Canadian Biomass • Fall 2019 • Industry news

With new pellet plants coming online, potentially favourable government policies in the pipeline, and growing demand for wood pellets, Canada’s pellet sector is poised to contribute to the global low-carbon economy. But, as speakers at the Wood Pellet Association of Canada (WPAC) conference reminded us, there are several uncertainties that will dictate the sector’s growth.

The annual WPAC conference and AGM took place from Sept. 21-23 in Ottawa and brought together around 200 attendees, including pellet producers, government officials, and other stakeholders.

In her opening remarks, Beth MacNeil, assistant deputy minister with the Canadian Forest Service, picked up on WPAC’s 2019 conference theme of leading Canada’s low-carbon economy. “Forests will continue to play an important role in our future as we transition to a low-carbon economy...The fact that so many of you are here to discuss challenges and opportunities in bioeconomy shows the commitment of the wood pellet sector,” she said.

In a session on industry working with government, Jeff Waring, director general of the Trade Economics and Industry Branch, Canadian Forest Service added that the government supports pellet producers – directly or indirectly – through multiple programs, several of which have been used by WPAC members to install new technology or develop new global markets.

Yann Sellin, general manager of Granule 777, shared his company’s experience working with the government to help launch the brand-new plant owned by Barrette-Chapais sawmill. Support from the Investments in Forest Industry Transformation program was the final trigger for company to launch the pellet project, Sellin said.

Several pellet heating projects were highlighted during the conference as evidence of the growing interest in wood heat as a low-carbon, cost-effective energy source.

P.E.I. has a remarkable number of successful bioheat projects, largely thanks to its chief boiler inspector, Steven Townsend. Townsend led the charge to adjust the provincial regulations to accept European boilers standards, which means high-quality European- manufactured wood boilers can be approved and installed in municipal and commercial buildings. The province has 23 operating biomass plants, with six more coming online in 2020.

In his presentation on Canada’s proposed Clean Fuel Standard, TorchLight Bioresources managing director, Jamie Stephen, explained how changing the proposed regulation to allow for end-use fuel switching could increase domestic pellet demand by 850-900,000 tonnes.

Global market demand for wood pellets is continuing to rise, as experts have long predicted, although uncertainty remains a concern, multiple speakers shared.

Hawkins Wright is predicting EU and UK utilities will increase industrial wood pellet consumption by five million tonnes a year over the next two years, associate director Fiona Matthews shared with the audience. Globally, demand is expected to rise by 4.2 million tonnes in 2019, and 4.3 million tonnes in 2020. To meet that demand, pellet production capacity needs to grow by at least 14 million tonnes. “We think the supply chain is completely unprepared to meet this new demand,” Matthews said.