Building Out Capacity
By Anna Simet | August 25, 2022
Albioma acquired the La Granaudière wood pellet plant earlier this year.
PHOTO: ALBIOMA
Global wood pellet demand continues to soar, with tight market conditions likely to spur significant investments in new production facilities around the world. Demand growth from 2020-’21 outpaced supply growth by approx. 10% (18.2% versus 8.4%, respectively), according to market intelligence firm Hawkins Wright, a trend that is likely to continue. Global demand in 2021 was approx. 45 million metric tons (MT), with an additional 5 million MT in additional demand expected in 2022.
As for pellet production capacity in the U.S. and Canada, Pellet Mill Magazine’s 2022 U.S. and Canada Fuel Pellet Production Map included approx. 12.8 million MT of operational capacity in the U.S., with roughly 1.7 million tons proposed or under construction. Data for Canada indicated approx. 4.9 million MT of operating capacity, with an additional 865,000 proposed.