Pushback rises on burning wood fiber to fuel electric power plants. Scientists and environmentalists question whether wood fuel is green, while the U.S. Senate leans toward labeling wood-fired power plants as carbon neutral. Panel manufacturers have complained this will raise the cost of raw materials for wood products companies.

Canfor Corp. has officially opened two new pellet plants in British Columbia to produce biofuel from the company's sawmills. A $58 million joint venture with Pacific Bioenergy Corp., the Chetwynd and Fort St. John pellet plants have a combined annual capacity of 175,000 tonnes.

North American exports of wood pellets totaled 6.1 million tons in 2015, which is almost four times as much as in 2010, according to the latest issue of the North American Wood Fiber Review.

Demand for woody biomass for energy production is on the rise in developed nations. Tight supplies of wood fiber fuel in Japan have buyers seeking new sources. In the U.K., Active Energy Group says its wood fiber unit has received strong sales to panel suppliers, along with robust demand for energy markets.

A new biofuel plant subsidized by the British government expects to source its fuel in part from U.S.sustainably sourced wood chip and wood pellet producers.

Astec Industries Inc. said it has entered into an agreement to build, deliver and install the first production line of a new turnkey wood pellet production facility for Highland Pellets LLC. Astec (Nasdaq: ASTE) said the initial $30 million order could total $143 million if additional equipment and services are ordered.

Wood-based biofuel will be used to fuel FedEx jets within two years under a seven year contract between Red Rock Biofuels and FedEx Express, a subsidiary of FedEx Corp. Red Rock, which is also supply bio jet fuel to Southwest Airlines, will produce 3 million gallons of low-carbon, renewable jet fuel per year for the company. First delivery is in 2017.

German Pellets, one of the biggest producers and providers of wood pellets in the world, completes the commissioning of the first construction phase of the American plant in Urania, Louisiana.

Approximately 1,000 gallons of wood waste-based jet fuel will be tested by Alaska Airlines in a demonstration flight next year.

Wood Resource Recovery sued the Gainesville Renewable Energy Center for $5 million because it says the 100 MW biomass plant made it impossible to do business under its current contract due to breach of a long-term fuel supply contract.