Densified biomass fuel production capacity, by state, April 2025

Densified biomass fuel, such as wood pellets and compacted logs, is made by compressing organic materials like wood waste or crop residues into dense, uniform pieces. This process makes the fuel easier to store, cheaper to transport, and more efficient to burn than loose materials like raw wood chips. Because it relies on waste materials and sustainably managed forests, it offers an environmentally friendly source of energy.

According to the EIA’s latest data, operating densified biomass facilities across the U.S. have a combined annual production capacity of 13.04 million tons, employing roughly 2,400 full-time workers.

While the Northeast, Midwest, and Pacific Northwest (primarily Washington and Oregon) have notable clusters of facilities, the Southern states, particularly North Carolina (#1), Georgia (#2), and Louisiana (#3), stand out as the nation’s densified biomass hubs. Abundant forestry resources and well-developed industrial infrastructure give these states a clear advantage, with the three together accounting for nearly 40% of total U.S. production capacity.