From the Director’s Desk: January Wood Pellet Industry Data Arrives, PFI Fly-In a Huge Success, Top 3 Reasons to Join the PFI at the Greenbrier June 17-19
January Wood Pellet Industry Data Arrives
January 2025 data (5-year average)
East
Sales – 100,674 (79,924)
Production – 77,654 (95,227)
Inventory – 111,241 (74,482)
West
Sales – 34,387 (38,879)
Production – 34,877 (36,628)
Inventory – 79,645 (23,106)
South
Sales – 30,260 (27,373)
Production – 17,724 (17,341)
Inventory – 4,637 (25,356)
All U.S.
Sales – 165,321 (145,962)
Production – 130,255 (149,215)
Inventory – 195,523 (122,945)
After a lackluster 2024, the wood pellet for home heating sector needed a shot in the arm. Heating Degree Day data at the end of the month showed that, finally, winter had arrived, and we were accumulating more HDDs in key markets (specifically the Northeast). Still, the industry had to wait until last week to see how the return to colder temperatures impacted sales. In past Pellet Wires and in public forums, I’ve pointed out that the industry has never logged a 2-million-ton sales year without logging a 200,000-ton January. Field reports I was receiving from producer members in January had me hopeful that we might once again experience that rarefied air of 200,000 tons of pellets sold. I should have looked more closely at the Heating Degree Day Index, however. While it’s true that, as January closed, the Northeast had finally accumulated significantly more HDDs than last year, the Pacific Northwest was still lagging in 2024. In fact, the two PNW locales on the Index (Spokane and Baker City) were off last year’s pace by 10%. As a result, the PNW didn’t even achieve its January 5-year average (38,879 tons). The region’s 34,387 tons fell short of last year’s 36,923 tons and was well off the high 40s and low 50s that the region logged in the three-year stretch (2018–2020) when the sector sold more than 2 million tons. Again, all of this was predicted by the PFI HDD Index had I simply taken off my optimistic glasses and looked closely at the data.
So what about those increased HDDs in the Northeast? The region saw a return to 100,000 tons in sales (100,674 tons) for the first time since 2020, and a nice bounce back from last year’s dismal 77,101 tons.
What the cold weather didn’t inspire was increased production, and this is understandable as producers walked into the month with the highest year-end inventories since 2017. With 250,000 tons of pellets on the ground and just a handful of months left in the heating season, producers stayed out of the throttle, making just 130,255 tons in January—well below the 5-year average of 149,215 tons. As a result, producers took a 55,000-ton bite out of their inventory and finished the month with 195,523 tons.
So now we look toward the February data reveal, mindful of what the PFI HDD Index suggests we might expect. Just for fun, I added the percentage change from last year column from the January 26 Index together and came up with 24%. The negative numbers out West really pulled the number down. Completing the same math for the February 23 Index yielded 98 total percentage points. While the PNW wasn’t well ahead of last year’s pace, the negative numbers were gone. The record for U.S. total sales in February was recorded in 2019 with 169,714 tons. I think we’ve got a puncher’s chance to eclipse that number. I suspect that we will once again see producers staying out of the production throttle and filling their orders out of their amassed inventory, but I feel confident that in early May we will learn that the first two months of 2025 brought a very welcome return to robust demand for wood pellets.
PFI Fly-In a Huge Success
Last Wednesday, April 9, the Pellet Fuels Institute completed its 2025 spring fly-in, visiting 29 different Congressional offices (17 Senate and 12 House), talking with elected policymakers and/or their staff on the PFI’s regulatory and policy ambitions. For ten of our meetings, our members were able to meet with the Senator or Congressperson themselves (denoted with bold type). This year, our fly-in team divided into four groups, speaking with members on committees of jurisdiction that aligned with our various policy and regulatory agenda items. We talked Farm Bill, overregulation, the importance of tax credits, and put together a team that met with new members of Congress who hail from wood pellet-producing states or districts.
