Lignetics: Manufacturer of Premium Wood Pellets, Pres-to-Logs® Fire Logs, and Fire Starters

Welcome to Lignetics' blog where we will be posting current information about the wood pellet, fire log, and fire starter industry. We welcome your comments and additions as we develop what we hope will be an up-to-date information center on all developments concerning wood pellets and fire logs.


From Biomass Magazine
By USDA Farm Service Agency

On Aug. 19, USDA Farm Service Agency Administrator Val Dolcini announced that enrollment has begun for farmers and forest landowners seeking financial assistance for growing new sources of biomass for energy or biobased products within designated projects areas. The funds are available from the Biomass Crop Assistance Program, which was reauthorized by the 2014 Farm Bill.

Biomass energy facilities or groups of producers may submit proposals for new BCAP project areas. Proposals will be accepted on through Nov. 6. USDA will also allocate $7.7 million towards four existing BCAP project areas in New York, North Carolina, Ohio/Pennsylvania and Kansas/Oklahoma, targeting the establishment of an additional 10,500 acres of shrub willow, giant miscanthus, and switchgrass for energy. Project area sponsors include Chemtex International, Aloterra Energy LLC, Abengoa Biomass LLC and ReEnergy Holdings LLC. Farmers and forest landowners may enroll for biomass establishment and maintenance payments for these four sites through Sept. 25.

In June, USDA began accepting applications from foresters and farmers seeking financial assistance for removing biomass residues from fields or national forests for delivery to energy generation facilities; the deadline for those applications is Sept. 4. The retrieval payments are provided at a cost-share match of $1 for $1 up to $20 per dry ton with eligible crops including corn residue, diseased or insect infested wood materials, or orchard waste. The energy facility must first be approved by USDA to accept the biomass crop, and deliveries to the facilities can continue until Dec. 11.

The 2014 Farm Bill authorizes funding each year for the program to assist with the establishment and delivery of biomass for energy or biobased products. To date, BCAP has provided incentives for producers across more than 48,000 acres in 71 counties and 11 different project areas. For more information on the program or to enroll in updates, visit or contact your local FSA county office. To find your nearest FSA county office, visit

The 2014 Farm Bill builds on historic economic gains in rural America over the past six years, while achieving meaningful reform and billions of dollars in savings for taxpayers. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing, and community facilities to help improve quality of life in rural America. For more information, visit

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From Platts McGraw Hill Financial

Canada exported 781,083 mt of wood pellets in the first half of 2015, nudging up 1% on the year-earlier period, as increased deliveries to the UK offset declines in shipments from Italy and South Korea, according to Statistics Canada data Monday.

The country's H1 pellet exports to the UK -- Canada's largest customer for the fuel -- were 587,205 mt, up 26% on the year.

Exports to Italy in the six-month period declined 62% on the year to 42,799 while those to South Korea fell 47% to 33,221 mt.

Sources said weak demand in the residential heating pellet market explained the on-year fall in Italian deliveries, while the drop in Canadian shipments of industrial pellets to South Korea was attributed to stiffer competition from local Asian suppliers such as Vietnam and Malaysia.

The US remained the second-largest destination for Canadian pellets, taking delivery of 90,288 mt in H1, up from 87,945 mt in the corresponding 2014 period.

Total Canadian pellet exports in June were 128,403, 5% higher on the year but 8% lower than May. Of this amount, 97,326 mt were shipped to the UK, up 39% on a year earlier but 12% lower than May.

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From Biomass Magazine
By Anna Simet

To put together this survey, our team worked with Pellet Mill Magazine editorial board members—who are mainly pellet plant CEOs/operators—so we have a hunch the results will be of interest to you.

Are you a manufacturer of wood pellets? Or, do you work at a plant and can speak on its behalf or forward to the appropriate person?

If so, I have a quick favor to ask of you, and you’ll be rewarded for your time.

My colleagues have put together a survey that we would really appreciate you take. It’s short, and it’s easy, and doesn’t require any typing at all, just some clicking. It is aiming to gain insight as to how producers get their product to market, beginning with onsite storage and working its way to how they are currently managing the distribution of their product.

