BiomassBlogClimate protection

CO₂ savings when switching from oil to pellets

In Austria, an extensive study, which was carried out by the Austrian research organisation BEA Institute for Bioenergy GmbH, has come to the conclusion that a conversion from oil to pellets – taking both production and consumption into account – would result in a CO₂ reduction of 98.1 %. The study analysed data from Austrian pellet plants, which represent 41% of the country’s total production.

This 98.1% saving would be achieved when using Austrian pellets. Even when using bagged pellets, there is still a significant reduction of 97.9%. Additionally, for pellets imported from the main supplier countries, an average CO₂ reduction of 95.2% would be achieved.

This study therefore confirms that heating with pellets is an environmentally friendly and sustainable form of heating!

(Source: propellets.at)

Is heating with wood CO₂ neutral?

How does Austrian pellet production contribute to CO₂ reduction?

Pellet production facilities are mostly integrated into sawmills, which eliminates the need for additional transportation of wood chips for processing.
The heat supply for these plants is predominantly provided by biomass — mainly bark, which is generated on site.
This sustainable energy and resource utilisation reduces energy consumption and CO₂ emissions.

Between 2023 and 2024, eleven new pellet production facilities are expected to be established in Austria. This will increase total production from 643,000 tonnes to 2,363,000 tonnes, allowing for the growing demand for pellet heating systems to be met.

98.1% less CO₂ means a significant environmental benefit:

Local forests, soils, and waters are protected, and sustainable habitats are preserved.
Reduced CO₂ and other pollutants lower air pollution, which benefits the health of both people and nature.
Less CO₂ emissions slow global warming and help mitigate climate change.

Industrielle Verarbeitung von Holz | Hargassner

Scheitholz und Pellets für kombinierten Heizerfolg | Kombikessel Hargassner

What does this mean for the UK?

Local pellet production in the UK is relatively low compared to imports. While there are some production facilities, their output is far from sufficient to meet domestic demand. Consequently, 60 % of the required pellets, are imported (approximately 60% coming from the USA, 18% from the EU, and 16% from Canada).

However, future government initiatives, particularly in the area of CO₂ capture, could influence the market in the long term and strengthen interest in renewable energy sources.

Transitioning from oil heating to pellet heating in the UK can lead to significant CO₂ savings, especially when the pellets are sourced sustainably and transported efficiently. The reduction typically ranges from 70% to 90%, making this option more environmentally friendly than the use of fossil heating oil.

Switching from an oil heating system to a pellet heating system could result in substantial CO₂ savings, particularly in rural areas where about 1.1 million households are not connected to the gas grid and rely on heating oil. The emissions from oil heating systems are considerably higher compared to pellet heating: with a typical consumption of around 2,000 litres of heating oil per year, approximately 5 tonnes of CO₂ are emitted per household. By switching to a pellet heating system, around 4.5 tonnes of CO₂ can be saved per household, as wood pellets are considered CO₂-neutral.

Pellet heating systems produce fewer emissions because the CO₂ released during combustion was absorbed throughout the life cycle of the trees. While the production and transport of pellets do generate some emissions, these are significantly lower than those associated with oil heating.

Although the UK imports a large portion of its pellets, even taking these transport emissions into account, the CO₂ savings remain substantial.

Widespread transitions could mean that hundreds of thousands of tonnes of CO₂ are saved annually at the national level, contributing to the achievement of the UK’s climate goals, including the net-zero target by 2050.

Stückholz und Pellets als umweltfreundlicher / grüner Brennstoff | Hargassner

The advantages of buffer storage

In addition to the high savings on heating costs and the significant contribution to protecting our environment, Germany introduced CO₂ pricing for heating and transport at the beginning of 2021.

What does this mean in concrete terms?
Companies that put heating oil on the market, for example, are obliged to purchase emission rights for the greenhouse gas emissions caused by the fuel. The price for CO₂ is initially €25 per ton and will gradually increase to €55 (in 2025).

Switching from oil to pellets: advantages at a glance

Reduction of emissions by up to 98.1
Cost reduction of up to 30
Extensive opportunities for subsidies

This makes saving energy and also using climate-friendly technologies, such as heating with biomass, even more attractive.

Subsidies are available for a wide range of biomass heating systems such as pellet, wood chip and log wood heating systems – so you can also save money on environmentally friendly heating.

Compelling benefits of biomass heating

Always up to date

More news & events that might interest you.