Freedonia Industry Study #1411 Study Publication Date: May 2001

Price: $3,700
Biomass Energy Pages: 208

Biomass Energy, a new study from The Freedonia Group,

provides you with an in-depth analysis of major trends in
the industry and the outlook for major markets -- critical
information to help you with strategic planning.

This brochure gives you an indication of the scope, depth

and value of Freedonia's new study, Biomass Energy. Order-
ing information is included on the back page of the
brochure.

Brochure Table of Contents

Study Highlights ............................................................................... 2

Table of Contents and List of Tables and Charts ............................. 4
Sample Pages and Sample Tables from:
Market Environment .................................................... 6
Biomass-Derived Electric Power Power/Fuels ............. 7
Demand by Region and Raw Materials ....................... 8
Industry Structure ........................................................ 9
Company Profiles ...................................................... 10
List of Companies Profiled ........................................ 11
Forecasting Methodology ............................................................... 12
About the Company ....................................................................... 13
Advantages of Freedonia Reports ................................................... 13
About Our Customers .................................................................... 14
Other Titles From Freedonia ......................................................... 15
Ordering Information ..................................................................... 16
 Study Highlights

• Biomass energy is defined as grid-connected electric-

ity and transportation fuel produced from organic
materials such as carbon-based waste, byproducts or
dedicated energy crops.

• Demand for biomass energy and raw materials --

excluding biomass used for captive industrial applica-
tions such as process heat -- is expected to reach $2.8
billion in 2005, and annual gain of 8.5 percent.

• The fastest growth by far will occur in the market for

biomass transportation fuels, which will be spurred
by cellulosic ethanol capacity coming online, produc-
tion cost reductions and legislative incentives for
biodiesel consumption.

• Electric power generation will remain the dominant

end use for biomass, with respectable growth antici-
pated in light of uncertain oil markets and more
efficient feedstock collection and incineration.

• On a regional basis, the northwestern, western and

southeastern US will see the strongest gains in
biomass energy demand.

• The US biomass energy industry is populated by a

broad array of firms, including major power conglom-
erates as well as specialty companies engaged in novel
development of renewable fuels and energy.
* Steam, process heat and electricity that is not sold to the
electric power grid are excluded, as is corn-derived ethanol.

Biomass Energy #1411 Freedonia Industry Study

2
Study Highlights
Biomass Energy Demand Growth

2010

2005

1995
2000

Biomass Energy Demand

% Annual Growth
Item 1995 2000 2005 2010 05/00 10/05

Resident Population (mil persons) 262.8 275.1 287.6 299.7 0.9 0.8
$ biomass energy/capita 8.1 6.8 9.8 16.8 -- --

Biomass Energy Demand (mil $) 2135 1878

SUMMARY
2830 5025
TABLE
8.5 12.2
Grid-Connected Electric Power 1948 1668 2095 2900 4.7 6.7
Transportation Fuel 37 61 470 1580 50.4 27.4
Raw Materials 150 149 265 545 12.2 15.5

cents/kWh power 6.91 6.84 6.91 7.18 0.2 0.8

$/gal fuel 1.48 1.36 1.17 0.97 -3.0 -3.7
$/ton raw materials 22.09 23.10 30.07 35.46 5.4 3.4

Biomass Power Demand (bil kWh) 28.2 24.4 30.3 40.4 4.4 5.9
Biomass Fuel Demand (mil gal) 25 45 403 1625 55.0 32.2
Raw Materials Demand (mil ton) 6.8 6.5 8.8 15.4 6.4 11.8

© Copyright by The Freedonia Group, Inc.

