In 2023, approximately 550,000 tonnes of wood pellets worth $107 million to Japan were exported to Japan, accounting for a third of the value of Alberta’s forest products exports to Japan.
In 2023, more than five per cent of Japan’s electricity was generated from renewable biomass (in approximately 240 biomass power plants). Biomass’ share of the electricity mix is now approaching that of nuclear, which is barely ahead at seven per cent.
Japan is presently consuming 6.1 million tonnes of wood pellets annually. For the 12 months ending October 31, 2024, Vietnam had the largest market share at 50 per cent, providing three million tonnes. Canada and the United States were tied for second, each with a 20-per-cent marketshare. Both countries provided 2.3 million tonnes to Japan.
Besides, Japanese wood pellet consumption is projected to grow by another 30 per cent by 2030, presenting even more opportunities for Canadian wood pellet exports.
