POLICY¦ ration, as well. The delivered price of that wood is about $25 per ton. “Logging contractors are going to be directly impacted if these plants shut down,” Johnson says. “It will severely curtail their operations. They have a lot at stake.” The trickledown effect is much greater than with natural gas operations because the feedstock is locally sourced and consumed, he adds. Together, the four plants employ between 400 and 500 people, including the feedstock suppliers in the woods. Studies have shown that the impact of the four biomass facilities to the state is around $50 million including fuel and wages, but Johnson says that’s conservative and is closer to $70 million. “That’s a significant chunk of change that will disappear from the economy,” he says. Whatever the solution to the looming closures, it needs to take effect soon to preTrickledown The shuttering of the plants would vent significant adverse impacts to the state, have an enormous impact on the state of New Hampshire, not the least of which falling on the loggers and feedstock providers, thus the push from the timber industry to solve the problem. “Those power plants consume a tremendous amount of lowgrade wood and that’s of concern to me as a logging contractor,” Johnson explains. “If I can’t get all the low-grade wood on a typical harvest, then I’m forced to take only the nicer wood in order to make that a profitable operation.” An ideal split for a timberland owner is one-third low-grade wood, one-third mid-grade and one-third high grade, he says. But more often than not the composition is 50 to 60 percent low-grade wood. It can be used for pulpwood or cordwood, but most is only used in whole tree chips. “If we’re going to sustain and continue to grow good wood, we need to have a market for the low-grade wood that comes out of a typical forest in New England,” Johnson says. Each of the state’s six independent biomass power plants use around 200,000 tons of wood annually, which is a large portion of the wood supply, he says, adding the two plants still under long-term power agreements are teetering on contract expino solution has been found because it is a real challenge.” In fact, a number of discussions seem to be underway with multiple organizations pulling state senators and even Gov. John Lynch into the mix to help find that solution. The New Hampshire Timberland Owners Association has held a series of meetings to address the problems, drawing about 200 people to a mid-February gathering designed to discuss options to support the plants, according to the association’s program director Eric Johnson. “We’re fortunate we’re a small state and access to politicians is pretty readily available,” he says. “A lot are small business owners themselves and understand the risks, investments. A lot have taken the perspective that this is a small business issue.”
not to mention the loss of hundreds of jobs for working families. The issue has been front and center for Johnson in his work for the association for the past three or four months he says. “It has the potential to be a huge issue for us if these plants shut down. It will have a big impact on the working forest and our members.” O’Leary exudes hope for a timely resolution and continuance of biomass operations in New Hampshire. “We’re optimistic that the load-serving entities in the state will recognize the importance of in-state generation and the economic impact of this industry.” Author: Lisa Gibson Associate Editor Biomass Power & Thermal (701) 738-4952 lgibson@bbiinternational.com
JUNE 2011 | BIOMASS POWER & THERMAL 55