CFS TO SUPPORT PELLET PRODUCERS FROM $500M FUND

The Canadian Forestry Service has committed to invest in the country’s pellet industry with money from $500m of fresh government funding.

The newly-available capital is part of a bigger CA$1.25bn aid package to support the country’s lumber sector, in the face of recent US tariffs and subsequent global trade shifts.

Speaking at the Wood Pellet Association of Canada’s annual conference last month, the Canadian Forestry Service’s Director of Trade and International Affairs vowed: “There will definitely be support provided to the pellets industry.”

Pierre-Jonathan Teasdale also revealed that new measures to support Canada’s wood pellet industry were just weeks away.

He told delegates: “We’re actively working on measures to be announced promptly in the New Year. Our team will launch a diversification programme that targets offshore markets.”

Canadian PM Mark Carney announced his emergency support package for Canada’s forest industries in August “to supercharge product and market diversification and make the industry more competitive globally.”

Within eight weeks of that statement Pierre-Jonathan Teasdale had travelled to Halifax, Nova Scotia with assurances for biofuel pellet manufacturers that money was available and support was coming.

He told WPAC’s two-day annual conference: “For us, the forest sector is a key pillar of the Canadian economy, supporting good jobs, supplying low-carbon products, and the biomass and wood pellets sector is certainly part of that.”

Focusing on Canada’s shift away from US buyers, the CFS trade chief explained: “Given that the EU is the third market in importance for the wood pellet sector, this is a top priority for us.”

Pointing to a WPAC pilot pellet traceability platform, built in partnership with the CFS, Pierre-Jonathan Teasdale added: “I think that the sector is well ready to meet the EUDR requirements, which is good news.

“Internationally, we are also supporting Canadian participation in ISO standards for solid biofuels exports. This includes standards for testing wood pellets.”

The EU’s Renewable Energy Directive, also known as RED III, places new pressures on external pellet 

producers to prove the traceability and quality of their products. 

Pierre-Jonathan Teasdale revealed the CFS’s forthcoming investment as a panellist participating in a WPAC market and policy update titled Navigating Regulatory Change.

Joining him in the conference suite of Halifax’s Marriott Harbourfront Hotel was director of bioenergy for market research consultancy Hawkins Wright, Fiona Matthews.

Fiona added insight to Pierre-Jonathan’s initiative. Explaining complexities that exist in the EU wood pellet market, she revealed how “aspects” of the delayed RED III were already “being implemented with some variations across different member states.”

Fiona said: “The consequences of this is that there will be variations in different end user requirements across the European market, depending on how those individual member states implement those rules. 

“There could be a consequence in terms of feedstock sourcing for pellet producers selling into these different countries and countries.” 

The Wood Pellet Association of Canada’s conference took place on September 23 and 24 and was attended by PowerWood Canada Corp’s CEO David Peters.

PowerWood Canada Corp finds itself well-placed to meet new requirements imposed across the EU as it harvests only dead wildfire wood, diseased timber and forest floor debris to make 2nd generation black wood pellets – as part of its commitment to sustainable biofuel production. 

David Peters said: “New markets are opening up to the importation of biofuel wood pellets as a replacement for coal burned in power stations, steel mills and in other industrial furnaces.

“Two factors hold the key to national markets meeting the EU’s Renewable Energy Directive, and both are addressed by PowerWood.

“The low carbon release of black wood pellets help EU nations to meet many requirements set out by RED III. But PowerWood’s commitment to use only dead wildfire wood, diseased timber and forest floor debris as black wood pellet feedstock provides the provenance they require too.”