According to the 2012 Fannie Mae Housing and Economic Report, home sales and construction will improve this year, contributing to a modest lift in the US economy. After acting like an anchor on the economy since 2006, this is welcome news.

While slow at first, the sales of new and existing homes are likely to increase 3.5 percent and housing starts are projected to rise 16 percent. This growth is driven by improvements in apartments and single-family house construction. Continued low interest rates will also support an increase in housing investment, with interest rates forecasted to rise slightly over the year.

If we look outside the housing market, the Conference Board, which tracks leading economic indicators see broad-based improvement in employment, consumer confidence, CEO confidence and other leading economic indicators.

Is this a sign that things have turned the corner?

Well, caution would certainly be the most prudent course of action, but there are positive signs. With rates low and the strain easing (in some areas), perhaps it is time to consider taking a look at some of those projects that you have been waiting to complete — but don’t get too ambitious, yet.

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Data from the 2010 US Census shows that wood heat grew faster than any other heating source in the last decade. The use of wood fuel grew 34% compared to the 26% increase for electricity.

Wood heat grew fastest in the Northeast and the Great Lakes regions with Michigan and Connecticut seeing the largest increases at over 120% each.  Other states which saw significant increases in wood heat penetration over the decade, include high-density states New York, Pennsylvania and Ohio with increases exceeding 65 percent.

The rise of wood and wood pellets in home heating is often driven by a need for homeowners to reduce their heating bill with lower cost fuels like wood that are used in wood stoves, wood boilers and fireplace inserts. Over the last ten years, wood heat has been driven by the climbing cost of oil, the economic downturn and the movement to use renewable energy.

According to the EIA, residential wood heat accounts for 80% of residential renewable energy, solar 15% and geothermal 5%. By contrast, the only part of the country where wood fell in use were the warm weather states of the South, with Florida seeing the highest decline at 21 percent.

John Ackerly, with the Alliance for Green Heat, stated it most clearly, “Heating with wood may not be hip like solar, but it’s proving to be the workhorse of residential renewable energy production.”

For more information on heating fuel, visit here.

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Yes, you read the headline correctly, some are predicting that wood fuel is ready to make a big move similar to oil’s rise from $20 to $150 a barrel.

According to the Globe and Mail, there are lots of reasons to be bullish, some more obvious than others:

• Demand is up in China, which recently changed its building codes to favor lumber.
• Environmental regulations in Europe are driving the change from coal-fired power plants to biomass-fired plants.
• In North America, the rate of change is slower, but regulations and emerging biomass combustion technologies, like Greenwood’s CrossFire™ Combustion are making biomass a more attractive option for heating.

So, what does that mean for you and me? When you look out your kitchen window in the morning or take that drive through the countryside to look at the beautiful fall colors, don’t be mistaken, there is gold in the forest.

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According to a new study from RISI, a global forest products industry information provider, renewable energy policy in Europe will generate a 44% increase in biomass demand by 2020.

Biomass is currently the largest source of renewable energy in Europe which poses challenges of its own. The demand is high, however the report goes on to report that unless new sources of biomass are developed (beyond existing levels), Europe will face an acute shortage of biomass.

With this type of outlook, it is no surprise that wood pellet mills in the United States and Canada are exporting their products to Europe in in record quantities. It is also not surprising, that although we have greater pellet production in North America, prices remain elevated. Unfortunately, this is not likely to change with current government policies.

The findings are presented in European Biomass Review, and outlines three potential scenarios for explores new sources for supply. The report covers the EU27 countries (and Norway and Switzerland) with breakdowns for five regions (North, West, East, & South Europe, UK and Ireland). It highlights opportunities for global biomass exporters, as well as the need to develop infrastructure.

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According to the 2000 US Census, there are over 15 million households in the US which use wood as a primary or secondary source of heat; a staggering number. Given that figure, I find it fascinating that little is known about high-efficiency wood boilers — one of the most cost-effective and environmentally friendly categories of products on the market today.

Here’s an interesting article that ran in the paper that serves Prince William Sound in the Gulf of Alaska. The concept of EPA designated wood boilers is finding some traction, even if it is in the remote parts of the U.S.

Read more at the Cordova Times.

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According to the latest United Nations report, nearly 80% of the global energy supply could be met by renewable energy by 2050 if backed by the correct public policies. The six renewable energy technologies reviewed include bioenergy, solar, power, geothermal power, hydropower, ocean energy, and wind energy, with more than 160 existing scientific use cases evaluated.