The Pellet Fuels Institute met with:
Senators (17)
Jim Justice (R) – Pennsylvania
John Boozman (R) – Arkansas
Amy Klobuchar (D) – Minnesota
Tina Smith (D) – Minnesota
John Fetterman (D) – Pennsylvania
Shelley Moore Capito (R) – West Virginia
Mark Kelly (D) – Arizona
Jon Husted (R) – Ohio
Jeff Merkley (D) – Oregon
Angus King (I) – Maine
Susan Collins (R) – Maine
Maggie Hassan (D) – New Hampshire
Jeanne Shaheen (D) – New Hampshire
Lisa Murkowski (R) – Alaska
Bernie Moreno (R) – Ohio
Jim Banks (R) – Indiana
Elissa Slotkin (D) – Michigan
Representatives (12)
Glenn "GT" Thompson (R) – Pennsylvania
Brad Finstad (R) – Minnesota
David Taylor (R) – Ohio
Morgan Griffith (R) – Virginia
John Joyce (R) – Pennsylvania
Jared Golden (D) – Maine
Carol Miller (R) – West Virginia
David Kustoff (R) – Tennessee
Maxine Dexter (D) – Oregon
Maggie Goodlander (D) – New Hampshire
John McGuire (R) – Virginia
Riley Moore (R) – West Virginia
White House (on Thursday)
Karalee Geis, Office of Public Liaison
A special thank-you to Pellet Fuels Institute members who spent time and money to travel to D.C. and advocate for their industry on behalf of our organization:
Kenny Lisle, Lignetics
Brett Jordan, Lignetics
Casey Hoffman, Lignetics
Alison Snider, Lignetics
Bruce Lisle, Lignetics
Frank Kvietok, Lignetics
Pat Curran, Curran Renewable Fuels
Stephen Faehner, American Wood Fibers
Matt Klein, Kamps/Easy Heat
Jim VerBeke, Hearth & Home Technologies
Jon Parrott, Maine Energy Systems
Les Otten, Maine Energy Systems
Dylan O’Donnell, Timber Products Inspection
Matt Scorzetti, ProAmpac
Fly-ins only work with strong buy-in from members. Policymakers aren’t interested in what association executives have to say, instead favoring the thoughts and opinions of the men and women who put their constituents to work. Thank you again to those members who supported this fly-in effort. If you haven’t participated in a fly-in, I would urge you to give it some consideration. I can guarantee you will have one of the most unique experiences in your professional life and will return to your work energized and—at least for me—less cynical about our federal government and everything that happens in Washington, D.C. Policymakers cannot be expected to understand every industry that operates within their borders, nor how federal policy and regulations impact those industries (positively and negatively). They have to be told. Therein lies the importance of fly-ins.
I was delighted to lead our organization on its fourth fly-in since I assumed leadership of the PFI and look forward to our next effort. Finally, we are not limited to visiting Washington, D.C. once a year. If you are facing a specific regulatory challenge within your state and would like an audience with someone from your state’s Congressional delegation, please reach out.
Top 3 Reasons to Join the PFI at the Greenbrier June 17-19
Registration for this year’s PFI Annual Conference is now open. This year’s conference is set in the heart of hardwood and wood pellet manufacturing at one of the country’s most iconic resorts, the Greenbrier.
Tucked into the hills of West Virginia, the Greenbrier is a unique property with a rich history. Make plans now to join the Pellet Fuels Institute, its board of directors and members, and the vendor community that serves the wood pellet sector on June 17–19.
So why come? Here are Tim’s top 3 reasons to make the Trip to the Greenbrier:
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The Pellet Fuels Institute Annual Conference features the largest assembly of heating and barbecue pellet producers in one place each and every year. That’s the simple fact. Well over 80% of the heating and barbecue production capacity will be represented at the Annual Conference. There is not a more efficient opportunity to learn about domestic pellet markets, meet its manufacturers, and hear about the challenges wood pellet producers are facing in their operations.
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Wood pellet producers finished the 2024–25 heating season strong. The season started slowly (mild temps), but then the back half of the heating season returned to more traditional winter temperatures. The impact on sales was articulated in the January recap in this issue of the Pellet Wire, and February numbers should be even better. Improved cash flow for producers typically allows them to fully fund planned capital expenditures and plant upgrades.
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The Pellet Fuels Institute Annual Conference is the only industry conference that supports the work of the PFI. Associations have few revenue opportunities each year, and their conferences typically are the second leading source of revenue. The PFI is no different. When you attend or sponsor the Annual Conference, you support the PFI’s ability to advocate for the continuation of the wood pellet business. If your business is supported by the wood pellet industry, please consider supporting our event financially—and then come and connect with our members and let them tell you how much they appreciate it.
Registration, sponsorship information, a schedule of events, and confirmed speakers can be viewed online now. We look forward to welcoming you to The Greenbrier.
