Canadian Wood Pellet Production and Exports Fall in 2023

Canadian wood pellet production was down 6% in 2023 and exports down were 14%, according to a Biomass Magazine review (1-17-23) of data from the USDA Foreign Agricultural Service’s Global Agricultural Information Network.

According to the report, the expected decline in Canada’s wood pellet production is the result of the closure of pellet mills, reduction in allowable cut, and a high-activity wildfire season. The decline in exports is expected to result from reduced production coupled with lower demand from South Korea and the UK. On the other hand, imports are expected to be up amid a slight growth in domestic demand.

Last year, Canada had 45 wood pellet plants with a combined capacity of 4.72 million metric tons, Biomass Magazine reported. That is down from 47 plants with a combined 5.05 metric tons of capacity in 2022 and 46 plants with a combined 4.86 million metric tons of capacity in 2021. Capacity use for 2023 was estimated at 73.1%, up from 72.2% in 2022 and from 72.1% in 2021.

As of 2023, 44.3% of Canada’s wood pellet production capacity was located in British Columbia, with 21% in Quebec, 16% in Alberta, 8.8% in New Brunswick, 6.1% in Ontario, and the remaining 3.7% elsewhere.

British Columbia and Ontario each accounted for 42% of Canadian wood pellet imports in 2023, Biomass Magazine said. Manitoba, Saskatchewan, and other areas of Canada accounted for 7%, 6%, and 3% of imports, respectively. Canadian wood pellet imports typically consist of bagged pellets used in the residential heating market, according to the report. Virtually all of the Canada’s imported wood pellets are sourced from the US.