Biomass Energy #1411 Order form on last page

3
 List of Contents,
Tables and Charts
I. EXECUTIVE SUMMARY
Summary Table ................................................................ 3
II. MARKET ENVIRONMENT
General ................................................................................. 4
Macroeconomic Outlook ...................................................... 5
Table - Macroeconomic Outlook ...................................... 7
Energy Outlook .................................................................... 7
Table - Energy Demand & Production .......................... 10
Fuel Outlook ...................................................................... 10
Table - Fuel Demand ..................................................... 12
Electricity Supply & Demand ............................................ 13
Table - Electricity Supply & Demand ............................ 16
Waste Outlook ................................................................... 17
Table - Waste Outlook ................................................... 19
Land Use Outlook .............................................................. 19
Table - Land Use Outlook .............................................. 21
Biomass Technologies ......................................................... 21
Raw Material Utilization in Power & Fuel Production ...... 22
Biomass Fuel Production ................................................ 23
Cost & Pricing Considerations ........................................... 25
Table - Pricing Trends for Biomass Power & Fuels ......... 26
Environmental & Regulatory Considerations ..................... 26
Environmental Regulations ............................................. 27
Electric Utility Deregulation ........................................... 30
International Activity .......................................................... 32
Table - Selected International Biomass Energy Programs ..... 34
V. BIOMASS FUELS
III. BIOMASS ENERGY MARKET OVERVIEW
General ............................................................................... 35
Chart - Biomass Energy Industry Flowchart ................... 36
Market Overview ................................................................ 36
Table - Biomass Energy Market Overview ...................... 39
Biomass Energy #1411
4
IV. BIOMASS-DERIVED ELECTRIC POWER
General ............................................................................... 40
Biomass Power by Producer ................................................ 41
Table - Biomass-Derived Electric Power
Demand by Producer ................................................... 42
Nonutility ....................................................................... 42
Table - Nonutility-Generated Biomass
Electric Power Demand ............................................. 44
Utility ............................................................................. 44
Table - Utility-Generated Biomass
Electric Power Demand ............................................. 46
Biomass Power by Raw Material ......................................... 47
Table - Biomass-Derived Electric Power
Demand by Raw Material ............................................. 48
Timber Waste ................................................................. 48
Table - Timber Waste-Derived Biomass
Electric Power Demand ............................................. 50
Urban Waste .................................................................. 51
Table - Urban Waste-Derived Biomass
Electric Power Demand ............................................. 53
Agricultural Waste .......................................................... 53
Table - Agricultural Waste-Derived Biomass
Electric Power Demand ............................................. 56
Dedicated Crops ............................................................. 56
Table - Dedicated Crop-Derived Biomass
Electric Power Demand ............................................. 58
Biomass Electric Power by Process ...................................... 59
Table - Biomass-Derived Electric Power
Demand by Process ....................................................... 60
Direct Combustion ......................................................... 60
Table - Direct Combustion-Derived
Biomass Electric Power Demand ............................... 62
Indirect Processes ............................................................ 62
Table - Indirect Processing-Derived Biomass
Electric Power Demand ............................................. 65
General ............................................................................... 66
Table - Biomass Fuel Demand by Type & Market ......... 67
Gasoline Gallon Equivalents ............................................... 67
Table - Gasoline Gallon-Equivalents for Biomass Fuels ..... 68
Chart - Gasoline Gallon-Equivalent Prices for
100% Biomass Fuels & Competing Products .............. 68
Freedonia Industry Study
 Ethanol .............................................................................. 69
Table - Biomass Ethanol Demand .................................. 72
Biodiesel ............................................................................. 72
Table - Biodiesel Demand .............................................. 75
Methanol ............................................................................ 75
