How the Lake States Wood Pellet Industry Keeps Homes Warm and Grills Hot

The wood pellet industry in the Lake States continued to heat homes throughout this winter. Soon it will grill lots of burgers and many steaks as warmer temperatures arrive. The area benefits from a mixture of pellet manufacturing plants in Michigan and Wisconsin that process waste wood into heating and cooking fuels.

Hardwoods tend to be a particular fit for grilling, and softwoods for heating.

Experts in the biomass industry count more than 10 pellet facilities in Michigan and Wisconsin. Several like Indeck Energy in Ladysmith, Wisconsin, and Vulcan Wood Products in Vulcan, Michigan produce tons of heating pellets. But many also produce grilling pellets, often from hardwood waste with brand names like Lumber Jack and Grillers Gold.

The largest owner of pellet manufacturing plants in the Midwest, Lignertics, makes both types of products in four Wisconsin and one Michigan facilities. With their Hayward, Wisconsin facility, which they purchased in 2021, Lignetics says that it is the largest residential wood pellet manufacturer.

However, the largest overall manufacturer, Enviva, produces electrical generation and industrial heating products principally in the Southeast. Enviva has huge operations throughout that area. Often their plants are located near ports like Savannah and Jacksonville for efficient export shipping, to Europe in particular. The European export market is a logical fit with pellet-based electricity being promoted as a greener product than electricity from other fuels like natural gas or coal, in particular.

While the export business is huge, it also is very volatile. Enviva exited Chapter 11 bankruptcy proceedings last year after a badly timed pellet repurchase agreement with a large customer for 1.8 million tons of pellets put Enviva heavily in debt. Enviva said the company is now “well-positioned for long-term growth and consistent operating performance”, after emerging from the Chapter 11 process.