As prices of oil and electricity increase the use of pellets as bio-fuel shows a strong upward trend in Sweden.
Total supplies of pellets to the Swedish market increased by 28 per cent, from 411 681 tons during the first six months of 2004 to 527 673 tons during the corresponding period in 2005. In the single family housing sector there was an increase from 124 244 tons to 141 705 tons, i.e. 14 per cent.

Supplies to big heating plants for providing distant heating and electricity also increased strongly; as much as 40 per cent to middle-size plants having a capacity between 25 kW and 2 MW for local heating and in industry also increased by as much as 18 per cent.
The Swedish Association of Pellet Producers, PiR, estimates that on an annual basis the Association’s member industries’ sales on the Swedish market will amount to about 1,1 million tons in 2005.
There are two reasons for this quick growth of the pellet market;
- Knowledge about pellets has improved. Today there is general recognition that pellets is an environment friendly, convenient and cost effective kind of fuel.
- The high prices of oil and electricity create a need for other energy sources for heating. In this case fuel pellets are the best alternative.