UK demand fuels 46% rise in exports of Canadian wood pellets: NEB
Canadian industry has grown by 73% over the past four years: about 65% of the pellets are produced in BC.
CALGARY — The National Energy Board (NEB) says exports of Canadian wood pellets to be burned as biomass fuel jumped by 46% in 2016 as demand soared in the UK.
The federal agency says Canada exported 2.4 billion kilograms in 2016, making it the second-largest exporter by weight after the United States. About 70% was shipped to the UK and 11% to Japan.
The Canadian industry has grown by 73% over the past four years, the NEB says. About 65% of Canada’s pellets are produced in BC.
In July, Tokyo-based Sumitomo Corp. paid an undisclosed amount to buy a 48% stake in BC pellet maker Pacific BioEnergy Corp. to ensure a supply for its power plants in Japan.
Wood pellets are made from forest industry waste such as bark and sawdust and are considered a renewable energy resource that’s easier to burn than solid wood.
The NEB says the rise in demand is linked to decisions around the world to phase out coal.