Future Supply & Demand
- Nine percent of the 160 million ton wood pulp market currently derives from old growth forests. In 10-15 years this practice will no longer exist, leading to a 14.4 million ton deficit in wood supply.
- Pulp mills require 75 million tons of wood biomass annually. This input is projected to double in the next 20 years.
- The UK will require 30 to 45 million tons of biomass to feed 14 power generation plants, planned for construction near ports, making wood biomass imports from Brazil a viable prospect.
- Biomass currently produces 1.4 percent of electricity in the United States and in 10 to 15 years this will be as high as ten percent. The world market for biomass fuel can be expected to reach 800 million tons per year by 2030, with a large portion deriving from wood.
- The most promising future application for eucalyptus wood is third generation ethanol. Estimates project that one hectare of eucalyptus will generate 25,000-80,000 litres of ethanol. Most ethanol facilities currently convert sugarcane to produce 42,000 litres of ethanol over a seven-year period. Eucalypts, which grow in more diverse environments than sugarcane, represent an incredibly attractive alternative for ethanol production.