A U.S. Dept. of Agriculture program that pays up to $45 per ton to companies that bring wood waste to energy facilities could end up hurting the businesses that use wood waste to make products such as particle board and furniture, the Washington Post reports.
Though many renewable materials can be converted into energy, very little land is devoted to production of biomass crops, and federal biomass incentives encourage sawmills and lumber companies to send their wood shavings and sawdust to energy companies.
The biomass subsidy program could “wipe us out,” said T.J. Rosengarth, the vice president and chief operating officer of Flakeboard, the largest composite panel producer in North America. “You can say, ‘I’ve made more alternative energy,’ but at what expense?”
The much larger pulp, paper, packaging and wood products industry, which ranks among the top 10 manufacturing employers in 48 states, is just as worried. The American Forest and Paper Association sent a letter to OMB on Oct. 27 warning that the biomass program “could have the unintended consequence of jeopardizing the forest products industry and the many jobs it sustains, as well as the significant quantities of renewable energy it produces.”
Michigan currently has six biomass energy plants, and several more have been proposed since Michigan passed energy legislation requiring utilities to get 10 percent of their energy from renewable sources by 2015.
In December the state Department of Environmental Quality issued an air permit for a 10 megawatt wood-fired biomass power plant at Northern Michigan University in Marquette.