Featured research in the September/October edition of Wood Bioenergy US by Forisk Consulting (Athens, Ga., USA) analyzes the impact of wood bioenergy markets on forecasted pine pulpwood prices by state in the U.S. South. Quantifying the relationships between state-specific timber prices, wood demand, and end product production provides a means for ranking local timber or wood markets based on where prices or wood costs respond "faster" or "slower" due to changes in housing, local competition, mill efficiency, and forest supplies. This research confirms how a key driver of pine pulpwood prices remains the project and market-specific assumptions related to wood bioenergy, Forisk notes.

 

The results account for total pine pulpwood demand from three categories:

• Paper and paperboard, which includes all paper, containerboard, and cardboard types produced in the U.S.
• Oriented strand board (OSB), which tracks increased production of a key building product tied to housing markets.
• Wood use for bioenergy, which includes current demand from open and operating facilities, as well as projected use from Forisk's screening of all announced wood bioenergy projects in the U.S.

On average for the U.S. South, 71% of the increase in pine pulpwood stumpage prices is associated with increased demand from viable wood bioenergy projects. Pine pulpwood demand from bioenergy is projected to increase by 302% in the U.S. South by 2023, while average pine pulpwood prices are projected to increase 32%. At the state-level across 11 states, pine pulpwood stumpage prices are projected to increase anywhere from 1% to 100%.

 

WBUS Market Update: As of October 2014, Wood Bioenergy US counts 460 announced and operating wood bioenergy projects in the U.S. with total, potential wood use of 137.2 million tpy by 2023. Based on Forisk analysis, 301 projects representing potential wood use of 88.4 million tpy pass basic viability screening.

A free copy of the WBUS summary is available online.