Canadian industrial wood pellet producers had nameplate capacity of approximately 2.8 million MTPA as of September, 2017. Nearly three quarters of Canadian industrial wood pellet production originates from B.C. and Alberta, regions that benefit from key competitive advantages, including: (i) a well-established and competitive forest products industry which generates large quantities of residual wood fibre, and (ii) a well-developed and dense logistical infrastructure for efficient transportation of forest products goods, with extensive rail connections and global ports that provide access to international end markets. The industrial wood pellet industry in B.C. and Alberta has become a key partner to primary manufacturers in the forest products sector, acting as an important buyer for a range of waste wood fibre residuals which typically have limited alternative economic uses. The sale of waste wood fibre residuals provides an important revenue stream for primary manufacturers, which enables them to improve their cost competitiveness by receiving value from a waste by-product which historically had a cost to discard (historically most waste by-products were either burned in the forest or at the primary manufacturers' production sites).

Forest land in B.C. and Alberta is primarily owned by the provincial government. Each government sets forest policy for public forest land which determines harvest rates and sets stumpage (payment to the governments by forest products companies for the harvest). This creates a stable environment for primary manufacturing and reduces the risk of supply chain disruption through the forest products value chain. In addition, local governments have set objectives of promoting utilization of the complete log, which includes greater use of the various waste wood fibre produced through the entire forest products value chain, from harvesting to manufacturing.

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  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 >>

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