Combustible Biomass, Prices Continue to Decrease: Firewood and Wood Chips are Advantageous Options

he prices of woody biofuels, including pellets, wood chips, and firewood, continue to decrease, as highlighted by AIEL's analysis for September 2023.

This downward trend offers economic relief to many Italian families who use biomass heating.

Combustible Biomass: The Cost of Pellets Settles at €6.4/Bag

AIEL's analyses show that, already from April 2023, pellet prices began to fall, approaching pre-crisis levels. In September, the decrease in the cost of pellets reached 40% compared to the previous year, stabilizing at €6.4/Bag + VAT for ENplus A1 certified pellets.

Despite the approach of winter, traditionally associated with an increase in prices, no rise is expected for the 2023-2024 heating season, unlike natural gas. The average price of bulk pellets in tanker trucks has decreased to €376/t, showing a reduction of €230/t compared to the same period last year.

Firewood continues to be a cost-effective option. September 2023 data indicate an average cost of €212.88/t for wood with 20-25% moisture content, €28 less than in September 2022. Choosing wood with higher moisture content requires proper seasoning, essential for reducing harmful emissions and improving energy efficiency.

Combustible Biomass: Wood Chips as a Stable and Economical Solution

Furthermore, wood chips remain a stable and economical option, thanks to their local production and energy efficiency. In September 2023, the price of A1 quality wood chips was €145/t, while B1 class wood chips were priced at €54/t.

The reduction of VAT to 10% on pellets has significantly contributed to the decrease in prices, with positive implications in the fight against energy poverty and in supporting the market for pellet devices. The reconfirmation of this tax relief is also proposed for 2024, for reasons ranging from combating tax fraud to promoting equity among different energy sources used in home heating.