Pellet Stove Design Challenge: A Briefing on the Pellet Market Stephen Faehner Chairman, PFI Board of Directors Friday, April 8, 2016 Brookhaven National.

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Presentation transcript:

Pellet Stove Design Challenge: A Briefing on the Pellet Market Stephen Faehner Chairman, PFI Board of Directors Friday, April 8, 2016 Brookhaven National Lab, Upton, NY

Pellet Fuels Institute Founded in 1985 as the Fiber Fuels Institute Grown 10x’s and lists 100 members Established PFI Standards Program in 2010 First Qualified Production Facility in ,250,000 tons of fuel from 12 qualified companies operating 21 facilities in NA Mission: NA trade association promoting energy independence through the efficient use of clean, renewable, densified biomass fuel

PFI Programs Advocate for PFI members at all levels Establish & maintain PFI Standards Program Educate everyone on environmental and ecological benefits of densified fuels Operate the PFI annual summer conference Provide technical support to membership relative to safety, energy efficiency, regulatory standards, and emissions standards

PFI Standards Program Ensure consumer confidence in pellet fuels 3 rd party accredited standards program Monthly inspections by auditing agency 3 rd party testing of graded fuels ( x/yr) PFI graded fuel and quality mark labeling PFI standards committee consistently looking at improving the program PFI Standard Program Handbook

PFI Industry Involvement Active participant at International Biomass Conference, Heating the NE, US Industrial Pellet Conference, HPBA Expo, etc. Ongoing MOU with USDA; Active with USFS Wood to Wisdom Grant; US DOE EIA densified fuels survey; USDA Check-Off Program Advocate for PFI members with Pellet Stove Credits, Clean Power Plan, Energy Bill, BTU Act, Appropriations, etc.

Industry Affiliations United States Department of Agriculture United States Department of Energy & Energy Information Agency Hearth, Patio & Barbecue Association Biomass Thermal Energy Council

U.S. Pellet Stove Market: The Data About 1.6 million American homes (or 1.5%) heat with pellets (includes stoves, inserts, and boilers) About 1 Million Hearth Appliances were shipped in 2015 Pellet Appliances account for 5-10% (70K in 2015) Data tracked through HPBA Annual Survey of Pellet Appliance Shipments Survey of appliance manufacturers Includes manufacturers shipping Imports included

Pellet Stove History

U.S. No 2 Diesel Prices

Fossil Fuel Prices

Historical Barriers to Growth Inconsistent federal public policy development Few renewable energy mandates Cheaper fossil fuels, especially natural gas & now heating oil Fuel consistency & quality Lower population density hurts development of residential bulk delivery systems

U.S. Wood Pellet Trade Data Export Total 4M+ tons = $675M with 85% Going to the UK

Canada Wood Pellet Exports by Country – Export Total = 1.685MT with 70% Going to the UK

2016 Outlook & Plans Three Main Objectives: – Expand the PFI into broader markets for densified fuels market in North America – Promote the PFI into markets for energy efficiency, clean power plans, & RPS mandates, etc. – Continue collaborations with industry stakeholders – Preserve and protect the PFI industry from unfair regulatory burdens.

Omni Grove Park Inn OMNI GROVE PARK INN Join us in Asheville, NC July 24-26,