Gordon Murray, Executive Director

Canadian Wood Pellet Industry

Wood Pellet Association of Canada 2

Logging residues Sawmill residues

Wood Pellet Association of Canada 3

Wood Pellet Association of Canada 4

Wood Pellet Association of Canada 5

Wood Pellet Association of Canada 6

UnitedKingdom

ItalyUnitedStates

KoreaSouth

Japan Germany DenmarkSwitzerlan

dNetherlan

dsBelgium Singapore

2012 794 85 87 2 106 2 11 21 253 6 1

2013 1,027 220 152 113 76 26 14 11 0 0 1

0

200

400

600

800

1,000

1,200

2012 2013

Global Totals: 2012: 1,369,000 tonnes 2013: 1,640,347 tonnes BC: 85-90% of Canadian exports Source: World Trade Atlas

Source: Crosstrade (German Timber Network) Note: Canadian data conflicts with World Trade Atlas figures

Russia; 701

Bosnia-Herzogovina;

170

Ukraine; 164

Croatia; 146

Belarus; 116

Canada; 1,921

USA; 2,800

Other; 127

Total non-EU imports: 6.1 mn tonnes

Wood Pellet Association of Canada 8

“Participating Observers” EIPS, USIPA, & WPAC

Partners

Primary

Feedstock

Tertiary

Feedstock

Secondary

Feedstock

Biomass Assurance Framework (BAF): assurance of biomass sustainability; supply-chain traceability and accurate GHG data / savings*

Biomass Assurance Standard (BAS)

Scope of Certification i.e. Part of the supply chain which is verified during certification audits. The Unit of Certification is the production facility (blue box)

Generator / trader will be CoC certified. Standard to be determined

* To be agreed Inland Logistics

Wood Pellet Association of Canada 10

Pilot audits complete Full-scale audits now in progress Each generator decides how to implement

with their pellet suppliers Dependent on existing long-term contracts

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Wood Pellet Association of Canada 12

$10.14

$19.29

$34.17

$41.22

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Natural Gas Wood Pellets Electricity Heating Oil

Relative Cost of Domestic Heating Fuels - Ontario 2013 $/GJ

Source: WPAC research

Wood Pellet Association of Canada 13

1. Calculated using data from Stats Canada & HPBA Canada 2. 176,500 tonnes for all of Canada annually

7,900 T

200 T

18,900 T 16,800 T

59,800 T

33,200 T

3,100 T 1,000 T 3,700 T

14,600 T

0 T

10,000 T

20,000 T

30,000 T

40,000 T

50,000 T

60,000 T

70,000 T