Russian pellet exports to China discussed in Wuhan

The 20th meeting of the Permanent Russian-Chinese Working Group on Forest Resource Development and Utilization was held in Wuhan, China. Delegates from relevant government agencies and business communities of both countries agreed to promote trade in wood pellets. The results of the discussion were documented in the official meeting protocol. Among the participants was Nikolay Ivanov, Vice President and Board Member of Segezha Group.

The Chinese side — represented by the Ministry of Commerce along with other relevant agencies, including those responsible for environmental protection, energy, reform and development, forestry, and customs — confirmed their readiness to accelerate the review and adjustment of import regulations for pellets. Currently, wood pellets are classified in China as waste rather than biofuel, which effectively prohibits their import into the country.

“The wood pellet market in China represents both a major opportunity and a serious challenge for Russian producers. Demand for biofuel in China is growing by 15–20% annually, but only those who meet strict environmental standards can enter this market. At Segezha Group, we’ve taken this into account — our plants produce compliant products, and the holding’s capacity allows for the production of around 400,000 tons of pellets per year,” said Nikolay Ivanov.

He emphasized that Russian pellet exports could contribute to China’s broader transition to green energy. Replacing coal and fuel oil with wood biofuel not only aligns with China’s climate goals but also offers a cost-effective solution for decarbonizing the country’s energy sector.