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2010 Wood Biomass PoliMulti-Client Study

NEW PUBLICATION! A comprehensive analysis and review of U.S. and European wood biomass policies.

RISIs study, 2010 Wood Biomass Policy Review, provides a concise review policy drivers influencing development of the biomass energy sector in the UReport will provide a profile of the renewable energy sectors in the US and Eevolution of renewable energy policies, will reveal lessons learned and probiomass energy is likely to develop in the future.

RISIs 2010 Wood Biomass Policy Review provides:

A detailed energy profile for the U.S.and Europe, which places the demand for woody biomass energy in context oftheir overall energy sectors and othercompeting renewable energy forms.A comprehensive and balanced reviewof renewable energy policies in Europe,and their likely impact in drivingdemand for wood pellets and/orwoodchips imported from the UnitedStates.A thorough review of existing andpending federal and state regulationsand support mechanisms in the U.S.,which are driving the development ofbiomass energy in the country.An analysis of the likely impacts ofgovernment policies in the US andEurope on biomass industry

development; underlying policyobjectives and how these will impact future changes in the sector; expectedoutcomes the likely winners andlosers; and expected trends inbiomass wood demand.

European Wood Pellet Imports fromNorth America

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Pellet exports to Europe at record levels in 2009

BCAP Registered Biomass Conversion Facilities byType, Dec. 2009

End-Users16%

Wood Products14%

Pulp and Paper31%

Utility25%

Pellets14%

Pulp & Paper companies have been quick to sign u BCAP

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State, Federal and International Renewable Energy Policies, what this all means for woodbiomass demand:

State and federal agencies in the US have enacted or proposed dozens of policies either directly or indireaimed at pushing the biomass energy movement forward at an extraordinary pace. At the same time, poliEurope appear to be pushing utilities there towards importing large quantities of chips or wood pellets, wcould add stress to the US wood fiber supply/demand balance. But how much of new renewable energy will realistically be based on wood? Individuals and corporations playing (or hoping to) in this space area concise, realistic review of these policies to mitigate the risks of their current or proposed investments.amount of information on this subject is overwhelming for anyone trying to quickly develop an accurateperspective on the sector this report will serve as the first and only comprehensive review of US and Ewood biomass energy related policies.

Note: Canadian prices are FOB sawmill, US prices are deliveredSource: Wood Biomass Market Report

Pellet Grade Wood Fiber Prices, Softwood,December 2009

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EU and USA: Gross Electricity Generation from Biomass

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USA Europe

EU27 and USA: Gross Electricity Generation from Biomass,1996 - 2007 Pellet prices in North America vary widely by region

Who should purchase RISIs 2010 Wood Biomass Policy Review:

Major forest owners seeking to understand the long-term demand for woody biomass energy, how qudevelop and how sustainable it will be.Pulp and Paper companies, looking at competition for fiber and/or possible opportunities for expandiproduction.Equipment suppliers, wanting perspective on the demand for specialized harvesting equipment, chippelletizing equipment, etc.Power companies developing or considering biomass power facilities.Companies involved in developing large wood pellet plants (for export).Banks, hedge funds, and other investors needing perspective on biomass energy development and the

involved.Transport companies both rail companies looking at transporting pellets, chips, biomass for energyUS and shipping companies looking to transport chips/pellets to Europe

Related Multi-Client Studies from RISI:

South American Tree Farm Update(www.risi.com/satreefarm) Emerging Biomass Industry: Impact on Wood Fiber Markets(www.risi.com/biomass)

http://www.risi.com/satreefarmhttp://www.risi.com/satreefarm

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TABLE OF CONTENTSExecutive Summary

Introduction

US Biomass Energy Profile US Energy Sources Biomass vs. other renewables Forest products industry and wood-based energy Outlook for woody biomass energy production Planned vs. existing capacity for biomass power by region Planned vs. existing capacity for wood pellets, by region Planned new wood demand, by region, biomass power and pellets Long-term biomass demand, wood vs. other biomass Price trends for pellet-grade and biomass fiber

US Biomass Policy Drivers - Existing Structure History and underlying objectives of policy drivers Current Key Legislation and support programs and how they influence biomass energy development Black Liquor Tax Credit and BCAP Federal Renewable Fuels Standard State Renewable Portfolio Standards

US Pending Legislation Climate change legislation National Renewable Portfolio Standard Other Energy-related initiatives EPA and carbon regulations

Europe Biomass Energy ProfileEuropean energy sources Biomass vs. Other RenewablesBiomass heat and power and biofuelsEuropean wood pellet market production, consumption, imports & prices Outlook for biomass and pellet demand in Europe

Europe Biomass Policy DriversUnderlying Objectives of European Energy Policy2009 Renewable Energy Directive Targets and Action PlansEuropean Trading Scheme and Carbon Dioxide EmissionsIssues: Sustainability criteria, trade issues, and shifting biomass policies

Support mechanisms for renewable energy in Europe

Summary and Key ConclusionsKey lessons from Europe and US history of renewable/biomass energy development.Issues still to be resolvedPotential winners and losers

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