UK remains primary destination for North American pellet exports, WRI reports
According to Wood Resources International (WRI), the United Kingdom remains the primary destination for North American pellet exports despite "UK 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", claimed the organisation.
The report also highlighted that "Drax biomass plants in the UK remain by far the largest user of North American pellets". "Future industrial pellet demand in the UK was also bolstered in the 3Q/15 with the announcement that a coal-burning power station in Northumberland will close at the end of 2015 only to be converted to a pellet-burning plant operating by the end of 2017 dependent on final government approvals", WRI added.
According to the North American Wood Fiber Review (NAWFR), North American overseas pellet exports increased for the second consecutive quarter in the 3Q/15, rising 15 percent from the previous quarter to reach a new record high of just over 1.6 million tons.