PRESS RELEASE HELLENIC BIOMASS DEVELOPMENT COMPANY (HELLABIOM)
Athens, December 18, 2023

Request for correction of the comparison study of heating costs from various technologies (Winter Period 2023-2024) due to inaccurate data regarding heating using a wood pellet boiler was sent by ELEAVIOM to the Scientific Group NPT.

Following the publication of the updated 2023-2024 winter season study entitled “Comparison of heating costs from various technologies” (11/12/2023), which was compiled by the Steam Engines and Boilers Laboratory of NTUA in collaboration with the Thermal Processes Laboratory and receiving support from the Institute of Chemical Processes and of Energy Resources of EKETA, the Hellenic Biomass Development Company (HELLABIOM) made in request for correction of said study to its authors, due to inaccurate data regarding heating technology using a wood pellet boiler.

HELLABIOM is the body representing the professional and scientific community of the Biomass utilization sector, having a long-standing presence in the field and participating as a national association – member in the corresponding European Bioenergy Association (Bioenergy Europe), as well as in the European Pellet Council (EPC) ). The Association’s members include the most important companies active in the pellet production and trading sectors. In order to inform the public and solve the problems of the specific sub-sector, a relevant Pellets Working Group has been established within HELLABIOM. In order to inform the public and solve the problems of the specific sub-sector, a relevant Pellets Working Group has been established within HELLABIOM. Wood pellets are an environmentally friendly solid biofuel and their choice as a domestic and commercial heating solution in modern combustion devices has a number of advantages as we have recently summarized.

Investing in a new heating system is expensive and therefore should be profitable in the long run. The severe price spikes and unpredictable risks that characterize the fossil fuel market do not occur to the same extent as wood pellets. On the contrary, pellets maintain their prices at constant levels over time. Even the sharp increase in prices of energy products during last year’s heating season did not significantly affect the pellet market during this year’s season and prices mostly tend to return to close to pre-crisis levels . Using pellets is currently one of the most economical forms of heating, with the current wholesale price being up to 50% lower than the highest price of the previous year.

Unfortunately, the above reality is not reflected in the published study on the comparison of heating costs from different technologies. The results of the study in relation to heating technology using a wood pellet boiler grossly downplays the role of wood pellet systems as an economical and renewable heating option, causes a lot of reactions in the ranks of our Association members and leads to wrong conclusions and their purchasing behavior consumers, but also those responsible for drawing up energy, environmental and fiscal policy.

In our opinion, the inaccurate depiction of the cost of heating technology with a biomass (wood pellet) boiler assembly, which leads to the wrong conclusion that the cost of thermal energy amounts to 0.137 €/kWhth and that the amortization time of the investment in such a new system amounts to an interval greater than twenty (20) years, due to three (3) reasons:
1. Not representative retail price of wood pellets A1
The quoted price in the study of €533/ton (including VAT 24%) for wood pellets class A1 is considered far more expensive than the average market price and in any case not the representative one, especially in areas of northern Greece where the largest consumption of wood pellets in the country. In addition and recognizing that this is not a direct object of the study or a matter of responsibility of the study group, we must mention the standing position of HELLABIOM on the “tax injustice” that exists for wood pellets in Greece a>, subject to a higher VAT rate (24%) compared to natural gas (6%), contrary to those applicable in many EU countries

2. Low efficiency of wood pellet boiler assembly.
We consider that for wood pellet boilers a higher degree of efficiency should be considered compared to e.g. 78% of the study, which corresponds to the minimum limit of Regulation (EU) 2015/1189 regarding the eco-design requirements for solid fuel boilers. Corresponding to heat pumps, for which high COP values have been selected based on the best available technologies available on the market, a minimum efficiency of 84 % should be considered , as referred to in Annex V of Regulation (EU) 2015/1189 (https://eur-lex.europa.eu/legal-content/EL/TXT/PDF /?uri=CELEX:32015R1189).

3. High investment cost capture of wood pellet boiler assembly.
In the study, it is not clear with what criteria or market research the choice of investment cost of the various heating devices / systems has been made. The stated investment cost for a biomass boiler-burner complex with feed silo, which according to the study amounts to €6,930, is considered particularly high and, in any case, not representative of the average price for a complex with a 20 kW boiler (if it is considered to be of equivalent power to the oil boiler to be replaced, which is used as a basis of comparison).

Based on the above, HELLABIOM requests the authors of the study to re-evaluate in the context of the study the case of a pellet boiler assembly, taking into account :
1. As retail market fuel prices of A1 wood pellets are those that result representatively, taking into account the recent data from a market survey by HELLABIOM and its members , which were submitted to the scientific editorial team of the study.
2. As efficiency grade wood pellet boiler at least 84% , in relation to what is mentioned in Annex V of Regulation (EU) 2015/1189.
3. As investment cost for a boiler-biomass burner assembly with feed silo the representative prices of compliant devices that exist on the Greek market and which also have brought to the attention of scholars, based on the current market research of HELLABIOM and its members.

It is worth noting that HELLABIOM aims to soon develop a Wood Pellet Price Index, on the model of similar initiatives of other biomass/pellet links in Europe , such as the organization proPellets Austria. The main objectives of this Price Index are:
• Informing consumers about the current prices of solid biofuels, but also about their historical trends, especially in relation to other products (fuels) in the domestic heating market.
• The strengthening of the transparency and extroversion of the Greek solid biofuels market, through the cooperation of commercial companies and institutions.

Hoping that the vital request to review the study comparing heating costs from different technologies, as regards the heating technology using a wood pellet boiler, will receive the immediate attention of the NTUA Scientific Group, we remain at the disposal of researchers and all stakeholders to be informed about the perennially economical, efficient and renewable Bioheat offered by the use of wood pellets in modern heating devices.

Yours sincerely,
The Board of Directors of HELLABIOM