Subsidies create biomess


Federal efforts to improve the biomass industries could hurt Oregon’s wood-product plants.

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As the federal government boosts subsidies to improve the biomass industries, Oregon’s wood-product plants could take a hit.

The biomass industry aims to turn leftover parts of forests into renewable energy, but draws its supplies from the same sources as wood plants.

“There’s already a lot of competition,” said David Leding, a Flakeboard plant manager in Albany. “And now all of a sudden, we have to compete with our federal government.”

As Congress moves to kickstart the biomass market — the burning of waste wood to generate electricity — its incentives and subsidies stand to make winners and losers out of players within the same industry. So far, its attempts have not been entirely successful, leading to unintended consequences.

Read the full story at OregonLive.com.

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