Biomass Energy in Michigan

The Debate Over Wood-Fired Power Plants as a Coal Alternative

Historical Article

This article examines the biomass energy debate in Michigan that intensified around 2010, when the state was exploring alternatives to coal power. Biomass plants continue to play a role in Michigan’s energy mix today.

As Michigan sought alternatives to coal-fired power plants in the late 2000s, biomass energy emerged as a controversial solution. Proponents argued that burning wood waste was carbon-neutral and supported local economies. Critics questioned whether it was truly green — and whether it made economic sense.

Michigan’s Coal Problem

In 2010, Michigan faced a stark reality: the state was dangerously dependent on imported coal.

7th most coal-dependent state in the US (2010)

$1.4B spent on coal imports annually (2008)

A Union of Concerned Scientists report in May 2010 highlighted Michigan’s vulnerability: billions of dollars were flowing out of state to buy coal, while local energy resources went untapped.

The Biomass Alternative

Woody biomass presented an appealing alternative. Michigan’s abundant forests and lumber industry created a steady supply of potential fuel:

Biomass Fuel Sources

Tops and limbs left over from timber harvest
Bark, sawdust, and wood chips from lumber mills
Urban wood waste and tree trimmings
Low-value wood fiber unsuitable for lumber
Forest thinning materials for fire prevention

Economic Benefits for Rural Michigan

Supporters argued that biomass plants would provide multiple benefits to Michigan’s struggling rural communities:

Local Economic Impact

A single biomass plant like Cadillac Renewable Energy employs 22 people directly at the facility, plus creates more than 90 additional full-time jobs for handling, processing, and transporting up to 400,000 tons of wood annually from local vendors.

“Using Michigan energy sources, such as wood, keeps more money local and particularly benefits rural economies across the state.” — MSU Extension Biomass Report

Michigan’s Biomass Plants

Several biomass facilities were established in northern Michigan, taking advantage of the region’s forestry industry:

Cadillac Renewable Energy

Location: Cadillac, Michigan
Capacity: 38-40 MW
Operational Since: 1993
Power For: Approximately 26,000 homes
Fuel Use: Up to 400,000 tons of wood annually

Grayling Generating Station

Location: Grayling, Michigan
Capacity: 38 MW
Service Area: Northern Michigan
Operational: Over 25 years

Genesee Power Station

Location: Near Flint, Michigan
Capacity: 40 MW
Fuel: Wood waste from automotive and furniture manufacturers

The Environmental Debate

Not everyone agreed that biomass was truly “green.” The debate centered on several key questions:

Arguments For Biomass

Carbon Neutral: Trees absorb CO2 while growing, theoretically offsetting emissions when burned
Waste Utilization: Uses materials that would otherwise decompose and release methane
Dispatchable: Unlike wind and solar, can generate power on demand
Local Jobs: Supports rural economies and forestry workers

Arguments Against Biomass

Air Pollution: Burning wood releases particulates and pollutants
Carbon Timing: Emissions are immediate; regrowth takes decades
Forest Impact: May incentivize unsustainable logging practices
Efficiency: Less efficient than other renewable sources

The 2009 NRDC Report

In August 2009, the Natural Resources Defense Council released a Synapse Energy study that influenced the debate:

Key Finding

The report concluded that Michigan could meet all of its energy needs through “a combination of wind power, biomass, and other sources of renewable energy coupled with aggressive energy efficiency programs.”

This suggested biomass could be part of a broader renewable energy strategy — not a complete solution on its own.

Where Things Stand Today

Michigan’s energy landscape has changed dramatically since 2010:

1.6% of Michigan electricity from biomass (2023)

33 biomass plants in Michigan

480 MW total biomass capacity

2023 Michigan Energy Mix

Natural Gas: 44.9%
Nuclear: 21.1%
Coal: 20.6% (down from ~50% in 2010)
Wind: 7.8%
Biomass: 1.6%
Solar: 1.5%
Other: 2.5%

Challenges Facing Biomass

Recent years have been difficult for Michigan’s biomass industry:

“Two of the five remaining wood-fired biomass energy plants in the Lower Peninsula may close in the coming months, raising questions about the energy source’s future as it attempts to compete with cheaper wind, solar, and natural gas.” — Michigan Energy News, 2024

In 2024, the Michigan Public Service Commission rejected proposals to close biomass plants and replace them with solar, arguing that losing dispatchable power sources posed “an unacceptable level of risk” to grid reliability.

Related Coverage

Michigan’s Clean Energy Future

Learn about Michigan’s renewable energy goals and how different sources contribute at the Michigan Public Service Commission.