Key Players
Competitive Landscape
Power stations award industrial pellet supply through long tenders that test sustainability certification, calorific value, port access and delivered cost per gigajoule. Residential pellets sell through dealers and DIY chains on ENplus grade and bag price. The existing Drax CfD strike price is about GBP 147 per MWh for April 2026 to March 2027, and the new contract from April 2027 pays for flexible dispatch.[1]
Integrated groups compete on owned mills, rail and ships, and independent mills compete on fibre cost and certification. Vietnamese suppliers plan to add over 300,000 tonnes per year of capacity by the end of 2026, and South Korean utilities have given more tender volume to non-Vietnamese sellers.[10] Mills close to ports and plantations will keep the lowest delivered cost.
Company developments mapped to drivers, trends and opportunities (2026-2036)
| Development | Driver | Trend | Opportunity |
|---|---|---|---|
| July 2026: Drax reports H1 pellet output of 1.9 million tonnes. | Fibre constraints in Canada. | Capacity moving to low-cost basins. | Long contracts from flexible power stations. |
| September 2026: NB Power approves the Belledune conversion. | Coal exit by 2030. | Coal units switching to pellets. | Domestic pellet contracts in Canada. |
| September 2026: Norpellets launches the Canindé project. | Demand for imports in Europe. | Southern hemisphere export mills. | Certified supply from Brazil. |
Source: Future Market Insights, Biomass Pellets Market Report, 2026-2036.
Utilities planning coal conversions are fixing fuel specifications in the first contract, so mills that can supply certified pellets from the first test burn will gain those tenders.
Who leads the biomass pellets market?
Drax Group leads documented industrial pellet output, with 1.9 million tonnes produced in the first half of 2026.[1] Graanul Invest in the Baltic states and Enviva in the U.S. Southeast run the other large mill networks.
Which companies have documented positions?
Drax documents pellet output, Pellet Production EBITDA and contract terms by half year.[1] Norpellets Biomass Energy documents a first export plant in Brazil.[9] NB Power documents fuel supply agreements for Belledune.[6]
What should buyers evaluate before approving a supplier?
Buyers check sustainability certification, calorific value, ash and moisture, fines and durability, then confirm fibre sources, port and rail access, and supply security through a weak sawmill year. Delivered cost per gigajoule and indexation terms also decide approval.
How is competition expected to change through 2036?
Long contracts will move toward flexible dispatch, so producers will compete on storage and shipping as well as cost. Mills with owned fibre and port access will gain share from non-integrated plants that buy residues on the spot market.
Representative Company Overview
| Company | Positioning | Recent development |
|---|---|---|
| Drax Group | Integrated pellet producer and biomass generator | July 2026: H1 pellet output of 1.9 million tonnes; Williams Lake closed. |
| Norpellets Biomass Energy | New export pellet producer in Brazil | September 2026: Canindé plant launched with Royal Houweling. |
Research Methodology
The companies included in the report represent current market structure and do not indicate a market-share ranking. Tonnage, trade, policy and plant facts come from producer releases, utility notices, energy trade press and policy reports dated May 2025 or later.
