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September/October 2015

To the
Max
Larger Ocean Vessels
Tabbed for Pellet
Transport to Europe
Page 22

Plus:
Producer Survey
Breaks Down
Distribution Trends
Page 16

AND:
Producers, Retailers
Unite to Combat
Demand Variability
Page 28

www.biomassmagazine.com/pellets
Contents »

Pellet Mill Magazine


Advertiser Index SEPTEMBER/OCTOBER 2015 | VOLUME 5 | ISSUE 5

24 Agra Industries

20 Airoflex Equipment

14 AMANDUS KAHL GmbH & Co. KG

18 Andritz Feed & Biofuel A/S

36 Astec, Inc.

34 BBI Project Development

15 Bliss Industries, Inc.

5 BRUKS Rockwood

2 CPM Global Biomass Group

12 EBM Manufacturing
PHOTO: VAUGHAN BASSETT, PINNACLE RENEWABLE ENERGY
19 Evergreen Engineering

13 GreCon, Inc. FEATURES


11 Industrial Bulk Lubricants (a Dansons Company) 16 DISTRIBUTION
2015 Producer Survey
35 International Biomass Conference & Expo 2016
Capacity, Capital, Storage Partner in ‘Pellet Dance’
33 Logistec An industry-wide survey sheds light on how pellet producers distribute their wares in
a market with an inconsistent beat.
21 NESTEC, Inc.
By Katie Fletcher
25 Northeast Wood Products LLC
22 SHIPPING
32 Rawlings Waste Wood Recovery Systems
Panamaxing It Out
26 RUF Briquetting Systems As foreign buyers ramp up the use of wood pellets, the need to maximize shipping
efficiencies becomes more important.
27 SCHADE Lagertechnik GmbH
By Tim Portz
31 Trinity Packaging Corporation
28 MARKET
30 Uzelac Industries Matching Pellet Supply With Growing Demand
9 Vecoplan LLC In a seasonal market with fluctuating factors, producers juggle having enough
available stock with having too much inventory.
10 West Salem Machinery Co. By Ron Kotrba

DEPARTMENTS
04 EDITOR’S NOTE
Industry’s Balancing Act
By Tim Portz
06 INDUSTRY EVENTS
08 TESTING GROUNDS
ENplus Update: Navigating New Changes
By Chris Wiberg
07 INDUSTRIAL INSIGHT
Pellets Still the Affordable, Available, Renewable One
By Seth Ginther
08 STANDARDS STEWARD
Pellet Fuels Institute Updates Standards Program
ON THE COVER By Jennifer Hedrick
LARGE DISCHARGE: This summer, some 10 BUSINESS BRIEFS
60,000 metric tons of wood pellets were unloaded
from a Panamax-class vessel at the Port of 12 NEWS
Immingham ready for transit to Drax power 34 MARKETPLACE
station.
PHOTO: VAUGHAN BASSETT, PINNACLE RENEWABLE ENERGY
SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 3
« Ed Note

Industry’s Editorial
PRESIDENT & EDITOR IN CHIEF
Balancing Act Tom Bryan tbryan@bbiinternational.com

VICE PRESIDENT OF CONTENT & EXECUTIVE EDITOR


The continued growth and vitality of this Tim Portz tportz@bbiinternational.com
industry hinges on the satisfaction of its cus-
SENIOR EDITOR
tomers after each heating season. The surest Ron Kotrba rkotrba@bbiinternational.com
way to frustrate and ultimately lose custom- ASSOCIATE EDITOR
ers is to not meet their needs. As the 2015-’16 Katie Fletcher kfletcher@bbiinternational.com
heating season approaches and retailers begin CONTRIBUTING EDITOR
to build pellet inventories, the team at Pellet Anna Simet asimet@bbiinternational.com

Mill Magazine dug into the complexities of op- NEWS EDITOR


Erin Vogele evoegele@bbiinternational.com
erating a year-round facility that manufactures
a seasonal product. Our team appreciates these COPY EDITOR
Tim Portz nuances and we’re fortunate to have the guid-
Jan Tellmann jtellmann@bbiinternational.com
VICE PRESIDENT OF CONTENT &
EXECUTIVE EDITOR ance of our excellent editorial board. Art
tportz@bbiinternational.com Two features in this issue are built upon the ART DIRECTOR
Jaci Satterlund jsatterlund@bbiinternational.com
results of an industry survey we wrote in close
GRAPHIC DESIGNER
consultation with our editorial board in early August. We invited and urged the Lindsey Noble lnoble@bbiinternational.com
industry to participate, and we were thrilled when more than 50 producers took
the time to answer our questions. Both Senior Editor Ron Kotrba’s and Associate Publishing & Sales
CHAIRMAN
Editor Katie Fletcher’s features build upon the survey’s findings. Our survey estab- Mike Bryan mbryan@bbiinternational.com
lishes that the majority of producers in the industry are aggressively growing their
CEO
businesses, as a third of respondents reported over a 20 percent increase in an- Joe Bryan jbryan@bbiinternational.com
nual production in the past two years. Still, the survey and Fletcher’s and Kotrba’s VICE PRESIDENT OF OPERATIONS
stories make it clear that the product’s seasonality creates challenges for producers Matthew Spoor mspoor@bbiinternational.com
and retailers alike. SALES & MARKETING DIRECTOR
For her story, “Capacity, Capital, Storage Partner in ‘Pellet Dance’,” on page John Nelson jnelson@bbiinternational.com

16, Fletcher asked a number of producers how their operations balance the op- BUSINESS DEVELOPMENT DIRECTOR
Howard Brockhouse hbrockhouse@bbiinternational.com
portunity for growth while limiting the risk of ending a heating season holding too
much inventory. American Wood Fibers CEO Stephen Faehner told her, “I believe SENIOR ACCOUNT MANAGER
Chip Shereck cshereck@bbiinternational.com
more of us are putting a higher percentage of our capacity in storage—at least
ACCOUNT MANAGER
those of us who have the financial ability to do so.” For Faehner, the ability to cap- Jeff Hogan jhogan@bbiinternational.com
ture upside demand with on-hand inventory late in the heating season outstrips the
CIRCULATION MANAGER
risk of inventory carryover. The sources in Kotrba’s story, “Matching Pellet Supply Jessica Beaudry jbeaudry@bbiinternational.com
With Growing Demand,” on page 28, are quick to point out that amassing inven- MARKETING & TRAFFIC COORDINATOR
tory not only requires a storage solution, but an outlay of capital and disciplined Marla DeFoe mdefoe@bbiinternational.com
management of cash flow. Paul Stringer, vice president of sales and marketing, told
Kotrba, “This is a business that requires investment. It is an investment that you Subscriptions to Pellet Mill Magazine are free of charge—distributed
quarterly—to Biomass Magazine subscribers.To subscribe, visit www.
have to make to be a good supplier.” BiomassMagazine.com or you can send your mailing address to Pellet
Mill Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand
This issue, more so than any other issue this year, would not have been pos- Forks, ND 58203. You can also fax a subscription form to 701-746-
5367. Back Issues & Reprints Select back issues are available for $3.95
sible without the guidance of our editorial board and the robust participation of each, plus shipping. Article reprints are also available for a fee. For
the entire industry. I offer you our thanks and invite you to enjoy the great stories more information, contact us at 866-746-8385 or service@bbiinterna-
tional.com. Advertising Pellet Mill Magazine provides a specific topic
we were able to produce as a result. delivered to a highly targeted audience. We are committed to editorial
excellence and high-quality print production. To find out more about
Pellet Mill Magazine advertising opportunities, please contact us at
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welcome letters to the editor. Send to Pellet Mill Magazine Letters to the
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Please recycle this magazine and remove


inserts or samples before recycling
TM
COPYRIGHT © 2015 by BBI International

4 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


Industry Events »

National Advanced Biofuels


Conference & Expo
OCTOBER 26-28, 2015
Hilton Omaha
Omaha, Nebraska
Produced by BBI International, this national
event will feature the world of advanced
biofuels and biobased chemicals technology
scale-up, project finance, policy, national
markets and more—with a core focus on
the industrial, petroleum and agribusiness
alliances defining the national advanced
biofuels industry. With a vertically integrated
program and audience, the National
Advanced Biofuels Conference & Expo is
tailored for industry professionals engaged
in producing, developing and deploying
advanced biofuels, biobased platform
chemicals, polymers and other renewable
molecules that have the potential to meet
or exceed the performance of petroleum-
derived products.
866-746-8385 | www.advancedbiofuelsconference.com

International Biomass
Conference & Expo
APRIL 11-14, 2016
Charlotte Convention Center
Charlotte, North Carolina
Organized by BBI International and produced
by Biomass Magazine, this event brings
current and future producers of bioenergy
and biobased products together with waste
generators, energy crop growers, municipal
leaders, utility executives, technology
providers, equipment manufacturers, project
developers, investors and policy makers. It’s
a true one-stop shop—the world’s premier
educational and networking junction for all
biomass industries.
866-746-8385 | www.biomassconference.com

International Fuel Ethanol


Workshop & Expo
JUNE 20-22, 2016
Wisconsin Center
Milwaukee, Wisconsin
The FEW provides the global ethanol industry
with cutting-edge content and unparalleled
networking opportunities in a dynamic
business-to-business environment. The
FEW is the largest, longest running ethanol
conference in the world—and the only event
powered by Ethanol Producer Magazine.
866-746-8385 | www.fuelethanolworkshop.com
« Testing Grounds

