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WoodPelletsANEWPRIMARYPRODUCTWhereProfitabilityAndSustainabilityMeetOverviewThedebateoverthesustainabilitycost-effectivenessandcarbonfootprintofwoodybiomasshasnotpreventedwoodpelletproductionfromcontinuingahealthyupwardtrend.Growthisspurredbymandatedpolicyandpublicsupportschemes.Newplantsarecomingon-linewithaboomin500000-ton-plusplantsintheSouthforcommercialexport.Theinternationalmarkethasalsoincreasedmorethan200percentbetween2002and2006shootingglobalproductionfrom8milliontonsin2007tomorethan13milliontonsin2009.AmericanandCanadianMarketsandTrendsAsurgeinNorthAmericanwoodpelletproductionanduseoriginallyoccurredfollowingtheOPECoilembargoof1973andagainafterHurricaneKatrinain2005.TheNorthAmericanWoodFiberReviewreportsthatU.S.andCanadianpelletproductiongrewfrom1.1milliontonsin2003to6.2milliontonsin2009.Residentialstoveandboilermarketsareexpectedtocontinuegrow-ingalongwithadvancesincleantechnologyawarenessandconsumerdesireforalternativesandcostsavings.ThecurrentU.S.demandforresidentialpelletsisabout2milliontonsayearwhichequatestoabout60percentofproductioncapacityconsumeddomesticallyandtheremaining40percentexportedaccordingtoRobDavisForestEnergySystemsandformerpresidentofthePelletFuelsInstitute.Wood-For-EnergyPotentialAtpresentbiomassprovidesabout4percentofthecountrystotalenergyusex148500megawattsannually.ForestProductsLabx1cNorthAmericasWoodPelletSectorx1dreportclaimsthereisenoughwoodreadilyavailableintheU.S.toprovideupto10percentofthenationsenergyusefromwood.AccordingtoDenhamCapitalby2015theworldwidepelletmarketpotentialis142milliontonsatavalueof2.8billion.InhisStateoftheUnionaddressonJan.252011PresidentObamasetagoalthat80percentofAmericaselectricitybeproducedfromx1ccleanenergysourcesx1dby2035.TheE.U.hasalsomandated20percentofenergyconsumptionmustcomefromrenewableresourcesby2020.Bloomberg2010NewEnergySurveyIn2010theworldinvested243billionincleanenergyaccordingtoBloombergNewEnergyFinance.Thatsfivetimesthe51.7billioninvestedin2004.Highlightsincluded1.RDbycompaniesandgovernmentshitrecordlevelswithgovernmentscontributing21billionofthe35.5billioninRDoutlays.2.Venturecapitalandprivateequityreboundedtopost8.8billionindealsx14a28increaseover2009.3.2010Biomassandwaste-to-energyfunding11.6billion.SourceTheUSDAForestServiceandU.S.EndowmentforForestryandCommunities.GlobalProductionofFuelPellets2000-2015SourceVarioussourcesasreportedbyHillringetal.2007Hillringetal.2008.142milliontonsforecastfor2015