Addressing Obstacles in the Biomass Feedstock Supply Chain

Biomass Power & Thermal
By Kate L. Bechen January 04, 2011

Biomass is one of the oldest energy sources, and there are compelling arguments for its use to generate electricity. First, unlike fossil fuels, the regenerative capacity of biomass provides for a renewable fuel source. Second, a significant amount of viable feedstock is considered waste, the use of which serves the dual purposes of energy production and waste management. Third, the use of sustainable biomass displaces the use of fossil fuels. Though both fuel sources emit CO2, the CO2 emitted by biomass would occur anyway through the process of decomposition, so there is a net reduction in CO2 emissions. Finally, the combustion of biomass also reduces methane emissions associated with the naturally occurring process of decomposition.

Despite the significance and potential of biomass as an energy source, development of a reliable feedstock supply chain has not occurred. Developers understand that a stable, long-term feedstock agreement is essential to procuring financing for any biomass project. Demonstrating to a landowner or farmer that the economic and other benefits of producing biomass (the production of which is often a multi-year commitment) outweigh the current land use can be a challenge without an established demand for the feedstock. Current land use, such as row crops, hunting habitat or Conservation Reserve Program acres, competes with biomass crops. Creating demand for feedstock also requires construction of conversion facilities, which require financing in addition to the financing of the generation facilities. And, in the true spirit of the chicken and the egg conundrum, lenders and investors require a reliable, long-term feedstock source before financing a project.

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