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Russian and Ukrainian Pellet Industry on the Rise

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15:1021 December 2012


The development of a new industry sector in Russia and Ukraine has started. A series of investment projects in pellet plants, scheduled for implementation in the coming years, have been announced. 
The project by Rus Gran and the German plant manufacturer Dieffenbacher involves the building of two plants for the production of pellets in Russia’s Kostroma region. Total volume of investments is estimated US$ 60 million. The capacity of each plant will be 140,000 tons of pellets per year.
According to the partners’ plans, 20 such plants are expected to be built by 2016.
Low-grade wood is expected to be a major source of raw materials for the new enterprises. 
In the Russian Far East the local timber processor Arkaim plans a plant with a production volume of 240,000 tons per year, while total volume of investments is estimated at US$ 240 million.
In the Ukraine meanwhile a large investment holding, Smart Holding, plans to invest up to € 260 million in the construction of up to 10 plants for the production of pellets from straw in different regions of Ukraine. According to Alexei Pertin, General Director of Smart Holding, total production capacity of the new plants will be 1.5 million tons of pellets per year. Implementation of the project is scheduled for 2013 to 2015.
Another project is planned by the Ukrainian KSG Agro Plants together with the company Polish Energy Partners. The plant for straw pellets is expected to produce by the end of 2013. The capacity will be 90,000 tons of pellets annually.
According to analysts of the Ukrainian Agroperspektiva company, the national industry of pellets will continue to grow rapidly in the coming years. 
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