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EIA: Biomass power production expected to fall slightly in 2026, 2027

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By Erin Krueger

July 09, 2026

Power Pellets 

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

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The U.S. exported 879,590.7 metric tons of wood pellets in May, down 6% when compared to April, but up 3% when compared to May 2025, according to data released by the USDA Foreign Agricultural Service on July 7.

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Rainbow Pellet Sdn Bhd has successfully started up the world’s first commercial-scale Steam-Ex pellet plant for empty fruit bunches at its site in Kuala Lipis, Malaysia, using ANDRITZ technology.

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The U.S. Endowment for Forestry and Communities on June 15 launched a request for proposals (RFP) to assess the feasibility of repurposing closed wood products manufacturing facilities, including pulp and paper mills, for bioenergy.

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U.S. manufacturers produced approximately 970,000 tons of densified biomass fuel in March, according to the U.S. EIA’s Monthly Densified Biomass Fuels Report. Sales of densified biomass fuel reached 820,000 tons during the month.

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The U.K. Financial Conduct Authority on June 18 announced its investigation into Drax Group plc’s sustainability claims regarding its use of Canadian biomass uncovered no evidence that justifies any further action. The investigation is now closed.

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Louisiana Gov. Jeff Landry on June 1 signed a bill that aims to boost development of the state’s wood pellet manufacturing industry. The bill was unanimously approved by both the Louisiana House and Senate in May.

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The USDA on June 15 delivered a final rule to the White House Office of Management and Budget that would, in part, “simplify and streamline requirements and processes” for the Rural Energy for America Program.

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Renewables are expected to account for 26% of U.S. electricity generation in 2026, increasing to 27% in 2027, according to the U.S. Energy Information Administration’s latest Short-Term Energy Outlook, released June 9.

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The U.S. exported 933,792.6 metric tons of wood pellets in April, down 15% when compared to March, but up 10% when compared to April 2025, according to data released by the USDA Foreign Agricultural Service on June 9.

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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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