Generic Hero BannerGeneric Hero Banner
Latest market news

N American wood pellet exports at record high in 2021

  • Market: Biomass
  • 16/02/22

North American wood pellet exports hit a record high in 2021, boosted by demand from Asia and the Netherlands.

Combined US and Canadian wood pellets exports firmed to 10.7mn t from 10.1mn in the previous year. And North American exports rose by 100,000t on the year to 2.7mn t in the fourth quarter of 2021.

Overall exports from each country also increased on the year in 2021, with US exports rising by 266,000t to 7.52mn t and Canadian shipments by 297,000 to 3.14mn t.

Canadian exports to Asia — primarily to Japan and South Korea — rose significantly in 2021 from a year earlier, largely driven by long-term contracts kicking in last year. Canadian shipments to Japan jumped by 479,000t on the year to 1.1mn t, broadly in line with stronger pellet consumption in Japan. And Canadian exports to South Korea also rose significantly in 2021, reaching 254,000t from 49,000t a year earlier.

Overall Canadian deliveries to northwestern Europe dropped, with the Netherlands and the UK seeing the largest yearly decline. Shipments to the Netherlands fell by just under 220,000t to 180,000t, as the country significantly increased its intake from the US. And exports to the UK fell by 146,000t to 1.3mn t, although the country maintained the largest share in the Canadian export market. The drop was despite UK utilities burning more pellets for power last year and was partly offset by quicker UK imports from Russia, the Baltics and Portugal.

Canadian deliveries to Denmark and Belgium also dropped, while only shipments to France saw a 32,000t increase to 53,000t. Disruptions at the port of Vancouver following severe flooding in British Columbia in mid-November also partly resulted in lower deliveries to Europe. Overall Canadian exports more than halved on the year to 164,000t in December.

By contrast, US deliveries rose significantly for some northwest European destinations, while deliveries to Asia were near zero.

US shipments to the Netherlands jumped by 537,000t on the year to 1.17mn t in 2021. This was mostly because of stronger Dutch pellet burn for power as record-high power prices incentivised generation throughout Europe, and while biomass held a price competitiveness against alternative fuels. Higher availability in 2021 at co-fired units — some of which had been off line for extended periods in 2020 for maintenance — as well as an increase in biomass' share at a major plant, also supported generation.

Generation rose significantly on the year at RWE's co-fired Dutch plants in January-September — the latest period for which data is available. And the allowance for biomass burn at German utility RWE's 1.5GW Eemshaven plant co-fired with coal doubled to 450MW from November 2021, which may have allowed for stronger generation in the fourth quarter of 2021. Biomass burn at German utility Uniper's 1.1GW Maasvlakte power plant also jumped to 800GWh in January-September, from zero a year earlier.

Elsewhere, US exports to Denmark more than doubled on the year in 2021 to 446,000t, and deliveries to France jumped to 131,000t from 23,000t in 2020.

By contrast, US deliveries to the UK dropped by 222,000t to 5.4mn t, although the UK maintained the lion's share in the US export market. Stronger UK receipts from closer producing regions and a four-month planned outage at Drax's 645MW base-load unit 1, as well as higher freight costs, may have all had an impact on US deliveries to the UK last year.

US exports to Belgium also fell significantly to 221,000t from 568,000t. Biomass-fired generation in Belgium fell to 215MW in 2021 from 252MW a year earlier, largely due to the decommissioning of French utility Engie's 80MW Les Awirs power plant.

Despite the delays, wood pellet throughput at the port of Vancouver grew on the year to 1mn t from 855,000, due to higher shipments in the second and third quarters of 2021. And exports from Prince Rupert, Canada's biggest exporter of wood pellets, fell slightly on the year to 1.42mn t from 1.47mn t.

Wood pellet exports increased at four of the US' nine largest ports in 2021, as shipments from New Orleans fell to zero after beginning to decline a year earlier. Norfolk exported 1.51mn t, the highest of all US ports, followed by Savannah with 1.27mn.

