Fluctuations in fossil fuel prices and increasingly stringent environmental controls continue to provide opportunities for the growth of the U.S. biomass power industry. The rapidly changing nature of the U.S. electric industry offers opportunities for nonconventional power sources to enter the field. It represents one option that can meet two objectives that often conflict: environmental protection and economic development. The intent of this report is to highlight the domestic market opportunities for biomass power. The report begins with a brief overview of the current state of the U.S. biomass power industry and then discusses how tax policies and the 1996 Farm Bill influence its development. The next section describes a few of the promising demonstration biomass power projects and continues with an overview of the largest group of biopower generators, the pulp and paper industry. The report then discusses future opportunities for the biomass industry, specifically in the areas of feedstock development, co-firing, and repowering. It concludes with a discussion of deregulation and its effect on biomass power and renewables in general.
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