OUTLOOK¦ Action What benefits of your industry sector will you be emphasizing in order to gain support from Congress in 2012, and why? Niebling: Jobs, jobs, jobs; rural economic development; energy independence and security—these are the key talking points for biomass thermal going forward. Cleaves: It’s all about jobs. Biomass is base-load power, and job intensive. The payback for the public’s support of this industry is immediate and meaningful.
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Outlook What is your outlook on the biomass power and thermal industries in 2012 and what, if any, major developments or happenings do you expect? Niebling: With continued high oil and propane costs, I expect robust growth in this sector in 2012—with or without support from government. I expect commercial- and industrial-scale heating and combined-heat-and-power projects to get real traction in 2012. With these larger projects will come critical mass in the marketplace that will enable greater access by residential consumers, too. High capital cost of fuel switching will continue to be our greatest challenge. Cleaves: We continue to be optimistic about the industry. Natural gas markets and shifting political winds in Washington, D.C., have forced all renewable technologies to rethink how we present our benefits to policymakers and the market generally. Fundamentally, and this is particularly true with base-load forms of renewable energy like biomass, it’s all about energy diversity at an affordable price for the ratepayer while providing economic benefits and other ancillary benefits like healthy forests. We are confident that this message is a compelling one. What factors are affecting your industries now, and do you see them continuing or changing in 2012? Niebling: I do see political support for biomass thermal growing as our elected leaders come to more fully appreciate the economic and environmental benefits of reducing our reliance on imported fossil heating fuels. I see a challenging transition from getting projects done without the benefit of public grants (stimulus funding) that is drying up at the federal and state level. However, I think the understanding of favorable payback economics is growing. Hopefully with a strengthening economy and stronger consumer confidence, we will see homeowners and businesses investing capital again in projects that will save them lots of money in the future—and strengthen their community at the same time. Cleaves: We would like to see greater regulatory certainty at EPA, and anticipate that 2012 will see clarity on Boiler MACT, the solid waste rule and the Tailoring Rule. Author: Lisa Gibson Associate Editor, Biomass Power & Thermal lgibson@bbiinternational.com (701) 738-4952
DECEMBER 2011 | BIOMASS POWER & THERMAL 35