Woody biomass prices in the US are bottomed out for the price cycle

Woody biomass prices in the US peaked in late 2008 and early 2009 and have fallen until the second quarter this year when they probably bottomed out for this cycle.

Currently, costs for biomass are the lowest in California and the US Northwest, averaging about US$35/odmt for biomass sourced from the forest industry, according to the Forest Products Market Update from Wood Resources International LLC.

Demand for woody biomass in the US South has slowly increased and as a result, biomass prices have trended upward the past four years.

Pellet prices in Sweden have gone up every quarter since late 2008 and they are now substantially higher than in Central Europe.

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