Table - Biomass Methanol Demand ............................... 77
VI. DEMAND BY REGION
General ............................................................................... 78
Table - Biomass Energy Demand by Region & Market .... 79
Regional Energy Outlook ................................................... 80
Table - Regional Indicators ............................................. 83
West ................................................................................ 84
Table - Western US Demand for Biomass Energy ........... 84
Power ............................................................................. 85
Table - Western US Demand for Biomass Energy ....... 84
Table - Western US Demand for Biomass Power ........ 87
Fuel ................................................................................ 88
Table - Western US Demand for Biomass Fuel ........... 89
Southeast ............................................................................ 89
Table - Southeastern US Demand for Biomass Energy ... 90
Power ............................................................................. 91
Table - Southeastern US Demand for Biomass Power ..... 92
Fuel ................................................................................ 93
Table - Southeastern US Demand for Biomass Fuel .... 94
Northeast ............................................................................ 94
Table - Northeastern US Demand for Biomass Energy ... 95
Power ............................................................................. 96
Table - Northeastern US Demand for Biomass Power . 98
Fuel ................................................................................ 98
Table - Northeastern US Demand for Biomass Fuel ..... 100
Great Lakes ...................................................................... 100
Table - Great Lakes Demand for Biomass Energy ........ 101
Power .......................................................................... 101
Table - Great Lakes Demand for Biomass Power ...... 103
Fuel ............................................................................. 103
Table - Great Lakes Demand for Biomass Fuel ......... 105
Northwest ....................................................................... 105
Table - Northwestern US Demand for Biomass Energy ...... 106
Power .......................................................................... 106
Table - Northwestern US Demand for Biomass Power ... 108
Fuel ............................................................................. 108
Table - Northwestern US Demand for Biomass Fuel .... 110
Biomass Energy #1411
VII. RAW MATERIALS
General ............................................................................ 111
Table - Raw Materials Demand in Biomass Energy ...... 112
Waste ............................................................................. 113
Table - Waste Material Demand in Biomass Energy .... 114
Timber ........................................................................ 114
Table - Timber Waste Demand in Biomass Energy ... 117
Urban .......................................................................... 117
Table - Urban Waste Demand in Biomass Energy ... 119
Agricultural .................................................................. 119
Table - Agricultural Waste
Demand in Biomass Energy ................................... 122
Dedicated Crops .............................................................. 122
Table - Dedicated Crop Demand in Biomass Energy .... 123
Grass Crops ................................................................. 123
Table - Grass Crop Demand in Biomass Energy ...... 125
Wood Crops ................................................................ 125
Table - Wood Crop Demand in Biomass Energy ..... 128
Other ............................................................................. 128
Table - Other Raw Material Demand in Biomass Energy .... 129
Soybean Oil ................................................................. 129
Table - Soybean Oil Demand in Biomass Energy ..... 131
Enzymes & Miscellaneous ........................................... 132
Table - Enzyme & Miscellaneous Raw Material
Demand in Biomass Energy ................................... 133
VIII. INDUSTRY STRUCTURE
General ............................................................................ 134
Table - Selected US Biomass Energy
Market Participants, 2000 ......................................... 135
Industry Composition & Market Share ........................... 136
Chart - US Biomass Energy Market Share, 2000 ......... 138
Competitive Strategies ..................................................... 139
Financial Considerations .................................................. 140
Distribution & Marketing ............................................... 141
Acquisitions & Divestitures ............................................. 143
Table - Selected Acquisitions & Divestitures ................ 145
Cooperative Agreements .................................................. 145
Table - Selected Cooperative Agreements ..................... 147
Company Profiles ..................................................... 150-208
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 Market Environment

