We’re wishing everyone safe travels and an enjoyable holiday spent with friends and family. You get bonus points if any portion of your Thanksgiving meal is prepared in a wood-pellet burning appliance. If you find yourself eating a pellet-cooked turkey in a room heated by wood pellets, then you’ve won Thanksgiving (photos appreciated).

Residential Wood Pellet Production Running at Full Throttle

Last week, the U.S. Energy Information Agency (EIA) published its Monthly Densified Biomass Report for August. Not surprisingly, the report shows a wood-pellet sector running at full throttle, achieving single month production highs for at least one region (East). While both the East and West regions are producing at the highest rates reported since the EIA launched the report, the most dramatic numbers are coming from the East. Through August, this year’s production total is 780,000 tons, up from 640,000 last year for the same period. In 2017, the East had produced 464,000 tons through August. Per month averages also show strong growth. In 2017, the East averaged 66,000 tons per month—in 2018, that number climbed to 84,000. Year-to-date in 2019, the East is averaging 97,000 tons per month.

Driving all of this is a strong demand, with retailers selling inventory almost as fast as they can get their hands on it. In August, the East saw nearly 130,000 tons sell at an average price just north of $180/ton (also a first in the region since reporting began). Inventory levels in the East continue to significantly lag last year’s levels with just 100,000 tons being reported, as compared to 204,000 in 2018 for the same period.  The West’s numbers more closely reflect last year’s number of 103,000, with 2019’s August inventory coming in at 91,000.

Too Early to Call it a Win, but...

On Nov. 19, the House Ways and Means Subcommittee on Select Revenue Measures released a draft version of the Growing Renewable Energy and Efficiency Now (GREEN) Act. The inclusion of provisions from the BTU Act within this tax package developed by House democrats has been viewed by industry observers as the most promising opportunity to once and for all get the kind of difference making tax incentives enjoyed by the wind and solar industry for the broader wood heat sector.

As currently written, the legislation would extend a tax credit of 30% of the installed cost of a wood pellet stove, pellet boiler or other biomass heating appliance with a 75% or better efficiency rating for a dwelling. It’s important to note that this is precisely what our assembled roster asked for during our recent fly-in effort on Oct. 30. While the PFI and others have been lobbying in support of the BTU Act for the better part of a decade, our advisors in D.C. advised us that the best chance for those provisions right now was to push for those provisions to be included in the House green energy tax package. During our fly-in effort, this was our No. 1 policy ask.

We will continue to monitor this bill’s momentum and share progress, not only here in the Pellet Wire, but also on the PFI’s Twitter account @PelletFuel.

For more information, a link to the bill and a link to the initial announcement please read our short summary.