Record pellet demand in U.S. northeast

October 29, 2014, Washington, D.C. – The Pellet Fuels
Institute (PFI) and the Biomass Thermal Energy Council (BTEC) announced that it
is experiencing record demand for wood pellet heating fuel in the United
States, particularly in the Northeastern region. The two groups highlighted the
importance of purchasing pellets at a steady pace to avoid demand spikes.

"Last winter was especially cold and long, particularly
in the Northeast, and many pellet fuels consumers are planning ahead to be
prepared for this season," said Jennifer Hedrick, Executive Director of
PFI. "At this time it's important for consumers to recognize that
purchasing large amounts of pellets that exceed their likely demand for the
heating season could result in a personal surplus at the end of the
season."

Many winter forecasts have been adjusted in recent weeks to
reflect warmer conditions than originally predicted, and the U.S. Energy
Information Administration has estimated household expenditures for winter
heating fuels will decrease for 2014-2015.

"We're seeing an impressive demand for woody biomass
for residential heating across the United States. Producers and retailers
throughout the country are delivering the renewable fuel from regions with
strong supply to regions with the highest demand. We're excited to see this
pellet delivery network developing around the country, while the pellet fuels
industry is further adjusting its output to meet this growing market,"
said Joseph Seymour, Executive Director of BTEC.

Heating residences and businesses with renewable biomass is
cost-effective and becoming increasingly popular around the country. Well over
one million homes across the country have installed pellet heating appliances,
and approximately 2.5 million homes heat primarily with wood. Heating with wood
has historically been cheaper than heating with electricity and fossil fuels
such as heating oil and propane.