ENplus Update: Navigating New Changes


BY CHRIS WIBERG

On Aug. 1, the European Pellet Council released updates 97.5. The ash limit for A2 grade is now ≤ 1.2 percent, and
to the ENplus quality management scheme for wood pellets. there is a temperature requirement of ≤ 40 degrees Celsius at
The new handbook—Enplus handbook version 3.0—replac- the last loading point for truck deliveries to end users.
es the prior version ENplus handbook version 2.0. Anyone When it comes to the ENplus certification process, sev-
who is currently ENplus certified under ENplus handbook eral changes have been made. There are now rigid timeline
version 2.0 will want to download the new handbook and requirements for compliance once the certification process
read it thoroughly as there are a number of changes that could begins. Inspection reports are due within two months of the
impact your current certification. Additionally, anyone who is inspection date and conformity reports must be complete
considering ENplus certification, but has not yet been certi- within a third month, otherwise the application is rejected. De-
fied, will also want to download the new handbook as there are ficiencies are classified into three categories—Types A, B and
several components that are different from what you may have C. Each type has different requirements for compliance. An-
previously understood. The handbook can be downloaded nual surveillance inspections are to be conducted with ± three
from the ENplus website at www.enplus-pellets.eu. months of the initial inspection date. Inspection criteria has
While there is a summary of changes provided on the remained much the same, however, it is now required that all
ENplus website, I will do my best to outline the substantive pellet storages also be inspected, which can include port facili-
changes here as they pertain to North American pellet produc- ties, warehouses, distribution points and others. The retention
ers. First, the handbook has a completely different format and of reference samples is no longer required for bagged product,
feel. There are now six parts to the handbook and there are however, for bulk delivery ENplus handbook version 3.0 now
national versions as well as an international master handbook. requires that a reference sample be collected for every vehicle
The international master handbook is the version that applies that is loaded. Reference samples are still held for nine months.
within the U.S. Canada has a separate national version, so be Regarding self-monitoring, the same five tests are still re-
careful you are downloading the version that applies to you. quired to be tested on site—bulk density, moisture, durability,
When first viewing the new handbook, I highly recom- length and fines—though it is now stipulated that if doubts
mend reading part one thoroughly before moving on to part concerning the pellet quality exist, then additional tests may be
two. Do not skip the terminology section as there are many ordered. This will apply primarily when producers approach
changes. Handbook version 2.0 included descriptions for the 0.7 percent ash requirement for grade A1. If ash content is
several entities including the EPC, national licensers, certifica- close to the limit, then ash testing at the production site could
tion bodies, inspection bodies and testing bodies. These same become a requirement.
entities still provide the overall structure, however, there are There are also changes regarding bag labeling. The EN-
now several additional terms such as competent management, plus certification seal has been changed as well as the way the
competent licenser, international management and certified grade is specified. In addition, all bag designs now need ap-
service provider to name a few. It is important to understand proval by the “competent management” before bags are sold
these new terms in order to understand how the system works, on the market. The certified company whose ENplus ID is
which differs from country to country and when operating in- printed on the bag is responsible for submitting bag labels
ternationally. whether it is your brand or the brand of another party.
When it comes to the specifications for wood pellet As I am sure you can now see, the changes to the newest
classes (grades A1, A2 and B) there are a few important up- version of the ENplus handbook are substantial. If you are
dates. First, ENplus handbook version 3.0 now references already certified or interested in pursuing this quality manage-
ISO 17225-2 (formerly EN 14961-2) as the basis for the grade ment scheme, I highly recommend downloading the ENplus
criteria, and all ISO-test methods are referenced instead of the handbook version 3.0 and reading it in detail. The new hand-
previously referenced CEN- and EN-test methods. In some book came into force for all new users as of Aug. 1 and will
cases, the referenced ISO-test methods are not published yet, come into force for currently certified companies Jan. 1.
but there is a note in the handbook that the EN-method ap-
Author: Chris Wiberg
plies until the ISO-method is published. Second, there is grade
Manager, Biomass Energy Laboratory
criteria that has been tightened. Specifically, for ENplus A1 the 218-428-3583
durability requirement is now ≥ 98.0 and for B grade it is ≥ cwiberg@tpinspection.com

6 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


Industrial Insight »

Pellets Still the Affordable,


Available, Renewable One
BY SETH GINTHER

As we at the United States Industrial Pellet As- ready to use sustainable biomass as an important
sociation get ready for our 5th Annual Exporting component of their plans to mitigate climate change
Pellets Conference in Miami, it continues to be an and increase their use of renewables. There are a few
exciting time in the industrial wood pellet industry. hurdles to address in this area, such as workforce
European policymakers are poised to come back and infrastructure, but we anticipate this domestic
from recess with one thing on their minds when it market will open up in the next few years, especially
comes to energy policy and decarbonization—how as the coal industry and domestic power genera-
do they accomplish their goals in an affordable way tors look to cofiring as the most cost-effective way
without creating additional economic burdens on to continue the life of current coal plants. Because
taxpayers? U.S. coal-fired power plants could use biomass for
As affordability moves to the forefront of Eu- cofiring to meet the objectives of the Clean Power
ropean policymakers’ minds when confronting the Plan—and do so while preserving jobs, infrastruc-
energy “trilemma” of affordability, security and de- ture and capital investment—biomass can provide
carbonization, biomass remains the only affordable, an affordable way for the U.S. to decarbonize as well.
commercially available renewable technology that There are additional nonsubsidized markets,
can provide dispatchable baseload power to balance such as the chemical production market, that could
the energy grid at a moment’s notice. Baseload. Re- also open up for industrial pellet producers. In the
newable power. All the time. Other renewable tech- U.S., we have spent the past decade developing the
nologies are intermittent, meaning they only work infrastructure and building a sophisticated supply
when their fuel source is available, i.e., when the sun chain to turn sustainable, low-grade woody fiber
is shining or when the wind is blowing. into sustainable wood pellets and deliver them to the
Accordingly, it is important to look beyond ba- world. With this development now behind us, the in-
sic per megawatt-hour cost comparisons of all re- dustry is able to participate in new markets without
newable technologies in order to truly understand the costly start-up expenses.
how much each technology costs the average con- It is critical that the industry remain flexible as
sumer on the road to decarbonization. A deeper we head into this period of expansion and diversi-
analytical cost comparison will show that intermit- fication. There are plenty of opportunities in both
tent technologies also carry hidden costs associated traditional and emerging markets for industrial
with “demand capacity”—power plants that must wood pellets and the entire bioenergy industry, we
be activated to balance the grid when the sun is not just need to be prepared to grab them as they come
shining and the wind is not blowing. These power along.
plants are often fossil fuel-based power stations that For a more in-depth discussion on these issues
are kept on standby at excruciatingly high costs to and how the wood pellet industry can participate in
the consumer. new markets, I hope you will join us in Miami, Sept.
Affordability will also translate here in the U.S. 20-22 for our 5th Annual Exporting Pellets Confer-
as federal and state lawmakers begin to implement ence. Visit www.theusipa.org/conference for more
President Obama’s Clean Power Plan. The plan em- information.
phasizes the importance of renewable energy and
Author: Seth Ginther
recognizes that sustainable biomass can be an im-
Executive Director
portant player in the fight against climate change. U.S. Industrial Pellet Association
As we work with EPA on the specifics of biomass 804-771-9540
sginther@hf-law.com
carbon accounting, there are a multitude of states

SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 7


« Standard Steward

Pellet Fuels Institute Updates


Standards Program
BY JENNIFER HEDRICK

At the PFI Annual Conference this summer, PFI an- cies, and the producer incorporates certain in-house quality
nounced several modifications to its standards program. For verification at the production site.
those of you who produce pellet fuel, I encourage you to take If successful audits are not continually demonstrated,
note of these program enhancements. manufacturers will resume the once-per-1,000-ton audits.
The PFI Standards Program is a fuel-quality program Once conformance is maintained, facilities are again eligible to
requiring regular third-party audits of pellet manufacturing fa- reduce their testing frequency to once every 5,000 tons.
cilities. It is a voluntary program, though new EPA regulations The simple goal of these changes is to strengthen the
are sure to impact the marketplace and the demand for fuel program, which is achieved by ongoing review of the pro-
tested through a graded-fuel program. gram’s structure and its documents. You can review this infor-
The PFI Standards Program is administered by the mation on the PFI website, www.pelletheat.org/pfi-standards.
American Lumber Standards Committee, which oversees the The larger goal gets to the crux of the program, which
program’s auditing bodies and testing labs, and does its own is to provide consumers with fuel that is consistent and reli-
regular audits of production facilities. able, ensuring that their appliance is operating at its maximum
The current program has been in effect for three years. capability.
The enhancements to the program are a result of a review of Manufacturers I’ve spoken to who are participating in
best practices by auditing agencies, ALSC and the PFI Stan- the PFI Standards Program each had different motivations
dards Committee. We took into account analyses of testing for joining the program, but all have seen improvements in
results and practices of the participating fuel manufacturers their operations, whether through higher-quality production,
alongside the established standard specification and PFI Stan- operations efficiencies, or cost savings due to incorporating
dards Program documents. recommendations following audits. Their initial investment in
Some of the more notable changes to the program include: the program has delivered significant return.
- Clarifying that the program is not a weights and If you aren’t participating in the PFI Standards Program,
measures based program. I encourage you to take a closer look at the program, espe-
- Increasing the range for acceptable bulk density to 40 to cially in light of recent program modifications and the new
48 pounds per cubic foot. EPA regulation of residential pellet appliances, which requires
any new EPA-certified appliance to use pellets submitted to
- Reducing the conformance criteria requirement from
a third-party, fuel-grading program. Consumers purchasing
95 percent to 90 percent.
these new appliances will need access to graded fuel. How will
- Adoption of the Rules of the Mark, which govern the you meet those requirements?
program’s Quality Mark, found on product that meets
the program’s specifications. Author: Jennifer Hedrick
Executive Director, Pellet Fuels Institute
The major modification to the program involves a reduc- 703-522-6778
tion in sampling frequency for manufacturers. Under the pre- @pelletfuel
Hedrick@pelletheat.org
vious requirements, third-party audit samples were collected
every 1,000 tons. New requirements allow for a reduction in
the sample collection frequency to one audit sample for ev-
ery 5,000 tons of production, provided the producer demon-
strates three consecutive months of audits with no deficien-

