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Making wood pellets is a relatively new industry particularly in the energy sector, but even in the pellet industry as for so long animal feed pellet manufactures have dominated the market. Biomass pellet manufacturers have actually existed since the 1970′s when the first experiments we conducted using animal feed pellet mills to process biomass into pellet. Then a few pellet stove manufactures started up, on the other hand the market was never really taken seriously. The reasons for the is on one side oil plus gas were so cheap, that there was no fee advantage of incineration wood pellets, along with there was increased maintenance in using pellets. No one at that time has even heard of climate change as well as global warming, therefore that also did not influence the market as well as help to promote pellets. On the other side of the market, where wood log stove owners were, they were also not interested. As they would have to spend more on the pellets than logs, along with the true payback of increased efficiency were not fully known. This lead the idea of biomass pellets for energy in a sense been moth balled. By way of just a small biomass pellet market producing animal bedding for horses.

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It was only really at the start of the 21st century that the wood pellet fuels market was looked at again with serious interest plus investment in biomass pellet manufacturers. Once it became clear that oil and gas prices were on the rise to record levels, plus their outcome on climate change that action to promote biomass pellet fuels was taken. Fossil fuels such as oil along with gas are net contributors of carbon emissions. They are essentially stored carbon from previous carbon cycles. when we burn fossil fuels we release this carbon in to the atmosphere again. Increase carbon dioxide acts as a reflector, increasing the global climate. Wood pellets on the other hand are produced from a resource which is already component of the untreated along with existing carbon cycle. Combustion biomass pellets simply reintroduces the carbon collected during the growth of the tree back into the atmosphere, new trees the absorb this carbon dioxide and the cycle continues. More green carbon taxes are going to placed on fossil fuels to encourage low carbon alternative energy. This will further help to grow the wood pellet market, plus support wood pellet manufacturers with more stable market demand.

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Today most biomass pellet manufactures manufacture premium wood pellets for the residence heating market. These pellets are created from softwood plus hardwood residues such as pine, spruce along with oak sawdust, majority from timber processing from housing manufacture. This does though leave the pellet manufactures dependant on the residence market. In 2008-2009 this lead to issues along with premium pellet shortages. As the recession hit, the housing market was one of the worst effected sectors. This lead to less new horses being built, and in term less demand for timber. As timber was not be shaped, there was also no waste sawdust to create premium biomass pellets, this lead to price increases and resource problems. The wood pellet manufactures require to produce a wider selection of wood pellet fuels from various resources not to fall in the same trap again. Yet consumers also necessitate to buy more energy flexible pellet stoves to be able to burn the pellets.

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