The United Kingdom's post-Brexit renewable energy strategy has significantly increased its reliance on imported biofuels, particularly wood pellets, creating a booming market for U.S. forest products.
Since leaving the European Union, the UK has become the world's leading importer of wood pellets, small fuel cells made from wood waste, which are used to generate energy in converted coal-fired power plants. The United States has emerged as the primary supplier, accounting for 76% of the UK's wood pellet imports in 2024.
This surge in demand has dramatically transformed the U.S. forest product export landscape. Before 2010, wood pellets constituted only 1.6% of U.S. forest product exports. By 2024, this figure had risen to 19.6%. Since 2012, the UK has imported 71% of all U.S. wood pellets exported.
The shift is a direct consequence of the UK's drive towards biofuel-based energy, presenting a lucrative opportunity for U.S. forestry businesses.
This information was highlighted in a recent USDA, Economic Research Service report, "European Agri-Food Trade and Brexit: The First 3 Years of the EU-UK Trade and Cooperation Agreement," which details the impact of the UK's evolving energy policy on trade dynamics. The UK's commitment to renewable energy is driving an increased demand for biomass, significantly impacting the US forestry sector.
