The production of biomass pellet fuel began in the 1930s. Because raw materials mainly come from forestry waste, the transportation cost is low and the price is cheap. Therefore, the biomass pellet fuel, which is attractive in price and quality, becomes an alternative energy source for coal and natural gas, and is favored by European and American countries. However, after the oil crisis, with the stabilization of world oil prices, the production and use of biomass pellet fuels are gradually declining, and the development of biomass pellet fuel industry is slow.
In 1990s, people recognized the problem of oil resources shrinking and global warming due to the long term use of petroleum energy such as coal, oil, natural gas, etc., actively developing and using renewable clean energy, reducing the consumption of petrochemical energy and greenhouse gas emissions have become a consensus among countries around the world to alleviate energy crises and climate change. Some regions and countries have also enacted laws and regulations to strictly limit greenhouse gas emissions. These international agreements and regional or national laws and regulations have become the driving force for the development of renewable energy in the world, which has greatly stimulated the demand of renewable energy. The biomass pellet fuel industry has once again enters people's vision accordingly. And it has developed rapidly since the 21st century, the rate of annual output has increased from 18% to 25%.
Among them, the countries with the largest biomass pellet fuel production are the United States, Canada, Germany and Sweden, while the countries with the largest consumption are Sweden, Denmark, the United States, Netherlands and Italy. Europe is the region with the largest consumption of biomass pellets in the world. The difference between the consumption and production of biomass fuels in Europe is mainly offset by imports, so Europe has become the world's largest import market for biomass pellets; North America has become much larger than its consumption,so it became the largest export market. The countries with the largest imports of biomass pellets are Denmark, Netherlands, Italy, Belgium and Sweden, while the countries with the largest exports are Canada, Russia, Germany, Poland and the United States. Export volume of Canada's biomass pellets reaches 1.655 million tons, accounting for 95% of its total production. It is the largest exporter of biomass pellet fuel in the world. At present, heating and power generation are the two main uses of biomass pellet fuel. In Austria, France, Germany and Italy, biomass pellet fuel is mainly used for heating, while in Denmark, Finland and Sweden, in addition to heating, it is used for power generation.