Characteristics of Wood Fuel Pellet Manufacturers and Markets in the United States, 2010

Abstract

The wood fuel pellet industry has been growing rapidly in recent years. The survey results reported here are focused on the annual production, raw material, production cost rankings, market radius, barriers to market expansion, and other data that give an overview of the industry during a very difficult economic period. Eighty-four mills across the United States were contacted and 53 responded. The average volume of production was over 59,000 tons per year. Raw materials for pelletizing and labor were the principal costs of production according to respondents. Market demand and capital costs were cited as the chief barriers to expansion. The industry is clearly subject to market forces that influence the cost and availability of raw materials as well as the cost of heating fuel alternatives such as oil. Despite the economic difficulties, demand continues to grow for pellet fuels both in the United States and in Europe.

Physical, mechanical and energy characterization of wood pellets obtained from three common tropical species

“…Many scientists and organizations believe that if efforts to develop renewable energy continue, by 2050 renewable energy will provide about 30% of the world’s demanded energy and a significant amount of this energy could come from wood pellets ( Guo, Song & Buhain, 2015 ), which are less expensive than fossil fuels, such as oil, liquefied petroleum gas, and electric powered systems, particularly as wood pellets have higher energy content than oil ( Thomson & Liddell, 2015 ). In addition, producing wood pellets is very cost effective since the raw materials are relatively cheap and mills can operate automatically needing only a few employees ( Lu & Rice, 2010 ). These wood pellets’ high availability and the low price of raw materials make their cost more stable, which is especially positive as prices of fossil fuels fluctuate widely ( Roh, 2016 ).…”

A Review of the Wood Pellet Value Chain, Modern Value/Supply Chain Management Approaches, and Value/Supply Chain Models

“…Canada, the US, Korea, and countries throughout Europe exhibit this global trend [101][102][103][104][105][106][107][108][109][110]. A factor contributing to the onset of this trend is favourable government policy implementation, which has allowed for an effective increase in pellet production and consumption [99].…”

Industry Leaders’ Perceptions of Residential Wood Pellet Technology Diffusion in the Northeastern U.S.

“…Renewable energy, including types made from forest products, plays a critical role in sustaining the social and economic well-being of societies while combating fossil-fueldriven climate change [1][2][3]. While innovations in the heating, transportation, and electricity sectors have allowed renewable energy sources to become more convenient and economically affordable for consumers, there are still significant barriers in place preventing the widespread diffusion of many renewable energy and forest product innovations [4][5][6].…”

“…The two central objectives of this study were (1) to assess the innovation diffusion process of wood pellet heating technology from the perspective of industry leaders and (2) to identify barriers to consumer adoption and industry needs to achieve successful diffusion, long-term product sustainability, and, ultimately, a market for residential wood pellets and related heating technology. Studies exploring the diffusion process often focus on the preferences of consumers from the perspectives of consumers, or they focus on production from the perspective of producers [2,14]. We focus specifically on insights regarding the challenges of market development from industry leaders seeking to build a robust market for automated wood pellet heating systems.…”