The Market Environment Section

MARKET ENVIRONMENT
discusses factors influencing biomass
energy demand, including the outlook
Waste Outlook
for fuel and regulatory considerations.
As waste products are the principal feedstocks for both electric power and liquid
fuels derived from biomass, consideration of the waste sector is essential to
This information provides you with an
obtaining a broader understanding of the prospects for biomass energy. In 2005,
understanding and an analysis of the generation of solid nonhazardous waste is expected to reach 507 million tons per
SAMPLE PAGE
annum, reflecting average annual gains of 1.5 percent. This represents a slight
climate in which the biomass energy
increase from the 1995-2000 period; however, overall annual waste generation is
industry operates. not expected to grow more rapidly over the next decade, as increased population,
rising consumer incomes and real estate development activity promoting greater
waste production are partially offset by recycling and conservation efforts. For
the purposes of this study, solid waste is limited to waste derived from agriculture,
BIOMASS ENERGY MARKET OVERVIEW
pulp and paper mills, logging and other waste woods, urban areas (e.g., household
waste) and other sources (e.g., processed food).
Market Overview
In volume terms, agricultural waste will continue to account for a majority of solid
Demand for biomass energy and raw materialswaste generated
-- including in the US.
merchant Thispower
electric waste will meet a variety of fates, including use as
and transportation fuels, but excluding biomass used for captive industrial processbiogas generation, wetlands creation, and
fertilizer and composting material,
combustion
heat -- is expected to reach $2.8 billion in 2005. eithertrend
The upward withwill
or without
be in energy recovery. Agricultural waste generation
SAMPLE PAGE is expected
marked contrast to the 1990s, when biomass energy to grow
demand slightly
declined, less rapidly over the next decade as a result of
primarily
environmental
due to the prevalence of inexpensive fossil fuel-based and regulatory
electricity. constraints.
Future growth in Wood waste generation will expand the
fastest, primarily as a result of real
biomass energy will be a reflection of several factors, including ongoing volatility estate development; this process will generate
wood
in petroleum and natural gas markets, state and wasteincentives
federal in multiple
to ways, including clear cutting of forestland, new building
develop
construction
renewable fuel and power sources, and the emergence and advanced
of more salvaging and
of existing
lower- structures.
cost production technologies such as genetically engineered cellulase enzymes for
the manufacture of ethanol. Recovery efforts are expected to increase in the coming years, reaching 25
percent of all solid nonhazardous waste generated in 2005. Nevertheless, the fate
ofbulk
Electric power will continue to account for the mostofsolid wasteusage
biomass will continue
in energyto be landfill or other disposal. However, in
addition to recovery, an increasing
generation (only grid-connected power is considered here), prompted by volatility proportion of solid waste will be combusted
in global oil markets and the development of local feedstocks, especially in co-
firing schemes, which allow producers to utilize biomass in existing plants, thereby
circumventing the need for major capital investments. Legislation -- especially at
the state level -- calling for reductions in greenhouse gas emissions and utilization
of renewable energy will continue to prompt power plants to raise biomass
capacity.

In the coming years, private nonutilities will continue to be at liberty to offer

biomass power from a broader array of sources; however, cost containment

Biomass Energy #1411 Freedonia Industry Study

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Biomass-Derived Electric
Power & Fuels BIOMASS-DERIVED ELECTRIC POWER

These Sections provide demand for

Timber Waste
historical years and forecast growth by
raw material and fuel type to 2005 and Demand for commercial biomass electric power derived from timber waste
products -- milling and logging residues, tree bark, wood chips, pulping liquor, peat
2010. and other wood waste exclusive of municipal solid waste -- will exceed 16 billion
kilowatt hours in 2005, reflecting average annualSAMPLE
growth of 2.9 percent.
PAGEOver the
same period, value growth will advance 3.1 percent per annum and reach $1.1
This information helps you:
billion. Although this rate represents a marked recovery from the contractions of
most of the 1990s, the overall pace of growth will be limited by forest product
• Analyze your company's manufacturers opting to further reduce their own power expenditures by incinerat-
ing timber waste for captive use, which is excluded from the present study.
growth potential in
Nevertheless, rising energy demand will prompt growth in sales of timber waste-
the industry. derived electricity to the power grid.

Among the most important spurs to timber waste electric power will be continuing
• Outline your strategic
growth in cogeneration, that is, combined heat and power production, principally
plans for five and ten by industrial sources. Cogeneration’s advantages include higher efficiency and
capacity coupled with reduced emissions. Wood waste is frequently used as a
years out.
cogeneration feedstock along with coal, landfill gas, municipal solid waste and
other combustible raw materials. It should be noted that the present study
• Establish sales goals. considers only the electric power portion of cogeneration that is sold to the grid.

Biomass power generation from timber waste is often subject to pressures from
political and environmental forces. For example, in early 2001, a three-month
Biomass Ethanol Demand
moratorium on logging in the Sierra Nevada region of California was declared as
the result of a lawsuit filed by an environmental group designed to protect the

Item habitat of two endangered

1995 species.
2000 The ban
2005coincided
2010with a period when
California was facing a severe power crisis; with the suspension of logging activity,
US Fuel Consumption (bil gal)
many of the state’s283.5 314.7 power
30 wood-burning 345.5plants375.0
received significantly less wood
% total ethanol 0.5 0.5 1.0 1.9 public opposition to
waste for incineration. Other producers have encountered
timber waste incineration as certain communities have objected to increases in
Total Ethanol Demand (mil gal) 1325 SAMPLE
1555 3400 TABLE
7000
% biomass-derived 1.9 2.6 9.0 20.0

Biomass Ethanol Demand (mil gal) 25 40 305 1400

$/gal 1.48 1.30 1.15 0.96

Biomass Ethanol Demand (mil $) 37 52 350 1350

% ethanol 100.0 85.2 74.5 85.4

Biomass Fuel Demand (mil $) 37 61 470 1580

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 Demand by Region &
Raw Materials
The Demand by Region Section analyzes
trends and considers the threats and
opportunities in each major US region
DEMAND BY REGION
for biomass energy demand.

