Fuel wood in chips and particles market in Poland

Earlier Report Observations

Between 2018 and 2020, the market volume for fuel wood chips in Poland remained relatively stable, starting at 3 005 thousand tonnes in 2018 and edging up to 3 026 thousand tonnes in 2019. This period saw an increase in the number of licensed fuel market participants, from 6 215 to 9 208, indicating new players entering the biomass sector. However, the volume fell to 2 865 thousand tonnes in 2020. The COVID-19 pandemic caused fluctuations in energy consumption and temporarily limited investments in new biomass installations, reducing demand. Simultaneously, regulatory uncertainty from pending waste legislation and draft quality standards for energy wood introduced preliminary requirements that affected supply chains.

The market rebounded to 2 928 thousand tonnes in 2021, driven by rising gas and coal prices, which enhanced the competitiveness of wood chips as a cheaper fuel. The EU's RED III directive also spurred demand for chips from wood processing waste. From 2022, stricter quality regulations took center stage. Draft ordinances prepared that year classified chips as lower-value technical materials, restricting their use in some industrial plants. By 2023, new quality requirements from the Ministry of Climate and Environment increased certification costs and limited the availability of non-certified chips, contributing to a sharp market contraction to 2 344 thousand tonnes. High energy prices concurrently boosted interest in biomass from agricultural and industrial users, expanding the network of chip boilers, but regulatory constraints outweighed this demand pull.

In 2024, further regulatory developments were set, including detailed quality parameters for solid fuels effective from 2025, such as moisture content not exceeding 10% and ash content below 0.7%. Market consolidation continued, reflected in a decrease of licensed entities to 5 292, suggesting a shift toward larger operators. Government support for renewable energy and funding programs accelerated investments in modern chip boiler installations, increasing demand for high-quality chips.

Production fuel wood in chips and particles in Poland

In value, 2017-2020, K $ US

Poland's production of fuel wood in chips and particles declined for the second year in a row. In 2020, output was valued at 76 486 thousand US dollars, marking a gradual decrease of 7.6% compared to 2019. Over the period from 2017 to 2020, production fell by 8%, with an average annual decline of 2.7%. The highest value was recorded in 2018 at 99 153 thousand US dollars, which represented a significant increase of 19.2% from the previous year. The largest decline occurred in 2019, when production dropped by 16.5%.

Annual dynamics of production in Poland in value, 2017-2020, K $ US

In kind, 2017-2020, K t

Between 2017 and 2020, Poland was one of the world's leading producers of fuel wood in chips and particles, ranking 18th globally by production volume.

Top producers of fuel wood in chips and particles, 2017-2020

World map of production of fuel wood in chips and particles, 2017-2020

Poland's production of fuel wood in chips and particles declined for the second consecutive year. In 2020, output reached 1 354 thousand tonnes, reflecting a moderate contraction of 4.3% compared to 2019. From 2017 to 2020, production decreased by 10.2%, with an average annual decline of 3.5%. The peak was in 2018 at 1 777 thousand tonnes, which saw a substantial increase of 17.9% from the previous year. The largest decline occurred in 2019, with a drop of 20.4%.

Annual dynamics of production in Poland in kind, 2017-2020, K t

Exports fuel wood in chips and particles from Poland

Exports in kind, K t

Exports of fuel wood in chips and particles from Poland declined for the second year in a row. In 2020, exports amounted to 122 thousand tonnes, showing a significant fall of 10.6% compared to 2019. Over the period from 2017 to 2020, exports decreased by 2.7%, with an average annual decline of 0.9%. The highest export volume was recorded in 2018 at 156 thousand tonnes, which represented a notable increase of 24.6% from the previous year. The largest decline occurred in 2019, with a drop of 12.6%.

Annual dynamics of product's exports from Poland in kind, 2017-2020, K t

From 2017 to 2020, the primary buyers of fuel wood in chips and particles from Poland were Germany, Lithuania, and Czechia. Germany accounted for 51.5% of exports in kind, Lithuania for 20.4%, and Czechia for 8.3%. Together, these three countries made up 80.1% of Poland's total exports in kind during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Poland in kind, 2017-2020

Exports in value, K $ US

The export market for fuel wood in chips and particles from Poland showed signs of volatility over the observed period. In 2020, exports amounted to 9 957 thousand US dollars, marking a steep drop of 25.2% compared to 2019. The highest value was recorded in 2018 at 15 316 thousand US dollars, which saw a substantial increase of 73.6% from the previous year. The lowest value occurred in 2017, resulting in a peak-to-trough ratio of 1.7 times between 2018 and 2017.

Annual dynamics of product's exports from Poland in value, 2017-2020, K $ US

Throughout 2017 to 2020, the main markets for Poland's exports of fuel wood in chips and particles in value terms were Germany, Lithuania, and Denmark. Germany held a 49.3% share, Lithuania 10.3%, and Denmark 8.2%. Collectively, these three countries accounted for 67.8% of total export flows in value during this period.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Poland in value, 2017-2020

Imports fuel wood in chips and particles to Poland

Imports in kind, K t

After two years of growth, imports of fuel wood in chips and particles into Poland declined. In 2020, imports amounted to 1 633 thousand tonnes, down by 6.5% compared to 2019. Between 2017 and 2020, imports increased by 70.7%, equating to an average annual growth rate of 19.5%. The highest import volume was recorded in 2019 at 1 748 thousand tonnes. The largest increase occurred in 2018, with a rise of 44.6% from the previous year.

Annual dynamics of product's imports to Poland in kind, 2017-2020, K t

From 2017 to 2020, Belarus dominated the imports of fuel wood in chips and particles into Poland in kind, accounting for 90.7% of total flows. This made Belarus the nearly exclusive source for these imports during this period.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Poland in kind, 2017-2020

Imports in value, K $ US

The import data reveals irregular changes, indicating a volatile market environment. In 2020, imports of fuel wood in chips and particles into Poland totalled 47 032 thousand US dollars, down by 16.7% compared to the previous year. The highest value was recorded in 2019 at 56 486 thousand US dollars. The largest increase occurred in 2018, with a rise of 84.8% from the previous year. Import levels fluctuated, with a 2.1-fold difference between the high of 2019 and the low of 2017.

Annual dynamics of product's imports to Poland in value, 2017-2020, K $ US

In the period from 2017 to 2020, Belarus concentrated 85.6% of total imports in value terms of fuel wood in chips and particles into Poland. The remaining flows were distributed among multiple smaller partners.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Poland in value, 2017-2020