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German wood pellet prices rose slightly by 2.4% month-on-month in May 2023

[Jun 05, 2023]

The price for wood pellets rose slightly in May 2023 compared to the previous month by 2.4% to EUR 359.41/t, but is below the price in May 2022. However, the price level is still high.

At the beginning of winter 2021/22, the price hike for wood pellets had started, in October 2021 the DEPI pellet price was still in the usual range with a purchase of 6t at 248.08 euros/t and then jumped to 267.05 euros/t in November in December to 303.13 euros/t. From July 2022 to December 2022, the DEPI pellet price was over 500 euros/t, the highest 6-t delivery price for September 2022 was 763.76 euros/t.

For May 2023, the German Pellet Institute (DEPI) has now determined a pellet price of 359.41 euros/t as the national average. This corresponds to an increase of 2.4% compared to April 2023 and a decrease of 8.6% compared to the same month last year. However, in May 2022 the price at EUR 393.25/t was already 81% higher than in May 2021 (EUR 217.04/t).

The price for one kilowatt hour of heat from pellets purchased in May 2023 at the DEPI pellet price is 7.19 cents/kWh. This means that the price advantage over heating oil of almost 19% and over natural gas of around 45% remains at a high level (see chart for comparison).

Sluggish implementation of the pellet price brake
Martin Bentele, Managing Director at DEPI: “The prices for wood pellets are leveling off at a reasonable level, appropriate for the time of year. In a long-term comparison, pellets remain a cheap alternative to fossil fuels.” Bentele expresses criticism of the draft of the Building Energy Act (GEG), which puts wood and pellet heating systems at a disadvantage. The heat transition cannot succeed without a range of options for homeowners. The federal government must therefore make improvements to the current draft and take wood pellets into account as a domestic source of energy with a secure price and supply.

Regional prices for 6 and 26t
The regional differences in the pellet price in May 2023 are as follows (sales of 6t): In the south, the price of wood pellets is 354.85 euros/t. In the central region, pellets are offered for an average of 356.37 euros/t, in northern and eastern Germany for 356.32 euros/t.

Larger quantities (26t) will be traded in May 2023 at the following conditions: South: 336.75 euros/t, Central: 338.15 euros/t, North/East: 337.06 euros/t (all incl. VAT) .

DEPI pellet price
The DEPI pellet price has been published monthly since 2011, until June 2020 by the German Energy Wood and Pellet Association (DEPV). It describes the average price in Germany for 1t of wood pellets of quality class ENplusA1 of the respective purchase quantity (delivery within a radius of 50 km, including all additional costs and VAT) - throughout Germany and in three regions. A DEPV pellet price for delivery contracts (net) can be called up at DEPV.

Source: DEPI