Biomass Power Would Benefit Florida's Economy
August 13, 2010
BY Rona Johnson
I always experience a type of high after attending a biomass conference, probably because I'm surrounded by people who believe as I do that this is an exciting time for the industry. Despite the shadow of the bad press that followed the Manomet Center for Conservation Sciences study, I felt that same sense of excitement after the Northeast Biomass Conference & Expo that was held last week in Boston.
My spirits were boosted once again when I read a press release about a University of Florida researcher who compared the economic benefits of locally produced food with locally produced wood as fuel for power plants.
Alan Hodges, an extension economist with the University of Florida's Institute of Food and Agricultural Sciences, was a presenter at the 2010 Farm To Fuel Summit held Aug. 11-13 in Orlando, Fla.
In his presentation, Hodges pointed out that Florida currently has 23 power plants that use biomass for fuel, and that biomass makes up 1 percent of the electricity generated in the state, according to a press release from the University of Florida written by Tom Nordlie. Hodges said that increasing the amount of biomass-based power in Florida would raise the state's gross domestic product, increase employment opportunities and benefit the timber industry.
Hodges suggested that if state could produce another 40 million tons of woody biomass-based electricity each year that would meet 11 percent of the state's electricity needs, according to U.S. DOE estimates.
That extra 40 million tons of biomass would increase the state's gross domestic product anywhere from $850 million to $2.2 billion above 2007 levels, depending on the how much was invested in the industry. "Under this scenario, the state's forest products industry would have to ramp up its output anywhere from 35 to 70 percent, resulting in additional revenues of $1.5 billion to $2.8 billion," Nordlie wrote.
Hodges also pointed out that this activity would result in a 73 percent boost in employment demand in the forest sector and the amount paid to those employees would increase by $1.6 billion.
I believe that Hodges was talking about the Biomass Crop Assistance Program when he said that federal subsidies that reimburse power plants up to $45 per dry ton for biomass purchases would increase the state's gross domestic product by $3.5 billion.
According to the UF press release, Hodges estimates were based on an economic impact analysis conducted by the university and Florida Division of Forestry experts and ordered by the governor and the state legislature.
For more information on this study, visit the Florida Division of Forestry's website at http://www.fl-dof.com/.
My spirits were boosted once again when I read a press release about a University of Florida researcher who compared the economic benefits of locally produced food with locally produced wood as fuel for power plants.
Alan Hodges, an extension economist with the University of Florida's Institute of Food and Agricultural Sciences, was a presenter at the 2010 Farm To Fuel Summit held Aug. 11-13 in Orlando, Fla.
In his presentation, Hodges pointed out that Florida currently has 23 power plants that use biomass for fuel, and that biomass makes up 1 percent of the electricity generated in the state, according to a press release from the University of Florida written by Tom Nordlie. Hodges said that increasing the amount of biomass-based power in Florida would raise the state's gross domestic product, increase employment opportunities and benefit the timber industry.
Hodges suggested that if state could produce another 40 million tons of woody biomass-based electricity each year that would meet 11 percent of the state's electricity needs, according to U.S. DOE estimates.
That extra 40 million tons of biomass would increase the state's gross domestic product anywhere from $850 million to $2.2 billion above 2007 levels, depending on the how much was invested in the industry. "Under this scenario, the state's forest products industry would have to ramp up its output anywhere from 35 to 70 percent, resulting in additional revenues of $1.5 billion to $2.8 billion," Nordlie wrote.
Hodges also pointed out that this activity would result in a 73 percent boost in employment demand in the forest sector and the amount paid to those employees would increase by $1.6 billion.
I believe that Hodges was talking about the Biomass Crop Assistance Program when he said that federal subsidies that reimburse power plants up to $45 per dry ton for biomass purchases would increase the state's gross domestic product by $3.5 billion.
According to the UF press release, Hodges estimates were based on an economic impact analysis conducted by the university and Florida Division of Forestry experts and ordered by the governor and the state legislature.
For more information on this study, visit the Florida Division of Forestry's website at http://www.fl-dof.com/.
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