Energy Companies in Europe Show Increased Interest in Sourcing Biomass from
the US South, Reports the North American Wood Fiber Review
Woody biomass in the US South is attracting interest from European energy companies in their
search for long-term, reliable and competitively priced supply sources, reports the North American
Wood Fiber Review. The increased competition for wood fiber has pushed pine pulpwood prices
upward in the Southeastern states this past year.
Seattle, WA, July 16, 2010 --(PR.com)-- Demand for woody biomass, in the form of wood chips, wood
pellets and torrified pellets will increase substantially in Europe over the next ten years, exactly how
much though, is unclear as the size of the increase depends on policies and subsidies implemented by
governments in individual countries within the European Union. The cost of locally sourced biomass on
the continent has gone up for many energy plants, resulting in increase interest in importation of wood
chips and pellets from neighboring countries or from overseas.
The US South is on the top of the list as a long-term biomass supply source for a number of energy
companies. This is because the region has a stable supply of pulpwood, a well-functioning infrastructure,
and competitive wood fiber costs as compared to most other markets in the world. According to the Wood
Resource Quarterly, only Chile and the Western US had lower softwood pulpwood prices than the US
South during the 1Q/2010. Hardwood wood fiber prices were well below the global average hardwood
price index (GHPI).
One region in the US South that has drawn much attention lately is the tri-state area of Southern Georgia,
Southeast Alabama, and northern Florida, a wood fiber hotspot profiled in the latest issue of the North
American Wood Fiber Review. Within this area, a significant number of new wood-to-energy facilities
have been announced with one major pellet plant already operating. Sited in Northern Florida, Green
Circle Bioenergy began operations in early 2008 and is exporting the ent