There is more information in the report than we could share here, but there are some interesting and relevant insights that for those interested in biomass energy:

• Most current bioenergy systems, including advanced liquid biofuels, result in GHG emission reductions.
• The sustainability of bioenergy, in particular in terms of life cycle GHG emissions, is influenced by land and biomass resource management practices.
• Modern biomass, wind and direct solar currently make up the largest contributions of renewable energy technologies to the energy system and biomass will continue to play a central role through 2050.

The report’s findings are summarized in the “Special Report on Renewable Energy Sources and Climate Change Mitigation.” The report summarizes a thousand-page comprehensive assessment compiled by more than 120 leading experts from all over the world for the Intergovernmental Panel on Climate change (IPCC).

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With the EPA’s Residential Wood Heater New Source Performance Standard (NSPS) now on the horizon, the State of Indiana has joined with many states in regulating outdoor hydronic heaters (also referred to as outdoor wood boiler or outdoor wood furnace). On May 18th, Indiana’s first rules regulating the sale, installation and operation of outdoor wood furnaces became law. The rules affect an estimated 8,000 Indiana residents who currently use an outdoor wood furnace to heat their home.

So, if you are an Indiana resident and either own or plan to purchase an outdoor wood boiler, here is a summary of some of the major elements of the adopted regulation 326 IAC 4-3.

• emission limits for new units must meet EPA Phase 2 standards,
• existing non-EPA qualified units must limit their operation to the heating season (October 1 – April 30),
• increasing the stack height for certain existing units, and
• notice requirements for sellers of outdoor hydronic heaters.

For additional information on this regulation, please visit the Indiana Department of Environmental Regulation website for outdoor hydronic heater regulations. A copy of the entire rule is available here or IDEM provides a fact sheet for more concise reading about the outdoor wood furnace rule.

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According to a recent article in the peer-reviewed journal Biofuels, Bioproducts & Biorefining (Biofpr), the wood pellet market is booming in Europe. In 2009, pellet production in Europe was greater than 10 million metric tons from approximately 650 pellet plants. Like most energy fuels, wood pellet prices are increasing.

After Europe, North America has the largest pellet production capacity, which grew from 1.1 million metric tons in 2003 to 6.2 million in 2009.

The report indicates that EU 2020 policy for renewable energy sources and greenhouse gas (GHG) emission will drive the market development. With these policies in place, the authors forecast that the demand, in Europe alone, for woody biomass will vary between 105 million metric tons to 300 metric tons — a 10 to 30 fold increase over the next nine years.

With this type of growth, the report states, “Public support is needed to cover the additional costs of capital investment, operation and maintenance of renewable energy equipment, and pellet fuel feedstock, in comparison with their fossil fuel alternatives.”

Watching from afar, there are several observations we can make about the contrasts in perspective — First, with such wide-spread adoption of the use of woody biomass fuels, public perception of wood heating must be quite positive. Secondly, with the rich natural resource supply here in North America, where is the U.S. policy and mindset on this topic?

Sadly, here in the U.S., woody biomass is still the forgotten step-child in the alternative energy discussion.

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I recently came across a program that the Nature Conservancy and the Continental Dialogue on Non-Native Forest Insects and Diseases, launched a program to educate the public on collecting or purchasing firewood within 50 miles of its point of use.

Although this sounds a little dry, the ‘Don’t Move Firewood’ campaign is rather creative and is focused on preventing the spread of invasive pests and diseases through moving firewood, a common cause of outbreaks. Outbreaks have caused deforestation and the loss of trees in urban areas, and many states in the Northeast and Midwest have restrictions on the the movement of firewood.

The site also provides some other novel or interesting  educational resources. For example, have you ever wondered how much money you’d be wasting if you transported firewood in your vehicle, instead of buying firewood close to your campsite? The website has a simple calculator that helps you figure out that question.

In addition, the site provides a Gallery of Forest Pests and even enables you to notify an appropriate authority if you find one of these little beauties in your local forest.

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Taking a step back, lets take a worldview on biomass energy.

Biomass energy currently makes up 10 per cent of the world’s primary energy supply, but the International Energy Agency predicts that this will rise to 30 percent by 2050. In a recent report, “Bundles of Energy: The Case for Renewable Biomass Energy“, the authors describe the advantages and challenges of biomass, how it compares with renewable alternatives, and how to develop policy frameworks that optimize its impact on poverty reduction, climate change mitigation and the preservation of the ecosystem.

The report outlines ways for developing nations to enact policies to capitalize on the potential for biomass fuels to tackle climate change and poverty, and create energy security, jobs and sustainable economies. For an abbreviated view, Duncan Macqueen, provides a two-page opinion paper that highlights some of the reports major themes.

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