The U.K. is expected to import a record 9.641 million metric tons of wood pellets in 2024, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network in November.
The expected record in wood pellet imports for 2024 follows a significant decrease in U.K. wood pellet imports in 2023 and 2023, which the report attributes to changes in global wood pellet prices and competition from other energy sources.
The U.K. primarily uses wood pellets for industrial energy production, with more than 93% of the country’s wood pellet demand in 2024 expected to be used for that purpose. The remaining 7% of wood pellet demand is expected to come from domestic and commercial use. Residential use of wood pellets is low and expected to decrease due to the winding down of the U.K.’s Domestic Renewable Heat incentive.
According to the report, total U.K. wood pellet consumption expected to reach 9.848 million metric tons this year, up from 6.592 million tons in 2023, 7.741 million tons in 2022 and 9.545 million tons in 2021.
Imports meet the vast majority of U.K. wood pellet demand. Imports are expected to reach 9.641 million metric tons in 2024, compared to 6.364 million metric tons last year, 7.516 million metric tons in 2022, and 9.25 million metric tons in 2021.
The U.S. is the largest supplier of wood pellets to the U.K., accounting for 73% of imports in 2023 by volume. Other sources of U.K. pellet imports are Canada, Latvia, the Netherlands, Estonia and Brazil.
The U.K. also has some domestic wood pellet production capacity. U.K. pellet plants are expected to produce 219,000 metric tons of wood pellets this year, compared to 239,000 metric tons in 2023, 248 metric tons in 2022 and 300 metric tons in 2021.
A full copy of the report is available on the USDA FAS GAIN website.
