Environmental and Energy Study Institute

Sustainable Forest Biomass Conference Call - August 7, 2008

This call focused on the economic realities facing the use of woody biomass and some of the solutions that might improve the economic feasibility of using that material. There seemed to be a general agreement that the cost-effectiveness of woody biomass utilization depends strongly on local markets and local forest conditions; the accessibility of forest stands, the moisture of the woody biomass, and the haul distance to markets were identified as some of the most important variables. Residues from pulpmills and sawmills are generally the most cost-effective feedstocks (especially when the end user is co-located with the mill), following by logging residues and slash piles. Thinning materials are generally considered the least cost-effective, and removing commercial timber along with the biomass is usually necessary to make the numbers work out. A number of participants offered 5 inches as a minimum diameter for material that can be removed cost-effectively under most circumstances. Haul distance was almost universally agreed to be one of the most critical factors in determining whether biomass use was economically feasibility, but the maximum haul distance differs considerably depending on region of the country, market value for biomass, infrastructure, and geography. Maximum haul distances of between 50 and 150 miles were mentioned by various participants from various regions of the country. Densification or moisture-reduction technologies, such as pelletization and torrefaction, may have a lot of potential in increasing the maximum haul distance, especially where opportunities exist to move biomass by rail instead of truck. Plant size is another important variable, but there seemed to be some concensus that strict economies of scale do not always apply and that environmental, social, or economic conditions often call for a smaller size facility. Finally, the group agreed that the difficulty of obtaining long-term supply agreements (10-20 years) is a big barrier to securing financing for construction of utilities or facilities hoping to use biomass. A mixture of incentives and subsidies are probably important to create markets, improve the cost-effectiveness of biomass harvesting, and improve the competitiveness of biomass energy relative to fossil fuels.

Click here for more detailed notes of this call (.PDF)