The European Pellet Conference, March 2005, Wels Trends on the Danish Pellet Market Presented by Dr. Jonas Dahl Project Manager FORCE Technology

The European Pellet Conference, March 2005, Wels Production of Renewable Energy in Denmark 10.4 PJ (9.3%) from wood pellets Source: Danish Energy Authority, 41 % from biomass

The European Pellet Conference, March 2005, Wels Danish consumption of wood pellets (2005) Source: Danish Energy Authority,

The European Pellet Conference, March 2005, Wels Heat production based on woodpellets - trends residential pellet boilers and stoves –Boom ed in the end of the of the 90:s, due to high oil prices and investment support from the government –The boom declined in 2002 due to a sudden steep increase in the prices of pellets as well as the cancellation of the investment support (nov 2001) –Currently slowly increases again, due to increasing oil price ~ 300 pellet block heating plants – Gas and district heat are preferred – Main market is thus replacement of old oil burner outside gas and district heating nets ~30 pellet fired district heating plants – Remains from converted coal fired plants in 1990 – No new plants based only on pellets – Due to high pellet prices, plants are rather converted to multifuel burners using other cheaper biomass fuels

The European Pellet Conference, March 2005, Wels Combined heat and power production based on pellets Source: ENERGI E2 Avedøre II CHP plant – tons wood pellets/year Trend: - Amounts are limited by political agreement Amager CHP plant – tons straw pellets/year New pellet production at Køge – tons wood pellets/year – tons straw pellets/year –Transported by ship

The European Pellet Conference, March 2005, Wels Danish pellet supply 1990 – 2003 (2005) Source: Danish Energy Authority, Trends: Import exceeds production since 2001 Increasing import from east (Baltic, Russia, Poland) Decreasing import from North America due to high transport costs

The European Pellet Conference, March 2005, Wels Thank you for your attention! For further questions or information please contact :