Biomass: State of the Industry

I attended the recent Department of Energy Biomass industry conference in late March. The atmosphere was very positive, and unlike other events where there is substantial uncertainty, the companies and participants were nearly uniformly optimistic about the state of the industry. A couple of companies were openly discussing filing for IPOs in late 2010 or early 2011. They seemed to be realistic goals. Many of the companies in attendance were pleased with the fact that the timeframe for DOE grants, after having slown down the industry as a whole, has been met and that money from that sector is flowing. Private market participants indicated that this would help them fund companies. 

The other noticeable difference among the more developed companies was the focus on getting the cost of production to a level that is competitive with the fuel they are targeting with as little subsidy as possible. There was no reliance on a "green premium" that would allow them to sell at a price above market (including subsidies). That is a crucial step for the long term viability of the industry.  

Categories: Biofuels, Biomass, Business Market Developments, Clean Technology, Conference Updates, Domestic Issues, Emerging Markets, Federal Funding, Government Policy, New Investment Opportunities, Venture Capital Trends

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