From the Director’s Desk: June Data Shows Strong Production Across the Country, JOIN THE FALL FLY-IN - Tuesday, October 17 - Wednesday, October 18
June Data Shows Strong Production Across the Country
As the wood pellet production data has accumulated in the Energy Information Administration’s Monthly Densified Biomass Fuel Report, we have been tracking the impact of generally lower wood pellet inventory numbers on producer appetites for increased production. Through June, U.S. heating pellet production was 918,564 tons, the highest January to June total since 2020 (935,453 tons). In the East, production in June topped 100,000 tons (103,109) for the first time since August of last year. In the West, where pellet inventories are significantly lower than they were just a year ago, production topped 40,000 tons (41,593) for the first time since July of 2021. At 162,464 tons, this June found producers at production outputs more typical of early fall. From 2020-2022, the average total U.S. production in June was 145,204 tons. Clearly, producers were working towards increasing their summertime inventories in June with an eye on more comfortable inventory positions at the summertime peak (usually July or August).
As June closed, the East region finished with 148,483 tons, more or less mirroring the inventory position there at the close of June last year. The West continues to lag last year’s numbers by a wide margin with just 39,069 tons on the ground compared to 91,886 tons a year ago. I would expect this will mean we will see strong production out West through the rest of the summer and throughout the fall as well. Last year, the West sold just 25,853 tons in July, allowing producers to put nearly 9,000 tons into inventory. That said, sales in the West have been well beyond last year’s numbers each month. Through June, producers in the West have sold 207,250 tons compared to 152,364 tons during the same period last year. This 55,000-ton difference is the difference between this year’s inventory and last year’s. The question that emerges now, is how many of those additional pellets that were sold in the first half of the year are still sitting in pellet user’s garages and basements. This is the question retailers and producers alike will ponder, and have pondered, as they make production decisions for the rest of summer and early fall. I suspect the West will put together a string of 40,000 + ton production months in anticipation of a the early buy season now underway.
Through June sales are up nearly 100,000 tons when compared to January – June of 2022 (748,755 tons vs. 645,007 tons). Over half of that increase can be attributed to the Western region (207,250 vs. 152,364), the other half coming from increased pellet sales in the South (103,855 vs. 54,220) while sales in the East were within 1000 tons of last year’s first six months (440,626 vs. 439,504).
ADVOCACY ALERT: PFI Offers Comments to Massachusetts Clean Heat Standard
A tip of the cap and a big thank you to Chris Egan, Executive Director at the Massachusetts Forest Alliance for putting the Massachusetts Clean Heat Standard on our radar. The Massachusetts Department of Environmental Protection is developing a Clean Heat Standard (CHS), and the organization is hearing from a wide range of stakeholders about just how to build and implement such a standard, and which technologies it should favor and, conversely, which it should aim to curtail. The Pellet Fuels Institute knows that wood pellet heating delivers real carbon benefit when compared to fossil fuels, but it should come as no surprise that other interests seek to eliminate combustion of all kinds as a space heating technology, wood pellets included.
The DEP offered a public comment period and the PFI submitted these comments. The comments highlighted how wood pellet heating aligned completely with the Commonwealth’s stated goals for their Clean Heat Standard and urged them to recognize the environmental and economic benefits of wood heat within their CHS in the same way that neighboring Vermont has.
The PFI continues to watch closely as state’s work on varying pathways to drive down the carbon intensity of their economies. Each effort creates a new opportunity for the PFI to espouse the benefits of wood heating, while also creating opportunities for our detractors. Working with our pro-forestry allies and wood product groups is vital to staying abreast of these ongoing developments. Thanks again to Chris at the MFA for alerting us to this development.
Join the Fall Fly-In! PFI Fall Fly-In - Tuesday, October 17 - Wednesday, October 18
There are still spots available to join the 2023 PFI Fall Fly-In. Members interested in sharing their story with policymakers can book rooms at the fly-in motel. It isn’t actually a motel, but rather a hotel in Georgetown.
The schedule has been built to accommodate folks that can only be away one evening. Our fly-in activities will begin at 3:00 PM on Tuesday, October 17th, and conclude around 3:30 or 4:00 PM on Wednesday, October 18th, providing people with an opportunity to book an evening flight out of DC on Wednesday night.
If you have questions, please do not hesitate to contact me.
Conference Presentations Available on PFI Website
We’ve added three PowerPoint presentations that were shared at this year’s annual conference to the PFI website. These data-rich presentations will be stored in the Industry Data section of the website.
