Pellet Exports Already Showing Growth in New Year
Just days into this New Year, the pellet export industry is already seeing growth, solidifying the certainty of a prosperous 2012.
The Northeast U.S. is stepping up to take a seat in the pellet export arena this year, as at least two ports in Maine prepare to begin sending shipments as early as this month. They’ll jump start what I anticipate will be a hotbed of action in that region, finally cashing in on a number of advantages including proximity to Europe. With significantly cheaper freight costs, I think the Northeast will prove to be a contender for the already robust export industry in the Southeast.
But not to be outdone, the Southeast is expanding some of its port infrastructure, too, including in Georgia, a state that has been no stranger to Europe’s pellet industry growth and soaring demand
Advancements are making their way up the Southeast coast, too. The first shipment of pellets from Enviva’s Port of Chesapeake, Va., terminal departed Dec. 31, bound for one of the company’s European utility customers. The 28,000 metric tons mark the beginning of what Enviva hopes will be a flagship operation, demonstrating excellence in pellet exports and the ability to build infrastructure necessary to support the tremendous growth projected for the industry.
It sounds like pellet exports are starting at both ends of the Atlantic Coast and working their way toward the middle. It’s a sector that will see enormous growth this year and beyond, and with so much news already in January alone, I’m anxious to see what else 2012 holds in store. Perhaps some pellet market growth here in the U.S., as well. I certainly hope so, and I’m betting you do, too.