8 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


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vecoplanllc.com (336) 891-0858
Business Briefs PEOPLE, PRODUCTS & PARTNERSHIPS

Waste to Wisdom project EPC announces updated


launches new website version on ENplus Handbook
Waste to Wisdom (W2W) has launched The European Pellet Council released
a new website that highlights its three-year the 3.0 version of the ENplus Handbook
effort and its objective to make better use on Aug. 1. The updates were needed due
of forest residues from timber harvests and to rapid growth in the pellet market and
thinning. W2W is funded by a $5.88 million evolving standards. The international ISO
grant from the U.S. Department of Energy 17225-2 standard was published in 2014
and is led by Humboldt State University making the European EN 14961-2 standard
with assistance from 15 regional partners. obsolete. ENplus had to adjust to these
The grant is part of the Biomass Research changes to continue guaranteeing the pellet
and Development Initiative, a collaborative quality all along the supply chain, from the
effort between the DOE and USDA that producers to the end users. New terms
supports renewable energy research in the to describe new business scenarios were
rural U.S. developed, the quality requirements of the
pellets have been adapted to the interna-
IRENA opens new headquarters tional ISO 17225-2 standard with some of
The International Renewable Energy them being even stricter than the standard.
Agency recently celebrated the official inau- Another major change was the introduction
guration of its permanent headquarters in of a service provider certification ensuring
Masdar City, United Arab Emirates. IRENA that everyone in the supply chain takes care
was founded in 2009. of the pellet quality.

New Holland names vice president


New Holland has
appointed Bret Lieber-
man to lead the brand
as vice president of
North America. Bret
joined New Holland BTEC to release draft thermal
in 1990 with a position efficiency test method
in service parts. Most The Biomass Thermal Energy Council has
Lieberman recently, he served as announced plans to release a draft of the
head of North America first thermal efficiency test method designed
manufacturing, where he has been respon- specifically for commercial-sized boilers that
sible for all agricultural and construction utilize solid biomass as a fuel stock, includ-
manufacturing plants since 2009. ing pellets, chips, briquettes, and cordwood.
The project responds to concerns that a lack
BillerudKorsnäs divests its shares of reasonable testing standards for biomass
of SIA Latgran to AS Graanul Invest systems can make it difficult for specifiers to
BillerudKorsnäs has signed an agreement provide the owner of a biomass system with
with AS Graanul Invest concerning the a clear distinction between the performance
sale of its shares in SIA Latgran, a leading of high-efficiency, low-emission equipment
Latvian-based pellets producer with annual and less satisfactory performers. BTEC
volumes of 497,000 metric tons. Billerud- plans to hold a series of regional scoping
Korsnäs’ ownership in Latgran is 75 percent, meetings to gather public feedback on the
and the remaining 25 percent is owned by standard in the fall of 2015 and spring of
Baltic Resources Ab. 2016.

10 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


ASABE announces progress Drax takes delivery of 200th
with solid biofuel standards biomass rail freight wagon
development A three-year partnership between
The American Society of Agricultural Lloyds Register Rail, U.K. manufacturer
and Biological Engineers has announced WH Davis and Drax reached a significant
substantial progress was made at the seventh milestone last summer when Drax took
formal international meeting of ISO Tech- delivery of its 200th specially designed
nical Committee 238 (TC238), Solid Biofu- biomass rail freight wagon. Since entering
els, held recently in York, England, where operations in 2013, the wagons, designed by
attendees gave special attention to a series Lloyd’s Register Rail and manufactured by
of solid biofuel test standards and related WH Davis, have collectively travelled over
topics. Significant time was also devoted to 12 million miles between the Ports of Tyne,
discussions on a classification standard for Hull and Immingham and Drax. Over the
thermally treated solid biofuels, ISO 17225 course of these journeys they have trans-
part 8. According to the ASABE, develop- ported around 4.5 million metric tons of
ment of international standards for solid sustainable biomass.
biofuels has been ongoing since 2007, with
seven of the 12 published ISO standards Viridis announces European
being completed within the past year, and supply agreement
another 26 standards at various stages of Viridis Energy Inc. recently announced
development. that its wholly owned subsidiary Viridis
Merchants Inc. has secured a European sup-
UK GIB appoints chief risk officer ply agreement for up to 20,000 metric tons
The U.K. Green of ENplus certified premium wood pellets
Investment Bank has per year. VMI intends to distribute to the
appointed Jacqueline residential heating market throughout the
Redmond chief risk U.K. and Europe. The supply of certified
officer. Redmond pellets is marketed under the new Okanagan
joins GIB from Royal Nordics brand, which is the fourth brand in
Dutch Shell, where the Okanagan wood pellet family. VMI has
she most recently held already begun distributing the new brand
the position of head Redmond to the residential heating market in the U.K.
of commercial power. and plans to distribute to Italy and other
She will be responsible for ensuring that European countries.
GIB establishes and maintains an effective
risk management framework, supporting the
board’s strategy and risk appetite. SHARE YOUR INDUSTRY NEWS: To be included in the Business
Briefs, send information (including photos and logos, if available)
to Business Briefs, Pellet Mill Magazine, 308 Second Ave. N., Suite
MGT Power, Macquarie sign 304, Grand Forks, ND 58203. You may also email information to
evoegele@bbiinternational.com. Please include your name and
agreement on Teesside plant telephone number in all correspondence.
Macquarie Capital and Macquarie’s
Commodities and Financial Markets group
recently signed an agreement to support
MGT Power Ltd. in the financing of the
299 MW Teesside Renewable Energy Plant,
which has received a U.K. government-
supported contract for difference (CfD). All
major permits for the project’s construc-
tion and operation have been secured and
Macquarie Capital has commenced a debt
raising process. Financial close is targeted for
the fourth quarter.

SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 11


Pellet News
Euronext to launch wood
pellet futures contract
Euronext has announced plans to
launch a new wood pellet commodities
futures contract this fall, subject to regu-
latory approval. Aimed at producers,
wholesalers and retailers, the physically
settled contract targeting the residential
heating sector will allow the industry to
hedge its positions.
“This is an important initiative for
the pellet industry as it provides a clear re-
sponse to the high volatility we have seen
BIG BIOMASS ACHIEVEMENT: Associated British Ports’ continuous ship unloaders discharge recently in pellet pricing,” said Christian
approximately 60,000 metric tons of biomass from the POPI S at the Port of Immingham.
PHOTO: ASSOCIATED BRITISH PORTS
Rakos, president of the European Pel-
let Council and president of Propellet
World’s largest shipment of pellets reaches UK Austria. “It will offer a hedging tool that
will allow our members to manage their
The world’s largest single shipment the Westview Terminal in Prince Rupert,
risk from production to purchase to sales.
of wood pellets was discharged at the British Columbia, in early June before
The European Pellet Council is delighted
Associated British Ports’ Humber In- making the 34-day journey to the U.K.
that Euronext will be using our ENplus
ternational Terminal at the Port of Im- The pellets were discharged using
A1 certification as a base for the underly-
mingham in the U.K. in July, destined for ABP’s bespoke continuous ship unload-
ing of its future contract. We believe this
delivery to Drax. ers, which feed the biomass fuel onto a
initiative will contribute to reinforce and
Nearly 60,000 metric tons of wood conveyor system connected to Imming-
structure the sector.”
pellets were unloaded from the POPI ham Renewable Fuels Terminal. The pel-
S. The event marks the first time pellets lets are stored in eight silos, each with a
have been carried by a Panamax-class 25,000-metric-ton storage capacity, be-
vessel. The ship was originally loaded at fore being transported to Drax via rail.

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GENTLY REMOVE FINES with
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non-vibrating
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t Easy installation
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a low maintenance.

