Greater use of wood residue fuels through improved financial planning: A case study in Alabama

Abstract

As the world reacts to environmental concerns relating to fossil energy usage, emphasis is again placed on greater use of renewable fuels such as wood residues. Realistically, however, decisions to utilize such fuels are based on economic factors, rather than desires to improve U.S. energy independence and/or protect the environment. Because Alabama has a large forest products industry, state authorities have long sought to assist potential users of wood residue fuels to better use biomass fuels instead of the usual alternative: natural gas. State agency experience in promoting commercial and industrial use of wood residue fuels has shown that inadequate financial planning has often resulted in rejection of viable projects or acceptance of non-optimum projects. This paper discusses the reasons for this situation and suggests remedies for its improvement.