December 2015/January 2016

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In This Issue

Wood Fuel Price Update: 3Q2015

6 Reasons Thinning Trees is Good for the Forest

US v. EU Energy Prices: How High is Too High?

Aviation Biofuels Ready for Takeoff

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		Forest2Market Study Shows U.S. Wood Pellet Industry No Threat to U.S. South Forests By Forest2Market The U.S. export of industrial wood pellets to meet renewable energy goals in the European Union is not a threat to the sustainability of U.S. Southern forests, according to a new report by independent forest analysts and economists at Forest2Market using U.S. government and marketplace data. The report was commissioned by the U.S. Endowment for Forestry and Communities, National Alliance of Forest Owners (NAFO) and the U.S. Industrial Pellet Association (USIPA). Continue reading → ...�

		Wood Fuel Price Update: 3Q2015 By Daniel Stuber Wood fuel prices have declined over the last two quarters to an average of $21.32 per ton in 3Q2015. The primary factors that have contributed to this drop in price include: Demand for wood fuel has decreased as pulpwood purchases have increased, and as the price of natural gas has fallen; Supply of wood fuel has increased as lumber production and harvested biomass have also increased. Continue reading → ...�

		Surprising Support for Carbon Value That Will Spur Renewable Energy Growth By Stan Parton Scientists in forest-related industries and groups such as the National Council on Air and Stream Improvements (NCASI) have recognized the difference between biogenic and non-biogenic sources of energy. Combusting fossil (non-biogenic or below ground) sources of carbon (coal, oil, natural gas) adds to the carbon dioxide content of the atmosphere because these resources are "captured" and released from within the earth. Combusting renewable woody biomass (biogenic or above ground) carbon, however, adds little to no net carbon dioxide to the atmosphere when considered over the long-term. As long as we are not depleting forest inventories, which we currently are not, this biogenic carbon is reabsorbed by new plant life as it grows; it is a sustainable and cyclical process. Continue reading → ...�

		EPA Releases Final Renewable Fuel Standard Volumes By John Greene The U.S. Environmental Protection Agency (EPA) recently published final volume requirements for the Renewable Fuel Standard (RFS) for the years 2014, 2015 and 2016. This rule finalizes higher volumes of renewable fuel than the preliminary volume requirements proposed in May, a move we hope will support the growth of the biofuels industry. Continue reading → ...�

		Sound and Fury: 1990s Chip Mill Phenomenon and Today's Pellet Mill Phenomenon By Daniel Stuber Similar to concerns being voiced today regarding the emergence of the wood pellet export industry, the rapid proliferation of chip mills in the US South between 1985 and 2000 generated considerable controversy. Much like today, environmentally minded non-governmental organizations (NGOs) were concerned about impacts to forest resources and habitat while competing users of feedstock were concerned about 1) erosion of margin due to price increases and 2) that feedstock was being diverted to export markets. Continue reading → ...�

		6 Reasons Thinning Trees is Good for the Forest By Jay Engle Over the last few months, we have written extensively about the extreme wildfire season in the Pacific Northwest (PNW) and some of the lingering effects that the devastation will have in the near-term. The fires have been in the mainstream news for months, but a recent Wall Street Journal piece about the "controversial" subject of forest thinning and its impact on fire suppression simply gets it wrong. Continue reading →...�

		US v. EU Energy Prices: How High is Too High? By Stan Parton It's December in the US, which is a time when gasoline prices typically sink to yearly lows. Americans are paying just over $2/gallon on average and prices are forecast to fall below $2/gallon in the near future. Just two years ago, December prices averaged $3.26. We know that corporate oil stocks have taken a beating in the last year as supply has remained strong and rig counts have dropped, but did anyone really think we would ever see gas prices below $2/gallon again? I sure didn't. Continue reading →...�

		5 Steps for Siting a Wood-based Manufacturing Facility By Suz-Anne Kinney Any manufacturing facility that uses wood as a raw material-sawmills, pulp & paper mills, panel mills, pellet mills, as well as biofuels and biochemicals producers-relies in large part on the availability of affordable and sustainable feedstock for its long-term success. Prior to siting a new facility, or even deciding whether to purchase a closed or operating facility, due diligence requires that the project developer seek verification that adequate feedstock can be procured from the supply region for the life of a project. This verification is a complicated process, however. For project developers, there are five steps that, if followed, will determine whether a particular location will support the project and improve the chances of project success. Continue reading →...�

		Aviation Biofuels Ready for Takeoff By John Greene Manager of Forest2Market's Bioenergy and Biochemicals practice, Stan Parton recently wrote that the US government must level the playing field if biobased energy is to compete with fossil based energy in the future. Unfortunately, the opposite has happened. The delays and uncertainty that have plagued the application of the RFS have done more damage to the bourgeoning advanced biofuels market than good; while the legislation was designed to encourage growth in the biofuels market, the implementation process has turned it into a constraint instead. Despite governmental impediment, however, the free market is finding ways to keep these pioneering energy sectors moving forward. Continue reading → ...�

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