Markets - Industrial

Driven by new public policies embracing CO2 reduction and renewable energy, coupled with the rising costs for fossil fuels and their limited supply, wood pellets will begin to emerge as a viable fuel substitute for industrial power generation. WOODSTONE will capitalize on this by developing relationships with key industrial customers in order to supply them with this viable alternative. The following forces will drive the industrial pellet market:

Green Incentives

As public policy continues to change, we will witness a rising demand for renewable energy in the industrial marketplace. Increasingly, industrial and private power generators are given incentives to produce energy from a "green" fuel source. Wind farm and solar energy projects cost tens of millions of dollars in development in order to produce the first kilowatt-hour, whereas pellets can be co-fired with coal to produce energy immediately.

Viable Substitute

Because of their energy density characteristics, wood pellets are well suited for co-firing in coal-fired power generation plants. The last several years in Europe have shown that regulations increasingly require power producers to co-fire with biomass in order to reduce their net CO2 emissions. WOODSTONE expects similar developments to take place in the US and will be well positioned to capitalize on their inevitable demand.