North American wood pellet capacity is set to increase, driven by growing demand from Europe and Asia.

The North American Wood Fiber Review says that several new wood pellet plants in the US and Canada are set to start operations this year and more are planned over the next few years.

“The industry is eyeing the growing demand in four regions – Europe, Asia and, to a lesser extent, the Maritime provinces of eastern Canada and north-eastern US,it says.

Asian demand for biomass energy is also starting to emerge. South Korea recently announced policies to increase the proportion of energy consumption from renewable sources.