Worldwide nameplate capacity to produce industrial wood pellets was estimated by Hawkins Wright to be 20.9 million MTPA as of September, 2017. The majority of industrial wood pellet production originates from North America, with approximately 38% originating from the United States (primarily from the U.S. South Central/South Atlantic) and approximately 14% originating from Canada (primarily B.C. and Alberta). Approximately 33% of global supply originates from Europe (including Russia and the Baltic States). Hawkins Wright forecasts that worldwide nameplate capacity of industrial wood pellets will be approximately 23.5 million MTPA by the end of 2019.

The growth in industrial wood pellet potential demand is driven by major utility companies. These customers generally prefer to buy from larger suppliers, which is causing a concentration of the supply of industrial wood pellets around global enterprise suppliers. Major utility customers seeking long-term contractual sources of supply for industrial wood pellets apply several key criteria in assessing the capabilities of suppliers, including: (i) historical performance and diversity of production capacity, (ii) reliability of supply chain and logistics infrastructure, (iii) the financial strength of suppliers, (iv) the sustainability of the energy sources they procure, and (v) political, economic and regulatory stability of the region the supplier operates within.

The supply of industrial wood pellets to meet growing industry demand has been increasingly provided by three key global enterprise suppliers: Pinnacle in Western Canada, Enviva Partners LP and its affiliates ("Enviva") in the U.S. Southeast, and AS Graanul Invest ("Graanul") in the Baltic States (Estonia, Latvia, Finland and Lithuania). Over the course of 2014 to 2019, these three suppliers are expected to grow their combined market share from approximately 27% (which includes under construction and financed projects) to 33% by leveraging their scale, expertise and capital resources to add new capacity. Currently, these three global enterprise suppliers are each largely focused on producing industrial wood pellets in their core geographic regions. Pinnacle supplies both European and Asian markets from Western Canada, Enviva is predominantly located in the U.S. Southeast and primarily supplies the European market, and Graanul operates in Europe and supplies its regional European market.

---

  Canada >>
Canadian industrial wood pellet producers had nameplate capacity of approximately 2.8 million MTPA as of September, 2017... More >>

  United States >>
The United States is the largest industrial wood pellet supply region in the world, with nameplate capacity of approximately 8.0 million MTPA... More >>

  Europe >>
European industrial wood pellet producers had nameplate capacity of approximately 6.9 million MTPA as of September, 2017... More >>

  Rest of the World >>
Industrial wood pellet nameplate capacity outside of North America and Europe remains relatively modest, accounting for approximately 3.3 million MTPA... More >>

---