Growing Maine s BioEnergy Future
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- Douglas Carpenter
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1 Growing Maine s BioEnergy Future Creating economic growth and jobs while increasing our energy independence by using fuel made from our own forests. For Governor LePage, November, 2011
2 Maine has the highest dependency on heating oil of any state. (Source: US Energy Information Administration, 2011).
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4 (Source: US Energy Information Administration, 2011). Maine also has almost no homes and businesses with natural gas infrastructure. Only 4% of homes and businesses use natural gas and 70% use heating oil. Natural gas, solar thermal, geothermal, and pellet fueled boilers all have a role to play in replacing heating oil
5 One of Maine s largest winter exports is money! At current heating oil prices, Maine will export more than $1,000,000,000 this heating season. All of the heating oil money that leaves Maine every year takes local jobs with it. At current heating oil prices, more than 61,000 Maine jobs are exported to OPEC nations and other locations! Data from EIA and US Census. Analysis by FutureMetrics. EIA shows that 78% of every dollar spent on heating oil leaves the region.
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7 If Maine were to convert 20% of its homes from heating oil to locally produced wood pellets used in modern efficient boilers, it would create or sustain about 9,000 permanent and stable jobs*. Converting 88,000 of Maine s heating oil dependent homes (20%) would also prevent the export of about $200 million every year. That would also prevent the export of about 12,000 jobs. This is a net increase of 21,000 jobs. *Analysis of direct, indirect, and induces effects using IMPLAN by FutureMetrics. Using as assumed average annual pay of $42,500. Some heating oil delivery jobs would become pellet fuel delivery jobs and therefore would be sustained rather than created. The rest would be created from money saved on heating fuel being circulated in the Maine economy and from the labor required for the fuel supply chain.
8 The net effect would be to increase the gross state product (GSP) by $393 million per year. Assuming 12% of GSP becomes state tax income, that increase in GSP from the conversion from heating oil to pellet fuel would increase the annual tax income to the state s treasury by more than $47 million per year.
9 If we could get the other 80% of homes that use heating oil to stop exporting their money and to become more efficient in their use of energy for heat, GSP could increase by almost $2 BILLION per Year. A portfolio of solutions will be needed. But pellet fueled boilers are here now and ready to go.
10 The sales of 88,000 home heating systems at an average of $16,000 per system will create a turnover of $1.4 BILLION within the state. This will generate an additional $70,400,000 in sales tax revenues. The heating and plumbing installers of those 88,000 systems will earn an additional $264 million of income in the state of Maine.
11 Heating 88,000 Maine homes with pellet fuel will require about 660,000 tons per year of pellets. Maine already has the pellet manufacturing capacity to produce 290,000 tons per year. Wood Pellet Manufacturing Output in the Region (capacities in 1000's of tons) 2011 (at reported 100% nameplate capacity) NE Market Share Corinth Wood Pellets Corinth ME 75 9% Geneva Wood Fuels Strong ME % Maine Woods Pellet Athens ME 75 9% Northeast Pellets Ashland ME 10 1% 290
12 Maine s forests offer a sustainable source of raw materials for the wood-to-energy sector. Even if pulpwood harvests remain stable, the Maine Forest Service says there is sufficient wood to produce more than enough pellets for 20% of Maine s homes*. *
13 If 20% of Maine homes convert from heating oil to pellet fueled boilers: Maine would create 21,000 jobs; Maine s GSP would increase by almost $400,000,000/year; Maine s income tax revenues would increase by almost $50,000,000/year; The installations would generate $70,000,000 in new sales tax revenue; Maine s forest products industry would have a new and sustainable use for millions of tons per year of wood.
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