Regional forestry partners pivot from wood pellets to chips after pellet market collapse, county says
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Summary
Officials reported at regional meetings that the market for wood pellets has collapsed; project planners are shifting efforts toward wood-chip production to avoid Port of Stockton opposition and keep projects viable in Tuolumne and Lassen counties.
County representatives said regional partners are reworking plans for a proposed pellet mill after the wood-pellet market collapsed and are exploring chip production as an alternative.
Officials reporting back from the Golden State Natural Resources Conservation Board and the Regional Council of Rural Counties (RCRC) said the decline in the pellet market has largely removed the original market rationale for the pellet-mill projects in Tuolumne and Lassen counties. County participants said planners have pivoted to chips, a change they said would avoid some of the Port of Stockton-related opposition they encountered while keeping a path forward for permitted wood-product facilities.
Why it matters: The change affects proposed forest products infrastructure and permitting discussions across several counties. County representatives described frank conversations with regional directors and said dialogue is ongoing; no county-level permits or approvals were decided at the meeting.
Discussion and next steps: Officials said the conversation remains active and that regional directors have opened lines for more one-on-one discussions. The board did not vote on any forestry project at the meeting.