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12 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


Pellet News »

German Pellets expands production UK announces policy changes


capacity at Urania, Louisiana, plant The U.K. government announced two policy
German Pellets GmbH changes in July that could impact the bioenergy
has announced construc- sector. In early July, the U.K. announced it would
tion is underway on the remove the Climate Change Levy exemption for
second phase of devel- renewable electricity generated after Aug. 1. The
opment at its plant in levy is essentially a tax on energy collected from
Urania, Louisiana. Urania certain entities.
The second phase Texas
Woodville The move is expected to impact Drax and
of construction will Louisiana other renewable energy producers in the country.
expand production Port Arthur The U.K. Renewable Energy Association said it
capacity from 578,000 to has concerns the removal of the Climate Change
1.156 million metric tons per Levy exemption for renewable electricity will im-
year. According to German Pel- pact all renewable and low-carbon generation for
lets, financing for the capacity in- its members.
crease has been raised in full. cility, built in
2013, has a capac- Later in the month, the U.K Department of
“We are delighted at the fast Energy and Climate Change announced changes
realization of the expansion of our ity of 75,000 tons and can handle
Panamax-size ships. to grandfathering provisions for biomass cofiring
second plant in the U.S. and, hence, and conversions under the Renewables Obligation.
the increased production,” said Pe- With the first construction
phase complete, the company re- According to the DECC, it is removing the
ter H. Leibold, managing partner at
ported the first shipment of pellets guaranteed level of subsidy for biomass conver-
German Pellets.
produced at the Urania facility was sions and cofiring for the duration of the RO,
Pellets produced at the Urania
plant are exported using German loaded at the port in July. known as grandfathering. Under the grandfather-
Pellets’ existing port complex in ing policy, once a generating station is accredited
Port Arthur, Texas. The loading fa- and receiving RO support at a certain level, that
level will not change for the lifetime of its support
under that scheme. However, exceptions are ex-
pected to be provided to protect those who have
already made significant financial commitments.
« Pellet News

U.S. GHG emissions from combustion of fossil fuels for electricity Port of Liverpool terminal
generation (MMT CO2) to supply pellets to Drax
GHG emissions 1990 2005 2013
Total CO2 from fossil fuel-fired electric generating units 1820.8 2400.9 2039.8 In June, U.K.-based Peel Ports Group an-
From coal 1547.6 1983.8 1575.0 nounced plans for a new £100 million ($158.29
From natural gas 175.3 318.8 441.9 million) biomass terminal at the Port of Liver-
From petroleum 97.5 97.9 22.4 pool. The facility will supply pellets to the Drax
SOURCE: U.S. EPA
power station in Selby.
EPA releases Clean Power Plan The terminal will be owned and operated
The final rule also allows states a two- by Ligna Biomass Ltd., a company owned by
In early August, the U.S. EPA released
year extension to submit plans, if needed. the shareholders of Peel Ports Group Ltd. U.K.-
the Clean Power Plan final rule. In addi-
States requesting an extension will have based Graham will build the facility. The project
tion to including some key changes when
until September 2018 to submit final plans is scheduled to be fully operational by next July.
compared to the proposed rule, the plan
either alone or in cooperation with other Once complete, the terminal will have the
contains vague language related to using
states. The final rule also includes several capacity to handle up to 3 million tons of wood
certain kinds of biomass fuel as a carbon
measures to provide more flexibility to pellets per year. Pellets that arrive at the port will
reduction method.
states and utilities. be shipped via rail from Liverpool to Selby. Peel
The rule calls on each state to craft its
While the proposed rule suggested Ports Group estimates the terminal will have the
own plan based on policy and resources
biomass power may play an important ability to facilitate up to 10 train loads of pellets
of its choosing, and is designed to provide
role in achieving carbon reduction goals, per day, accounting for up to 40 percent of the
flexibility in meeting goals set by the EPA,
the final rule does not provide certainty total wood pellets consumed by Drax each year.
which vary by state. The final rule requires
on how biogenic emissions will be treated. In addition to rail loading capability, the port fa-
existing power plants to reduce carbon
Rather, that will be largely determined by cility will also feature 100,000 tons of pellet stor-
pollution by an average of 32 percent by
the EPA’s yet-to-be-completed accounting age capacity.
2030, a 9 percent target increase from the
proposed 30 percent. framework for biogenic carbon emissions.

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Pellet News »

AWP expected to Okanagan Pellet Co. begins upgrade


purchase land for Viridis Energy Inc. re- safety guidelines for the wood
proposed plant cently announced that its industry, implemented in Brit-
Enterprise wholly owned subsidiary ish Columbia.
Four years ago, Aurora
Canada Okanagan Pellet Co. Inc. has The second phase in-
Wood Pellets Ltd. began the
begun a major upgrade that cludes the addition of new,
development of a 200,000-metric-
will be conducted in three semipermanent tent structures
ton pellet plant in the Northwest Terri-
phases over one to two years. for the safe storage of wood
tories of Canada. With two Forestry Management Agreements in
The upgrades relate to new fiber. The storage systems will
hand, CEO Brad Mapes said in July that the company is expected
regulatory requirements for substantially increase OPC’s
to purchase the site’s land soon. He estimates the proposed facility,
storage and management of fiber capacity and include the
located near Enterprise in the Northwest Territories of Canada,
wood pellets. decommissioning of the cur-
could be operational by mid-2017.
The first phase, which is rent storage building, improv-
Mapes attributes the delay in development to how AWP plans
expected to take 8 to 10 weeks, ing production efficiencies.
to source its feedstock, an increase in the size of the planned prop-
is underway and will provide The third phase of the
erty, and the government of the Northwest Territories recently
for a separation of the two upgrades will include the addi-
pulling their land department out of their Department of Munici-
main production lines, pel- tion of a new pellet press and
pal and Community Affairs. “We want to harvest full logs. We’re
lets and shavings, so they can state-of-the-art dryer that will
not going to take it as a byproduct from the mills, so we’re going to
be operated independently. expand the facility’s capacity
debark our material and use mulching of full wood,” Mapes said,
Phase one will also include by approximately 50 percent.
noting the project has encountered issues with regard to working
improvements in the wood Planning for the third phase
out deals with local aboriginal groups so that it can access wood in
dust management system to will begin in the fourth quar-
their areas. “That is what has consumed the largest percentage of
ensure continued compliance ter.
time in trying to move this project forward,” he said.
with the increasingly stringent

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SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 15


%/+LQGG 30
« DISTRIBUTION

2015 Producer
Survey
Capacity, Capital, Storage Partner
in 'Pellet Dance'
A sampling of producers offers a glimpse of the
delicate balance between meeting yearly pellet
demand and stranding precious capital.
BY KATIE FLETCHER

W
hen customers are unable to on uncontrollable factors, like volatile weath-
find bags of pellets lining the er patterns and other competitive fuels, is a
shelves of their neighbor- challenging balancing act, and it isn’t uncom-
hood big box retail store in a mon for a producer to lose their steadiness.
particularly cold heating season, the situation Pellet Mill Magazine distributed a survey
has sometimes been attributed to a capacity to North American pellet producers, compil-
shortage. The empty shelves are not a result ing information about their infrastructure ca-
of limited production capacity, however, but pabilities and distribution patterns as a means
rather the limited capacity producers have to to share some collective data about the in-
store product. The pellet fuel shortages have dustry. In August, 52 producers responded percent. About 16 percent reported their an-
been limited, in fact, to select regions of the to the online survey. The number of respon- nual production trends have stayed about the
U.S. during certain times of the year, and dents is representative of the industry as a same or flat. The remaining 8 percent have
have not impacted all producers––tightness whole, but the data was self-reported and experienced their annual production trend-
in the marketplace has been experienced pre- gathered without random sampling tech- ing downward by more than or less than 20
dominantly where the most dynamic market niques. Respondents represent a variety of percent in the past two years. Based on this
share is sold, the Northeast. plant sizes across different regions of the sampling of producers, overall, pellet pro-
A tight supply of pellets in a particular U.S. The straightforward, 12-question survey duction is on the rise.
region has often been countered with softer sheds light on a range of questions from the American Wood Fibers began produc-
markets for pellets elsewhere, creating not a amount of annual production producers are ing wood pellets in 2005 with a 50,000-ton
problem of capacity, but of logistics. Further, able to store on-site to how much of their plant in Circleville, Ohio. It opened a 75,000-
storing enough product to meet demand is production they distribute through big box ton plant in Marion, Virginia, in 2009 and of-
often a substantial commitment not only in retailers. fers 25,000 tons—contract manufactured—
dollars, but infrastructure. Even if producers from a plant in Schofield, Wisconsin. The
have the capability to store adequate product Capacity and Capital company has experienced about the same to
on-site, they may not have the capital needed Amongst the survey respondents, about marginal improvements in annual produc-
to keep the plant running during the off-sea- 76 percent of producers have experienced tion trends over the past few years. American
son when consumer demand is low. Driving increasing annual production trends—43 Wood Fibers CEO Stephen Faehner says the
just the right amount of throttle into a plant percent increasing by less than 20 percent company can store well over 10,000 tons of
to produce product with demand contingent and 33 percent increasing by more than 20 pellets on each site, about 20 to 30 percent

16 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


DISTRIBUTION »

