North American wood pellet capacity set to increase
By: Hakan Ekstrom
Biomass Power and Thermal
A number of new wood pellet plants in the U.S. and Canada are set to commence operations during 2011, with more plants planned in the coming years. With the additional capacity coming on line, the industry is eyeing the growing demand in four regions—Europe, Asia, and to a lesser extent the Maritime Provinces of Eastern Canada and Northeastern U.S. The existing coal-fired energy sector in the U.S. South remains a potent, yet unrealized market to date. Federal policies in the U.S. that restrict the emissions of CO2 gases would ultimately benefit the pellet industry in North America, as many coal plants would likely begin using pellets for cofiring as is the case in Europe. These changes would drastically alter existing pellet flows and production plans.
Europe has, by far, been the largest export market for North American pellet producers for a number of years, shipping nearly 1.5 million metric tons in 2010, as reported in the North American Wood Fiber Review. The most significant potential for increased wood pellet utilization, both short and long term, will continue to be in this region, as the European Union’s 27 member countries have a goal of sourcing 20 percent of the EU’s total energy needs with renewable sources by 2020. In 2008, biomass utilized in the…