Northwestern Region - Biomass Power Demand

Raw Materials are presented by type and
market in easy-to-read tables with sup-
porting text.
The information presented will
Demand for grid-connected biomass power in the Northwest is expected to
advance 5.2 percent per annum to 1.8 billion kilowatt hours in 2005. Over the
same period, the value of demand is projected to reach $108 million, reflecting
SAMPLE PAGE
average annual gains of 6.7 percent. Healthy growth will be attributable to

help you:
• Focus your sales and marketing
efforts on high growth areas.
• Propose new areas for development.
tion of Energy
Urban Waste Demand in Biomass
Item
capacity expansions coupled with ample timber reserves and a culture that has
generally embraced renewable energy sources. In addition, volatile fossil fuel prices
will allow biomass power to more easily compete on the basis of price.
During the latter half of the 1990s, biomass power usage declined in the Northwest
in favor of less expensive coal, petroleum and hydroelectric sources; Washington
state was the lone exception to this trend. In addition, biomass has had to
compete with hydroelectric, geothermal, solar and wind power in the relatively
small green power market. In some cases, because of its association with combus-
municipal waste and the resultant emissions, biomass power has been
excluded from green power marketing campaigns. Going forward, regional leaders
are expected to promote biomass power as part of efforts to increase the area’s
1995 2000 2005 2010
environmental sustainability; several projects are currently in progress.

Urban Waste Generated (mil tons) 35.1 32.7 33.3 34.3

To date, biomass
tons urban biomass/000 tons waste 70 power remains
65 relatively
74 unexploited
90 in the Pacific Northwest.
As of 2000, a single biomass power plant operated in the entire state of Alaska,
Biomass Power from Urban Waste (mil kWh) 11840
maintained by Aurora10135 11450 In13500
Energy Partners. Idaho, pulp and paper manufacturer
tons urban waste/mil kWh 207.8 209.2 216.6 228.9
Potlatch accounted for the majority of biomass power capacity; similarly, Stone
Container represents the largest producer of biomass electricity in Montana.
Urban Waste Demand (mil tons) 2.5 2.1 2.5 3.1
Power Oregon is home2.4to Biomass
2.0 One, a2.3
limited partnership
2.7 that supplies the utility
Fuel Pacificorp with timber
0.1 SAMPLE
waste-derived
0.1 0.2 TABLE
electric power.
0.4 Washington state maintains
the most diversified supply of biomass power, with significant wattage generated by
$/ton 17.48of timber
the incineration 16.04
waste, 14.52
municipal 12.94
waste and landfill gas.

Urban Waste Demand (mil $) © Copyright by 43 34 Group,36Inc.

The Freedonia 40

% urban waste 28.7 23.9 21.4 20.0

Waste Biomass Demand (mil $) 150 142 168 200

© Copyright by The Freedonia Group, Inc.

