Over 250 national and international stakeholders in the Italian pellet industry met in Verona, Italy the day before the Progetto Fuoco Trade Fair (see BI85 2/2016). Organised by Associazione Italiana Energia Agroforestali (AIEL), in collaboration with the European Pellet Council (EPC) the event held in depth technical, safety and market discussions within the Italian context.
Guidelines launched
Valter Francescato, Technical Director for AIEL, pointed out that current Italian fire code legislation does not provide specific technical fire regulations for heating systems that use a solid biomass fuel such as pellets. Addressing this gap AIEL has taken the initiative and published a technical fire safety and prevention manual, “Linea guida tecnica. Prevenzione incendi e sicurezza nella progettazione, installazione ed esercizio di impianti termici automatici” to support designers and installers of biomass systems and operators in this market sector and launched during Progetto Fuoco. AIEL is working on the implementation of a technical table coordinated by the Veneto and Trentino Alto Adige Interregional Department of the Fire Brigade to transform the Technical Guidelines into a Fire Prevention Regulation for biomass systems with nationwide validity.
Usage up, imports down
A key focal point for pellet producers and traders alike was the detailed update on the Italian pellet market trade flows, consumption and production given by Annalisa Paniz of AIEL. Many are concerned over the mild winters, the Value Added Tax (VAT) increase to 22 percent, low fossil fuel prices and its effect on mains gas the main competitor to pellets. The good news according to Paniz was that there was slight market growth, final consumption 2015 was 3.1 million tonnes, up 300 000 tonnes on 2014. These were used in 2.7 million installations 96 percent of which were domestic appliances (stoves), 3 percent were residential boilers up 35 kW and the remainder was split evenly between commercial (35 – 500 kW) and industrial (> 500 kW) boilers.
The downside for pellet exporters to Italy is the high inventory levels reflected in the 26 percent drop, to 1.65 million tonnes 2015 though with large regional variations; North America recorded a dramatic decrease down -74 percent from the US and -69 percent from Canada.
– The price of pellets has not collapsed despite the mild winter and 2016 will have an interesting pre-season. A leading manufacturer will cut production by 260 000 tonne, the world leader has left the market, the Rouble devaluation will lead to an increase in Russian ex-works price and North American increase in production has stopped, commented Jürgen Winkler, Mak Holz GmbH during the panel discussion.
Production challenge
In 2015, 21 certified Italian manufacturers produced 130 000 tonnes of ENplus pellets yet forest inventory data shows that only 24 percent of the annual growth is harvested from the 9.1 million ha estate.
– The history of pellets in Italy goes back to 15 years at most. The lack of infrastructure and the high pellet manufacturing costs limit development of the sector, explained Paolo Perini of Segatifriuli srl.
5321/AS
