Daniela Espinoza from ACHBIOM gives an overview of the Chilean wood pellet market

A few weeks ago, ENplus^® in cooperation with ACHBIOM – Asociación Chilena de la Biomasa organised a webinar for Chilean pellet companies. Today, we have the pleasure to talk with the association’s managing director Daniela Espinoza who help us understand the specifics of the Chilean pellet market.

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What are the main activities of the association? How many members does it have?

The Chilean Biomass Association (Asociación Chilena de Biomasa, AChBIOM) is an organization that brings together 35 companies across the entire biomass value chain: biomass producers, pellet producers, biomass-related service providers, energy generators, and equipment vendors.

Our mission is to promote the sustainable development of the biomass industry. Our vision is to position biomass as a sustainable fuel and a driver of local economic development.

We work collaboratively with public institutions, including the Ministry of Energy, Ministry of Environment, Ministry of Agriculture, as well as with other industry associations.

Our key activities include monitoring the solid biofuels market in Chile, especially the pellet sector; tracking legal initiatives, public policies, and government programs that may impact the biomass market; conducting educational campaigns to promote the responsible use of biomass and its role in decarbonisation.

 

How is the local market for wood pellets? Are there many companies involved in pellet production? Is it an emerging market?

As an association, we represent 16 pellet-producing companies which together account for around 80% of the country’s total production. In 2024, Chile’s annual pellet production is approximately 220 000 tons. Most pellets are produced using raw material from the forestry sector, primarily from Pinus radiata.

The pellet market is in a consolidation phase. Some companies have been producing pellets for over a decade, and new production plants of various sizes continue to emerge each year, mainly from central to southern Chile. Pellets are seen as a clean, renewable, and cost-competitive alternative for residential heating.

 

Does Chile export wood pellets or are the volumes mainly used domestically?

Nearly all pellet production in Chile is consumed domestically. While there are companies with export capacity, current export volumes remain very low.

 

Is there any government support for the development of the pellet market? What about regulations and quality or sustainability requirements?

There are currently no direct subsidies for pellet consumers in Chile. However, funding programs for companies are available through the national development agency, CORFO.
In addition, the Ministry of Energy, through the Energy Sustainability Agency, is implementing a support program for pellet and firewood producers called Centros Integrales de Biomasa (Integrated Biomass Centres). This initiative aims to increase the supply of solid biofuels in the country.

On the regulatory front, the implementation of the Solid Biofuels Law is underway. A regulation is currently being drafted that will define quality standards and market requirements for pellets.

There is also a voluntary Chilean standard for wood pellets, which is not mandatory for producers. Additionally, the Ministry of Environment is working on a new emission standard in respect to the appliances that burn wood and wood pellets. This regulation will establish emission limits for stoves, heaters, and wood-burning cookstoves.

 

In recent months, we have observed more Chilean companies applying for ENplus^® certification. What do you think is the reason for this and do you think this trend will continue?

Given the absence of a mandatory national pellet quality standard, some companies have opted for ENplus^® certification to access markets beyond residential heating. This certification is particularly relevant for export purposes and for entering institutional or industrial segments that require third-party quality assurance.

We believe this trend will continue as companies seek to improve product quality, differentiate themselves, and prepare for more demanding markets.