JUNE/JULY 2017 NEWSLETTER
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Forest2Market Publishes First Transaction-Based Wood Price Report for Sweden, Finland, the Baltic States and Northwest Russia
By Forest2Market
Forest2Market has published the first installment of its Baltic Rim Wood Price Index, a transaction-based wood raw material price benchmark for the forest products, forestry and bioenergy industries in Scandinavia (Sweden and Finland), the Baltic States (Estonia, Latvia and Lithuania) and Northwest Russia.The results for 1Q2017 show that, among other trends, there are significant differences in delivered wood costs (roadside wood costs plus transportation costs to mill) for both pulp producers and sawmills in Sweden.
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Spending Bill Promotes Carbon Neutrality of Biomass, Working Forests
By John Greene
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On the heels of an announcement that the Trump administration will soon impose new tariffs on Canadian lumber shipped into the US, a new omnibus spending bill could drive government agencies to promote burning woody biomass for electricity generation. While the bill’s policy rider contains language that certainly opens the door for increased utilization of wood pellets, wood chips and other woody biomass, it also includes language directly recognizing the importance of working forests, forest management and other dynamics pertinent to the entire forest products industry.
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US Withdrawal from Paris Climate Accord: What’s Really at Stake?
By John Greene
“The United States will withdraw from the Paris Climate Accord but begin negotiations to re-enter either the Paris Accord or really an entirely new transaction on terms that are fair to the United States,” the president said last week in the Rose Garden. “So we are getting out but we are starting to negotiate and we’ll see if we can make a deal that’s fair.”
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Moving Beyond Biofuels 1.0: Aviation Sector Leads the Way
By John Greene
Climatewire recently published the first in a two-part series covering the current state of aviation biofuels and, despite the political climate and uncertainty for renewables, the future looks bright. The aviation sector has been proactively employing the use of biofuels, as we have covered over the course of the last year; global delivery giant FedEx alone plans to use over 48 million gallons of biofuels derived from wood beginning this year.
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Carbon Emissions from Forest-Based Biomass are 115% Lower than NG
By John Greene
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Just weeks after Congress voted to recognize the carbon neutrality of forest biomass, the Biomass Power Association published the results from a study demonstrating the dramatic carbon benefits of using forest residue-based fuel in place of natural gas in a power generation facility. The study was conducted by Dr. Madhu Khanna, Distinguished Professor in Environmental Economics at the University of Illinois Department of Agricultural and Consumer Economics, and Dr. Puneet Dwivedi, Assistant Professor in Sustainability Sciences at the University of Georgia Warnell School of Forestry and Natural Resources.
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Japanese Renewables Poised for Growth with New, International Investment
By John Greene
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Earlier this year, we compiled a
series of blog posts that provided a comprehensive view of the nascent Japanese biomass market, which has emerged in the wake of the 2011 Fukushima Daiichi nuclear disaster. Soon after the Fukushima event, Japan increased its use of fossil fuel imports for thermal generation, leading to an increase in in-country electricity prices and greenhouse gas (GHG) emissions. Japan is now at a critical juncture and is proactively changing course in its energy production systems.
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US South Wood Fuel Prices: 1Q2017 Wrap-Up
By Javon Carter
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Wood fuel prices have remained virtually unchanged over the last three quarters ending at an average of $19.75 per ton in 1Q2017. The market is on a flat to improving trend as prices for substitute energy sources (i.e. natural gas and electricity) have begun to move in opposite directions and as recent supplies of wood fuel have increased. Purchasers continue to take advantage of the situation by keeping delivered prices depressed.
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Trump Challenges Antiquities Act; May Benefit Forest Communities
By John Greene
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President Trump recently signed an executive order requiring a review of the oft-abused Antiquities Act, which is good news for millions of Americans in rural communities from Maine to Hawaii. The Subcommittee on Federal Lands has just
heard testimony on the consequences of Executive branch overreach of the Antiquities Act, which detailed the impact such reckless abuse of an executive privilege can have on American families and working communities. President Trump has referred to the Act as a “massive federal land grab,” noting that “It’s time to end these abuses and return control to the people.”
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Japanese Energy Firm Invests in Torrefied Biomass Manufactured in US
By John Greene
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Asian power generators continue to migrate towards clean energy production in the region, which creates new supplier opportunities on a global level. Japan, in particular, has been shuttering nuclear facilities in the wake of the extensive damage caused by the Fukushima Daiichi nuclear disaster in March 2011. The Japanese government has approved nearly 3.2 GW of biomass-fired capacity and, while approximately 500+ MW are already commissioned, new opportunities await.
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