Energy Turkey’s biofuel sector gets fired up on overseas demand By William Sellars February 24, 2025, 11:29 AM Alamy via Reuters Biofuel pellets are made by compressing waste wood from the lumber industry – Turkey can produce almost 2 million tonnes a year 2m tonne biofuel capacity Demand from Europe and Gulf Could replace oil and coal Turkey is poor in oil and gas while its renewable energy sector is heavily reliant on a mix of hydro, wind and solar. But another element is heating up: biofuel – fuel derived directly from biomass, such as wood or plant matter – is gaining interest domestically and creating an export market not available to other renewables. Demand for and output of biomass pellets used in stoves, furnaces and heaters as an alternative to coal or wood to cope with Turkey’s often freezing winters have increased in recent years. Produced by crushing and compressing wood waste, the pellets have a higher per-kilo energy output than gas, coal or oil, and far lower emission levels, according to promoters. Studies estimate Turkey has the raw material to produce up to 1.8 million tonnes of pellets annually, although installed processing capacity has yet to reach this level. Turkey’s ministry of energy and natural resources predicts that the country’s overall biomass segment – including pellets – has the potential to replace 3.9 million tonnes of oil products annually. Growth in the sector has been supported by a rise in overseas demand, caused by Russia’s invasion of Ukraine. The consequent restrictions on the former’s energy exports then fuelled growing demand, according to Ali Fuat Gürle, the chairman of executive board for furniture, paper and wood products of the Ege (Aegean) Exporter’s Association. William SellarsBiomass pellets bagged and ready to burn Gürle told AGBI that there was a fivefold increase in pellet exports in 2022 but demand has subsequently decreased. “While we have seen an easing of exports in some markets there has been an increase in domestic demand, especially coming from central Anatolia,” he said. Sales to Germany plunged almost 90 percent in 2024 compared with the previous year. Shipments to Bulgaria, another leading market, were also down. However, exports to Austria, Slovenia and Greece have helped to offset any slowdown. It is not just Europe taking biofuel stock from Turkey. Middle Eastern countries are also starting to place orders, among them oil and gas rich states such as Qatar, Saudi Arabia and the UAE. While shipments to countries in the region are low compared with those on the European continent, most markets show growth year on year. Top Turkish defence firm to build drones in Indonesia Cut flowers are a growth industry for Turkey Turkey receives climate funding from Beijing agency One challenge facing the sector is building product awareness in the domestic market, according to Nazım Korkmaz, owner and general manager of Natural Pellet, based in the north-western Bursa region. “Given the current state of the economy, buyers may opt for a cheaper source of heating, such as coal, that they are accustomed to,” he told AGBI. “Especially in villages and residential areas that do not have natural gas for example, it is hard at times to break tradition. “We need to stress the environmental aspect of our product, so that coal can be taken out of the equation.”