Biomass Energy #1411 Freedonia Industry Study

8
Industry Structure
Sample page from
Freedonia Industry Study
Gain
#1117a better understanding
Fractional of your
Horsepower
competition and analyze your
company's position in the industry with
information about:
• industry composition & market share
• competitive strategies
• financial considerations
• marketing & distribution
• acquisitions & divestitures
• cooperative agreements
Biomass Energy #1411
Motors
INDUSTRY STRUCTURE
Distribution & Marketing
Although marketing is an important consideration in the long-term future of
biomass energy, distribution is a much more vexing problem. For biomass electric
power producers that are limited by proximity to raw materials such as timber and
agricultural waste, transmission lines capable of exporting electricity to distant
locales are essential; however, there is some evidence that the US electric power
grid, as currently configured,SAMPLE PAGE
may not be able to accommodate the needs of intra-
state power transmission. If this turns out to be true, biomass power will likely
remain regionalized due to both intrinsic costs as well as the costs of long-distance
transmission.
Until biomass power can compete on the basis of price, its distribution will remain
inextricably tied to that of fossil fuel-derived power. Despite the ongoing
deregulation trend, transmission and distribution will likely remain regulated
functions with rules to assure open access to lines for all competitors. Currently,
the authority to buy and sell electricity is based on preapproved contracts between
physically interconnected electric utilities and those that have coordination
agreements with physically interconnected utilities; such agreements may include
purchases, sales for resale, exchanges and wheeling of energy. Increasingly,
however, the buying and selling of power resources will be conducted in a competi-
tive market characterized by independent pricing as well as “spot” and “futures”
markets.
Successful marketing of biomass power must first take place at the producer level
in order to spur commercially viable production; this has been done largely via the
offering of tax incentives at the federal and state levels. By the 1980s, the federal
government provided a number of tax incentives for renewable energy including
biomass, although availability of such incentives has waxed and waned over the
years in accordance with volatile oil markets and the shifting political climate.
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9
 Company Profiles
The Profiles Section analyzes 31
companies active in the U.S. biomass
energy industry. These profiles repre-
sent a sampling or cross-section of the
types of companies involved in the
industry.
Divisions, subsidiaries, joint
ventures, etc., are discussed under
appropriate parent companies.
Sources for profiles included:
• Information provided by
key staff members in the
respective companies
• Annual reports
• 10-K reports
• Security analysts reports
• Corporate product literature
© Copyright by The Freedonia Group, Inc.
Biomass Energy #1411
10
COMPANY PROFILES
World Energy Alternatives LLC
90 Everett Avenue
Chelsea, MA 02150
617-889-7300
World Energy Alternatives is a limited liability corporation devoted to promotion
and sales of alternative energy. The Company receives financial backing from Gulf
Oil, Procter & Gamble and Ocean Air Environmental. World Energy has stated that
it exists to make regulatory compliance easier and more cost effective, and that it
seeks to make alternative fuels available throughout the US as soon as possible. In
2000, the Company had sales of more than $1 million and employed ten (sales and
SAMPLE PAGE
employment verified by company, 4/01.)
World Energy is focused primarily on the biodiesel market. The Company is the
nation’s largest provider of biodiesel fuel solutions for federal, state, utility,
transit, municipal and private fleets. In addition, World Energy provides
guaranteed national delivery, handles all tax, storage and hauling logistics, and pre-
blends its fuel for its customers. For regulated customers, World Energy offers
CREDITSWAP Energy Policy Act (EPAct) credit trading services, and files all
necessary government paperwork. This allows governmental customers to
accumulate EPAct credits by switching from petroleum diesel to biodiesel in the
form of B20 fuel; moreover, it spares fleet managers the costs of purchasing
alternative fuel vehicles.
The firm offers biodiesel primarily via three products, all of which are marketed
under the ENVIRODIESEL name. ENVIRODIESEL SOY B100 and B20 are
derived from and reportedly offer superior performance in cold weather condi-
tions. ENVIRODIESEL Natural B100 and B20 are made from soybean oil, palm
oil, corn oil, and/or rapeseed oil (canola); these products offer the feedstock
Freedonia Industry Study
Companies Ag Processing Incorporated

