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N American wood pellet exports at record high in 2021

  • Spanish 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

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09/04/25

US tariffs may tighten Vietnam's wood pellet supply

US tariffs may tighten Vietnam's wood pellet supply

Singapore, 9 April (Argus) — Tariffs imposed on Vietnamese wood furniture exports to the US could pressure furniture production and tighten supply of byproducts, which are used to produce wood pellets in Vietnam. US president Donald Trump announced tariffs on nearly all US trading partners on 2 April, which took effect on 5 April, with only oil and other energy commodities exempt from the package. This means a sharp 46pc tariff has taken effect on Vietnamese exports, including wood products from the southeast Asian country. This could weaken US demand for Vietnamese wooden products, which could result in an overall cut in furniture production. Vietnam exported 53,000t of wooden furniture to the US in 2024, from 37,000t a year earlier, mirrored US customs data on furniture exports show. This accounted for nearly 12pc of Vietnam's overall wooden furniture exports last year. A drop in Vietnamese furniture exports and manufacturing would result in less process residues — such as sawdust and wood chips — made available for pellet producers. Manufacturers in southern Vietnam, which typically cater for the South Korean market, would be particularly affected because they use furniture residues as a key feedstock. But wood pellets sold to Japan, which are usually more expensive and certified for Japan's feed-in tariff market, mainly use wood chips from lumber processing as raw material. And trade data suggest that Vietnam does not export any lumber to the US, meaning there should be little impact on lumber-based wood pellet production. A drop in furniture residues would add to the pressure on an already-tight raw material market in Vietnam since the start of the year. A shortage in raw materials had caused a backlog in wood pellet loadings from before the Tet holiday in January. And unfavourable weather conditions have disrupted feedstock supply since February. It is still unclear whether the tariffs could be removed in the near future. Vietnam's secretary general of the ruling Communist Party To Lam proposed in a call with Trump on 4 April to remove all tariffs on US products. Trump posted on social media platform Truth that he looks "forward to a meeting in the near future". Impact on other biomass markets Other biomass market participants in Asia, such as palm kernel shell (PKS) traders, are also monitoring the impact from US tariffs. The most immediate risk faced is the uncertainty of foreign exchange rate fluctuations, which could hamper trading activity. But PKS traders and sellers said it was too early to determine an impact from tariffs and they have not seen any significant changes in the market, especially after the recent Idul Fitri holiday in Indonesia and Malaysia. By Nadhir Mokhtar Vietnam wood furniture exports (t) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New Zealand's Genesis Energy signs wood pellet deal


14/03/25
14/03/25

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.

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


13/03/25
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.

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


13/03/25
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.

Brazil refinery to produce fuel from eucalypt


11/03/25
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.

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