Non coniferous wood fuel market in Kazakhstan

Earlier Report Observations

From 2018 to 2020, the market for non-coniferous wood fuel in Kazakhstan expanded, with volume rising from 192.8 thousand m³ to 273.9 thousand m³. This growth was supported by regulatory amendments that encouraged alternative energy sources. In 2018, updates to the national fuel and energy complex development concept highlighted the potential of wood-based fuels to reduce coal dependence, given that coal accounted for 80% of thermal energy. The following year, changes to the law on petroleum products defined 'small-capacity producers,' indirectly enabling small companies to produce biofuel from wood waste. The surge in 2020 was driven by forecasts of electricity shortages by 2022 and legislative adjustments that allowed the use of sub-800 000 t/year installations to process wood residues into fuel.

After peaking in 2020, the market contracted to 202.5 thousand m³ in 2021 and further to 149.2 thousand m³ in 2022. A rebound occurred in 2023, with volume reaching 162.5 thousand m³. The recovery was partly attributable to export restrictions on diesel, gasoline, and aviation fuel to EAEU countries until the end of 2024, which increased domestic demand for alternative fuels like non-coniferous wood pellets. Additionally, price caps on retail petroleum products kept fossil fuel prices high, enhancing the cost competitiveness of wood-based fuel.

Production non coniferous wood fuel in Kazakhstan

In kind, 2017-2020, K m³

Top producers of non coniferous wood fuel, 2017-2020

World map of production of non coniferous wood fuel, 2017-2020

Kazakhstan's production of non-coniferous wood fuel has increased for the third consecutive year. In 2020, the country produced 270.0 thousand cubic meters, marking a 34.3% rise compared to 2019. Looking at the period from 2017 to 2020, production grew by 74.2%, which translates to an average annual growth rate of 20.3%.

Annual dynamics of production in Kazakhstan in kind, 2017-2020, K m³

In value, 2017-2020, M $ US

The value of non-coniferous wood fuel production in Kazakhstan has also risen for the third year in a row. In 2020, output was valued at 141.0 million US dollars, showing a significant increase of 38.9% from 2019. Over the 2017-2020 period, production value increased by 85.2%, averaging an annual growth rate of 22.8%.

Annual dynamics of production in Kazakhstan in value, 2017-2020, M $ US

Exports non coniferous wood fuel from Kazakhstan

Exports in kind, m³

Export volumes of non-coniferous wood fuel from Kazakhstan experienced notable fluctuations during this period. In 2017, exports reached their lowest point, while 2018 saw the peak at 55 cubic meters—a 2.3-fold difference between these years. In 2020, exports dropped to 23 cubic meters, a decrease of 36.6% from the previous year. The largest increase occurred in 2018, with a jump of 134.5%.

Annual dynamics of product's exports from Kazakhstan in kind, 2017-2020, m³

From 2017 to 2020, exports in kind were heavily concentrated on Kyrgyzstan, which accounted for 96.0% of total flows.

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

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

Exports in value, K $ US

Export values showed irregular changes, reflecting a volatile market. The lowest value was recorded in 2017, while the highest stood at 24.5 thousand US dollars in 2018—a peak-to-trough ratio of 2.1 times. In 2020, exports totaled 12.2 thousand US dollars, a sharp decline of 34.4% from the previous year. The largest increase was in 2018, at 113.5%.

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

During 2017-2020, Kyrgyzstan effectively dominated the export value of non-coniferous wood fuel from Kazakhstan, capturing 96.0% of total flows.

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

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

Imports non coniferous wood fuel to Kazakhstan

Imports in kind, m³

Import volumes displayed significant volatility. The minimum was in 2017, while the maximum reached 3 909 cubic meters in 2020—a 5.1-fold variation between these years. In 2020, imports surged by 404.0% compared to the prior year. The largest decline occurred in 2019, at 4.5%.

Annual dynamics of product's imports to Kazakhstan in kind, 2017-2020, m³

From 2017 to 2020, Russia was the primary source for non-coniferous wood fuel imports to Kazakhstan, accounting for 79.6% of total imports in kind, with other destinations playing a minor role.

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

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

Imports in value, K $ US

Import values exhibited volatility over the observed period. The lowest value was in 2019 at 158.1 thousand US dollars, while the peak hit 291.7 thousand US dollars in 2020—a 1.8-fold gap. In 2020, imports rose sharply by 84.6% compared to 2019. The largest decline was recorded in 2019, at 38.0%.

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

In 2017-2020, the largest suppliers of non-coniferous wood fuel to Kazakhstan in value terms were Russia (47.4%), Germany (20.7%), and Poland (18.4%), together comprising 86.4% of total imports.

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

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