At Alpes Énergie Bois (AEB), a pellet producer in Cheylas, in the Grésivaudan valley, we receive many requests. The company supplies distributors, who themselves supply individuals and communities. And demand is high right now. Firstly because of consumer interest in this method of heating, underlines Michel Cochet, the boss: “Last year the growth in sales of pellet boilers was 100%; and for stoves 50%.” French production follows somehow. At Cheylas, AEB produces 55,000 tons of pellets per year from the residues of the adjoining sawmill. The factory runs without respite, “24 hours a day, 7 days a week”. Next year, investments will make it possible to put 12,000 additional tonnes on the market in order to meet demand. A demand that has obviously not been dampened by recent increases in fuel prices – around 50% in one year. For Michel Cochet, the first explanation is the increase in production costs: increase in the price of the raw material (wood), fuel prices (for transport), electricity (for the production of pellets it itself), not including insurance.
“We have to stop thinking that the price will continue to rise”
The inflation of the price is also explained by the international context, one explains on the side of France, the federation of players in this sector which employs 20,000 people. France imports 15% of its pellet consumption, mainly from Germany and Belgium. But the European market is destabilized by the war in Ukraine underlines Éric Vial, the general delegate of Propellet: “Russia, Ukraine and Belarus represent 3 million tonnes on the European market, roughly a small 10%. And when there is a lack of 10% on a market, prices go up.” So are we heading towards a shortage of pellets this winter? “The sector is already moving so everyone is on deck to ensure that everyone has pellets this winter”, says Eric Vial. On the distribution side, “the end customer practically has the biggest key in his hands. There are three things to do, recommends the General Delegate of Propellet : 1/ Buy only what you need, or even buy less and wait for the supplement to arrive this winter. We must stop thinking that the price will continue to rise and therefore buy now because the price will also fall in the face this fall and people who have bought very expensive now will not be happy. 2/ Have your appliance serviced to reduce consumption. 3/ The 3rd point which is really the most important point in terms of effects, is to lower the temperature inside the house.” And remember these numbers: “one degree less is 7% savings; 2 degrees 14%.” Consumption will also largely depend on the temperatures this winter. For the rest, therefore, customers are called upon not to make too large stocks, which in this tight market would cause a shortage. Clearly to be warm this winter, you have to keep a cool head.
Regional market
Beyond this tension linked to the economic situation, consumption in France should increase by 50% in 4 years according to professionals. The pellets are attractive first of all by their price and their yield. At AEB, Michel Cochet also insists on the virtues of the circular economy and the local nature of the market. The customers are from the region, just like the wood. Intended for construction, it is machined in the nearby sawmill. Offcuts and shavings from this production are then transformed into pellets. Finally, what could not be recovered is burned, which runs a thermal power station which produces the equivalent of the electricity consumption of a municipality of 4,000 inhabitants.