Catch up with PFI in this issue of the Pellet Wire!

October 4, 2024

From the Director’s Desk: July Biomass Densified Fuel Report Data Released

July Biomass Densified Fuel Report Data Released

The data:

Production - July 2024 - (5-year average)

East             70,435 tons (96,393 tons)        
South           12,059 tons (20,916 tons)
West            21,078 tons (38,997 tons)  
U.S. Total    103,562 tons (156,306 tons)

Sales - July 2024 - (5-year average)

East             63,797 tons (94,246 tons)        
South           36,405 tons (30,341 tons)
West            12,805 tons (29,506 tons)
U.S. Total     113,007 tons (154,092 tons)

Inventory – July 2024 – (5-year average)

East            198,646 tons (159,101 tons)
South          62,742 tons (56,313 tons)
West            100,281 tons (77,011 tons)
U.S. Total     361,669 tons (292,425 tons)

This week the EIA released its July data set for its Monthly Densified Biomass Fuel Report. In June a surge in sales trimmed inventory levels pushing them closer to the 5-year average but producers again stayed off the production throttle, making just 103,562 tons, a seven-year low. Production in the West is well off its five-year average of 38,997 tons tallying just 21,078 tons this July. A 45,000/yr producer in the Western region is listed as “temporarily not in operation”, which explains 3,000-4,000 tons of the shortfall, but that still leaves 13-14,000 tons that just aren’t there this year. It is worth noting that inventory levels in the West finished the month at 100,281 tons, the highest summertime inventory in the region ever. Producers in the West clearly see products piling up and have rolled out of the throttle.

I’m also careful to extrapolate too much from the data as one missing or late report and a number could change dramatically. Also, the data set indicates that the U.S. total inventory increased by about 34,000 tons from June to July, but production in July couldn’t even cover sales for the month. I’ll reach out to our colleagues at the EIA and see if they can offer some guidance.

A month ago, I reminded Pellet Wire readers that in 2018-19 the industry had built a strong summertime position of 363,835 tons only to see the low fuel light come on in February when inventory dipped below 50,000. Producers got back into the throttle hard in March to make sure everyone could finish out the season.

In Minnesota it feels like summer hasn’t yet gotten the memo that it's time to pass the torch. The 10-day forecast has a few overnight lows in the 40s, but just as many daytime highs in the upper 70s.

—Tim Portz
 Executive Director

Save the Date - 2025 Annual Conference

Photo of the Week:

Summer Can’t Take a Hint: It is forecast to be 85 degrees here in Minneapolis on Saturday and this outlook certainly supports that. The good news is the biggest pellet market in the country in the Northeast is shaping up to be colder than average.

Source: National Weather Service, Climate Prediction Center

Send Us Your Photos! Help us build a collection of photos of our members, their pellet mills, and products! Send images to Tim Portz at [email protected].

Industry News

EIA Monthly Densified Biomass Report

As of July 2024, the monthly data collection included 77 operating manufacturers of densified biomass fuel. These manufacturers had a total production capacity of 13.34 million tons per year and collectively had an equivalent of 2,598 full-time employees.

View Data

Heating Degree Day Data

Heating Degree Day Data Weekly Summary
Climate Prediction Center-NCEP-NWS-NOAA
Accumulations are from July 1, 2024 to Sept. 28, 2024

View Data

EPA Agrees to Review NSPS for New Residential Wood Heating Appliances 

The U.S. EPA has agreed to review, and if appropriate, update its new source performance standards (NSPS) for new residential wood heaters, and new residential hydronic heaters and forced-air furnaces under a consent decree filed with the U.S. District Court for the District of Columbia on Sept. 26. The consent decree is subject to court approval. 

Read Article

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