Prices for wood chips for energy use have risen noticeably in the third quarter, according to the German Pellet Institute (Depi).

Prices for wood chips rose noticeably in the third quarter of 2026. According to the German Pellet Institute (DEPI), the price of A1-grade wood chips, based on a purchase of 80 cubic meters (SRM), increased by about 13% compared to the previous quarter, reaching €38.90 net per SRM.

What is particularly striking at present is the divergence in prices between roundwood and sawmill by-products: The former has become cheaper in recent months, while sawmill by-products—the most important source of raw material for wood chips and pellets—have become significantly more expensive.

The reason for this is the sluggish construction sector. As a result, demand for sawn lumber will remain low in 2026, and many sawmills have scaled back their production accordingly. When less timber is cut, significantly less sawmill residue is automatically produced—regardless of the available timber supply in the forest.

Difficult to Predict
“The current roundwood harvest volume provides little insight into the amount of sawmill residue that will ultimately be used for fuel production,” explains DEPI Managing Director Martin Bentele. “The decisive factor is how much of it is processed at the sawmills—and given the current weak demand for sawn lumber, that amount is significantly lower. If logging stops, we’ll also lack our raw material.”

The situation is exacerbated by rising production costs. At the same time, demand for roundwood remains subdued, while demand for wood as an energy source has picked up noticeably toward the end of the summer.

Despite the price increase, wood chips still have a clear advantage over fossil fuels: In the third quarter of 2026, the net price for quality class A1 was about 68 percent lower than the price of heating oil and about 50 percent lower than the price of natural gas.



DEPI Wood Chip Price
The wood chip price is surveyed quarterly by the German Pellet Institute (DEPI). Companies that produce wood chips can voluntarily report their sales prices for all quality classes to DEPI. In this way, they contribute to a reliable data set and market monitoring.

The survey period ends on the 15th of the third month of the current quarter. It represents the average price (net) in Germany for one cubic meter (loose volume) of the respective quality class.

Quality class A1 is based on the ENplus A1 quality class (moisture content ≤ 15 m-%, ash content ≤ 1.5 m-%, fine particle content ≤ 5 m-%). Quality Class A2 is based on the ENplus A2 quality class (moisture content 20–35 m-%, ash content ≤ 2.5 m-%, fine fraction ≤ 8 m-%). Quality Class B is based on the ENplus B quality class (moisture content ≥ 35 m-%, ash content ≤ 5 m-%, fine fraction ≤ 10 m-%).

Overview of Nationwide Wood Chip Prices
Wood chip price A1, 3rd quarter of 2026:

• 38.90 €/SRM
• 4.76 ct/kWh
• € 238.17/tonne atro

Differentiated prices for wood chips in €/SRM (purchase of 80 SRM of loose wood chips, delivery within a 50-km radius, net price)



Source: topagrar.com