This issue contains the first of a three-part informational series focusing on wood pellet project development. These eight stories cover a wide range of topics that fall under the umbrella of sustainability.
Our next issue - part two of the series - will cover the supply chain issues that project developers should have command of in order to successfully obtain financing for their projects.
The controversy over the export of US wood pellets to the UK and EU continues to spin madly on. The uproar has been manufactured largely by those with little knowledge of forest science or forest economics and, apparently, without the willingness to learn these subjects.
In the UK, Contracts for Difference (CfD) are set to replace the Renewables Obligation (RO) program as a way of encouraging investment in electricity generation from non-fossil fuel sources. For projects accredited after April 2014 but before April 2017, developers will choose which of the two programs they will participate in.
Set to go into effect in second quarter 2014, a new biomass sustainability verification policy requires electricity generators to offer proof that the biomass they process originates in forests that are sustainably managed.
The United Kingdom's Timber Procurement Policy will soon require electricity generators to demonstrate at least 70 percent of the wood biomass used in wood pellets was legally and sustainably harvested.
In the UK, the burden of proof that industrial wood pellets are sourced from sustainably managed forests will soon fall to electricity generators. Complying with the legal system and implementing best management practices, as discussed in our last article, is one way wood pellet manufacturers can help their buyers demonstrate sustainable supply.
A straightforward way to demonstrate compliance with UK sustainability standards is to source wood raw materials from a certified forest. However, both the low rate of certification and the high number of small, private landowners in the US South can make proper documentation of the source of wood feedstock seem easier said than done.
The way that timber is sold in the US South provides a strong legal framework for ensuring that harvests are being conducted in a sustainable fashion. The process for selling timber and the documentation that accompanies it-the timber sale contract-are critical for demonstrating not only the legality of the sale but that all laws and best management practices are being followed.
The ongoing controversy over forest carbon accounting reminds me of the H.L. Mencken quote, "For every complex problem there is an answer that is clear, simple and wrong." The clear and simple answers for complex questions such as when to start the carbon accounting clock, for example, are oftentimes fraught with error.