ON-SITE STORAGE: According to Pellet Mill Magazine's industry survey, 35 percent of pellet producers have
capacity to store less than 10 percent of their annual production on-site, and 10 percent can store over 30
percent of their yearly production. Producers agree that on-site storage capacity is critical to a pellet operation. What percentage of your
PHOTO: APPALACHIAN WOOD PELLETS INC.
annual production do
you have the capacity to
of annual production. There seems to be an than we’ve needed over the last few years,”
upward trend in the ability of pellet manu- says Tom Plaugher, vice president of opera-
store on-site?
facturers to store more pellets off-season, he tions with Appalachian Wood Pellets. “We’ve
says. “This season we carried above 20,000 been able to continue moving product in the
tons total, so that’s a pretty hefty commitment off-season and have not come close to max- Less than
in dollars, but it’s also a commitment in infra- ing out our storage capacity. It’s allowed us to 10%
structure,” Faehner says. “You can only put so produce to our maximum potential.” 10 -
much of this out in the weather for so long. I Based on the survey, just under 30 per- 20%
believe more of us are putting a higher per- cent of the respondents join Faehner and 20 -
centage of our capacity in storage—at least Plaugher in having the capacity to store over 30%
those of us who have the financial ability to 10,000 tons of pellets on-site. Twenty-four of
do so.” the responding producers, or 46 percent, have Over
Appalachian Wood Pellets Inc. the ability to store between 1,000 and 10,000 30%
50,000-ton-per-year plant in West Virginia can tons. The remaining 25 percent of respon-
store around 20 percent of its production ca- dents split fairly evenly between storing less
pacity on-site, and its production has been in- than 100 tons of finished product on-site and
35% 30% 25% 10%
creasing by less than 20 percent over the past 100 to 1,000 tons. Another way to look at the
two years. “We’ve been fortunate at our facil- data is that 35 percent of producers can only
ity—and we probably are a little different than store less than 10 percent of their annual pro-
most—in that we have more storage capacity duction on-site. About 55 percent can store SOURCE: BBI INTERNATIONAL
GRAPHICS: FREEPIK

SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 17


« DISTRIBUTION

+RZPXFKILQLVKHGSURGXFW +RZPXFKRI\RXUDQQXDO
FDQ\RXVWRUHRQVLWH" SURGXFWLRQLVVROGWRELJ
ER[UHWDLOHUV"


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6285&(%%,,17(51$7,21$/
*5$3+,&6)5((3,.

 2YHU
10 to 30 percent of their annual production,  
and just 10 percent can store over 30 percent
of their yearly production capacity.
Western producer Stan Elliot, vice pres-    
ident of sales with Olympus Pellets, says in
the Western two-thirds of the country over
the past five years or so there has been plenty
of production and storage capacity, but the 6285&(%%,,17(51$7,21$/
Northeast has experienced some issues with *5$3+,&6)5((3,.

pellet supply. “Weather in the Northeast has


created supply problems these last two years,” have had a nameplate capacity of 5,000 tons
Elliot says. “The weather was just so extraor- per month, but they may only make 40,000
dinarily cold that nobody anticipated it would tons a year simply because they couldn’t af-
stay so cold for so long.” ford to run in those lean summer months.”
Elliot says the real issue in pellet supply Elliot adds that in the West, his plant
arises in the difficulty for a plant to run April and a few others have had to slow down and
through August when there are so few retail not produce at full capacity for short periods
accounts that will actually take product. It is of time around December and January sim-
a cash flow challenge for many pellet produc- ply because they had more inventory on the
ers to purchase raw materials, bags and wood- ground than needed to carry them through
en pallets, and then store several thousand the rest of the heating season. “You always
tons of pellets when few retailers are willing build a stockpile and then hope you can keep
to purchase them, he says. “What can hap- up with demand, but if the weather was mild,
pen in some of these shortage years is many like it was in the West, then you end up with
manufacturers have had to limit their summer too much supply and then you have to slow
production because they didn’t have custom- your production schedule in late winter,” he
ers paying them for it,” Elliot says. “They may says.
18 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015
DISTRIBUTION »

Besides storing on-site,


+RZPXFKRI\RXUDQQXDO there has been some talk among
SURGXFWLRQLVVROGLQEXON" producers and their larger, big
box retailers of setting up outlets
for storage. “I think the produc-
/HVVWKDQ
ers in the Northeast have done
 a very good job communicating
0RUHWKDQ with the big box guys—Lowe’s,
 Home Depot, Tractor Sup-
ply—basically to convince them
1RQH that they need to establish ware-
 house facilities that they can fill
 up during those summer months
 to where they have adequate
 supply to feed their stores dur-
ing the winter months,” Elliot
    says. “They haven’t done that
 in the West, but in the East I
know several pellet companies
that have been shipping 10 to 15
6285&(%%,,17(51$7,21$/
truckloads every day into pub-
*5$3+,&6)5((3,.
lic storage warehouses that are
controlled by one of the big box
retailers just to ensure that they
have enough pellets for when the
Taken in aggregate, the survey results
season comes in.”
show this wasn’t the case for all producers.
Where some Western producers had pellets
stocked up, ready for distribution, 42 percent
The Pellet Dance
Appalachian Wood Pellets provides
of producers were not able to immediately
approximately 50 percent of its annual
fill one to 30 of their orders during the 2014-
production to big box stores, with the re-
’15 heating season. Another 12 percent of
maining composed of bulk business and
producers couldn’t fill 30 to 100, and 8 per-
independent retailers. Similarly, American
cent fell short of immediately supplying over
Wood Fibers sells about 50 percent to big
100 orders. Thirty-eight percent were able to
box retailers. Olympus Pellets channels
fill all orders on time.
about 65 percent of its sales through its big
Finding the right balance between the
retailers like Home Depot, Tractor Supply,
amount of storage one needs and can af-
Lowe’s and Costco. These three producers
ford is a challenge due to the fluctuations
aren’t reflective of the majority of survey re-
and uncertainty of pellet demand, but it is
spondents, or 63 percent, who reported less
considered essential to many producers. “It’s
than 50 percent of their annual production
important to us,” Plaugher says. “We don’t
is sold to big box retail companies. Twenty-
have continuous flow of our product 12
one percent of producers reported they sell
months a year, and we need the production
50 to 75 percent through big retailer chains
12 months a year to meet the commitments
and the remaining 16 percent is split evenly
to our customers. A certain percentage of
between producers who distribute 75 to 80
our product we have to be able to store in
percent or over 90 percent of their product
order to continue that production.” Plaugher
through big box stores.
adds that “it requires storage space and op-
Faehner refers to big box retailers as
erating capital to carry that extra production,
being “an enigma” to the pellet industry.
but it is crucial to our business plan for the
“These big boxes behave differently,” he
entire year to be able to do that.”
SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 19
« DISTRIBUTION

Who is responsible for selling of the North American pellet industry


OPTION
the bulk of your 01
production uses a sales representative employed
by the company to sell the bulk of their
volume? production volume
SOURCE: BBI INTERNATIONAL

says, adding he thinks big box stores are go- appeared as though very few people are ac-
ing to trend toward purchasing certified pellet Do you offer off-season tually committed under contract. “Powerful
product. He believes having the Pellet Fuels (March-July) discounts? retailers get indemnity from their suppliers,”
Institute standard certification will give pro- he says. “When there is written documenta-
ducers a leg up in the marketplace. “A lot of tion, it is usually in the form of a one-sided
producers worry the cost of certification is vendor agreement that is not a contract and
prohibitive,” Faehner says. “I would argue
that the opposite is true. It actually comes
back to you in higher quality, fewer com-
55% is nonbinding.” Faehner adds, “Once they is-
sue purchase orders and product is shipped
against them, then you have something more
plaints, callbacks and replacements, and im- concrete, but there are very few companies
proved throughputs. I think certification of
wood pellets is the future.”
When it comes to bulk sales, the survey
45% YES with hard-and-fast contracts.”
Forty-six percent of producers reported
that they process in-season orders they receive
indicates that producers either sell very little
or quite a bit of their annual production in
bulk. Over 50 percent of producers sell less
than 10 percent of their production volume SOURCE: BBI INTERNATIONAL
NO through customer-priority ranking, followed
closely with 40 percent of producers process-
ing orders on a first-come, first-served basis.
Others include quickest payment terms, net
in bulk or none at all. However, 27 percent price, historical customer demand, black-box
sell more than 50 percent in bulk, and 19 per- retailers. Often, received commitments are formula and a combination of ways. Sales are
cent fall somewhere in-between. not binding under contract. In fact, 29 per- usually made by an in-house sales representa-
Variances in the supply and demand of cent of producers don’t have sales contracts tive, with 83 percent of producers reporting
pellets is a result of the inevitable guessing at all, and another 38 percent have less than this is who is responsible for the bulk of their
game producers have to play to estimate how 50 percent of their annual production com- sales.
much product they’ll need to meet demand mitted under contract. After reviewing the Without a majority of producers’ pro-
and the commitments they receive from their survey, Faehner found it interesting that it duction committed under contract, they rely

20 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


DISTRIBUTION »

upon forecasts, historical sales, reliable cus- a lot of independent or regional pellet retail-
tomers and other variable methods to gauge 'RDQ\RI\RXUELJ ers that do buy some,” Elliot says. “We offer
demand. Elliot says big box retailers will give ER[FXVWRPHUVEX\ summer specials and we certainly encourage
forecast estimates of what they’ll need. “The LQWKHRIIVHDVRQ" those, but so far the big box guys haven’t tak-
forecasts tend to be a little slanted because en advantage of those sales.”
they want to put the burden on the pellet Elliot believes retailers will work with
producer to make sure you have enough for producers when there are projection mis-
them, but of course, if it’s a mild year, it’s very
difficult living up to that commitment,” he
says. “We’ve certainly had that situation. The
 calculations. “Retailers will try to alleviate a
projection shortfall, but of course they can’t
force the pellets down people’s throats any

