Forest Biomass Feedstock Availability and Economic Contribution of Biopower Facilities in the Lake States Region

Abstract

Abstract The Lake States (MI, MN, WI) region holds 54.8 million acres of forest and offers the potential to meet the increasing demand for sustainable energy through forest biomass. The objective of this study is to estimate the annual availability of biomass, after considering the sustainability threshold, for a wood price and its economic impact in the Lake States region. This study identified twenty-seven active power facilities using biomass in addition to oil, gas, and coal, with a total capacity of 3.85 million MWh per year. They consumed 2.80 million dry tons of biomass in 2019. At the current delivered wood price, an additional 9.72 million dry tons of biomass is economically available, which, if used, would generate an additional 11,112 jobs (1,583 direct and 9,529 indirect and induced), $1.54 billion in value added ($803 million direct and $733 million indirect and induced), and $2.71 billion ($1.46 billion direct and $1.25 billion indirect and induced) in total output. Operating at least one-third of the existing capacity for biomass-based power generation would add 1,969 jobs, $293 million in value added, and $413 million in total output. The expansion of the biomass biopower industry has the potential to significantly increase economic impact, especially in rural areas. Study Implications: Mapping procurement zones for resource allocation using delivered wood prices for biomass helps identify the economic availability of biomass for electric power production in the Lake States. Our results establish the market extent for biomass and identify potential areas where investment in biopower production or capacity upgrade is feasible. This study also provides insight into the economic impacts of additional biomass utilization to produce power. Most of these impacts would come about in rural areas, improving economic growth in these communities. A combined analysis estimating the potential supply and demand and the economic effects of biopower industry expansion provides valuable insight into decision-making for state forest action plans and private sector forest management plans. Furthermore, the findings from this study will help inform effective regional policy and investment decisions on biomass power industries. The method used can also be tailored to a specific facility to estimate its procurement zone, feedstock availability, and economic impacts.