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Pellet sales increased by 8% compared to last year in the Los Ríos region

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Due to the above, it was not necessary to import pellets, as the national industry has greater internal supply.

The Chilean Biomass Association reported that the Los Ríos region has a stockpile of pellets and confirmed that the plant in La Unión is paralyzed.

The information was provided by Antonio Minte, manager of the association, reporting that this year there was production exceeding projected demand, corresponding to an 8% increase compared to the previous year.

Due to the above, it was not necessary to import pellets, as the national industry has greater internal supply.

While this is positive for the market, it also means a halt in growth or the incorporation of new producers. However, for Minte, it is good news for two reasons: first, because importing is viable; and second, because the local industry reacted, and there is now installed capacity that more than doubles demand.

Regarding the pellet production plant located in the commune of La Unión, the manager of the Chilean Biomass Association stated that it is paralyzed because prices were very low, making production economically unviable. Therefore, they are only selling the stock they had previously produced.

The plant was inaugurated in 2023 with the purpose of producing over 10,000 tons of pellets that year, as reported by authorities at the time.

The representative of the Chilean Biomass Association also referred to the Biofuels Law, enacted in 2022 in Los Ríos during the visit of Energy Minister Diego Pardow. The law aims to ensure that solid biofuels, such as firewood or pellets, are produced, transported, and commercialized in Chile while meeting mandatory minimum quality specifications.

However, two years after its enactment, it has not yet come into effect. Regarding this, Antonio Minte stated that there is still much to implement, indicating that it is expected to take effect in early 2027 and that Valdivia will be the only commune in Los Ríos where it will initially be implemented.

Source:BiobioChile