<(6
big box guys, typically in the West anyway, will more than we can,” he says.
only carry pellets say from Labor Day until As the industry matures, retailers and
the end of February, then they start switch-
 producers alike will get better at gauging the

12
ing out all of their departments into garden supply and demand needed to keep pellet
and that sort of thing. If they’re behind on plants profitable, retailers’ shelves stocked
their commitments, and this has happened in 6285&(%%,,17(51$7,21$/ and pellet consumers supplied. “Sometimes,
the last two years for us, then we bring it to you just have to work with each other and
their attention. They are normally willing to understand that we’re in a seasonal business,”
keep pellets in their stock maybe for another they don’t run into that type of a situation Elliot says. “You look at their forecast and
month just to help meet that commitment.” again,” he says. determine whether you think it’s realistically
The survey results show that 67 percent According to Faehner, usually big box based on what you think is going to happen.
of producer’s big box customers buy in the retailers cease buying quickly once the end of It’s just part of the dance.”
off-season and that the remaining 33 per- the season approaches. “You have to look at it
Author: Katie Fletcher
cent do not. Plaugher says it seems like the from the perspective of the big box and how Associate Editor, Pellet Mill Magazine
number of big box retailers purchasing in the they operate,” he says. “They are a season- 701-738-4920
kfletcher@bbiinternational.com
off-season is increasing, especially over the to-season business. They are always resetting
past two seasons, which he attributes to some their stores and they don’t carry the inventory
product shortages. “They’ve started taking off-season. It’s just not their model.”
products in the off-season, doing some of None of Olympus Pellets’ main, large
their own storage, I’m assuming to make sure retailers purchase in the off-season. “We have

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SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 21
« SHIPPING

Panamaxing It Out
As the consumption of wood pellets
in European power stations matures,
shipping efficiency is maximized by
utilizing the largest vessels available.
BY TIM PORTZ

22 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


SHIPPING »

O
n June 2, at the Westview market via the company’s Westview Terminal,
Terminal in Prince Rupert, a $42 million wood pellet receiving, storage
British Columbia, a Panamax- and shipping facility in Prince Rupert. This
class vessel, the Popi S, was facility connects Pinnacle’s robust production
loaded with nearly 60,000 tons of wood footprint with any port in the world. The
pellets produced by Pinnacle Renewable challenge Pinnacle must overcome is that its
Energy. Thirty-four days later, the pellets Westview Terminal is over 11,000 nautical
were successfully unloaded at the Port of miles from the ports on England’s East Coast.
Immingham’s Renewable Fuels Terminal, For comparison, the Port of Chesapeake,
making it the first successful use of a a Virginia terminal utilized by U.S.-based
Panamax-scale vessel to transport wood competitor Enviva, is just 4,214 nautical miles
pellets. The shipment is important for a from the Port of Immingham. While the Popi
number of reasons, significant among S spent 34 days navigating North America’s
them that shipments of this size will need West Coast, through the Panama Canal and
to become commonplace to make the northeast across the Atlantic, ships leaving the
widespread use of wood pellets for power Port of Chesapeake likely made the journey in
generation economically sustainable in the less than two weeks. The advantage in freight
long term. costs for producers in the southeastern
The advantages of using larger vessels United States is clear. “The only way we can
to ship wood pellets are easy to understand. compete is on scale,” says Vaughan Bassett,
Larger vessels generally allow for the transportvice president at Pinnacle.
of goods, including wood pellets, at a lower Until the Popi S shoved off from the
unit cost than smaller vessels. Still, there areWestview Terminal, Pinnacle relied largely
numerous factors at play that complicate what upon the Supramax class of vessels. Bassett
initially looks like a simple business decision.reports that Supramax vessels typically leave
The movement toward the use of wood Westview with around 50,000 tons of pellets.
pellets to make electric power—in particular “What we’ve determined with the Popi S trial
the conversion of nearly half of Drax power is that the maximum cargo size that we can
station’s annual output to biomass input— put into the Panamax class of vessels is about
has created a demand for industrial wood 60,000 tons—10,000 tons or 20 percent
pellets felt around the world. Producers with more than we were doing in the past. That is
access to large volumes of wood fiber in significant and considerable,” he says. Bassett
close proximity to ocean shipping lanes have continues by noting that the travel time and
and continue to come online to satisfy this the fuel usage is virtually the same between
growing demand. the Supramax vessels they traditionally use
and what they experienced and learned in the
Particular to Pinnacle Popi S trial. “The only major difference is the
Pinnacle Renewable Energy, Canada’s amount of cargo you can put into it,” he says.
largest manufacturer of wood pellets with
six production plants in British Columbia, Not That Simple
perceives this market opportunity as When considering all of the results
fundamental in its corporate mission to be “the of Pinnacle’s Panamax tests with the Popi
world’s most reliable producer and lowest-risk S, the company’s interest in increasing
supplier of bioenergy products.” The bulk the widespread use of Panamax vessels is
of Pinnacle’s production enters the global straightforward. The urgency toward this

FIRST OF ITS KIND: In July, 34 days after steaming away from Pinnacle Renewable Energy’s
Westview Terminal in Prince Rupert, British Columbia, the Panamax-class vessel Popi S berthed at the
Port of Immingham, unloading the world’s first Panamax-sized load of wood pellets.
PHOTO: ASSOCIATED BRITISH PORTS

SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 23


« SHIPPING

$*5$
,QGXVWULHV
<285(3&&2175$&725

)520'(6,*1

72)$%5,&$7,21

STILL WATERS RUN DEEP: Operational since 2014, the Westview wood pellet
terminal makes the most of its berth-side draft of 16 meters, which can easily
accommodate Panamax-class vessels. Here, the Popi S makes pellet industry
history as the world’s first Panamax-class vessel to be loaded with wood pellets.
PHOTO: VAUGHAN BASSETT, PINNACLE RENEWABLE FUELS

class of vessel, however, has more economic advantages and their


72&203/(7,21 to it than simply moving more widespread availability, it is easy
product at once. “Supramaxes are to wonder why Pinnacle doesn’t
chartering for more money than simply switch completely over
Panamaxes right now,” Bassett to the Panamax class, beginning
notes. He points out that the with its very next shipment.
vessel class’s greater flexibility The answer, Bassett points
is one of the key drivers in the out, is connected to a current
premium the vessels are currently requirement for all vessels carrying
getting in the marketplace. wood pellets. “You are required to
$*5$+$6&86720'(6,*1(' Bassett concludes, “For quite a use CO2, or some sort of inert gas
%,20$6662/87,216)25<28 long time now Panamaxes have
been languishing. There is lots of
fire protection system, on board a
vessel carrying wood pellets,” he
 availability and chartering rates says. “That’s why Supramaxes are
:::$*5$,1'&20
are relatively low.” used, because they usually have
Combined with their it, while Panamaxes do not.” A
24 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015
SHIPPING »

ships that have this fitting is so


small, it gives them such a huge
negotiating advantage, all for a
safety feature that is completely
unnecessary.” Of course, simply
proclaiming safety features
unnecessary is far from enough
to convince the International
Convention for the Safety at Sea
to change regulations. “We had TM
to put some money out to do
the research at WPAC to prove
that the off gasses were not
flammable,” Murray says.

WOOD
Proof of Safety
In a document Murray
provided to Pellet Mill Magazine,
written by Staffan Melin,
research director for WPAC,

PELLET
research efforts spearheaded
by the WPAC are outlined that
have informed the IMO’s Bulk
Cargoes Code since 2004. In
the document, Melin notes that

