Canadian Wood Pellets Exports Exploded in the Last 3 Years

Updated on Friday 29th June 2018

Canada is one of the richest countries in the world when it comes to its natural resources. These resources contribute to the good economic development and to one its most powerful industries: trading. While most countries focus on oil exports, Canada relies on another resource: wood. Nowadays, wood pellets are preferred to coal by Canada’s European and Asian partners which is why exports of wood pellets have exploded in the last few years. Our company formation agents in Canada can help foreign enterprisers who want to open trading companies.

Canada produces 500 million CAD wood pellet products every year

Without a doubt, oil exports remain one of the largest income sources for countries which large oil deposits, however, Canada has an advantage when it comes to natural resources: wood. To be more precise waste wood which Canadian companies turn into pellets which are then exported to power plants in Europe and Asia. Most of the countries importing wood pellets are those interested in reducing carbon emissions, therefore waste wood is an important and cheap alternative to other products.

This is how Canadian companies started producing wood pellets worth 500 million CAD on a yearly basis and thus satisfying the large foreign demand.

Our local consultants can help entrepreneurs who want to set up companies in the wood processing sector in Canada.

Wood pellet exports soared starting with 2016

According to the National Energy Board, wood pellet exports started gaining momentum in 2016 when companies sent 46% more products than in the previous year to countries like Japan and South Korea in Asia, the UK, the Netherlands and Denmark in Europe.

By 2025, the capacity of Canadian companies producing wood pellets is expected to grow from the 30 million tons registered last year, to 70 million tons, meeting the global demand.
Wood pellets are considered eco-friendly products because of their carbon neutrality and with more and more countries relying on sustainable energy sources are interested in wood pellets as an alternative to coal.

Foreign investors who want to open companies in Canada can obtain more information on how to start a business in the forestry or trading sectors from our consultants, so do not hesitate to contact us.