Controversial California wood pellet project decides to downscale

By Camille von Kaenel | 06/26/2025 12:05 PM EDT

Rural elected officials had pitched the project as a way to reduce wildfire risk and boost rural economies, but it ran into opposition from environmental and community justice groups.

A hazy sky can be seen from State Route 41 as the Washburn Fire continues to burn in Yosemite National Park, Calif., Tuesday, July 12, 2022. (AP Photo/Godofredo A. Vásquez)

Rural county officials are downscaling their controversial project to export wood pellets from California's fire-prone forests abroad. AP

SACRAMENTO, California — A California group decided Wednesday to significantly scale back its controversial project to ship wood pellets from Northern California’s forests abroad following a faltering international market for the pellets and intense opposition from environmental groups.

What happened: The board of Golden State Natural Resources, an arm of the Rural County Representatives of California, voted 4-0 on Wednesday to retool its plan to build two industrial-scale wood pellet plants in rural Northern California and ship them out of the port of Stockton for use in energy production abroad.

Instead, the board voted to produce wood chips for a wide range of potential uses within the United States, including sustainable aviation fuels, carbon capture and engineered wood boards.

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The pivot comes after the United Kingdom and South Korea, top export markets for U.S. wood pellets, significantly reduced their subsidies for energy production from wood pellets.

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