New Green Energy Plans Would Create 120 Green Tons of Wood Demand

RISI today through its Wood Biomass Market Report, indicated that woodfiber will play a major role in any new green energy spending plans in the U.S. The Report stated that as of Dec. 12, estimates from the ever-expanding federal stimulus package suggest the green component (wood, wind, solar, etc.) will be a whopping US$50 billion over two years. If 20% falls to wood energy, that near term spending of US$10 billion would spur formidable growth, providing tens of thousands of new jobs -- and wood demand of perhaps 120 million green tons, long-term. Compared to an estimated 215 green tons of consumption currently by the nation's pulp & paper industry, this new demand will be significant, and could create a US$3 billion per year wood energy market at current prices. The Report also projects that a good bit of this expansion is already underway, with current projects topping 32 million tons. Wood-derived fuels already account for a full third of the nation's renewable energy, 50% if hydroelectricity were excluded. RISI projects that this increased demand will occur most in the U.S. South, followed by the U.S. West, and then the U.S. North. read more

Source: RISI