Canadian pellet production, consumption grows rapidly

By Staff | September 23, 2013

An annual Canadian biofuels report filed with the USDA Foreign Agricultural Service’s Global Information Network provides an overview of the rapidly expanding Canadian pellet industry. Citing data provided by the Canadian Wood Pellet Association, the GAIN report notes that Canada was home to 42 pellet plants in 2012, with a combined capacity of 3 million metric tons. Approximately 65 percent of that capacity is located in British Columbia. In 2010, the country had only 33 plants with a combined production capacity of 2 million tons. Capacity is expected to reach 46 plants and 3.707 million tons this year.

Canadian pellet producers have utilized approximately 66 percent of capacity in recent years, producing 2 million tons of pellets in 2012. Production is expected to reach 2.54 million tons this year, and increase to 3.226 million metric tons in 2014.

Last year, Canadian producers exported 1.37 million metric tons of pellets. Exports are expected to increase to 1.739 million tons this year, and 2.209 million metric tons next year. Domestic consumption of pellets in Canada has also increased in recent years, rising from 65,000 metric tons in 2011 to 233,000 metric tons last year. Consumption is expected to reach 690,000 metric tons by next year.