North American wood pellet exports '000,000 t

Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
14/03/25

New Zealand's Genesis Energy signs wood pellet deal

New Zealand's Genesis Energy signs wood pellet deal

Sydney, 14 March (Argus) — New Zealand utility Genesis Energy has signed an initial agreement with biomass developer Carbona to study the viability of commercial wood pellet supply to the Huntly Power Station, supporting efforts to transition it from coal-fired power to wood-fired. Carbona is also building a 180,000 t/yr torrefied wood pellet plant in central North Island, it announced on 14 March. The company plans to sell the pellets it produces at the site to major utilities in New Zealand and abroad, beginning in 2028. Genesis-operated Huntly is New Zealand's largest power station, supplying the country's grid with 1,200MW, and currently runs on gas-fired and coal-fired generators. But Genesis has been exploring opportunities to substitute coal with biomass at Huntly over recent years. Genesis signed a non-binding pellet purchase agreement with Australian biomass producer Foresta last month. The utility at that time said that it would need 300,000 t/yr of torrefied wood pellets by 2028 to achieve its coal reduction goals. Carbona's deal with Genesis also comes just days after the Ministry of Business, Innovation, and Employment released data showing that coal and gas-fired electricity generation across New Zealand collapsed in the October-December 2024 quarter , dropping by 42pc on the year. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Malaysia’s PKS exports fall in 2024, wood pellets rise


13/03/25
News
13/03/25

Malaysia’s PKS exports fall in 2024, wood pellets rise

Singapore, 13 March (Argus) — Malaysia's total PKS exports stood at 1.27mn t in 2024, down from 1.33mn t in 2023 because of lower demand from Japan and Thailand as well as heavy rain that affected crude palm oil (CPO) output and PKS availability. Malaysia exported 118,000t of PKS in December, down by 32pc from a year earlier, and 20pc lower than 148,000t in the previous month, according to GTT customs data. This is because of lower demand from Thailand, with Japanese demand levels rising slightly on the month in December. But Japanese demand dropped on the year in 2024, because of outages at several power plants following fire incidents, with longer maintenance periods capping PKS consumption in early 2024. But demand picked up after August 2024, and this was reflected in prices. Argus assessed prices for PKS fob Malaysia compliant with Japan's feed-in-tariff (FiT) at $94.63/t on 24 December, up from $83.92/t on 28 August. Argus last assessed the price at $95/t on 5 March this year. The country shipped 117,000t of PKS to Japan in December, down by 7.5pc from 126,000t a year earlier and higher by 10pc from 107,000t in November. Japan was the top export destination for PKS, accounting for 99pc of Malaysia's total exports in December. Shipments to Thailand stood at 829t in December, down by 98pc from 47,200t a year earlier, and 63pc lower from November. Wood pellets Total wood pellet exports from Malaysia were at 1.13mn t in 2024, rising by 31pc from 2023. Malaysia exported 143,000t of wood pellets in December 2024, 28pc higher from 111,000t a year earlier but lower by 10pc from 159,000t in November 2024, according to GTT customs data. The increase in shipments comes as top wood pellet-consuming countries like South Korea and Japan look to diversify their sources, especially as prices of pellets from key supplier Vietnam have continued to increase. Argus assessed the fob Vietnam to South Korea market at $131.63/t on 5 March from $122.19/t on 4 December, with the fob Vietnam to Japan market also climbing to $144/t from $134.83/t over the same period. Japan accounted for 39pc of the country's wood pellet exports in December. Malaysian wood pellet shipments to Japan stood at 56,000t in December, almost tripling from 19,800t a year earlier, but 39pc lower than 91,700t in November. Malaysian shipments of wood pellets to South Korea stood at 26,400t in December, more than doubling on the year but down by 31pc on the month. Shipments to South Korea accounted for 19pc of Malaysia's total wood pellet exports in December. There was a significant volume of wood pellets shipped to the Netherlands in December, with one cargo of 60,000t. This shipment made up 42pc of Malaysia's pellet exports in December. By Joshua Sim Malaysia's biomass exports in December 2024 t Quantity on month (%) on year (%) PKS Japan 117,367 10.2 -7.5 Thailand 829 -62.8 -98.2 Total 118,196 -20.4 -32.1 Wood pellets Netherlands 60,000 na -23.9 Japan 56,067 -38.8 182.8 South Korea 26,440 -31.4 133.8 Total 142,682 -10.5 28.3 Source: GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Japan’s MGC to fund US biomass-based plastic start-up


