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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According to estimates from the Energy Information Administration, prices for U.S. home heating oil were up 24 percent in February 2011, compared to a year ago.

With prices expected to continuing rise, homeowners are getting nervous about heating costs for the 2011/12 season and many are exploring the move to woody biomass fueled appliances.

The New York Biomass Alliance estimates that on a per million Btu basis, heating costs in January 2011 for #2 residential heating oil was $24.90 per MMBtu, wood pellets were $14.70 per MMBtu, and cord wood was the least expensive at $8 to $10 per MMBtu. Assuming one needs to pay for the firewood, cord wood is only 70% cheaper than the fossil fuel alternatives.

At today’s fuel prices, the economic argument for biomass energy is strong  — however, others cite that biomass keeps the energy dollars in the local economy rather than sending 75% of those dollars outside of their community or the country. Others are unclear what the next several years will bring with uncertain economic times and rising energy costs creating an ominous situation.

The last time energy prices reached this level, manufacturers like Greenwood Clean Energy, were unable to keep up with demand. We see how the year unfolds — stay-tuned.

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In the past several months, there has been a lot of discussion and attention regarding the use of woody biomass for energy (heat or electricity) and its affect on greenhouse gases. Advocates say that wood for energy is “carbon neutral” and therefore, good for mitigating climate change, while others believe that there is a negative impact.

Well, according to a recent study by Manomet and its partners, both sides are right and wrong.

The answer is more complex. More specifically, it depends on the life-cycle of the biomass being used, the biomass energy technology and the fossil fuel technology it replaces, and the way landowners choose to manage their forests.

The study shows that using wood for energy can result in an initial “carbon debt” because burning wood releases more CO2 into the atmosphere per unit of energy than fossil fuels (oil, coal, or natural gas). But, unlike fossil fuels, forests can grow back and recapture (or sequester) CO2 from the atmosphere. Over time, through accelerated forest growth, the carbon debt can be “paid off.” After the carbon debt is paid off, if the forest continues to grow, a “carbon dividend” is realized and the use of wood for energy then becomes increasingly beneficial for greenhouse gas mitigation.

Here is how the authors depict the concept of “carbon debt-then-carbon dividend“.

The executive summary and full report can be downloaded from the Manomet website.

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If you have ever wondered about the current state of research and development of technologies for utilizing wood for the production of energy, your wait is over.

A new report from the University of Tennessee Office of Bioenergy Programs and the U.S. Endowment for Forestry and Communities reviews the current state of R&D of technologies which utilize wood for the production of energy. It is a rather substantial and worthwhile read if you are curious about what the coming years may bring to woody biomass based industry. The report characterizes industry process designs, stage of development or commercialization, and suitability for the marketplace.

Go here to download a copy of  “Wood to Energy: A State of the Science and Technology” (PDF)

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