The US Energy Information Administration's Monthly Densified Biomass Fuels Report shows domestic manufacturers produced approximately 950,000 tons of densified biomass fuel in June, with sales for the month reaching 960,000 tons.
The figures come from a survey of 74 operating densified biomass fuel manufacturers across the United States, representing combined production capacity of 13.2 million tons annually and the equivalent of 2,529 full-time employees.
The EIA's monthly survey excludes facilities with annual production capacity below 10,000 tons, which report data on an annual rather than monthly basis—meaning the true scale of US production is somewhat larger than the headline monthly figures suggest.
Respondents purchased 990,000 tons of raw biomass feedstock during June to support production. Output split significantly toward utility-grade product: 809,041 tons of utility pellets against 141,990 tons of heating pellets, underscoring the continued dominance of large-scale power generation demand over the residential and light commercial heating market within the sector's production mix.
Export markets continue to drive volume
The data reveals a stark divide between domestic and export sales channels. Domestic sales of densified biomass fuel totalled 154,118 tons in June, commanding an average price of $261.19 per ton. Export volumes, by contrast, reached 807,986 tons—more than five times domestic sales volume—albeit at a lower average price of $209.46 per ton.
This pricing gap, with domestic buyers paying a premium of roughly $52 per tonne over export customers, reflects the different market dynamics at play: domestic sales likely include a higher proportion of premium heating pellets sold into residential and commercial markets, whilst export volumes are dominated by utility-grade pellets sold in bulk to overseas power generation customers, particularly in Europe and Asia, where biomass co-firing and dedicated biomass power remain significant components of renewable energy strategy.
Inventory trends diverge by product type
Inventory data for June points to diverging trends between pellet grades. Utility pellet inventories rose to 503,736 tons, up from 455,318 tons in May—an increase of roughly 10.6 per cent month-on-month. Premium and standard wood pellet inventories moved in the opposite direction, falling to 241,018 tons from 254,987 tons in May, a decline of around 5.5 per cent.
The build in utility pellet stocks alongside a drawdown in premium/standard inventories may reflect seasonal demand patterns, with heating pellet consumption typically declining through the summer months as northern hemisphere buyers reduce stockpiling ahead of the winter heating season, whilst utility pellet accumulation could indicate manufacturers building supply ahead of anticipated autumn and winter power generation contracts.
Regional capacity concentrated in the South
Total US densified biomass fuel production capacity reached 13.1 million tons in June, with the entirety of that capacity currently classified as either operating or temporarily idle rather than permanently offline. Regional distribution remains heavily weighted toward the South, which accounts for 10.64 million tons of capacity—more than 81 per cent of the national total. The East contributes 1.82 million tons, while the West lags significantly behind at 642,700 tons.
This regional concentration reflects the South's abundant softwood forestry resources and established forest products supply chains, which have historically supported the region's position as the dominant US hub for wood pellet manufacturing, particularly for export-oriented utility pellet production destined for European biomass power stations.
