Will woody biomass markets result in stems normally used for conventional forest product markets being used for energy?

Conflicts between traditional forest industry and the emerging wood-based bio-energy industry are inevitable, have already emerged, and have two main nuances: (1) competition between existing consumers of woody biomass and new entrants; and (2) the directing of pulpwood and mill residues into various bio-energy products, either because of their favorable characteristics or because of their convenient availability. On point (1), conventional forest industry, which uses woody biomass for its own internal power generation, finds itself compelled to compete against new entrants to the bio-energy market that are able to take advantage of certain subsidies unavailable to conventional industry; and protests an "unlevel playing field" in competition for the resource. On point (2), there are, in fact, many bio-energy products--pellets for the home market and enzymatic cellulosic ethanol, to name two--that require the same "clean" feedstock that conventional pulp producers do and compete directly for it. In addition, other processes, that may not require "clean" wood, nonetheless perform better with it and so some degree compete in the market for it. In general, conventional forest industry objects, not to new market entrants, but to the competitive advantages these new entrants enjoy, based on subsidies directed specifically to them.

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