North American wood pellet exports jumped dramatically in 2012

Rubber and Wood  |  2013-04-24 07:37:54   |   By

The new practice adopted by the European power companies has resulted in exponential rise in export volumes of wood pellets from North American countries

OTTAWA (Scrap Monster) : The new practice adopted by the European power companies has resulted in exponential rise in export volumes of wood pellets from North American countries.

According to the data published by the North American Wood Fiber Review (NAWFR), the wood pellet demand has increased over 60% during the one year period from 2011 to 2012. During this period, the US wood pellet export volumes have nearly doubled. The primary cause for the sudden upsurge in demand is attributed to the changes implemented by the power countries in the region. A large number of power companies in the European region are reported to have shifted to renewable energy alternatives from using fossil fuels.

The export value of the North American wood pellet industry saw spectacular jump from 40 million dollars in 2004 to 400 million dollars in 2012, thanks to the initiative by European power companies to shift to renewable energy alternatives as a means of reducing carbon emissions.

2012 witnessed increased demand of North American wood pellets by many European countries including UK, Belgium, and Netherlands etc. The demand for domestic wood raw-material dried up owing to its high cost. The situation became favorable for B.C and other southern US states which saw huge demand from Europe. The North American countries could export wood pellets at a cheaper rate to Europe.

As per the figures compiled by NAWFR, the total volume of wood pellet exports from North America to Europe in 2012 was 3.2 million tons, which itself is a new record in the export history of North America. The shipments in 2012 surged by over 100% from US South where as those from Canada witnessed a jump of 25% from the previous year.

The NAWFR states that the wood pellet production capacity in North America would be further enhanced in the coming years, as the output from the new pellet plants are expected to hit the markets. Many pellet facilities have also announced expansion of existing facilities to ramp up the production.