FUEL
while wood pellets are classified
in the category Materials are
Hazardous in Bulk, because they
do emit carbon monoxide as they
degrade in transit, the gases they
produce while degrading are not
flammable.
The document indicates • FIRST CHOICE IN PREMIUM GRADE PELLETS
that the vast majority of ocean- • MADE FROM 100% RECYCLED WOOD FIBER
small number of Panamax-class going cargoes require the vessels • MEETS OR EXCEEDS PFI AND ENPLUS A-1 STANDARDS
vessels, including the Popi S, carrying them be “equipped
• NATIONAL AND INTERNATIONAL DISTRIBUTION
are outfitted with this piece of with fixed-gas fire extinguishing
equipment, Bassett says, but in a systems or fire extinguishing
vessel class that numbers around systems giving equivalent
MEET THE HOTTEST NEW PELLET COMPANY IN AMERICA.
900, he believes only 50 or so protection.” There are, however,
have it installed. cargoes that have been exempt THERMAGLO.COM
For now, anyone looking from this requirement, and the
to ship large amounts of wood WPAC has been working to get
pellets must find a vessel with this wood pellets added to this list.
system installed, and the owners Quite simply, the WPAC has had
of Supramax vessels—nearly all to produce scientific proof that
of which have the equipment— wood pellets “would not emit
know it. Trade associations have flammable composite gas, would
taken notice, and the Wood Pellet not self heat and would not have
Association of Canada has been a burn rate above a certain level.”
aggressively working on this issue Working in close
for some time now. “It boils collaboration with the Univeristy Northeast Wood Products, LLC | 13 Crow Hill Road
down to a market thing,” says of British Columbia, the Uncasville, CT 06382 | 860.862.6350 | thermaglo.com
Gordon Murray, WPAC executive WPAC conducted research
director. “When the pool of that supported this claim and
SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 25
presented their findings to the IMO in rate of 6 million metric tons of wood pellets per
September 2013. The process to ratify IMO year at Drax, delivered entirely in those 25,000-
regulations moves slowly, and the research ton capacity vessels 240 individual shipments
worked its way through technical reviews and would be required. For comparison, the same
working committees through 2014, eventually volume delivered entirely by Panamax-sized
ratified by the Maritime Safety Committee vessels carrying 60,000 tons requires just 100
June 12. The exemption will go into effect on individual shipments. Looking at it this way,
a voluntary basis Jan. 1, and one year later— it is easy to see how larger vessels can help
after procedural votes with IMO members— alleviate potential bottlenecks at U.K.-based
will become mandatory. pellet receiving ports.
Once fully ratified, all Panamax vessels With an eye on their transit distance
will be able to move wood pellets in bulk, from European markets, Pinnacle has always
regardless of whether they are equipped with envisioned and planned on a progression
the extinguishing systems. ”It’s not just good towards Panamax vessels. Speaking about
for Canadian producers,” Gordon says. “It’s Pinnacle’s Westview Terminal in Prince
good for every pellet producer in the world.” Rupert, Bassett says, “We designed the thing
for Panamax-sized vessels, but the first time
Optimized for Size we actually filled a Panamax was the Popi S
While wood pellets are and will likely trial.”
continue to be shipped in smaller, handy-sized The topography of the port is enviable
vessels capable of carrying around 25,000 tons when it comes to berthing Panamax-sized
THE BUSINESS END: The Port of Immigham of pellets, the desired trend for producers vessels. Built into a formation that Bassett
commissioned the construction of two custom-built
continuous ship unloaders (CSUs) to prepare for the and the ports that receive them is for larger refers to as fjord-like, Westview reaches depths
coming tide of larger vessels filled with wood pellets. shipments. Assuming an annual consumption of 13 meters right off the berth, and just a few
These CSUs are capable of moving pellets out of a
ship’s hold three times faster than a crane and with far
less dust.
PHOTO: VAUGHAN BASSETT, PINNACLE RENEWABLE FUELS

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26 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


SHIPPING »

more meters out the depth is 23 or 24 meters. per hour. The facility employs two custom- it will also be a welcome development for the
“I think it is the deepest natural harbor on the built continuous ship unloaders (CSUs) built owners of a vessel class that’s been struggling to
West Coast in America,” Bassett says. expressly for the unloading of wood pellets find steady volumes of cargoes. Built to move
This natural depth allows the port to from very large vessels including Panamaxes. massive amounts of iron ore and grain, the
easily receive Panamax vessels, but the port’s With a slightly different hull configuration Panamaxes were also once kept busy moving
ability to load the vessel was unknown until than Supramaxes, the team at the Westview coal. Some of the Panamaxes slowdown can
the Popi S trial. The speed and ease at which Terminal wasn’t sure what to expect from an be attributed to the fall off in coal exports since
these Panamax vessels, 30 meters longer than ease-of-loading standpoint. Their experience 2012, but now, it seems, the vessel class might
Supramax and built with seven holds instead of was a pleasant surprise. “We were able to load be buoyed by coal’s renewable replacement.
five, matters for a number of reasons. Owing the pellets much easier, from a geometric If every ton of Pinnacle’s annual production
to the rainy climate in British Columbia, the perspective, into the Panamax than we had were moved via Panamaxes, their volumes
Westview Terminal must make the most of been able to in the Supramax,” Bassett says. would create roughly 20 load opportunities for
any day with dry conditions. “We can’t load in At their current production output, the vessel class, hardly enough to completely
the rain,” Bassett says. “Wood pellets are rain Pinnacle will load between 12 and 18 vessels revive the class. Bassett, however, sees the
sensitive. We need to have the ability to load each year at the Westview Terminal, and, up success of the Popi S as the beginning of a
fast in periods which are quite short. We can until the Popi S, those vessels had all been widespread transition to Panamaxes across
load at 2,000 tons an hour if required.” Supramaxes or smaller. But with the successful the industry. “With our successful use of the
The same requirement applies when trial of the Popi S paired with the research and Panamax class now, we’ve sort of opened up
unloading vessels at their port destinations in the subsequent decision by the IMO to include that vessel class to the pellet trade,” he says. “It
the U.K. The Popi S was unloaded at the Port wood pellets on the list of items exempt from means there will be less of them lying idle.”
of Immingham’s Renewable Fuels Terminal, the requirement for extinguishing systems, it
operational since 2014. The terminal, with seems likely that more Panamax-class vessels Author: Tim Portz
Executive Editor, Pellet Mill Magazine
100,000 tons of on-site storage capacity, will be berthing at Westview. 701-738-4969
can unload vessels at a rate of 2,500 tons Certainly this is positive for Pinnacle, but tportz@bbiinternational.com

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Matching Pellet Supply


With Growing Demand
Despite fluctuations, producers and distributors agree: Good
relationships and communication can help keep stores stocked
with wood pellets during the busy heating season.
BY RON KOTRBA

F
ew events can sour the experience 150-plus small businesses in the Northeast.
of domestic, residential pellet stove According to data from a recent Pellet Mill
users more than being unable to Magazine distribution survey, less than 50
buy product during a cold snap. percent of respondents’ annual production is
“Frankly, not having enough products to sold to big box stores, leaving a majority of
meet demand is my major concern,” says Paul domestic market sales to smaller retail outlets.
Stringer, vice president of sales and marketing “We don’t deal with big box stores, mostly
for Somerset Pellet Fuel, a Kentucky-based just mom-and-pop stores,” Mayer says. “We
pelleting operation with an annual capacity of have a couple of retailers that have five or
50,000 tons. Somerset’s raw material comes to six locations, some have four that do 10,000
the facility already kiln-dried from its hardwood tons out of one retail location.” He says the
flooring plant. The company’s pellet customers small retailers in his network really distinguish
are big box stores such as Tractor Supply Co. themselves by getting to know their customers
and Lowe’s. “All of us in the pellet industry and the product, and by delivering product to
want the market to grow,” Stringer says. “If the customers’ homes—even bringing a pallet
customers can’t get pellets, they won’t buy the jack to the customers’ driveways or helping
stoves and it hampers growth in the industry.” hand-stack product.
Supply shortages are part of any growing Dejno’s Inc. operates a 40,000-ton pellet
market, but the business of residential wood facility in Kenosha, Wisconsin, and has a
pellets is different than many other, more fleet of 35 trucks and 600 trailers to deliver
predictable industries. It’s an emerging market its Dejno’s brands of hardwood blends and
that is based on unpredictable events such as softwood blends. “We’ve been in business for
oil and natural gas prices, the housing market, 10 years and we’ve seen the ups and downs—
weather, the economy and even politics. the times of extra supply and then crisis
“The past year has been difficult with management where everyone’s out,” Dejno
supply and demand,” says James Mayer, says. Located between Milwaukee and Chicago,
salesman for PelletsNow LLC, a third-party Dejno’s pellet facility doesn’t have a dryer, so
distributor of pellets in the Northeast supplied the plant doesn’t process green product the way
by Maine Woods Pellet Co. LLC. “Demand is other facilities do. It receives sawdust directly
greater than supply and it’s hard to meet the from suppliers such as sawmills.
needs of our customers the way they want to Dejno says pellet shortages in stores are
be met.” He says while demand usually slows oftentimes beyond the retailers’—and his—
down in spring and summer, this season it control. “Weather, propane and petroleum
hasn’t. price spikes, or a housing market downturn
PelletsNow has a retail network of where the raw material is not available—

28 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


MARKET »

SPECIAL DELIVERY: Dejno’s Inc. uses its fleet of 35 trucks and 600 trailers to deliver its hard and soft blends of wood pellets to retailers within a 150-mile
radius of its mill in Kenosha, Wisconsin. Vice President Larry Dejno says buyers need to be aware of the market risks that retailers face when not building up
inventory on their end.
PHOTO: DEJNO’S INC.

SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 29


« MARKET

Pellets LLC, a 17,000-ton mill in Plainview,


Minnesota. The plant has moved several times
since it opened in Balsam Lake, Minnesota,
in 2008. From there it was relocated to New
Richmond, Wisconsin, and then to Plainview,
Minnesota, and it may soon be moving again
to either a reservation in North Dakota or near
Bemidji, Minnesota, to be closer to feedstock.
Like Dejno’s and Somerset, Green Friendly
Pellets doesn’t have a dryer so the facility
takes in prepped sawdust. Goossen says in
New Richmond, the company dealt more
with retailers but since moving to Plainview,
it does more wholesaling. In addition to its
own production and labels of PennyWise
AWAITING PICK-UP: Somerset Pellet Fuel’s bagged product is sold to big box stores such as Lowe’s and Green Friendly Pellets, her company buys
and Tractor Supply Co., both of which declined interviews with Pellet Mill Magazine. product from Spearfish Pellet Co. LLC and
PHOTO: SOMERSET PELLET FUEL
bags and sells it under the Stall Pro brand. She
wholesales product to a distributor, Industrial
there’s always a reason,” he says. “But from business model, but we have to contend with Builders, which sells to hometown retailers
my perspective, there’s no doubt it’s not a these factors that make it fluctuate wildly. But such as Ace Hardware stores. Goossen also
pellet production capacity issue. No one in the fundamentally, I don’t think it’s a production notes the pine pellets from Spearfish, South
industry thinks that. It’s not a capacity issue— capacity issue.” Dakota, are used as an absorbent in the shale
except when the market gets to crisis mode and Stringer says it’s less about production fracking industry on the completion side.
then it’s a matter of playing catch-up.” capacity and more of a raw materials supply As to why the industry experiences
He says in times of tight supply the issue. “Having the raw material source, shortages at times, Goossen says there’s “a lot
industry does tend to see pellet mills pop up especially a quality supply of sawdust, is critical of little things happening” that affect supply
to meet growing demand, but then there’s a to efficient production and to making a quality and demand. For starters, the growth in pellet
glut and facilities that aren’t the lowest-cost product,” he says. “So, in my view, it’s all about stove users has been “dramatic,” she says. “A
producers shut down. “I do wish the market raw material supply. I can build a plant, but few years ago in my home town of Balsam
didn’t have the ups and downs it does,” Dejno without raw materials, it doesn’t operate.” Lake, no one had a pellet stove. Now everyone
says. “It could be a good, stable, dependable Sally Goossen owns Green Friendly in my neighborhood has one.” She also says

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MARKET »

that additional outlets for pellets, such as the


use in oil fields or even oak heating pellets
for barbeques, increases demand and tightens
supply. “The Lumberjack brand, instead of
having 20 semiloads a month for heating pellets,
they’re now being distributed as barbeque
pellets,” Goossen says. She also mentions that
a few plants have closed in Minnesota, which
has affected supply. “Demand went up, but
production didn’t,” Goossen says. Finally,
Goossen notes that a lot of mills have been, or
are being, developed in the Southeast to satisfy
European demand. “That wood waste could
be used for the U.S. market, but it’s used for
pellets that are going to Europe,” she says.
The biggest variable, according to Mayer, FULL THROTTLE: At Somerset Pellet Fuel, Paul Stringer, vice president of sales and marketing, says
is the price of oil and natural gas. “When it goes there is always more demand for its premium wood pellets than it can deliver.
down, people are less apt to use wood pellets,” PHOTO: SOMERSET PELLET FUEL

he says. “When it goes up, they’re more apt to


use wood pellets. So what’s going on with the including spring and summer sales, the mills depends on point of view. “It’s worse not to
fuel market—and politics—is big.” that are online, supplies and oil prices last year, have product,” he says. “From our perspective,
weather forecasts and the economy, then 50 it’s worse to have retailers’ expectations of
Alleviating the Pinch to 75 percent of the time you can do a decent your capacity and inventory, and not being
So, with factors beyond anyone’s control forecast.” able to perform. Either their expectations were
such as energy markets, politics, the economy, Capital and storage space are two major wrong or their numbers on what you can do
housing and export markets, expanding problems with keeping retailers adequately are wrong. There’s not a shelf life on this stuff,
uses and the weather, how can producers, stocked, according to Mayer. “No one wants to it doesn’t expire. Sure it costs money to carry
distributors and retailers better predict the sit on product for more than a month or two,” over inventory, but it’s not like it is spoiling.”
market to keep shelves stocked without holding he says. According to data gathered from Pellet
too much inventory? When weighing which situation is worse— Mill Magazine’s distribution survey, nearly 24
“You can never forecast to a tee,” Mayer not having enough product to meet demand or percent of producer-respondents offer storage
says, “but if you look at last year’s numbers, stocking too much inventory—Dejno says it for their customers’ off-season purchases at

SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 31


« MARKET

a fee, and nearly 22 percent offer storage at stores comes down to risk of investment, “This is a business that requires
no fee. The remaining 55 percent offer no noting that last year there were a few stores in investment,” Stringer says. “Clearly, for the
storage. Dejno says occasionally he stocks Hudson and St. Croix Falls, Wisconsin, that manufacturer, you are holding a lot of pellets in
inventory for his customers if they don’t have were out of pellets for weeks, which surprised the summer so that you can meet the demand
the storage space. “They don’t want to be left her considering natural gas prices were so low. in the winter. It is a cash investment that
shorthanded,” he says. “Sometimes if they do “For them, they would have to buy through a you have to make, in my mind, to be a good
a prebuy we’ll stock more inventory for them.” distributor and purchase a semiload at a time, so supplier.” For retail, Stringer views it the same
Mayer says transportation and storage are the the company is putting out this money up front way. “The best suppliers can afford to invest
biggest variables and the largest cost. Using hoping that the local customers come there to in pellets when they get them in the summer
PelletsNow’s partner, Quest Transportation, buy [versus going to a big box store],” Goossen months, or at least the months prior to winter
the company drops product directly from says. “They’re putting up this investment and and they stock up,” he says. “Otherwise, they
Maine Woods Pellet Co. to retailers. “Storage hoping they’ll buy at 25 cents more a bag or are going to be caught up in the scramble that
has always been something we have looked at, $1 more a bag from the local place, and now we see each year. I don’t think there is a magic
but it’s a lot of cost,” Mayer says. you’re housing 24 pallets outside and trying to solution for that. It is the business.”
Buying early can help alleviate the supply keep them from the weather, or rodents. So the A piece of advice Dejno offers retailers
crunch later in the season. “We’ve had more biggest complaint I hear is putting up $4,000 in that want to alleviate the madness when
customers this year make an effort to put their August and maintaining a semiload of pellets, demand is crazy and supplies are tight is to
orders in early,” Mayer says, adding that some but come January they may be out, and if they keep the good buyers employed. “That’s the
of them have already ordered one-third to one- order more and pay a premium for that, and reason we run into issues—when we’re dealing
half of their predicted supply for the upcoming have to turn that price over to the consumer, with a new buyer,” he says. “We don’t do a
season. Goossen says for the pine pellets used they will go to a big box store like Menards. I’ve whole lot with big box stores, it’s mostly small
as absorbents in oil fracking operations, orders seen it happen.” She says Menards has called retailers such as garden shops and independent
have been put in six months ahead of time to her a few times in the past month. “They’re businesses. There are only a few big box stores
ensure supply. anxious for pellet purchasing in the upcoming we regularly work with, but when they have a
She says the issue with the local hardware season,” she says. changeover in responsibilities it feels like we’re

32 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015


MARKET »

reeducating them all over again. When there’s important, elements: communication and and ask them more in-depth questions and tell
a shortage, they scramble and buy stuff going relationships. “We have strong relationships them, ‘When you get to 50 or 100 calls a week,
into next year. When they’re comfortable and with loyal customers and we agree to target give me a call.’”
supplied well, they’re not interested in putting volumes to deliver to each customer,” Stringer Dejno says, “If you have long-term
in inventory for the next season.” says, adding that there is always more demand relationships on both sides, you get used to a
Retailers carrying multiple brands might than he can deliver. comfort level of what is in inventory and on-
also help offset tight supplies in the heating “Once we get into the season, like right hand vs. what your customers’ expectations
season. Mayer says some of the retailers he about now, the best plan for me is to be in are. The more you communicate, the better
services sell several brands. “That’s good— contact with my customers once a week to it is for their situation.” He says at least three
they need a diverse line of products,” he says. find out what their customers are saying—are points during the year—preseason, in-season
Dejno says many retailers have realized that they buying sand, are they buying salt, what’s and end-of-season—his company has good
more brands are better because it helps with the consensus,” Mayer says. “Then they ask conversations with its dealer-customers.
fluctuation. “What we find is when a retailer is me what’s going on with the mill and ask if “We just learn from each season, and find
short on a brand and orders are way behind, we there are any changes. That way the retailers that comfort level on how to go forward,”
get a lot of calls in those times of shortages,” know and they aren’t out of the loop.” Mayer he says. “Sometimes the solution is literally
he says. “We don’t take on new customers at says there needs to be better communication communication. The best thing is when there’s
that time. We call them back in the off season on all ends—between pellet manufacturers, a buyer that understands the market risks
so we don’t deplete our inventory.” Many of his wholesalers, retailers and home owners; and of not building up inventory on their side.
customers have been with the company for five even between pellet producers, wholesalers and Everyone wants just-in-time delivery but with
to 10 years, and Dejno says he doesn’t want to stove manufacturers. “I enjoy talking to retailers this product, it’s about building up inventory on
short loyal, long-term customers to satisfy new about trends and forecasts,” Mayer says, adding both sides to be prepared for a run.”
orders. that he has seven or eight retailers in strategic
Ultimately, the best solution to tight locations throughout the Northeast that he Author: Ron Kotrba
Senior Editor, Pellet Mill Magazine
supplies of pellets during the heating season distinguishes as superior based on their sales. 218-745-8347
may boil down to two simple, but very “I give those guys more than one call a week rkotrba@bbiinternational.com

SEPTEMBER/OCTOBER 2015 | PELLET MILL MAGAZINE 33


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34 PELLET MILL MAGAZINE | SEPTEMBER/OCTOBER 2015

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