Ing. Marco Palazzetti's conference at Interpellets 2011: technology state of the art update for pellet stoves

1. PELLET-BURNING STOVES
Development of the market

2. Agenda:
PAST THREE YEARS RECAP
TECHNOLOGY STATE OF THE ART UPDATE
EU MARKETS KEY FIGURES
MARKETS ANALYSIS AND FUTURE SCENARIOS

3. PAST THREE YEARS RECAP
PAST THREE YEARS RECAP

4. PAST THREE YEARS RECAP
2008’s PROPOSALS
1. Pellet price observatory
2. Pellet quality certification
3. Organized distribution networks
4. Energy product certification
5. Regular maintenance
6. Market monitoring
7. Increase of awareness on efficiency
and energy needs issues
8. Support solutions for the integration
of different energy sources

5. PAST THREE YEARS RECAP
HOW MANY EUROPES
ARE THERE?
NS 3035
NS 3065
BImSchV
All other European Art. 15/a B-VG
countries

6. TECHNOLOGY STATE OF THE ART UPDATE
TECHNOLOGY STATE OF THE ART UPDATE

7. TECHNOLOGY STATE OF THE ART UPDATE
ORDINARY PELLET STOVES FLUE GAS
GLASS
CLEANING
AIR
PELLET
HEAT
COMBUSTION AIR

8. TECHNOLOGY STATE OF THE ART UPDATE
SEALED STOVES FLUE GAS
PELLET
HEAT
GLASS CLEANING AIR
COMBUSTION AIR

9. TECHNOLOGY STATE OF THE ART UPDATE
SEALED STOVES FLUE GAS
GLASS CLEANING AIR
COMBUSTION AIR
PELLET
HEAT

10. TECHNOLOGY STATE OF THE ART UPDATE
AIR INLET CONTROL FLUE GAS
CONTROLLER
PELLET
HEAT
GLASS CLEANING AIR
COMBUSTION AIR

11. TECHNOLOGY STATE OF THE ART UPDATE
SELF SET UP FLUE GAS
CONTROLLER
PELLET
GLASS CLEANING AIR
COMBUSTION AIR

12. TECHNOLOGY STATE OF THE ART UPDATE
AIR DUCTING

13. TECHNOLOGY STATE OF THE ART UPDATE
High efficiency and low emissions*
EFFICIENCY OF PELLET STOVES ABOVE 95%
CO EMISSION BELOW 20 mg/Nm3
OGC 1 mg/Nm3
NOX BELOW 90 mg/Nm3
DUST BELOW 5 mG/Nm3
FLUE GAS TEMPERATURE 86°C (WARNING!!)
* Data is referred to a water heating pellet stove at nominal power, sealed with combustion control

14. TECHNOLOGY STATE OF THE ART UPDATE
WATER TANK INTEGRATION FLUE GAS
CONTROLLER
HEAT
GLASS CLEANING AIR
COMBUSTION AIR

15. TECHNOLOGY STATE OF THE ART UPDATE
Considerations
IT’S NO MORE TIME TO TALK ABOUT SINGLE APPLIANCES
EFFICIENCY IT’S TIME TO TALK ABOUT SYSTEMS:
- Whole building efficiency
- Whole system seasonal efficiency
- Whole chain quality (from pellet quality to maintenance plans
going through integration configurations and installations)

16. EU MARKETS KEY FIGURES
EU MARKETS KEY FIGURES

17. EU MARKETS KEY FIGURES
Annually sold Pellet Stoves in EU
Source: European Pellet Council, 2011: This graph includes
data from
Austria, Belgium, Denmark, France, Finland, Germany, Ireland,
Italy, Spain, Sweden and Switzerland

18. EU MARKETS KEY FIGURES
Annually sold Pellet Stoves: small markets
Source: European Pellet Council, 2011

19. EU MARKETS KEY FIGURES
Annually sold Pellet Stoves: emerging markets
Source: European Pellet Council, 2011

20. EU MARKETS KEY FIGURES
Annually sold Pellet Stoves in Italy
Source: European Pellet Council, 2011

21. OTHER MARKETS
World wide emerging Markets
CHILE
JAPAN
CHINA
EASTERN EUROPE

22. MARKETS ANALYSIS AND FUTURE SCENARIOS
MARKETS ANALYSIS
AND FUTURE SCENARIOS

23. MARKETS ANALYSIS AND FUTURE SCENARIOS
Relation between variabiles
PELLET STOVE PENETRATION
VS
LOCAL PELLET PRODUCTION

24. MARKETS ANALYSIS AND FUTURE SCENARIOS
Relation between variabiles
PELLET STOVE
PENETRATION
WEAK CORRELATION:
VS Germany, Austria, Scandinavian
Countries have low penetration
LOCAL PELLET
but very high pellet availability
PRODUCTION

25. MARKETS ANALYSIS AND FUTURE SCENARIOS
Relation between variabiles
PELLET STOVE PENETRATION
VS
LOCAL PELLET STOVES PRODUCTION

26. MARKETS ANALYSIS AND FUTURE SCENARIOS
Relation between variabiles
PELLET STOVE
PENETRATION
STRONG CORRELATION:
VS Italy as an example
LOCAL PELLET
STOVES
PRODUCTION

