Biomass-based fuel is the oldest source of consumer energy known to mankind and the largest source of EU renewable energy. It comprises renewable organic matter, such as wood, agricultural crops and agricultural and municipal waste. The most commonly used form is wood pellets, which include pellets for residential and industrial use, and are relatively easy to transport.

Between 2008 and 2010 the production of wood pellets in EU increased by 20.5%, reaching 9.2 million tonnes in 2010 - or 61% of global production - figures from IEA Bioenergy showed. In the same period, EU wood pellet consumption increased by 43.5% to reach over 11.4 million tonnes in 2010, equal to nearly 85% of the global wood pellet demand. The European pellet industry still covered 81% of the EU demand in 2010, but the gap between production and consumption in EU has been growing rapidly.

Since the 1990s, the forest area in Europe has been increasing steadily. However, environmentalists say that is a short-term view and are worried biomass for energy could wipe out swathes of the world's forests. Where forests survive, they warn old trees are replaced with saplings, which have less value as a carbon store, and the variety of planting is not maintained.

Source: www.energymarketprice.com