Printer Friendly

US DEMAND FOR BIOMASS ENERGY AND RAW MATERIALS WILL INCREASE 8.5% ANNUALLY THROUGH THE YEAR 2005.

Demand for biomass energy and raw materials -- excluding biomass used for captive industrial applications such as process heat -- is expected to reach $2.8 billion in 2005, an annual gain of 8.5 percent. The fastest growth by far will occur in the market for biomass transportation fuels, which will be spurred by cellulosic ethanol capacity coming online, production cost reductions and legislative incentives for biodiesel consumption. Despite aggregate price increases due to the introduction of dedicated crops, raw material demand will also experience rapid growth as energy companies seek to build a reliable feedstock supply from a small base. These and other trends are presented in Biomass Energy, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Electric power generation will remain the dominant end use for biomass, with respectable growth anticipated in light of uncertain oil markets and more efficient feedstock collection and incineration; this trend is in contrast with the decline in biomass power during the 1990s that occurred as a result of the nearly continuous availability of inexpensive oil and gas. State-level emission control legislation will continue to spur power plants to increase biomass capacity. The private nonutility sector will be especially active in continuing to take preemptive steps to bring additional biomass-based wattage online.

Biomass-based fuels will experience stellar growth in the coming years, with volume growth anticipated to exceed 50 percent per annum through 2005. Biomass ethanol will be the lead product, as federal grants to reduce production costs bear fruit and volatile US corn prices make non-corn feedstocks economically viable. Biomass ethanol will also benefit from factors affecting the larger ethanol market: federal and state tax subsidies, MTBE phaseouts and further development of refueling station infrastructure. Biodiesel is also expected to post extraordinary gains from a small base, largely as a function of legislative initiatives designed to promote manufacture and consumption as well as an ongoing glut in world soybean oil markets.

The northwestern, western and southeastern US will see the strongest gains in biomass energy demand. Growth in these areas will be attributable to a combination of new and existing biomass power capacity as well as ready access to biomass feedstocks that will make fuel and power production more logistically feasible. Moderating near-term demand in California and the Northwest will be ongoing turbulence in the electric power sector, which will continue to make consideration of price the dominant factor in electricity production.
BIOMASS ENERGY DEMAND

(million dollars)

 % Annual Growth
Item 2000 2005 2010 05/00 10/05

Biomass Energy Demand 1878 2830 5025 8.5 12.2
 Grid-Connected Electric 1668 2095 2900 4.7 6.7
 Power
 Transportation Fuel 61 470 1580 50.4 27.4
 Raw Materials 149 265 545 12.2 15.5

Biomass Power Demand 24.4 30.3 40.4 4.4 5.9
 (bil k Wh)

Freedonia Group, Inc. (Cleveland, OH)



Biomass Energy (published 5/2001, 208 pages) is available for $3,700 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.
COPYRIGHT 2001 Subscription: $00.00 per year as of 1/94. Published irregularly. Contact Freedonia Group, 3570 Warrensville Cente
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Comment:US DEMAND FOR BIOMASS ENERGY AND RAW MATERIALS WILL INCREASE 8.5% ANNUALLY THROUGH THE YEAR 2005.
Publication:Research Studies - Freedonia Group
Geographic Code:1USA
Date:May 24, 2001
Words:531
Previous Article:US POWDER COATINGS DEMAND TO INCREASE 8% ANNUALLY THROUGH THE YEAR 2005.
Next Article:US HARD SURFACE FLOORING DEMAND TO EXCEED ONE BILLION SQUARE YARDS IN THE YEAR 2005.
Topics:


Related Articles
Energizing wood power: replacing fossil fuels in a "clean energy" economy.
Forest products biorefinery: technology for a new future.
New York [love]'s ethanol.

Terms of use | Privacy policy | Copyright © 2022 Farlex, Inc. | Feedback | For webmasters |