 tons.

A full copy of the report can be downloaded from the USDA FAS GAIN website.