27. MARKETS ANALYSIS AND FUTURE SCENARIOS
Other important variables
AFTER SALES SERVICE
(MARKET CANNOT GROW WITHOUT IT)
DISTRIBUTION CHANNELS
(SPECIALIZED DEALERS, DISTRIBUTORS, DIY)
AVERAGE PRICE (GETTING LOWER EVERY YEAR)

28. MARKETS ANALYSIS AND FUTURE SCENARIOS
Relation between variabiles
PELLET STOVE PENETRATION
VS
WOOD BURNING ATTITUDE

29. MARKETS ANALYSIS AND FUTURE SCENARIOS
Relation between variabiles
PELLET STOVE
PENETRATION
INVERSE CORRELATION:
VS Germany, Austria, Northern European
Countries have long and strong wood
WOOD BURNING burning attitude and pellet stoves have
ATTITUDE slower growth speed

30. MARKETS ANALYSIS AND FUTURE SCENARIOS
Which is the difference between a pellet
stove and a wood log stove?
PELLET STOVE WOOD LOG STOVE
QUICK AND EASY ROMANTIC AND STILYSH
NOISY SILENT
AUTOMATIC MANUAL
ECONOMIC EXPENSIVE

31. MARKETS ANALYSIS AND FUTURE SCENARIOS
HEAT PUMP
Which is the difference between a pellet
QUICK
stove and a woodQUITE SILENT
log stove?
AUTOMATIC
PELLET STOVE WOOD LOG STOVE
EXPENSIVE
QUICK AND EASY ROMANTIC AND STILYSH
NOISY SILENT
AUTOMATIC MANUAL
ECONOMIC EXPENSIVE

32. MARKETS ANALYSIS AND FUTURE SCENARIOS
Questions & Answers
ARE PELLET STOVES INCREASING THE OVERALL MARKET OR
REPLACING WOOD LOG STOVES/FIREPLACES?
A FEW YEARS AGO INCREASING NOW REPLACING.
ARE NEW BUILDINGS INSTALLING MAINLY PELLET STOVES OR
WOOD LOG STOVES/FIREPLACES?
MAYBE PELLET BOILERS OR WOOD LOG STOVES/FIREPLACES. THE
ASSUMPTION IS THAT NEW BUILDINGS ARE MAINLY MADE BY
HIGHER SPENDERS FAMILIES.
ARE EXISTING BUILDINGS INTEGRATING THEIR HEATING SYSTEMS
WITH PELLET STOVES OR WITH WOOD LOG STOVES/FIREPLACES?
PELLET STOVES!

33. MARKETS ANALYSIS AND FUTURE SCENARIOS
Questions & Answers
HOW STRONG IS THE MARKET RESPONSE TO NEWER
TECHNOLOGIES?
VERY WEAK, THE MARKET IS MAINLY PRICE DRIVEN.
WHAT MAKES PELLET STOVES MORE SUITABLE THAN WOOD LOG
STOVES/FIREPLACES?
EASY TO LOAD, FUEL IS EASY TO FIND, WORK UNATTENDED,
EMISSIONS.
WHAT COULD BOOST PELLET STOVES MARKET PENETRATION?
POLICIES FURTHER RESTRICTING FLUE GAS EMISSIONS.

34. MARKETS ANALYSIS AND FUTURE SCENARIOS
The real question
WHAT IS A PELLET STOVE?

35. MARKETS ANALYSIS AND FUTURE SCENARIOS
What is a pellet stove?
•POWER OUTPUT
•EFFICIENCY
1. IT’S A HEATING APPLIANCE •SINGLE ROOM
VS WHOLE HOUSE
•COST PER kWh
•DESIGN
2. IT’S PART OF THE ROOM’S •MATERIALS
FURNITURE •CLEANNESS
•USABILITY
3. IT’S A TECHNOLOGICAL, •INDIPENDENCE
•EMISSIONS
ECOLOGICAL AND •RECYCLABLE MATERIALS
SUSTAINABLE CHOICE •ELECTRICITY
CONSUMPTION

36. MARKETS ANALYSIS AND FUTURE SCENARIOS
Questions & Answers
HOW IS A PELLET STOVE GOING TO BE?
As McDonald’s is teaching us….
Singapore India Arabia New Zeland Israel
Design is getting local, with a strong influence of regional flavors

37. Conclusions
PESSIMISTIC VIEW ON THE TECHNOLOGICAL SIDE: PRICE SENSITIVITY IS
VERY HIGH (RISK FOR PRODUCT TO BE CONSIDERED LIKE A COMMODITY)
DESIGN IS GETTING MORE IMPORTANT: LOCALIZED PRODUCTS ARE
NECESSARY TO BE MORE COMPETITIVE AND SATISFY THE DEMAND
(MANUFACTURERS ARE MAKING DIFFERENT PRODUCT RANGES FOR
DIFFERENT MARKETS TO LEVERAGE MORE ON THE FASHION ASPECT AND
RISE BARRIERS TO INTERNATIONAL COMPETITORS)
STILL GREAT POTENTIAL UNEXPRESSED IN MOST EUROPEAN COUNTRIES
DIFFERENT POLICIES IN EACH EUROPEAN COUNTRY FOR INSTALLATION
AND GRANTS ACCESS (POLICY BARRIERS)
QUALITY OF AIR POLICIES MAY BOOST MARKET DEVELOPMENT (ANTIBIOTIC
EFFECT)

38. Thank you for your attention