Energy companies in Europe show increased interest in sourcing biomass from the US South

Energy companies in Europe show increased interest in sourcing biomass from the US South

This expanding green energy sector is situated within a stronghold of the traditional southern pulp industry with seven pulpmills within this Southeastern sub-region. The high concentration of wood fiber consumers within a fairly limited area has pushed wood costs higher the past few years. Pine stumpage prices have increased faster in this region than the average price across the South. In the 2Q/2010, prices were more than 50 percent higher than two years ago. With the expected increase in wood consumption by the energy sector in this sub-region it is likely that pulpwood costs will continue to be higher in this sub-region than the average for the US South.

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