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Forest Resources and
Markets in the South
Rajan Parajuli PhD Assistant Professor amp Extension Specialist
Department of Forestry and
Environmental Resources NORTH CAROLINA STATE UNIVERSITY
Outline
bull Forest resources in the US South
bull Timber use trends
bull Industrial wood pellets
bull Southern timber market outlook
Forest resources in the South
Total Forestland 2455 million acres-- 46 of the
total land---32 of total US forestland
Source Forest Resources of the US 2017
Timberland area steady but not static
Source FIA
Forest ownership in the South
Private corporate 28
Private non-corporate 58
Public 14
A privately owned largely un-regulated landscape
Forest-type groups by ownership
Source Forest Resources of the US 2017
Southwide forest inventorycarbon stock
increasing
7
tree
dead litter understory
soil
In the southern forest wherersquos the carbon stock Carbon Stock
and wherersquos the sequestration
Carbon Sequestration
Source Abt SOFAC 8
Source Forest Resources of the US 2017
Fully-grown trees dominate
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Outline
bull Forest resources in the US South
bull Timber use trends
bull Industrial wood pellets
bull Southern timber market outlook
Forest resources in the South
Total Forestland 2455 million acres-- 46 of the
total land---32 of total US forestland
Source Forest Resources of the US 2017
Timberland area steady but not static
Source FIA
Forest ownership in the South
Private corporate 28
Private non-corporate 58
Public 14
A privately owned largely un-regulated landscape
Forest-type groups by ownership
Source Forest Resources of the US 2017
Southwide forest inventorycarbon stock
increasing
7
tree
dead litter understory
soil
In the southern forest wherersquos the carbon stock Carbon Stock
and wherersquos the sequestration
Carbon Sequestration
Source Abt SOFAC 8
Source Forest Resources of the US 2017
Fully-grown trees dominate
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Forest resources in the South
Total Forestland 2455 million acres-- 46 of the
total land---32 of total US forestland
Source Forest Resources of the US 2017
Timberland area steady but not static
Source FIA
Forest ownership in the South
Private corporate 28
Private non-corporate 58
Public 14
A privately owned largely un-regulated landscape
Forest-type groups by ownership
Source Forest Resources of the US 2017
Southwide forest inventorycarbon stock
increasing
7
tree
dead litter understory
soil
In the southern forest wherersquos the carbon stock Carbon Stock
and wherersquos the sequestration
Carbon Sequestration
Source Abt SOFAC 8
Source Forest Resources of the US 2017
Fully-grown trees dominate
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Timberland area steady but not static
Source FIA
Forest ownership in the South
Private corporate 28
Private non-corporate 58
Public 14
A privately owned largely un-regulated landscape
Forest-type groups by ownership
Source Forest Resources of the US 2017
Southwide forest inventorycarbon stock
increasing
7
tree
dead litter understory
soil
In the southern forest wherersquos the carbon stock Carbon Stock
and wherersquos the sequestration
Carbon Sequestration
Source Abt SOFAC 8
Source Forest Resources of the US 2017
Fully-grown trees dominate
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Forest ownership in the South
Private corporate 28
Private non-corporate 58
Public 14
A privately owned largely un-regulated landscape
Forest-type groups by ownership
Source Forest Resources of the US 2017
Southwide forest inventorycarbon stock
increasing
7
tree
dead litter understory
soil
In the southern forest wherersquos the carbon stock Carbon Stock
and wherersquos the sequestration
Carbon Sequestration
Source Abt SOFAC 8
Source Forest Resources of the US 2017
Fully-grown trees dominate
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Forest-type groups by ownership
Source Forest Resources of the US 2017
Southwide forest inventorycarbon stock
increasing
7
tree
dead litter understory
soil
In the southern forest wherersquos the carbon stock Carbon Stock
and wherersquos the sequestration
Carbon Sequestration
Source Abt SOFAC 8
Source Forest Resources of the US 2017
Fully-grown trees dominate
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Southwide forest inventorycarbon stock
increasing
7
tree
dead litter understory
soil
In the southern forest wherersquos the carbon stock Carbon Stock
and wherersquos the sequestration
Carbon Sequestration
Source Abt SOFAC 8
Source Forest Resources of the US 2017
Fully-grown trees dominate
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
In the southern forest wherersquos the carbon stock Carbon Stock
and wherersquos the sequestration
Carbon Sequestration
Source Abt SOFAC 8
Source Forest Resources of the US 2017
Fully-grown trees dominate
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Source Forest Resources of the US 2017
Fully-grown trees dominate
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Annual growth is higher than harvests
Growth to drain ratio Softwoods Hardwoods Total
Average annual net growth volume (billion cu ft)
971 471 1443
Average annual 614 252 866 removals (million cu ft)
Growth to Drain Ratio 158 187 167
Annual harvest is less than annual growth Source USDA FS FIA
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
The economic importance of forestry in
the South
Source SGSF 2013
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Timber Markets in the US South
15
20
25
30
35
40
45
Pri
ce (
$t
on
)
Pine Sawtimber Pine Chip-N-Saw Pine Pulpwood
Hardwood Sawtimber Hardwood Pulpwood
5
10
0
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
