North American overseas pellet exports increased for the second consecutive quarter in the Q3, 2015, rising 15% from the previous quarter to reach a new record high of just over 1.6 million tons.
The US South continues to be in expansion mode with additional capacity being added during the fall of 2015.
The quarterly shipments of pellets from Canada remained practically unchanged during the first three quarters of 2015. While shipments to Europe fell in the 3Q3, 2015, representing a 6% reduction from the previous quarter, a large rebound in shipments to Asia more than made up for the reduced European shipments.
The UK remains the primary destination for North American pellet exports, and in the early Q3, 2015 the government announced plans to reduce various subsidies for green energy from a variety of sources. Policy developments in both the UK and the Netherlands underscore the still unsettled details around biomass utilization in Europe despite the continent’s commitment to green energy.
The Drax biomass plants in the UK remain by far the largest user of North American pellets.