13/03/25
News
13/03/25

Japan’s MGC to fund US biomass-based plastic start-up

Tokyo, 13 March (Argus) — Japanese petrochemical producer Mitsubishi Gas Chemical (MGC) announced on 12 March that it decided to invest an undisclosed value in a US biomass-based plastics start-up ReSource Chemical. ReSource Chemical is developing technology to generate furandicarboxylic acid (FDCA), which is a raw monomer used to produce plastic polyethylenefuranoate (PEF), from wooden biomass-based lignocellulose. PEF is expected to replace polyethylene-terephthalate (PET) once a reasonable production method is established, as PEF is likely to have stronger heat-resilience and durability as well as lower gas-transmission rate and moisture permeability than PET. US venture capital funds Khosla Ventures, Fathom Fund and Chevron Technology Ventures and other individual investors also plan to finance ReSource Chemical with MGC. ReSource Chemical will raise $15mn in total. The funds will be used to build a pilot plant to manufacture FDCA. MGC aims to procure furoic acid, which is an intermediate product in ReSource Chemical's FDCA production process. MGC said furoic acid is not currently in use, but the firm will explore potential usage of this biomass-based feedstock in future. Japanese companies have attempted to develop biomass-based plastics for decarbonisation. Domestic trading house Mitsui plans to explore producing 400,000 t/yr bio-PET in the southeastern region of the US, targeting to start output during 2025-2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Brazil refinery to produce fuel from eucalypt


11/03/25
News
11/03/25

Brazil refinery to produce fuel from eucalypt

Sao Paulo, 11 March (Argus) — Petrobras-controlled Riograndense refinery successfully conclude tests to produce fuels from eucalyptus biomass in Brazil's southern Rio Grande do Sul state. The refinery used a bio-oil from eucalyptus biomass and converted it in fractions of fuel gas, LPG, components to produce gasoline and marine fuel with renewable content and others. The bio-oil came from industrial company Vallourec's forest unit in southeastern Minas Gerais state. The test reveals the possibility of using wood and other forestry residues as feedstocks for products usually coming from a fossil origin, said Petrobras's technology, engineer and innovation director Renata Baruzzi. Petrobras intends to transform Riograndense refinery into the first oil plant to produce 100pc renewable fuels in the world, according to Petrobras' chief executive Magda Chambriard. The efforts are part of Petrobras' BioRefino program, which will invest almost $1.5bn to generate sustainable fuels as of 2029. Riograndense refinery is also controlled by Brazilian companies Ultra Group and Braskem petrochemical. By Maria Albuquerque Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

EU consults on decarbonisation, clean tech aid


11/03/25
News
11/03/25

EU consults on decarbonisation, clean tech aid

Brussels, 11 March (Argus) — The European Commission has opened a consultation on updates to its state aid rules, which aim to take into account the bloc's proposed clean industrial deal — designed to simplify and speed decarbonisation. The commission is aiming to publish the rules in June, following input from EU states. The updated state aid rules would then apply to how the commission decides on EU states' financing of projects up until the end of 2030. The draft provides for member states' simplified tender procedures for renewables and energy storage. The commission specifically notes the possibility of granting aid without tender for less mature technologies, such as renewable hydrogen. There would also be more flexibility for EU states aiding industrial decarbonisation, with a choice of tender-based schemes, direct support and new limits for very large projects. The commission lists batteries, solar panels, wind turbines, heat-pumps, electrolysers and carbon capture usage and storage among clean technologies that can be supported, as well as their key components and critical raw materials. Officials note the possibility of EU countries de-risking private investment. The rules, when adopted, would also allow for investment in storage for renewable fuels of non-biological origin (RFNBOs), biofuels, bioliquids, biogas, biomethane, and biomass fuels as long as they obtain at least 75pc of their content from a directly connected and related production facility. Aid can only be granted for biofuels, biogas, and biomass fuel production if compliant with the bloc's renewables directive. While the rules for biofuels are not new, they do reflect the wider scope of aid now foreseen by the commission. And officials say the rules allow for projects in the EU to receive aid from a member state if a comparably project would receive aid in a third country. The commission released its proposed clean industrial deal in late February . The deal targets a simplification of rules, to allow EU member states to aid industrial decarbonisation, renewables rollout, clean tech manufacturing and de-risking private investments. Today's consultation runs until 25 April. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more