Biomass Industry Outlook 2012: Cautiously Optimistic

RenewableEnergyWorld.com
By Robert Crowe, Contributor
December 12, 2011

The long-awaited construction of four major biomass plants will make 2012 pivotal in the expansion of the wood-fired power industry. Coal-to-biomass plant conversions awaiting permits in Virginia could also set the stage for a boom in local use of biomass fuel. That could lead to a European-style scaling of biomass power if the Environmental Protection Agency (EPA) blesses the industry with friendly regulations.

For now, biomass developers are still beset with the EPA's regulatory uncertainty and plenty of NIMBY opposition. Growth is likely to be limited to projects nearing completion after years of development. The industry, however, stands to benefit from 2012 construction that could bring hundreds of jobs to Florida, Michigan, New Hampshire, Texas and Virginia. "We'll see gains for big projects where you have a combination of local fuel supply and strong political support," said Bob Cleaves of the Biomass Power Association. "At the same time, the weak economy, lack of demand for power and plummeting natural gas prices make it difficult to continue operations of smaller plants without long-term PPAs."

Read more