Wood Pellet Exports from U.S., Canada to Europe Reach 1.6

Print this article | Send to Colleague

The European Union has stated that by 2020, at least 20% of total energy consumption should be supplied by renewable energy resources. In an effort to reach this target, many countries have increased their consumption of woody biomass in the form of both wood chips and pellets the past few years. In 2010, just over 11 million tons of wood pellets were consumed, which was about 7% higher than the previous year.

Demand for wood pellets in some European countries, including Sweden, the Netherlands, Belgium, Italy, Denmark, and the U.K., has outpaced domestic production during the past few years. This has resulted not only in increased imports from neighboring countries, but also from North America. For the past 10 years, Canada has been the major overseas supplier of pellets to Europe, reaching about one million tons in shipments in 2010, according to the NAWFR.

The U.S. did not start exporting pellets until 2008 when 85,000 tons were shipped to the Netherlands, but exports have since taken off, reaching almost 600,000 tons in 2010. In fact, total shipments from the U.S. and Canada have almost doubled in just two years.

The majority of North American pellets have been shipped to the Netherlands, the U.K., and Belgium, with occasional shipments to Sweden and Denmark. In 2010, almost 50% of the Atlantic trade was destined for the Netherlands, while one-third landed in ports in the U.K.

Higher demand for oil by Asia and Latin America and the uncertain situation in the oil producing counties in the Middle East and northern Africa has boosted oil prices about 28% the past three months. Higher oil prices will benefit wood pellet exporters in North America, and shipments to Europe can be expected to increase during 2011, NAWFR notes.

More information is available online.