To put together this survey, our team worked with Pellet Mill Magazine editorial board members—who are mainly pellet plant CEOs/operators—so we have a hunch the results will be of interest to you.

We promise, survey responses will remain confidential and the information will be presented only in aggregate. The survey results will be featured in the September/October issue of Pellet Mill Magazine, which is focused on distribution and distribution infrastructure.

So as a reminder, the more responses we get, the more valuable the results will be. Since the survey was launched earlier this week, they’ve been coming in steady, we’re pushing 40 as of right now—here’s a little sneak peek at to the info we have received.

Question No. 3:

How much of your annual production is sold to Big Box retailers?

Less than 50%.................... 58.2% of respondents

Between 50 and 75%..........23.53% of respondents

Between 75 and 90%...........11.76% of respondents

Over 90%.............................5.88% of respondents

And one more:

Question No. 6:

How many orders during the 2014-15 heating season was your facility not able to

Immediately fill (back ordered)?

None………………………..42.86% of respondents

Between 1 and 30……..42.86% of respondents

Between 30 and 100…..8.57% of respondents

More than 100…………….5.71% of respondents

Those are the results of two of 12 questions, so if you're interested in seeing what the others are, go view/take the survey here,  and we’ll soon deliver the results, which we are confident will be interesting and helpful.

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On July 22, the U.S. Senate Committee on Energy & Natural Resources introduced a bipartisan energy bill, titled the “Energy Policy Modernization Act of 2015.” The committee was scheduled to hold business meetings on the bill on July 28 and July 30 to markup the legislation.

According to information released by the committee, the legislation includes five titles, including those focused on efficiency, infrastructure, supply, accountability, and conservation. The process to put the bill together included listening sessions with stakeholders held in Washington, D.C, and across the nation. The committee also held four legislative hearings on 114 pieces of legislation.
 A summary of the bill published by the committee indicates Title III of the bill, which focuses on supply, includes provisions aimed at providing an energy supply that is increasingly abundant, affordable, clean, diverse, and secure. The title focuses on renewable energy, traditional resources, and non-fuel minerals. In the summary, the committee said the responsible development of American resources, including hydropower, geothermal, bioenergy, and rare earth elements, will strengthen our economy, competitiveness and security for decades to come.

According to documents published by the committee, section 3017 of the bill focuses on biopower. It amends section 9008 of the Farm Security and Rural Investment Act of 2002 to provide research assistance for the development of biopower and bioheat projects. It also expands the authority of the Biomass Research and Development Board to consider biopower and bioheat projects and authorizes grants to support innovation and market development of biopower and bioheat systems. The bill would require the secretaries of agriculture and energy to set up two working groups to collaborate on project implementation and to share best practices. In addition, the legislation would establish a low-interest loan program in the USDA’s Rural Development Office to support the construction of residential, commercial or institutional and industrial bioheat systems. The bill would also permit loans for bioheat and biopower residential, commercial or institutional, and industrial wood energy systems to be made under the Energy Efficiency and Conservation Loan Program under Section 2 of the Rural Electrification Act of 1936.

The bill would also benefit algae research and development. According to the Algae Biomass Organization, the legislation includes language that would prioritize research and development of carbon utilization technologies under the U.S. Department of Energy’s Fossil Energy program. The bill would add “improving the conversion, use, and storage of carbon dioxide produced from fossil fuels” to the list of DOE Fossil Energy research and development objectives.

“We thank the committee for acknowledging the growing importance of carbon utilization technologies in addressing our nation’s energy future and economic health,” said Matt Carr, executive director of the ABO. “Innovators across the country are developing processes that can transform carbon dioxide into valuable products that range from plastics to fuels, and from feeds to fertilizers. This prioritization will hasten the day the algae industry can create thousands of jobs by using the waste gases from power plants to make valuable products we need, while giving those power plants a chance to reduce their emission for a profit rather than at a cost.”
Additional information on the bill can be downloaded from the committee’s website.

Read the original here.