Economic and Social Benefits of Biomass Energy

As our society experiences high and volatile energy prices as well as issues of national security, power generated from biomass material is becoming an increasingly important component of our energy profile. Biomass power facilities have numerous attributes which are beneficial to local communities, the national economy and the environment, including significant climate change benefits.

Economic Benefits

Biomass energy plants make a substantial, positive impact on local and regional economies by generating well-paying jobs in the construction and operation of the plant, as well as the collection and transportation of biomass material. The U.S. Department of Energy estimates that 4.9 jobs are created for every installed MW of biomass capacity. In addition, biomass energy plants support local industry and businesses and encourage new investment in rural communities. Specifically, biomass energy facilities can help stabilize the local timber/forestry industry by providing stable demand for biomass material which will allow loggers, harvesters, processors and transporters to make capital investments. These facilities also increase the local tax base without requiring substantial services from the local community.

Unlike many other energy fuels that our society uses, the dollars spent on biomass material stay in the local, state and regional economies since biomass energy plants primarily utilize fuel sources that are within 100 miles of the plant.

Social Benefits

As demand for more power increases, many regions of the country face potential supply shortfalls that could occur in the near future. This could result in significantly higher electricity prices and the potential for blackouts. Biomass power generation can help address this issue by providing a reliable, domestically-produced, dispatchable, economically-competitive and environmentally sustainable source of electricity.

Unlike other forms of renewable energy such as wind and solar energy, biomass energy plants' operating characteristics allow them to provide crucial, reliable baseload generation. In addition to providing this necessary baseload generation, biomass energy plants provide regions with fuel diversity which provides protection against volatile fossil fuels. Since biomass energy utilizes domestically-produced fuels, biomass power greatly reduces our dependence on foreign energy sources and increases our national security.

Besides the economic development benefits mentioned above, by ensuring a sustainable market for forest products, the jobs created as a result of these facilities help to protect and preserve the unique culture of many rural communities.