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EU wood pellet production, consumption expected to grow in 2024

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By Erin Voegele

July 11, 2024

Pellets Power Thermal Markets 

Wood pellet consumption in the EU fell by 1.2% last year despite increased production, according to a report filed with the USDA FAS Global Agricultural Information Network. EU wood pellet demand and production are both expected to increase in 2024.

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The International Air Transport Association has called on South Africa to mobilize its experience, resources, and infrastructure to accelerate the development of sustainable aviation fuel (SAF) production.

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Japan is working to develop standards for SAF according to a report filed with the USDA FAS's Global Agricultural Information Network on July 5. The government is expecting to begin drafting SAF legislation later this year.

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The U.S. exported 926,024.1 metric tons of wood pellets in May, up from 819,341.5 metric tons exported the previous month and 820,057.5 metric tons exported in May 2023, according to data released by the USDA on July 3.

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Neste welcomes the French government's decision to approve the sales of transport fuels from 100% renewable raw materials, such as renewable diesel, at fuel stations. To date, sales of these fuels have been limited to logistics companies.

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U.S. manufacturers produced approximately 920,000 tons of densified biomass fuels in March, according to the June edition of the U.S. EIA’s Monthly Densified Biomass Fuels Report. Sales of densified biomass fuel reached 880,000 tons during the month.

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The SkyNRG Sustainable Aviation Fuel Market Outlook covers the current state and trends of the SAF market in the EU and U.K., the U.S. and rest of the world by assessing announcements of SAF projects and mapping out the capacity until 2050.

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A bipartisan group of 18 senators on June 11 sent a letter to U.S. EPA Administrator Michael Regan urging the agency to boost RFS renewable volume requirements (RVOs) for biomass-based diesel and advanced biofuels in its upcoming 2026 rulemaking.

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The U.S. exported 819,341.5 metric tons of wood pellets in April, down from 938,662.3 metric tons the previous month, but up from 720,209.2 metric tons in April of last year, according to data released by the USDA on June 6.

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Neste welcomes the allowance of unrestricted sales of paraffinic diesel fuels according to the DIN EN 15940 fuel standard in Germany. The sales of unblended 100% renewable diesel had previously only been allowed in specific segments.

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The U.S. Department of Commerce’s International Trade Administration on May 28 announced the renewal of its Renewable Energy and Energy Efficiency Advisory Committee. The agency is also seeking nominations for committee membership.

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Avfuel Corp., one of business aviation’s leading suppliers of sustainable aviation fuel (SAF), marks a new milestone in its SAF supply journey, expanding its supply globally to three French airports.

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Neste has further expanded its capability to supply sustainable aviation fuel to customers in Europe in cooperation with VTTI, a global leader in energy storage and developer of energy infrastructure.

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India’s Ministry of Power on May 14 issued a revised policy on biomass cofiring, announcing it will now require certain coal-based thermal power plants to begin cofiring 5% biomass within one year. The requirement ramps up to 7% two years later.

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The U.S. exported 938,662.3 metric tons of wood pellets in March, up from 696,692.9 metric tons in February and 909,787.1 metric tons in March of last year, according to data released by the USDA Foreign Agricultural Service on May 2.

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The Transport Project and Coalition for Renewable Natural Gas (RNG Coalition) on April 24 announced that 79%of all on-road fuel used in natural gas vehicles in calendar year 2023 was RNG surpassing the previous year’s record-breaking level.

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The U.S. exported 696,692.9 metric tons of wood pellets in February, down from 742,824.6 metric tons in January, but up from 632,043.8 metric tons in February 2023, according to data released by the USDA on April 4.

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Legislation introduced in the Illinois Senate aims to create a technology-neutral clean fuel standard (CFS) that would reduce the carbon intensity of transportation fuels by 20% by 2038.

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U.S. manufacturers produced approximately 880,000 tons of densified biomass fuels in December, according to the March edition of the U.S. Energy Information Administration’s Monthly Densified Biomass Fuels Report.

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The Michigan Senate Committee on Energy and Environment on March 14 held a hearing to consider legislation introduced last year that aims to create a tax credit to support the purchase of sustainable aviation fuel (SAF).

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The U.S. exported 742,824.6 metric tons of wood pellets in January, down from 1.01 million metric tons the previous month, but up when compared to the 637,518.4 metric tons exported in January 2023, according to the USDA.

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New Mexico Gov. Michelle Lujan Grisham on March 5 signed legislation to establish a technology-neutral clean transportation fuel standard (CTFS) that aims to reduce the carbon intensity (CI) of transportation fuels by at least 30% by 2024.

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From power plants to steel mills to hospitals, the continued global push to decarbonize may lead to new market opportunities for wood pellet producers.

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The government of Singapore has unveiled an action plan that aims to decarbonize the country’s aviation sector. The program will, in part, require flights departing Singapore to be fueled with sustainable aviation fuel (SAF) starting in 2026.

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Legislation currently pending in Washington state aims to require airport operators to make a minimum 10% blend of sustainable aviation fuel (SAF) available to private jets owned by individuals or businesses once certain conditions are met.

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Legislation introduced in the New Jersey Senate on Jan. 29 aims to establish a low-carbon transportation fuel standard (LCTFS) that would reduce the average carbon intensity (CI) of gasoline and diesel by 10% below a 2019 baseline by 2030.

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EIA expects average US gasoline and diesel prices to decrease in 2024, 2025

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By U.S. Energy Information Administration

January 19, 2024

The U.S. EIA expects average U.S. retail gasoline prices to decrease in 2024 because of increased inventories related to increased refinery capacity. In 2025, slightly reduced gasoline consumption is expected to further decrease prices.

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A report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network estimates that Canadian wood pellet production was down 6 percent in 2023, with exports down 14 percent.

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Legislation introduced in the New Mexico House of Representatives on Jan. 3 aims to establish a technology-neutral clean transportation fuel standard that would reduce the carbon intensity of transportation fuels by at least 30 percent by 2040.

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The International Energy Agency released a new report on Jan. 11, Renewables 2023, predicting that global biofuel demand will expand by 38 billion liters (10.4 billion gallons) between 2023 and 2028.

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