United Kingdom’s renewable energy demand drives increased imports of U.S. wood pellets

Over the last decade, the United Kingdom’s renewable energy strategy has led to increased imports of biofuels like ethanol, biodiesel, and biomass, notably, wood pellets. These small, cylindrical fuel cells, made from wood waste such as sawdust and wood chips, are burned in converted coal-fired power plants to generate energy. This trend has made the UK the world’s largest wood pellet importer, accounting for more than two-thirds of global imports since 2012. The United States has become the UK's largest wood pellet supplier, providing 76 percent of total imports in 2024. Before 2010, wood pellets made up 1.6 percent of U.S. forest product exports, but by 2024, they accounted for 19.6 percent. Since 2012, the UK has imported 71 percent of U.S. wood pellets. The rise of U.S. wood pellet exports is a result of the demand arising from the UK's renewable-based energy strategy, creating a lucrative market for U.S. forest products. This chart first appeared in the USDA, Economic Research Service report, European Agri-Food Trade and Brexit: The First 3 Years of the EU-UK Trade and Cooperation Agreement.