The Potential of Wood Energy in the United States

These findings are encouraging for the biomass industry, but more, in-depth study is certainly needed to determine how these resources can be developed sustainably and economically. Biopower facilities and wood pellet manufacturers currently rely primarily on sawdust and residues left over from wood products manufacturing, logging, and other 'waste' sources, but these sources are limited and highly dependent on fluctuating markets for traditional wood products. There is concern that a rapidly expanding bioenergy industry will eventually compete for pulpwood and other primary forest resources. Competition between the different wood products industries could result in over-harvesting and higher prices for bioenergy feedstock. As cellulosic ethanol becomes commercially viable, there will be even greater competition among bioenergy facilities and other wood-users for limited feedstocks. Eventually, some bioenergy applications could be priced out of the market altogether, especially if the price of solar, wind, and other renewable sources of energy continue to fall. Basic market forces will sort out some of this demand, but an F & W Special Report (Thomas, M. 2009. "New Industries Compete for Small Trees; Is Field Level?" F &W Forestry Services, Inc. Special Report: Winter 2009: 4-6.) warns that overlapping government incentives and mandates may artificially grow the industry beyond a level that is ecologically and economically sustainable.