By William Perritt, Executive Editor, Wood Biomass Market Report
LOST RIVER, WV,
July 8, 2010 (RISI) -
The vetting of a wood biomass energy plant or wood pellet mill proposal can, in no small terms, be a rigorous and frustrating process. As wave after wave of project announcements have appeared over the past couple years, more than a few have fallen by the wayside, having failed to survive scrutiny.
To date, 132 wood energy plants and 83 wood pellet mills are in development (or recently started) across North America, according to RISI's Wood Biomass Project Database.
In broad focus, a short list of study items should include: woodbasket, end product demand and pricing, permitting, engineering, power supply agreements and grid connectivity (for energy producers), government support and stimulus, and financing. For the pellet and biomass power industries, the past year has been challenging (weak pellet demand and low power rates), leading to a reevaluation of projects which seemed so much more viable a short time ago.
As if that were not enough to consider, the careful developer will also take into account local acceptance of a project -- and for our intents here, we are talking specifically about biomass energy, since those are the projects being fought. Citizen opposition to wood-fired power has shut down or rendered questionable the survival of a number of proposals, which otherwise seemed doable.
The battleground at the local level is nothing new, consisting mostly of those who simply do not want to be next door to an industrial installation with a complement of nuisance issues such as truck traffic, noise, security lighting and air emissions. Threats to tranquility and property values speak right to the heart of the American homeowner and are difficult to combat.
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