Pellets have been the replacement for fossil fuels ever since over 30 years ago. In the year 1980, the United States and Canada started wood pellets manufacturing. Some of the pellets are used domestically for home heating and power plants, others are exported to European countries.
About USA and Canada Pellets Manufacturing and Exports
In the USA, pellet mainly exports from two productive regions: US South and British Columbia. In these two areas, pellets export grows rapidly in early 2013. Statics by Europe and North America show that the exports were 1.7 million tons in the year 2012. While in Canada, the pellet exports also rose to 1.5 million tons in 2012, although the rise is a little less than USA.
In the 1st quarter of 2013, the pellets export in North America set up a new record of 1 million tons in a quarter, which equals to the annual export of four years ago.
The US production of pellets is expected to increase from 3 million tons in 2009 to 10 million by 2015, while the consumption of pellets in Europe is expected to grow from 8.3 million tons in the year 2009 to 17 million by 2015. This indicates the demand greatly excess supply. As a result, there must be more wood pellet mill plants to produce wood pellets so as to meet the market requirement.
About pellet price
The increase in wood pellet production in Canada has promoted the price of sawdust in the past several years. In consequence, the sawdust price is 15% higher in 2013 than in 2010. However, in the USA, small wood logs from forest thinning and tree pruning are often used for pellets production. So raw material prices are not a main factor that influences pellet price, and the pellet price will stay stable.
Conclusion
Pellets production has always been flourishing in USA and Canada, and to some extend even influence world pellet market. So, starting your own pellet production business with pellet mill in Canada or USA is a wise choice.