Profiled Ag Environmental Products LLC

Allied Waste Industries Incorporated
American Ref-Fuel Company
Browning-Ferris Industries
Archer-Daniels-Midland Company
Arkenol Incorporated
BC International Corporation
Biodiesel Industries Incorporated
Covanta Energy Corporation
DTE Energy Company
Duke Energy Corporation
American Ref-Fuel Company
DynaMotive Technologies Corporation
Enel SpA
CHI Energy Incorporated
Erga SpA
Fibrowatt Limited
Fibrominn LLC
FPL Group Incorporated
Future Energy Resources Corporation
Genencor International Incorporated
Griffin Industries
High Plains Corporation
Masada Resource Group LLC
NextPath Technologies Incorporated
Novozymes A/S
Public Service Enterprise Group Incorporated
Prisma 2000 SpA
PSEG Global
Royal Dutch/Shell Group of Companies
Shell Renewables International
Southern States Power Company Incorporated
Standard Energy Corporation
Mayfair Energy Corporation
Suez Lyonnaise des Eaux SA
Elyo
St. Paul Cogeneration LLC
Tractebel SA
Trigen Energy Corporation
Thermo Electron Corporation
USA Biomass Corporation
Waste Management Incorporated
Wheelabrator Technologies Incorporated
Williams Companies Incorporated
World Energy Alternatives LLC
Xcel Energy Incorporated
NEO Corporation
Northern States Power Company
NRG Energy Incorporated

Biomass Energy #1411 Order form on last page

11
 Forecasting Methodology

Freedonia does not just collect and reprint

data; Freedonia develops data. Our analysts
thoroughly investigate an industry by
extensively interviewing key industry
participants and analyzing information
from sources such as associations, govern-
ment and trade literature. Once this
The Freedonia
research is complete, Freedonia establishes Economics Group Freedonia
one set of forecasts. All writing, editing In-house Research
Consistent framework
and forecasting is done in-house to assure of economic indicators on . . . • Quantitative forecasting
quality and consistency. In cases where • Regional Population • Industry structure & market
• Fuel Consumption share analyses
data does not exist, Freedonia develops the • Gross Domestic Product (GDP) • Product analyses & forecasts
data based on input/output ratios, bills of . . . and many others
materials and flow charts. The following
chart summarizes Freedonia's methodology:

Methodology for
Biomass Energy

Proprietary
Extensive Interviews Electronic Database
• Key participants • Trade publications
• Industry experts • Government reports
• End-users • Corporate literature
• Online databases
. . . and many others

Biomass Energy #1411 Freedonia Industry Study

12
 The Freedonia Group, Inc. is a leading international industry study/
About database company.

The Freedonia Group Since 1985, Freedonia has published over 1,500 titles covering areas such
as chemicals, coatings and adhesives, building materials, plastics, industrial
components and equipment, health care, packaging, household goods,
security, and many other industries.

Freedonia has produced a wide variety of titles, including:

• Biotechnology in Agriculture
• Fuel Cells
• Micropower
• Fermentation Chemicals

Because Freedonia is a reliable information source, our forecasts are cited

in numerous publications such as The Wall Street Journal, Chemical Week
and Chemical Market Reporter.

Advantages In-house operations

of Freedonia Reports Because all of our staff work at the same location, interaction
between analysts and departments provides a strong system
of checks and balances.

Consistency
Our Economics Group develops indicators that are used by
all analysts. Therefore, every Freedonia study is based on a consistent
set of economic assumptions (GDP, population, fuel consumption,
etc.)

Reliable forecasts
Because all of our forecasts consider the environment in
which a product or industry is operating, as well as threats
and opportunities to the market, Freedonia forecasts are
reliable indicators of future performance.

One-on-one interviews
All studies are produced by conducting interviews with key industry
participants and end-users.

Proprietary electronic database

Freedonia’s analysts can tap into an extensive in-house electronic
database containing corporate literature (including private company
information), trade publications, government reports and many
other sources of information.

Biomass Energy #1411 Order form on last page

13
 About Our Customers
Freedonia's clients include major US and international companies in
the manufacturing, services, consulting and financial sectors.

Typical purchasers of Freedonia studies :

• Key Executives
• Corporate Planners
• Market Researchers
• Financial Analysts
• Information Centers
• New Product Developers
• Merger & Acquisition Specialists

Since 1985 we have provided research to customers ranging in size

from global conglomerates to one person consulting firms. More than
90% of the industrial companies in the Fortune 500 use Freedonia
research to help with their strategic planning.

Some of Freedonia's customers in the biomass energy industry

include: Archer-Daniels-Midland, Royal Dutch/Shell and
Novozymes.

