Green Horizons

The general perception that forestlands are not a sustainable energy source is a major roadblock to private investments in wood energy, according to research by University of Missouri Assistant Professor of Forestry, Francisco Aguilar.

Aguilar surveyed households across the United States to determine willingness to invest in renewable energies, as opposed to conventional investments (stocks, bonds, etc.). He found although public interest in renewable energy investments as a whole is strong, the interest extends mostly to solar and wind energy; wood energy is in fact at the very bottom of the list, interest-wise.

Aguilar’s research coincides with a growth in renewable energy investments in this country. In 2007, $148.4 billion was invested in renewable energy, of which investments in wind energy totaled 43 percent; solar, 23 percent; biofuels, 17 percent; and biomass and waste technology, 9 percent. Interestingly enough, biomass actually experienced the largest growth between 2006 and 2007 at 432 percent.

“There is potential for biomass energy,” Aguilar said. “But there is still this stigma about forestland that it shouldn’t be harvested.” The public perception is that harvesting trees is not sustainable, when in reality harvesting is necessary to maintain a healthy forest. In addition, most people surveyed didn’t believe wood energy would have high enough returns to be a smart investment choice. The return, aside from type of energy, was the most important factor when determining investment preferences, according to Aguilar’s survey results.

A fairly young but wealthy demographic (26-35 year-old, primarily females, earning $75,000-$150,000) was most interested in wood-based alternative energy investments, Aguilar found.

“There is a limited potential niche market of investors to target,” he said. “Also, if attitudes and investment expectations are increased for wood energy, the potential market of investors should grow; the market for renewable energy investments in general is sizeable.” Aguilar notes the forest sector is well prepared to capitalize on investment dollars, which also is a plus for the industry.

Aguilar acknowledges his study was completed when the nation’s economy was stronger. He would like to repeat the survey to see if the current financial situation would change findings and determine a greater interest in renewable energies (wood based in particular). Aguilar also would like to study the programs, policies, incentives and equipment necessary for more private forestland owners to begin harvesting woody biomass.