Wood Pellets Renewable Energy Product | Tolko Industries

Industrial Wood Pellets – a Modern Bioenergy Story

Tolko is part of the global push towards de-carbonization and sustainable energy through the production of wood pellets. By converting residual fibre from mills and the forest, we’re able to offer a sustainable product that can be used as an alternative to coal in traditional and supercritical coal-fired power plants around the world helping to reduce their carbon footprint by up to 85% on a lifecycle basis.

Wood pellets are now regarded as the most reliable source for renewable energy production in countries such as Belgium, Denmark, Japan, South Korea, Netherlands, Sweden, and the United Kingdom. A “renewables energy mix” of sources including wind, solar, and other combustibles (such as palm kernel shells) combine to make up a total portfolio of renewable energy. Baseload power, where power is generated by sources that are always available, is still important. Wood pellets are the only true, baseload, sustainably-sourced, renewable fuel proven to meet rigorous quality standards and reliability of supply.


Our dedication to sustainability and de-carbonization

Prior to 2000, most sawmill residuals (excluding chips) were burnt in beehive burners. Today, most of Tolko’s sawdust, shavings, and a portion of our harvesting residuals are converted to wood pellets via the sale of sawmill and harvest residuals to existing pellet producers or partnerships in wood pellet production facilities.

Since 2015, Tolko has been a proud partner in Lavington Pellet Limited Partnership, producing 280,000 metric tonnes of wood pellets per year. In 2020, a second wood pellet production facility opened in High Level, Alberta and produces approximately 200,000 metric tonnes per year. The sale and marketing of all wood pellets at these facilities is conducted by our partner Drax.

Volume from both projects will be transported by rail to Fibreco Export Inc. in North Vancouver, loaded onto bulk ocean carriers, and shipped to various over-seas markets. Upon arrival, the wood pellets will be burnt (with or without coal) in large industrial power plants to create clean, reliable, and renewable electricity.


Together with our partners, we aim to forge a future powered by sustainable energy.

For further information

Please note: Tolko Industries Ltd. does not directly sell pellets. We do own an interest in two pellet facilities with our joint venture partner Drax, and the marketing and sales of all pellets from these facilities is managed by Drax.

For contact information and further inquiries on pellet supply, please visit https://www.drax.com/pellet-sales.

For information about Tolko’s partnership, please contact:

Michael Towers photo

Michael Towers

Manager, Energy & Environment

phone: 1-250-550-1412