Biomass Energy #1411 Freedonia Industry Study

14

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From Freedonia
For more information about
these or other Freedonia titles,
please contact us at:
The Freedonia Group, Inc.
Phone: (440) 684-9600
(800) 927-5900
Fax: (440) 646-0484
Biomass Energy #1411
World Fuel Cells
The world fuel cell market will more than triple
to 2005 to US$8.5 billion, and exceed US$23
billion by 2010. Fuel cells are receiving extensive
investigation due to their inherent nature as a
low-polluting, high efficiency energy source.
Three major uses are emerging: electric power
generation, portable electronic devices and mo-
tor vehicles. This study analyzes the world fuel
cell industry to 2005 and 2010 by product, mar-
ket and region, and for 10 countries. It also re-
views technology and profiles leading companies.
#1425. . . . . . . . . 5/01. . . . . . . . . . $4,700
Electric Power Equipment
Growth in US demand for electric power equip-
ment will be bolstered by the positive outlook for
electrical and electronic equipment. Gains will also
benefit from the increasing use of computers and
other sensitive electrical devices which require
more advanced distribution equipment to protect
against power surges and failures. This study ana-
lyzes the $14 billion US electric power equipment
industry to 2004 and 2009 by market and product.
It also presents market share data and profiles se-
lected key industry participants.
#1360. . . . . . . . . 11/00. . . . . . . . . . $3,600
Micropower
Demand for micropower generators in the US
will grow over 12% per year, driven by utilities
deregulation, environmental concerns and tech-
nological innovation. Micropower units gener-
ate electricity close to its point of use and far
from the central grid. Microturbines will soon
join engines in commercial viability, while fuel
cells have greater long-term potential. This
study analyzes the $3.4 billion US micropower
industry to 2005 and 2010 by product, applica-
tion and end-user. It also discusses technology,
evaluates market share and profiles key firms.
#1358. . . . . . . . . 1/01. . . . . . . . . . $3,800
Biotechnology in Agriculture
US sales of agricultural biotechnology products
will grow over 12% annually. Transgenic seeds
and crops will continue to dominate, led by in-
sect-protected and/or herbicide-tolerant corn
and soybeans, as well as crops carrying beneficial
output traits (e.g., vitamin-fortified rice, choles-
terol-lowering corn). This study analyzes the
$1.6 billion US market for genetically enhanced
agricultural products to 2004 and 2009 by prod-
uct, function and market. It also presents market
share data and profiles key producers.
#1339. . . . . . . . . 10/00. . . . . . . . . . $3,700
Food & Beverage Additives
Food and beverages additives demand in the US
will grow over 5% annually. Natural additives
will remain a driving force, affecting all segments
including flavors, coloring agents and preserva-
tives. The rapid growth of processed and pre-
pared foods, which typically contain relatively
high additive contents, will also contribute to
demand. This study analyzes the $4 billion US
food and beverage additives industry to 2004 and
2009 by product and market. It also profiles key
companies and evaluates market shares.
#1315. . . . . . . . . 9/00. . . . . . . . . . $3,600
Fermentation Chemicals
US demand for fermentation chemicals will rise
over 7% annually due to growing applications in
fuel, animal feed and pharmaceuticals. Ethanol
will remain the dominant fermentation product.
The fastest growth will occur in fermentation-
derived cyclodex-trins (e.g., used in drug deliv-
ery, odor-control), lactic acid, and 1,3-
propanediol. This study analyzes the $3.8 billion
US fermentation chemical industry to 2004 and
2009 by market and product. It also presents
market share data and profiles key companies.
#1286. . . . . . . . . 7/00. . . . . . . . . . $3,600
Fuel Cells
US fuel cell markets will rise over fourfold
through 2004, with the market reaching $7 bil-
lion in 2009. Fuel cells combine atmospheric
oxygen with hydrogen or hydrocarbon fuels to
produce electrical energy, emitting virtually no
pollution. Fuel cells may soon be able to com-
pete with internal combustion engines, gas-fired
turbines and storage batteries. This study ana-
lyzes the US fuel cell industry to 2004 and 2009
by product/chemistry and application. It also de-
tails market share and profiles key companies.
#1275. . . . . . . . . 5/00. . . . . . . . . . $3,700
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15
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