Demand for wood pellets in Europe a boon in southeast U.S.
A worker piles wood pellets at a holding facility at the Georgia Ports Authority in Brunswick, Ga. U.S. production of wood pellets is expected to increase from 3 million tons in 2009 to 10 million by 2015. Photo by Stephen B. Morton
Published: Saturday, April 6, 2013 at 6:29 p.m.
Last Modified: Saturday, April 6, 2013 at 6:29 p.m.
Talk about the global economy.
Facts
About wood pellets
Wood pellets are made from wood byproducts such as chips, bark and sawdust, and also from tree tops, branches and other forestry debris remaining after a tree trunk has been processed and shipped from the forest, according to Enviva L.P., which manufactures chips in North Carolina and elsewhere.
The pellets are made either with hardwood or pine, said Bob Schaefer, executive vice president of the N.C. Forestry Association.
Wood byproducts and trees themselves are used to make pellets, but using waste materials is less expensive than harvesting standing timber, Schaefer said. The raw materials will come from forests closest to the ports, he said.
The wood is milled, dried and pelletized in a specialty press. During the extrusion process, the lignin in the wood plasticizes, forming a natural glue that holds the pellet together after production.
Pellet sizes vary from one-fourth to one-third inches in diameter and 1 to 1.5 inches long.
– Wayne Faulkner
The Port of Wilmington may reap the benefits of environmental regulations in Europe that have spurred a huge increase in demand for forest byproducts from the southeastern United States.
Wood pellets, often used in wood-burning stoves, are taking the place of coal in many European power plants with the aim of reducing their carbon footprint.
“Without a doubt the demand for this product is being driven by clean energy requirements in the U.K. and Europe, and the Atlantic Seaboard is economically advantaged in supplying the pellets,” said Jeff Miles, acting executive director of the N.C. State Ports Authority.
European demand will continue growing for many reasons, from business to policies and regulations, said Daniel Saloni of the Department of Forest Biomaterials at N.C. State University.
Growing market
Consumption of pellets is expected to grow from 8.3 million tons in 2009 to 17 million by 2015, according to materials in a study by Saloni.
U.S. production is expected to increase from 3 million tons in 2009 to 10 million by 2015.
That demand is expected to boost production of the pellets throughout most of the South Atlantic states as more companies build plants in the region, Saloni said.
Wilmington hopes to get in on the business.
The N.C. State Ports Authority is planning facilities at Wilmington and Morehead City that would receive, store and transfer wood pellets to ships. Total cost of the facilities would run $100-$120 million.
