BOSTON, MA, June 19, 2008 (Press Release) - The emerging biomass industry is projected to become a $1.5 billion fiber market by 2012, RISI indicates in its International Woodfiber Report (IWR). The market's explosive growth is due not only to multi-billion investments from private equity firms and Fortune 500 corporations but also as a result of numerous legislative initiatives including the new Farm Bill. To date in 2008, IWR has identified over 65 new major wood energy projects across North America and notes that there are another 30 to 50 projects "in the works", though not all are expected to break ground.
Cogeneration (the process of burning wood for energy) currently leads wood pellets and ethanol as the most widely reported type of wood-based biomass project, with at least 30 projects already announced and over a dozen already in operation. IWR indicates that there is concern within markets that compete with biomass projects for woodfiber (mainly pulp, paper and composite panel producers) that the supply of raw materials will be able to support both existing markets and the dramatically expanding biomass industry.
Chris Lyddan, Editor of the International Woodfiber Report, comments, "Right now we are estimating that woodfiber consumed by energy projects will reach 50 millions tons per year by 2012, and that figure could grow to between 100 and 200 million tons by 2020." He continued, "The passage of the Farm Bill, which provides loan guarantees of up to $250 million per project combined with the relative speed of starting up a cogeneration facility (usually 12 to 18 months), makes it is simple to see why this industry will continue to grow at an exponential rate."
The International Woodfiber Report is a monthly publication that covers woodfiber markets throughout North America and provides the latest news and information on prices, supply and demand, environmental legislation affecting timber rights, and regional as well as global news. The report is an essential resource for executives who need to keep up-to-date on raw material supply concerns. A one-year subscription to the International Woodfiber Report can be purchased for $597 at www.risiinfo.com/wf, by calling 866.271.8525, or by sending an email to wt@risiinfo.com.
In addition, RISI is producing a multi-client study on Biomass entitled The Emerging Biomass Industry: Impact on Woodfiber Markets. This new study will be published this summer and is currently available for pre-order at a discounted price of US$7,500. T o 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; São Paulo, Brazil; Shanghai, China; Singapore; and Charlottesville, Virginia. More information can be found at www.risiinfo.com.
