Wood Bioenergy US (WBUS) is a publication by Forisk Consulting that tracks, screens, and analyzes the wood bioenergy sector in the United States.
In the January 2013 issue of Wood Bioenergy US, we focus on financing and capital flows in the wood bioenergy sector. Of the 164 projects that fail Forisk’s viability screening, at least 41% explicitly lack sufficient access to capital to advance towards construction. Recent announcements regarding financing for projects indicate how investors view different bioenergy technologies and markets. The wood pellet industry, while facing uncertain growth, has established its viability; a track record of operational success is the best proof of creditworthiness, affirmed by the sector’s access to cheaper, traditional debt financing. Cellulosic ethanol and other biofuel projects remain high risk with a challenging road to commercialization in the eyes of investors. These projects rely on government funding, such as programs through the Department of Defense, and costly private equity. The WBUS feature article describes five primary sources of capital with examples of how viable projects access cheaper capital, providing another signal to timberland investors and wood-using facilities
The January 2013 issue will be useful for investors, analysts, and executives interested in wood bioenergy markets in the United States, especially regional considerations for wood bioenergy investments. For information on a subscription to WBUS, including the full product list, please click here.