This is the fifth in a series related to the Q2 2019 Forisk Research Quarterly.

Forisk analysis suggests wood use for viable bioenergy projects in the U.S. will be 82.5 million tons per year by 2028.

As of April 2019, Forisk’s wood bioenergy database tracks 426 operating and announced projects. These represent potential wood use of 106 million tons per year by 2028. Based on Forisk’s analysis, 277 projects pass basic viability screening, indicating potential wood use of 82.5 million tons per year. In comparing the viability of projects by region, we find only 60% of all announced operating projects in the South pass Forisk screening, while the North and West reach 70% and 64%, respectively. The South leads the United States in bioenergy investment, as measured by potential wood use. In part, this reflects the longer history of in-place and smaller operating projects in the North and West; larger projects locate in the South for reasons of scale, availability to resources, and access to ports and markets.

North American wood pellet exports increased 19% in 2018, reaching 8.7 million metric tons.

In 2018, U.S. wood pellet exports increased 17%. The UK remained the largest importer of U.S. wood pellets in 2018. The 4.71 million metric tons imported, representing 78% of total U.S. volumes, was a 14% year-over-year increase. Through February 2019, exports to the UK continued to grow, gaining 6.6% year-over-year. Belgium was the second largest importer of U.S. wood pellets with 9.6% market share in 2018. Export volumes to Denmark, the third largest importer of U.S. wood pellets in 2018 with 7.8% market share, rose 26%. The “Other” category also gained, largely from increased volumes exported to Martinique and France.

Canadian wood pellet exports rose 22% in 2018. Growth was driven by Japan, with volumes increasing 154% year-over-year. As with the U.S., the UK remained the largest importer of Canadian wood pellets with 59% of the market share. Exports to the UK gained 5.9% in 2018, despite Japan’s increasing market share.

To download the most recent Wood Bioenergy Summary, click here.