RISI biomass study finds government mandates could lead to over-harvesting of forests

BOSTON, MA, Sept. 23, 2008 (PRNewswire) - A new study -- The Emerging Biomass Industry: Impact on Woodfiber Markets -- published by RISI, the leading information provider for the global forest products industry, found that federal and state mandates, if fully implemented, would lead to over-harvesting of forests in the United States and are therefore unrealistic. This new study examines the proliferation of woody biomass projects throughout North America and what rapid growth in this industry would mean to the pre-existing markets that depend on a steady and reasonably priced source of woodfiber. The study forecasts how new and existing biomass projects affect the supply, demand and prices for wood fiber from all sectors of the forest products industry, and provides a review of current and future uses of woodfiber for energy generation and liquid biofuel production. In addition the study provides a forecast of demand for wood pellets and biomass chips from Europe and Japan, and analyzes regional development of the wood energy business in the United States.

Rocky Goodnow, study co-author and Senior Timber Economist with RISI, commented, "Bioenergy projects will certainly boost the demand for woodfiber, but we don't see that demand reaching the levels implied by current policy goals." He continued, "While there is clearly a lot of interest in wood-based bioenergy right now, growth for this new industry will be constrained by sustainable harvest levels as well as woodfiber prices."

This report has been co-authored by Goodnow, Robert Flynn, RISI's Director of International Timber, Erik Kankainen, Senior Timber Analyst and Paul Jannke, RISI's Senior Vice President of Wood & Timber Information - who combined have over 40 years of experience forecasting the North American and International wood products and timber markets.

RISI's study -- The Emerging Biomass Industry: Impact on Wood Fiber Markets is available now -- to order or for more information, please visit www.risiinfo.com/biomass.

About RISI

RISI is the leading information provider for the global forest products industry. The company works with clients in the pulp and paper, wood products, timber, tissue, nonwovens, printing and publishing industries to help them make better decisions.

Headquartered in Boston (Bedford), Massachusetts, RISI operates offices in Brussels, Belgium; Atlanta, Georgia; San Francisco, California; Portland, Oregon; Sao Paulo, Brazil; Shanghai, China; Singapore; and Charlottesville, Virginia. More information can be found at www.risiinfo.com.