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Canada announces funding for pellet, bioenergy and biocarbon projects

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By Erin Krueger

June 08, 2026

Pellets Biocarbon Business 

Natural Resources Canada on June 3 awarded nearly $130 million to 56 projects that aim help advance transformation of the country’s forest sector. Projects focused on wood pellets, bioenergy and biocarbon are among those to receive funding.

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The U.K. Environment Agency on May 28 issued a statement proposing to grant Drax Power Ltd. a permit change that would allow carbon capture to be implemented at Drax Power Station. A public comment period on the draft permit is open through June 24.

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The Louisiana Senate on May 27 unanimously approved a bill that aims to boost development of the state’s wood pellet manufacturing industry. The legislation is now awaiting action from Louisiana Gov. Jeff Landry.

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The U.S. Energy Information Administration on May 1 released updated State Energy Data System estimates, reporting that the U.S. consumed nearly 2.31 quadrillion Btu of wood and biomass waste in 2024.

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After a year of stabilization, the ENplus certification scheme has confirmed a renewed growth in certified volumes, reaching over 14.5 million metric tons of wood pellets in 2025, based on the data submitted by certified companies.

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Japan-based Erex Corp. on May 13 announced plans to develop a 112-MW biomass power plant in Niigata Prefecture, a region on the west coast of Japan. The facility is expected to begin operations in 2029 and will be fueled with wood pellets and PKS.

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U.S. manufacturers produced approximately 800,000 tons of densified biomass fuel in February, according to the U.S. EIA’s Monthly Densified Biomass Fuels Report. Sales of densified biomass fuel reached 710,000 tons during the month.

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Through a $50,000 grant from the Drax Foundation, Louisiana Community and Technical Colleges is expanding educational access and strengthening STEM and advanced manufacturing pathways by providing 25 scholarships for students.

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U.S. manufacturers produced approximately 900,000 tons of densified biomass fuel in January, according to the U.S. EIA’s Monthly Densified Biomass Fuels Report. Sales of densified biomass fuel reached 990,000 tons during the month.

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Japan-based Erex Co. Ltd. in April announced it has signed a memorandum of understanding (MOU) with Vietnam-based Vinacomin Power Holdings to study the possibility of cofiring biomass at two of Vinacomin’s coal-fired power plants.

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The Louisiana House of Representatives on May 13 voted unanimously to approve a bill that aims to benefit the state’s wood pellet manufacturing industry. On the same day, the bill also reported favorably out of a Senate committee.

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Policy shifts, volatile winters and other market forces are impacting the wood pellet market as producers defend global markets and push for growth at home.

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Defining Renewable Biomass

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By Tim Portz

May 14, 2026

In a close vote, the U.S. House of Representatives rejected an amendment to the Farm Bill that would have added sawmill residuals to the list of materials considered “renewable biomass” by the Clean Air Act and referenced by the Renewable Fuel Standard.

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Renewables are expected to account for more than 26% of U.S. electricity generation in 2026, increasing to nearly 28% in 2027, according to the U.S. Energy Information Administration’s latest Short-Term Energy Outlook, released May 12.

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Evaluating Growing Markets

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By Katie Schroeder

May 11, 2026

Pellet Mill Magazine examines the potential of several growing markets.

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U.S. manufacturers produced approximately 900,000 tons of densified biomass fuel in December, according to the U.S. EIA’s Monthly Densified Biomass Fuels Report. Sales of densified biomass fuel reached 970,000 tons during the month.

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The U.S. exported more than 1.1 million metric tons of wood pellets in March, up from 608,572.1 metric tons in February and 781,576.4 metric tons in March 2025, according to data released by the USDA Foreign Agricultural Service on May 5.

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Drax Group plc released a first quarter trading update on April 30, reporting that the company’s pellet production business is performing well, with a continued focus on cost reduction in its U.S. operations.

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U.S. manufacturers produced approximately 900,000 tons of densified biomass fuel in November, according to the U.S. EIA’s Monthly Densified Biomass Fuels Report. Sales of densified biomass fuel reached 970,000 tons during the month.

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Researchers at the U.S. Forest Service’s Southern Research Station and Louisiana State University have published a paper that investigates how the European Union Deforestation Regulations could alter global wood pellet trade patterns.

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The M.V. Ultra Yorkshire, a Handymax carrier, which was launched and named as part of Drax Power Station’s 50th anniversary celebrations, docked for the first time in the U.K. The vessel is operated by Ultrabulk.

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The USDA is formally rescinding a notice of funding opportunity issued in October 2024 for FY 2025, 2026 and 2027 Rural Energy for America Program funding. Any applicant without a fully executed financial assistance agreement will have to reapply.

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Seeing investment tax credits (ITCs) for biomass projects come into effect is a welcome, long-overdue step for Canada’s forest sector. After years of uncertainty, the measure offers a starting point to restore investor confidence, according to FPAC.

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The Little Rock District of the U.S. Army Corps of Engineers on March 23 announced it has received a permit application from Highland Pellets related to the development of an adjacent biomass power plant with an integrated CCS project.

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The 2026 International Biomass Conference & Expo, produced by Biomass Magazine and organized by BBI International, successfully concluded after three days of in-depth discussions, technology showcases, and high-value networking opportunities.

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Renewables are expected to account for 26% of U.S. electricity generation this year, expanding to nearly 28% in 2027, according to the U.S. Energy Information Administration’s latest Short-Term Energy Outlook, released April 7.

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The U.S. exported 608,572.1 metric tons of wood pellets in February, down 37% when compared to the previous month and down 24% when compared to February 2025, according to data released by the USDA Foreign Agricultural Service on April 2.

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