Turkey is experiencing an increase in wood pellet deliveries to the European Union (EU) due to the embargo on Russia. However, the country is experiencing an increase in internal energy demand that requires a restructuring of its energy system.
Increase in exports from Turkey
Turkey has seen a sevenfold increase in its exports of wood pellets to the EU. This significant increase is the result of the embargo against Russia for the invasion of Ukraine. However, a major part of these exports could be recertified equipment from Russia.
Turkey used to export an average of 2200 tons per month of wood pellets to the EU before the Russian-Ukrainian conflict. This wood is used for electricity production and domestic needs. From June onwards, this volume jumped to an average of 10,000 tons per month, even reaching 16,000 tons in September.
In comparison, Russia was shipping an average of 153,000 tons per month to the EU before February 2022. But since then, volumes are at zero in September. These observations lead traders to question the real origin of these products in the face of such a rapid increase in exports.
Of the total, exported in recent months from Turkey, research indicates that the main destinations are Bulgaria and Italy. Indeed, Bulgaria received 9000 tons and Italy 3600 tons in September. Furthermore, the markets are seeing an increase in biomass prices from €270 to €300 per ton for those coming from Turkey.
However, there are significant wood reserves in Turkey. In addition, the repackaging of Russian wood pellets would be an expensive activity for Turkish ports. A ton of reloaded Russian material could then amount to €500.
Finally, the price of wood pellets is down around $362 per ton, after peaking in October at $467 per ton. However, the price is still up 76% for the year. Moreover, Russia accounted for 10% to 20% of European supplies before the conflict.
Rural energy projects
Turkey, operates a biogas project in 17 cities. A micro-project of TurkishElectromechanic Industries Co (TEMSAN), providing that animal manure in farms will be able, from three cows, to produce natural gas. The production will then be able to supply one day’s cooking needs.
This project aims to support farmers who do not have access to gas. The technical process is based on the BİOTEM device made by engineers in Turkey. The device produces one cubic meter of gas from 20 liters of waste per day.
This solution will allow for three meals a day for one household. The head of TurkishElectromechanic Industries Co (TEMSAN), Fatih Öztürk, says:
“The villagers really liked it and we received positive feedback. They brew and cook their meals with animal waste.”
In addition, a remote gas quality monitoring system may be implemented.
The BİOTEM device will soon enter mass production. There is indeed a strong demand, especially in Africa. The monthly production represents the quantity of a large gas cylinder.
In Turkey, TurkishElectromechanic Industries Co (TEMSAN) is also working on another project called MOBİTEM. It is intended for rural areas where access to electricity is difficult. The system is based on an individual production of electricity with solar panels.
The company is also developing a prototype based on a one-day battery charging system. This device has an educational aspect because it allows to teach children how electricity is generated. Thus, it will be able to settle in the playgrounds.
