Wood feedstock costs are the largest variable costs of a bioenergy project. It is therefore important to consider the stumpage price in a supply region during the site selection process.

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The claim making the rounds of environmental non-governmental organizations is that whole mature trees are being used to make wood pellets, and that this results in carbon emissions that are at least as bad as coal if not worse. This claim-erroneous though it is-has led to multiple negative stories in the press, resulting in public relations problems for wood pellet manufacturers in the US South and utilities in the UK and EU.

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Wood pellet project success depends in large part on the availability of affordable and sustainable feedstock. Determining whether adequate feedstock can be procured from a supply region throughout the life of a project is a complicated process.

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The long-term availability of wood raw material and biomass is a substantial risk wood pellet project developers must address with debt and equity partners. Increased pellet demand and cutting-edge technology mean little in the absence of an adequate, affordable and sustainable supply wood fiber supply.

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With the persistent opposition to US pellet manufacturing facilities shipping wood pellets to the UK and EU, it is a daunting though necessary task to disseminate accurate and convincing campaigns that pose counterpoints to those arguments.

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As an expanding source of pulpwood consumption in the US South, wood pellet manufacturers compete for feedstock with two other major industries. Historically, the pulp and paper industry has been the single largest consumer of both pine and hardwood pulpwood. The second largest consumer of these forest products is the oriented strand board (OSB) industry.

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Feedstock requires a lot of attention at the start of a project, and rightfully so, considering feedstock costs are the largest variable costs across the life of a project. In addition to feedstock cost and supply, a project positioned for success will have paid the same consideration to wood fuel.

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"I've talked to local suppliers and they've assured me I can get all the wood I need at or below market." Wood markets are dictated by local supply and local demand, yet this does not position local suppliers to accurately assess the market. The view held by each local supplier is limited to the opportunities around only his or her supply, not the supply available throughout the marketplace.

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