North American wood pellet capacity is set to increase, driven by growing demand from Europe and Asia.
The North American Wood Fiber Review says that several new wood pellet plants in the US and Canada are set to start operations this year and more are planned over the next few years.
“The industry is eyeing the growing demand in four regions – Europe, Asia and, to a lesser extent, the Maritime provincs of eastern Canada and north-eastern US,” it says.
Europe is the largest export market for North American pellet producers, who shipped 1.5 million tonnes to the Continent in 2010, and it will continue to have the most potential because of the EU’s goal to soure 20% of energy form renewable sources by 2020. Germany’s goal of eliminating nuclear power by 2022 provides further opportunity.
Asian demand for biomass energy is also starting to emerge. South Korea recently announced policies to increase the proportion of energy consumption from renewable sources.
