Challenges and Opportunities for the Northeastern Forest Bioindustry

1 Introduction 2 In recent years, rising and increasingly volatile energy costs have combined with 3 growing concerns over global climate change to fuel interest in the development of carbon-4 neutral, sustainable energy sources. Throughout the U.S. and abroad, a host of policies and 5 research initiatives are in progress to address economic and technological barriers that 6 restrain the transition to a sustainable " bioindustry. " In the U.S., the Energy Independence 7 and Security Act (EISA), passed in December of 2007, mandates a 5-fold increase in biofuel 8 production over the next 15 years, with 60% (22 billion gallons/year) to be derived from 9 cellulosic or non-corn feed stocks – including woody biomass. 10 Producing sufficient feedstock for the challenge ahead has spurred a growing 11 number of studies on biomass availability. Perlack et al. (2005) found that for the U.S. as a 12 whole, the largest potential share of sustainable feedstock will continue to be derived from 13 crop residues (446 million dry tons (mmdt/year)), followed by perennial crops (377 14 mmdt/year) and forest and wood residues (370 mmdt/year). This is not to suggest that the 15 only renewable energy options for the Northeast U.S. will be from biomass for, as identified 16 by Short (2008), several other sources should be considered including solar, wind, and water. 17 If the above projections are true, however, it is likely that biomass harvested directly from 18 the forest will play an important role in creating and sustaining the bioindustry. 19 The seven states of the Northeastern U.S. and Vermont) have abundant forest resources and an 21 established forest sector. The emerging bioindustry offers great opportunities in using these 22 resources to offset energy needs, but realizing this potential will take a coordinated effort by 23 both the public and private sectors. This paper examines the opportunities and challenges 24 the Northeastern U.S. faces in using forest biomass as a feedstock for the emerging forest-25 based bioindustry. We first summarize proven and " near-to-market " forest-based processes 26 and technologies, and then highlight key aspects of the region's forest resources. These 27 issues provide the framework for the bioindustry, but many other critical pieces must be in 28 place before this industry can develop in a sustainable manner. We show that careful 29 consideration must also be given to feedstock specifications, existing facilities and 30 infrastructure, forest operations, public policy, …