Belarus is on track to significantly boost its economy through the export of fuel pellets, with officials announcing potential annual exports of up to 900,000 tons. Vitaly Kretsky, the director of the Department of Energy Efficiency under the Belarusian government, shared this optimistic projection during the department's final meeting.
The country has established 64 production facilities capable of generating approximately 894,000 tons of pellets annually. While initial forecasts included the European market’s potential of 3 million tons annually for exports, current sanctions have halted these shipments. To adapt to this situation, the Belarusian government has implemented comprehensive measures aimed at increasing domestic usage of pellets to 300,000 tons annually by developing internal demand.
“Belarus can supply abroad no less than 900,000 tons of wood fuel pellets per year,” stated Kretsky, according to the state information agency, BelTA. He noted there is interest from friendly nations nearby, and even potential buyers within the EU could not be ruled out.
Currently, Belarus has the capacity to produce about 300,000 tons of pellets each year. The government's goal is to utilize all of this production domestically. Kretsky observed, “Consumption of pellets increased twofold compared to 2021,” highlighting the growing reliance on these biofuels for energy needs. Particularly, households consumed 370 tons more pellets than the previous year, marking significant growth.
The increase is reportedly driven mainly by smaller installations, like those with capacities below 1 megawatt, as there were no significant additions of large pellet facilities over the previous year. The minister emphasized the importance of these smaller units for achieving the projected figures.
On the regulatory front, the Ministry of Forestry of Belarus set the domestic price of fuel pellets at 160 Belarusian rubles (approximately $50.36) per ton, excluding VAT, effective as of August 1, 2024. This price regulation is part of the government’s broader strategy, as outlined by their July 25, 2024 decree, giving the Ministry of Forestry authority to manage internal pellet prices.
These measures are indicative of Belarus's strategy to establish itself as a significant player in the fuel pellet market, especially as energy security concerns push nations toward renewable and alternative energy sources. Looking forward, the government aims to meet internal consumption targets of at least 50,000 tons of pellets for 2024 and aims to ramp this up to 200,000 tons by 2026.
Private and public sectors alike are gearing up to respond to both domestic and possible international demand, paving the way for Belarus to carve out its niche within the global bioenergy market.
Despite the complications surrounding EU market access due to sanctions, Kretsky remains optimistic, stating, “There is still room for us to explore relationships with friendly states, alongside our existing markets.” This multi-faceted strategy not only aims to meet domestic energy needs but also looks to stabilize and improve Belarus’s economy through international exports.
With rising domestic consumption figures alongside ambitious production goals, Belarus appears positioned to leverage its resources wisely, aiming for sustainability and economic growth through the strategic export of fuel pellets.