Development of an efficient wood pellet supply chain from Eastern

Development of an efficient wood pellet
supply chain from Eastern Canada to
Europe
Gordon Murray, Executive Director
Wood Pellet Association of Canada
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Annual capacity – 1 million tonnes
Surplus capacity – 630 thousand tonnes
Wood Pellet Association of Canada
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Small domestic market
Crowded out of US
Producers do not cooperate – poor economies
of scale for storage and shipping
 Need dedicated port facilities – should handle
500,000 tonnes to minimize cost
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Wood Pellet Association of Canada
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Wood Pellet Association of Canada
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Company
Operational Plants
1 Crabbe Lumber
2 Groupe Savoie
3 Marwood Ltd.
4 Shaw Resources
5 TP Downey
6 Cottles Island Lumber Co. Ltd.
7 Holson Forest Products
8 Shaw Resources
9 Viridis Energy
10 Canadian Biofuel
11 Boreal Pellet
12 Energex
13 Granulco
14 Granules de la Mauricie
15 Granules LG
16 Lauzon Recycled Wood Energy
17 Lauzon Recycled Wood Energy
18 Trebio
19 Granules LG
Under Construction
20 Atikokan Renwable Fuels
21 KD Quality Pellets
Location
Province
Capacity (x1,000
tonnes)
Carleton
Saint-Quentin
Tracyville
Bathurst
Hillsborough
Summerford
Roddickton
Shubenacadie
Middle Musquodoboit
Springford
Amos
Lac-Megantic
Sacre-Coeur
Shawinigan
Saint-Felicien
Papineauville
Saint-Paulin
Portage-du-Fort
Mashteuiatsh
NB
NB
NB
NB
NB
NL
NL
NS
NS
ON
QC
QC
QC
QC
QC
QC
QC
QC
QC
40
55
10
75
40
12
55
50
110
30
50
120
20
22
85
30
40
130
85
1059
Atikokan
New Liskeard
ON
ON
120
75
195
Wood Pellet Association of Canada
Sea Ports
1 Thunder Bay
2 Montreal
3 Trois Rivieres
4 Quebec
5 Belledune
6 Halifax
7 Roddickton
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11 million m3 unused annual cut available
Province working on tenure reform
Wood supply competition mid 2011
Substantial volumes awarded to proposed pellet
operations
Wood Pellet Association of Canada
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Annual Timber Award – m3
Company
KD Quality Pellets
90,000
Wagner Forest Management
133,500
White Sand First Nation
149,000
Wawasum Corporation
113,000
Woodville Pellet
56,500
Muskoka Timber Mills
101,200
Atikokan Renewable Fuels
179,000
Abitibi Bowater
219.000
Total
1,041,200
Sources: Working Forest and Ontario MNDMF
Wood Pellet Association of Canada
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Shipped 120,000 tonnes in 2011 (2 producers)
Total annual bulk cargo ~ 2 mn tonnes
Pellet terminal has 10 m draft
Handles up to Handymax – 50,000 DWT
Wood Pellet Association of Canada
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Halifax NS – currently handles 6 mn tonnes of bulk
cargo.
Quebec QC – handles 26.5 mn tonnes
Trois Rivieres QC – 1.5 mn tonnes
Montreal – 5 mn tonnes
Roddickton NL - new
Wood Pellet Association of Canada
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Thunder Bay – on Lake Superior
St Lawrence Seaway is frozen from Jan 1 to Mar 31
Max ship size – “seawaymax” 28,500 DWT
Must pass through 6 canals and 19 locks, filled and
emptied by gravity
 3000 km to Atlantic Ocean
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Wood Pellet Association of Canada
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Wood Pellet Association of Canada
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Rail transport to terminal using own cars
Few terminals handling large volumes
Multiple producers co-mingling product at terminal
Frequent 50,000 tonne shipments – reduce costs
Wood Pellet Association of Canada
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QWEB & WPAC cooperating on a study
Confirm feedstock availability
Compare port facilities
Develop cost model
First to solve the logistics
challenge will control supply
• Control rail cars
• Central terminal
• Port storage and loading
Wood Pellet Association of Canada
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Europe needs pellets
Canada is a proven supply source
 Quality
 Reliability
 Sustainability
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Eastern Canada presents a great opportunity
First mover will have the advantage
Wood Pellet Association of Canada
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gord@pellet.org
www.pellet.org
Wood Pellet Association of Canada
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