An Analysis of Wood Pellets For Export: A Case Study of Sweden as an Importer

North America is a major producer of wood pellets, and the principal market for them is domestic residential wood heating. To date, the export market for wood pellets is small. On the other hand, several developments are occurring that may be increasing the foreign demand for biomass fuels. A few North American companies are considering Sweden as a potential export market for wood pellets. Sweden heavily taxes fossil fuels, and plans to phase out nuclear power in the near future. This in addition to various other factors explains Sweden's use of wood pellets as an energy source. This paper briefly reviews the prospects and constraints for this international trade in wood pellets. Many factors favor North American exports, although an important constraint is that the United States does not adhere to international product standards for trade in biomass fuels.