Australia Wood Pellet Market Report and Forecast 2024-2032

Australia Wood Pellet Market Size

The Australia wood pellet market was valued at USD 520.6 million in 2023. The market is further projected to grow at a CAGR of 4.9% between 2024 and 2032, reaching a value of USD 805.3 million by 2032.

Key Takeaways

• Australia is rejecting forest biomass as a source for wood pellets, leading to a shift in policy away from using native forests for energy production. 

• Australian wood pellet exports hit a record high in the first half of 2020, with around 56,000 tonnes of pellets exported, a substantial increase from the previous year, driven by shipments to the UK and the Netherlands. 

• Prominent wood pellet providers in the country are Pellet Heaters Australia, Pellet Experts Pty Ltd, Renewable Wood Pellets, and Wood Pellets Tasmania Pty Ltd.

The Australian government's Renewable Energy Target (RET) and initiatives promoting clean energy have spurred a rise in the adoption of wood pellets for heating purposes. This trend is driving Australia wood pellet market growth as consumers and businesses increasingly seek sustainable alternatives to fossil fuels. Additionally, technological advancements in wood pellet production, such as improved combustion technologies and manufacturing processes like torrefaction, are enhancing production efficiency and quality, further driving market expansion in Australia.

As per industry reports, wood pellets are being used in innovative ways, such as in combined heat and power (CHP) systems like the one installed by the University of the Sunshine Coast. This system generates electricity and heat simultaneously, showcasing the versatility and efficiency of wood pellets beyond traditional heating applications.

Moreover, strategic partnerships, such as the collaboration between Altus Renewables and Mitsui & Co. to export wood pellets to Japan, are shaping the Australia wood pellet market development. These partnerships facilitate market expansion, enhance distribution networks, and drive innovation within the industry.

Wood pellets are increasingly being used for commercial heating in establishments like eco-friendly hotels and restaurants. For instance, The Greenhouse by Joost in Melbourne uses wood pellets for heating, showcasing the environmental benefits and cost-effectiveness of wood pellet heating solutions in commercial settings. In addition, pellets are a key fuel source for biomass power plants like the one operated by Green Distillation Technologies in Warren, NSW.

These power plants use wood pellets to generate electricity, contributing to Australia's renewable energy targets and reducing reliance on fossil fuels. In residential settings, wood pellets are gaining popularity as a renewable heating option, with examples like households in Tasmania using wood pellet stoves for efficient and eco-friendly heating.

Australia Wood Pellet Market Report Snapshots

Australia Wood Pellet Market Size

Australia Wood Pellet Companies