This is a story that was published in “The Year At A Glance,” a yearly magazine wrap-up of the hardwood industry, published by the Hardwood Market Report. This was something brand-new for the company, in the fact that most of their articles were not personalized with direct quotes from people in the industry around the country. I was honored that they gave me the opportunity to “do my thing” and were open to new ideas.
According to the Pellet Fuels Institute, the North American wood pellet industry has been in existence for more than 20 years, mainly servicing the residential heating market. But, several developing factors have stimulated the industry recently, making wood waste more merchantable and valuable as pellet fuel, both residentially and commercially. Among these factors include the hurricanes of 2005, the subsequent cost fluctuations in fossil fuel prices and the Kyoto Treaty.
Before, wood processing companies, such as sawmills, barely broke even selling wood waste because of low sales prices and high transportation costs. Now, there is promising potential in the wood pellet industry, and many companies are pursuing this venture.
Some developing affairs which may impact and energize the growth and profitability of the industry include variable fossil fuel costs; currency exchange rates affecting export trade; funding of the Renewable Energy Security Act (RESA) Provision of 2005; the outcome of a current US Supreme Court case concerning carbon dioxide emissions and the Clean Air Act; and, several groups across the United States embracing the Kyoto Treaty’s ideals and calling for the reduction of greenhouse gas emissions.