South-Wide Regional Timber Price Trends 2005-2019 (Timber-Mart South 2019)
Pine sawtimber prices have dropped almost 40
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
US Housing Market
75 of structural wood products go to housing
0
500
1000
1500
2000
2500
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ho
usi
ng
Star
ts (
00
0)
Single-family Multi-family
bull A primary driver of the wood product industry
bull Housing market continues to improve albeit slowly Research shows not
much of room to increase
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
OversupplymdashInventory is accumulating
Pine non-Sawtimber Inventory on Pine Sawtimber Inventory on Plantations Plantations
2011-2015 avg increase = 11
2011-2015 avg increase = 28
14
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Why Tree Planting Cycles in
the South We planted a lot of trees 30 yrs agomdash Supported by federal programs
15
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
16
51 261 PSTPPW
becomes more important
Pine sawtimber prices decline Relative to Everything PPW price
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Harvest details timber product output
(demand) w2015 TPO
7302019 SOFAC - 2019 17
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Pine pulpwood and Other (includes pellets and energy)
7302019 SOFAC - 2019 18
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Hardwood pulpwood and other (includes pellets and energy)
7302019 SOFAC - 2019 19
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Small proportion but increasing trend
TPO MCF
In 2015 pellet consumption (18 of total pine pulpwood) 19 of total hardwood pulpwood 20
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
2015 TPO wood consumption
pelletenergy of pulpwood by state
Large enough share to affect market
21
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
But how much of total timber goes to pellet industry
About 2 of
all southern timber products and 27 of all industrial fuelwood output
Brandeis and Abt 2019
22
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Annual biomass capacity
Source Forest Resources of the US 2017
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Wood2Energy Mills
Source wood2energyorg
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Wood pellet capacity in the US South
Southern capacity increased more than fivefold since
2009
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
We Have Not Reached Peak Pellets
Recently Added or Announced
Capacity
26
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Pulpmill consumption trends
How does sawmill production affect pellets
Hardwood Decline
Pulpmills switch to roundwood
when mill residues
disappear Pulpmills and
pellet mills compete for
sawmill residue
27
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Pellet demand and pulpwood prices
Price
Pellet Capacity
Pellet mills have caused a structural change in the pulpwood prices
28 Kanieski et al 2019
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Envivarsquos feedstock sources
29
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Envivarsquos feedstock sources
Feedstock varies by the region
30 Source Enviva
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
NE NC hardwood
Mill consumption and inventory
Franklin Mill Closure Enviva Hwd Sawtimber
31
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Pellets in NC
ACF Dunn 32
Pine Piedmont
Hwd N Coastal Plain
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
with pellet demand
Pellets demand Promising
UK electricity generation from all 37 of energy from renewable bio-energy resources at a record high in 2018 110 Twh
33
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Pellets demand Promising
Pellet markets are expanding in Asian countries Japan S Korea and India
Source FORISK
The two largest pellet producers in North AmericandashEnviva and Pinnaclendashhave off-take contracts to Asia that will total more than
34 33 million metric tons per year by 2023
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Southern timber markets projections
bull Subregional Timber Supply (SRTS) model developed
by SOFAC NCSU
bull Based on FIA and TPO data
bull Annually updated bio-economic model
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
SRTS projections south-wide
Pine Pulpwood 115
110
90
95
100
105
85
PriceIndex InvIndex RemIndex
80
PINE PULPWOOD MARKETS in the South
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
SRTS projections south-wide
Pine CNS 120
85
80
90
95
100
105
110
115
PriceIndex InvIndex RemIndex
PINE Chip-N-Saw MARKETS in the South
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
SRTS projections south-wide
Pine Sawtimber
180
40
60
80
100
120
140
160
PriceIndex InvIndex RemIndex
PINE Sawtimber MARKETS in the South
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
SRTS projections south-wide
Hardwood Pulpwood 115
110
105
100
95
90
85
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
Hardwood Sawtimber PriceIndex InvIndex RemIndex
140
120
100
80
60
40
20
0
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
PriceIndex InvIndex RemIndex
Hardwood MARKETS in the South
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Summary
bull Forest inventory in the South is rising
bull Different timber market dynamics in the mix of
wood energy and traditional timber products
bull Increased demand has not depleted forests
bull Woody biomass in the south seems a promising
feedstock source
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
Thank you
bull Rajan Parajuli 919-513-2579 rparajuncsuedu
bull SOFAC NCSU (Bob Abt and Fred Cubbage)
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