Why Wood Pellet Exports From North America To Europe Are Taking Off


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Seattle, USA. The European Union has stated that by 2020, at least 20 per cent of total energy consumption should be supplied by renewable energy resources.In an effort to reach this target, many countries have increased their consumption of woody biomass in the form of both wood chips and pellets the past few years. In 2010, just over 11 million tons of wood pellets were consumed, which was about seven per cent higher than the previous year.

Demand for wood pellets in some European countries, including Sweden, the Netherlands, Belgium, Italy, Denmark and the UK, has outpaced domestic production over the past few years. This has resulted not only in increased imports from neighbouring countries, but also from North America. Over the past 10 years, Canada has been the major overseas supplier of pellets to Europe, reaching about one million tons in shipments in 2010, according to the North American Wood fibre Review.

The US did not start exporting pellets until 2008 when 85,000 tons were shipped to the Netherlands, but exports have since taken off, reaching almost 600,000 tons in 2010. In fact, the total shipments from the US and Canada have almost doubled in just two years. 

The majority of North American pellets have been shipped the Netherlands, the United Kingdom and Belgium, with occasional shipments to Sweden and Denmark. In 2010, almost 50 per cent of the Atlantic trade was destined for the Netherlands, while one-third landed in ports in the UK.

Higher demand for oil by Asia and Latin America and the uncertain situation in the oil-producing counties in the Middle East and northern Africa has boosted oil prices about 28 per cent the past three months. Higher oil prices will benefit wood pellet exporters in North America, and shipments to Europe can be expected to increase during 2011.  

The North American Wood fibre Review has tracked wood fibre markets in the US and Canada for over 20 years and it is the only publication that covers both pulpwood and biomass markets in North America. The report includes prices and market commentary for 15 regions on the continent, and is an essential source for anyone that needs to track pulpwood, wood chips and biomass prices in the largest and most dynamic wood fibre market in the world.

Contact Information

Wood Resources International LLC

Hakan Ekstrom

[email protected]