Report details Canadian pellet industry data

By Erin Voegele | November 18, 2016

The USDA Foreign Agricultural Service recently released a Global Agricultural Information Network report on the Canadian pellet industry that notes the country’s production capacity far exceeds domestic demand, most of which is being exported. In 2015, about 2 million metric tons of the 2.15 million tons of wood pellets produced in Canada were exported, with 74 percent going to the United Kingdom. In 2016, according to the report, year-to-date data indicates there is increased demand from Japan as it seeks to reduce emissions in its heat and power sectors.

The report also finds that while Canadian pellet consumption has remained relatively steady over the past several years, in 2015-’16, low oil prices have reduced residential demand. However, government initiatives involving the use of wood pellets as a coal replacement are likely to make domestic consumption jump in 2016 and 2017.