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Wood Pellets in the Holy City

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By Anna Simet

August 19, 2024

Pellets Policy 

The Pellet Fuels Institute’s Annual Conference convened in Charleston, South Carolina, to discuss the past year’s policy wins and priorities, industry stakeholder opportunities and challenges, and more.

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Plant efficiency is coming to the fore in maintaining and improving many legacy and recently developed pellet mills in the United States.

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While vastly different in their global impact, both the European Union Deforestation Regulation and the Massachusetts Clean Heat Standard are reminders of the fallout that can occur when inaccurate narratives are allowed to persist and grow.

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Navigating Uncertainty

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By Anna Simet

August 15, 2024

After a multiyear period of record growth, the European wood pellet sector saw a turbulent couple of years. With a rebound on the horizon, stakeholders are counting down to the compliance deadline of new regulations that could continue to stymie the market.

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The ENplus certification platform could pass 14.5 million metric tons in 2024.

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Japan-based Renova Inc. on July 31 announced that the Tokushima Tsuda Biomass Power Plant has resumed operations. The 74.8-megawatt (MW) facility, located in Tokushima City, Japan, is fueled by wood pellets and palm kernel shells.

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The U.S. Department of Energy is inviting applications for up to $2 million in support for projects that aim to accelerate wood heater innovation, reduce wood heater pollutants and develop the next generation of efficient and clean wood heaters.

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The U.S. exported 739,277.2 metric tons of wood pellets in June, down from both 926,024.1 metric tons the previous month and 866,131.6 metric tons in June 2023, according to data released by the USDA Foreign Agricultural Service on Aug. 6.

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Renewables are expected to account for 23% of U.S. electricity generation this year, increasing to 25% in 2025, according to the U.S. Energy Information Administration’s latest Short-Term Energy Outlook, released Aug. 6.

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Drax Group plc on July 26 reported wood pellet production volumes and margins were both up during the first half of 2024. The company also reported progress with BECCS projects in both the U.K. and abroad.

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The U.S. DOE’s Bioenergy Technologies Office has released a RFI to provide industry and government with information to guide further innovation of cleaner and more efficient wood stoves and the best use of renewable wood feedstocks.

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U.S. manufacturers produced approximately 850,000 tons of densified biomass fuels in April, according to the July edition of the U.S. EIA’s Monthly Densified Biomass Fuels Report. Sales of densified biomass fuel reached 780,000 tons during the month.

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The U.S. DOE has announced awards for the FY24 Phase I Release 2 of the Small Business Innovative Research and Small Business Technology Transfer program. Thirteen of 229 selected projects focus on bioenergy research and development.

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This year marks the 50th anniversary of Drax Power Station beginning to generate power and to celebrate this occasion the owners of the new ship, Ultrabulk, invited Drax to name their latest vessel.

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Maine Gov. Janet Mills on July 2 announced the award of a $100,000 grant to the Maine Pellet Fuels Association. The funding will support efforts to expand domestic markets for wood pellet fuel manufactured within the state.

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The European Commission on July 2 approved, under EU State Aid rules, Sweden’s plans to provide up to EUR 3 billion in subsidies to support carbon capture and storage (CCS) projects focused on biogenic CO2.

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Revelyst on July 10 announced the sale of the assets of Fiber Energy Products, the company’s wood pellet manufacturer, to Lignetics, Inc. Fiber Energy began producing 100 percent all-natural wood pellet fuel in 2006.

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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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Japan-based Renova Inc. on July 8 announced that startup of its 75-megawatt (MW) Omaezakikou Biomass Power Plant will face additional delays. The facility is now expected to begin operations in October.

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The Alliance for Green Heat on June 28 released the results of a survey of pellet stove owners it launched earlier this year, reporting that the overwhelming majority respondents are very happy with the performance of their pellet stoves.

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The U.S. Energy Information Administration currently expects renewables to account for 23% of U.S. electricity generation this year, increasing to 25% in 2025, according to the agency’s latest Short-Term Energy Outlook, released July 9.

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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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The OMB on July 5 published its 2024 Unified Agenda and Regulatory Plan, which outlines rulemakings and other actions under development by federal agencies related to the RFS, biofuel infrastructure, CO2 pipeline safety, and wood heating.

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The utility of corn stover as a biofuel feedstock is limited by considerable compositional variability, but advanced preprocessing techniques can significantly improve pellet performance and consistency.

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Denmark-based wood pellet producer and trader CM Biomass on June 25 released results for the company’s 2023-’24 fiscal year, reporting record earnings despite significant challenges experienced by the biomass industry.

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The U.S. EPA on June 25 awarded more than $8.8 million to the Northeast States for Coordinated Air Use Management to support emissions testing and other activities aimed at reducing air pollution from wood heaters.

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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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Bioenergy Europe on June 20 released its Statistical Report on Pellets. The report shows that after two remarkable years, marked by record consumption and production, the global pellet industry is now facing significant challenges.

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DNV, the independent energy expert and assurance provider, has validated a new methodology for the certification of net carbon dioxide removals delivered using bioenergy with carbon capture and storage (BECCS).

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Toyota Tsusho Corp. on June 17 announced that the 75-MW Yatsushiro Biomass Power Plant has begun commercial operations. The facility, located in Yatsushiro City, Kumamoto Prefecture, Japan, can be fueled with both wood chips and wood pellets.

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