UK Biofuel Policy Following Brexit Opened Markets for US Wood Pellets

On Tuesday, the US Department of Agriculture Economic Research Service reported that since the United Kingdom’s formal departure from the European Union, or “Brexit,” the UK’s renewable energy strategy has led to increased imports of biofuels like ethanol, biodiesel, and notably, wood pellets.

The initiative has made the UK the world’s largest wood pellet importer, accounting for more than two-thirds of global imports since 2012.

The US has become the primary source of the UK’s wood pellet supply, providing 76% of the total imports in 2024. Before 2010, wood pellets made up 1.6% of US forest product exports, but by 2024, they accounted for 19.6%. Since 2012, the UK has imported 71% of US wood pellets.

The rise of US wood pellet exports is a direct result of the UK’s initiative for more biofuel-based energy, creating a lucrative market for US forest products, the USDA said.

The full report, European Agri-Food Trade and Brexit: The First 3 Years of the EU-UK Trade and Cooperation Agreement, is available here.