The Kenan Institute, in partnership with the NC Biofuels Center, has released a report on NC’s role in global biomass market, specifically exports of wood pellets. The main driver for the growth of this industry in NC is demand from Europe for a lower climate impact alternative to fossil fuels.
While there is no mandated EU target specifically for biomass, it currently contributes the highest proportion of renewable energy for the combined sectors of electricity, heating, and transportation in Europe—more than solar or wind. Despite this dominance, biomass for heat and power will likely need to double between 2010 and 2020 for the EU to achieve its targets. The Kenan Institute reports that a precise prediction of future NC exports is difficult because of incomplete country-level EU biomass regulations, rapid increase in EU demand, proliferation of new US pellet facilities, and underutilization of installed capacity. The report does show that Eastern North Carolina forests could sustain seven additional large pellet plants; however, the regulatory risk to the US pellet industry is contingent on EU and UK regulations. Future competition for wood products may also endanger the prospect.
