North America: a rapid expansion in wood pellet capacity

There has been a rapid expansion in wood pellet capacity in North America the past five years, from just over one million tons in 2004 to over six million tons in 2009, according to a recent report from the Usda forest service. British Columbia was the first region to take advantage of inexpensive sawmill residues and to produce wood pellets for the fast growing European market.
The dramatic expansion has resulted in higher costs for sawdust and wood chips in the regions with the greatest growth, including western Us and Canada.