UK Wood Pellet Imports Expected to Reach Record High in 2024

According to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network, the UK is expected to import a record 9.641 million metric tons of wood pellets in 2024, Biomass Magazine reported (12-3-24).

The expected record for 2024 follows a significant decrease in UK wood pellet imports in 2022 and 2023, which the report attributes to changes in global wood pellet prices and competition from other energy sources.

The UK primarily uses wood pellets for industrial energy production, with more than 93% of the country’s wood pellet demand in 2024 expected to be used for that purpose, Biomass Magazine reported. The remaining 7% of wood pellet demand is expected to come from domestic and commercial use. Residential use of wood pellets is low and expected to decrease due to the winding down of the UK’s Domestic Renewable Heat incentive.

According to the report, total UK wood pellet consumption is expected to reach 9.848 million metric tons this year, up from 6.592 million tons in 2023, 7.741 million tons in 2022, and 9.545 million tons in 2021.

Imports meet the vast majority of UK wood pellet demand. Imports are expected to reach 9.641 million metric tons in 2024, compared to 6.364 million metric tons last year, 7.516 million metric tons in 2022, and 9.25 million metric tons in 2021.

The US is the largest supplier of wood pellets to the UK, accounting for 73% of imports in 2023 by volume. Other sources of pellet imports are Canada, Latvia, the Netherlands, Estonia, and Brazil.

The UK also has some domestic wood pellet production capacity. UK pellet plants are expected to produce 219,000 metric tons of wood pellets this year, compared to 239,000 metric tons in 2023, 248 metric tons in 2022, and 300 metric tons in 2021.