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The Energy Futures Market and the Forest Industry
Last week INRS’ Eric Kingsley spoke at the Forest Resources Association’s Northeast Forest Forum in Brewer, Maine about the current energy pricing outlook, and what it means for the forest products industry. What’s going on in diesel, home heating oil, natural gas and electricity pricing all impact either operating costs or market dynamics (or both). Opportunities and challenges are on the horizon, if the futures market is any indication. See the entire presentation here. |
522 World Scientists Support Climate Smart Forest Management & Use of Woody Biomass for Energy
On October 27, 2022 522 world scientists wrote a joint letter to European Commission President Ursula von der Leyen, European Parliament President Roberta Metsola and European Council President Charles Michel urging them to support active forest management and use of wood for building products and energy as part of the EU's climate mitigation efforts. This group of distinguished scientists recognize the important role that forests must play in worldwide climate mitigation and that leaving forests alone is not the answer. Read the entire letter at https://www.dropbox.com/s/fozb4k2hnc3pj2z/Scientist_Letter_climate_smart_forest_management.pdf?dl=0 |
ANEW buys The Forestland Group 1.7 million acres of eastern US holdings for carbon
Anew Climate, LLC ("Anew") announced on November 2 the acquisition of entities managed by The Forestland Group ("TFG"), which includes a 1.7-million-acre timberland portfolio. This includes the Connecticut Lakes Headwaters property in northern New Hampshire. Anew, formerly Blue Source, is a company focused on accelerating the fight against climate change by enabling companies and organizations to align their goals for conservation and impact with actionable next steps. Anew has a comprehensive portfolio that includes advisory services, carbon credits, renewable natural gas, renewable energy credits, EV credits, plastic credits, and emission reduction credits. The company has offices in the U.S., Canada, and Europe, and an environmental commodities portfolio that extends across five continents.
"Forests, sustainably managed, are and will be a major climate mitigation tool with substantial benefits to local ecosystems and communities," stated Bill Townsend, Chief Strategy Officer, Anew. "Change at this scale requires equal dedication from buyers seeking the highest quality carbon credits. With the help of several significant global investment firms, led by OHA, and the shared commitment to the climate by carbon market participants, environmental finance has made a significant stride in furthering climate action through nature-based solutions," Townsend said. |
Maine Supporting Biomass Combined Heat and Power Projects
The Maine Public Utilities Commission released an RFP for combined heat and power projects utilizing biomass energy. This is modelled after a similar program several years ago that resulted in Maine Woods Pellets (Athens Energy) and Robbins Lumber (Georges River Energy) receiving power purchase agreements (PPA) for their manufacturing-sited biomass plants. A few key items:
- For projects from 3 – 10 MW in size;
- Need to use wood fuel, and some preference for mill residuals from on-site;
- PPAs of up to 20 years (you set the term, with 20 years as the longest option)
- A rate of up to $100 per MWh (10 cents per kwh)
This presents a unique opportunity for Maine forest industry manufacturers to have on-site electricity generation, a guaranteed outlet for residuals, and mitigate volatile electricity prices. More details can be found at the PUC web link here - https://www.maine.gov/mpuc/regulated-utilities/electricity/rfp-awarded-contracts/combined-heat-power |
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