Estimating the Economic Impacts Generated by Small-Scale Wood Pellet Manufacturing in Western North Carolina

Abstract

In an effort to identify opportunities for regional economic development for western North Carolina, this study investigated the economic impacts generated by collocating a 10,500-ton/yr wood pellet mill alongside a 10-million board foot hardwood sawmill in the Asheville–Brevard combined metropolitan statistical area. Using the analysis-by-parts methodology within the input–output analysis framework, a custom production function was built to describe a small-scale pellet manufacturing facility operating alongside a hardwood sawmill. The additional economic effects generated by a pellet mill collocation are described, along with upper and lower bounds that represent potential variability in the estimates caused by raw material price fluctuation. Last, the impacts generated by the collocated mills are compared with a similar increase in demand distributed among all forest products manufacturing sectors existing within the study area. The study found that wood product firms existing within the region had the opportunity to utilize excess woody biomass for pellet production and could diversify their product lines, create additional jobs, and stimulate value-added economic activity for the region.

Industry survey of wood waste markets in Ohio

“…Over the past few decades, studies have examined the economic impact and viability of using wood waste for biofuels and energy production (e.g. Jackson et al 2018; Lester et al 2015; Henderson et al 2017; Scouse et al 2017). Studies of the Appalachian region of the U.S., in particular, have suggested that wood waste could be co-fired in the area's numerous coal-fired power plants (Arnette and Zobel 2011; Williamson 2011).…”

A Cost Analysis of Mobile and Stationary Pellet Mills for Mitigating Wildfire Costs

“…A 90,000-tonne pellet mill was selected for assessment as the traditional pellet mill option as it is representing a possible option for a new pellet mill in the area based on available feedstock. Wood pellets produced in North America sell for $180 -220 tonne −1 , with estimates of production costs being $100 -140 tonne −1 [7]. An average pellet mill in British Figure 2.…”