Wood fuel market in Norway

Earlier Report Observations

The wood fuel market in Norway began the period with a volume of 1.05 million m³ in 2018. It contracted to 970 thousand m³ in 2019, a shift that coincided with amendments to Norwegian energy labeling legislation for energy-related products, including solid fuels, as part of aligning with EU regulations, which likely introduced uncertainty for suppliers and consumers.

Market volume recovered to 1.06 million m³ in 2020. A significant expansion followed in 2021, with the market reaching 1.22 million m³. This growth was stimulated by the announced introduction, effective from January 2022, of mandatory energy labeling for flueless solid fuel products and new eco-design requirements for local space heating appliances, prompting market adjustments ahead of the new rules.

The upward trend continued, with the market growing to 1.26 million m³ in 2022 and further to 1.36 million m³ in 2023. This sustained growth was supported by a heightened regulatory focus on energy labeling in buildings, the full implementation of eco-design standards for solid fuel appliances, and the government's broader climate action plan for 2030, which emphasized emission cuts and reinforced wood fuel's role as a renewable energy source.

Production wood fuel in Norway

In kind, 2018-2021, K m³

Top producers of wood fuel, 2018-2021

World map of production of wood fuel, 2018-2021

Norway's wood fuel production rebounded in 2021 after two years of decline. The country produced 1 705 K m³ of wood fuel, marking a significant 13.1% increase compared to 2020. Looking at the broader period from 2018 to 2021, production grew by 2.6%, which translates to an annualized rate of 0.9%. The lowest production level was recorded in 2020 at 1 508 K m³, while the largest decline occurred in 2019 with a drop of 7.9%.

Annual dynamics of production in Norway in kind, 2018-2021, K m³

In value, 2018-2021, K $ US

Norway's wood fuel production value increased for the second consecutive year in 2021. The output was valued at 57 448 K $ US, showing a strong gain of 22.8% over the previous year. From 2018 to 2021, production value rose by 29.7%, equating to an annualized growth rate of 9.1%. The minimum value was recorded in 2019 at 37 271 K $ US, which also saw the largest decline of 15.8%. In contrast, the largest increase occurred in 2020 with a jump of 25.5%.

Annual dynamics of production in Norway in value, 2018-2021, K $ US

Exports wood fuel from Norway

Exports in kind, K m³

In 2021, Norway's wood fuel exports amounted to 1 515 K m³, representing a modest increase of 8.2% compared to the prior year. However, over the period from 2018 to 2021, exports decreased by 5.1%, which corresponds to an annualized decline of 1.7%. The lowest export volume was recorded in 2020 at 1 401 K m³, while the peak occurred in 2019 with 1 660 K m³. The largest decline took place in 2020, dropping by 15.6%.

Annual dynamics of product's exports from Norway in kind, 2018-2021, K m³

From 2018 to 2021, Sweden remained the primary destination for Norway's wood fuel exports in kind, accounting for 74.1% of the total export volume. The remaining exports were distributed among other countries.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Norway in kind, 2018-2021

Exports in value, M $ US

Norway's wood fuel export value increased for the second consecutive year in 2021, reaching 51.0 M $ US, which corresponds to a 17.4% year-over-year rise. Over the 2018-2021 period, export value grew by 19.9%, with a compound annual growth rate (CAGR) of 6.2%. The minimum value was recorded in 2019 at 40.4 M $ US, which also experienced the largest decline of 5.0%.

Annual dynamics of product's exports from Norway in value, 2018-2021, M $ US

In value terms, Norway's wood fuel exports from 2018 to 2021 were primarily directed towards Sweden and Denmark, with their combined share reaching 91.4% of total export flows. Other destinations played a secondary role in the export structure.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Norway in value, 2018-2021

Imports wood fuel to Norway

Imports in kind, K m³

In 2021, Norway's wood fuel imports reached 1 033 K m³, up by 9.0% compared to 2020. Over the 2018-2021 period, imports increased by 4.6%, with a compound annual growth rate (CAGR) of 1.5%. The lowest import volume was recorded in 2020 at 948 K m³, while the peak occurred in 2019 with 1 100 K m³. The largest decline took place in 2020, falling by 13.8%, whereas the largest increase was in 2019, rising by 11.3%.

Annual dynamics of product's imports to Norway in kind, 2018-2021, K m³

Throughout 2018-2021, Sweden, Denmark, and Estonia were the key partners for Norway's wood fuel imports in kind. Sweden accounted for 50.7% of imports, Denmark for 9.9%, and Estonia for 7.7%, together making up 68.4% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Norway in kind, 2018-2021

Imports in value, M $ US

In 2021, Norway's wood fuel import value reached 108.0 M $ US, showing a substantial increase of 21.6% relative to the prior year. Between 2018 and 2021, import value grew by 10.4%, equating to an annualized rate of 3.4%. The minimum value was recorded in 2020 at 88.8 M $ US, while the maximum occurred in 2019 at 110.6 M $ US. The largest decline took place in 2020, dropping by 19.7%.

Annual dynamics of product's imports to Norway in value, 2018-2021, M $ US

From 2018 to 2021, Sweden, Poland, and Indonesia consistently remained the main destinations for Norway's wood fuel imports in value terms. Sweden accounted for 32.5% of imports, Poland for 13.0%, and Indonesia for 11.9%, together representing 57.4% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Norway in value, 2018-2021