EXECUTIVE SUMMARY
Based on industry survey data for the calendar year of 2016, it was estimated with a customized IMPLAN model:
- The New Hampshire’s six independent biomass electric power plants provide 121 jobs ($11.6 million in payroll). This is referred to as the “direct effect” economic activity.
- They also support 583 jobs ($28.1 million in payroll) in its supply industries such as the logging industry. This is referred to as the “indirect effect” economic activity.
- The jobs in the six independent biomass electric power plants and its supply industries combine to support another 228 jobs ($11.2 million in payroll) in service sectors such as schools, grocery stores, hospitals, and restaurants. This is referred to as the “induced effect” economic activity.
- The grand total of the direct effect (the six independent biomass electric power plants), indirect effect (supply industries), and induced effect (service sector) economic activities is 932 jobs ($50.9 million in payroll). And the total economic output to the state’s economy is $254.5 million each year.
- They contribute $7.3 million of tax revenues to the state and local governments from all sources (direct, indirect and induced effect).
Note that this study focused on economic contribution tracing inter-industry purchases through its backward linkages. Other economic and environmental benefits of biomass energy, which are documented in other studies but not within the scope of this study, include:
- Increase in forest productivity: with forest thinning and removal of low-grade timber (e.g. biomass and pulpwood) forest productivity is enhanced and along with it sawlog values.
- Increase in property value: The value of forest land suited for biomass production is likely to rise as the demand for wood feedstock increases in response to a growing biomass energy. An increase in property value of forest land should also increase the tax base for rural communities.
- Biomass electric power plants are an important link in the state’s other timber processing industries (e.g. sawmills) as they provide an outlet for sawmill waste (e.g. sawdust and chipped slabs).
- Biomass power plants are a primary alternative to open burning and leaving forest waste to decay and release methane gas to the environment or the landfilling of urban tree waste. Open pile burning releases criteria air pollutants (fine particulate matter (PM), carbon monoxide (CO), volatile organic compounds (VOC), and nitrogen oxides (NOx)), greenhouse gases (carbon dioxide (CO2). In the near term, the lack of biomass plants will undo much of the progress that has been made in reducing the levels of harmful air pollutants in the air we breathe. And, because biomass power plants provide markets for low-grade timber this helps keep land in a forested state by providing revenue to landowners in the form of biomass chip purchases. This forest land retention helps to reduce atmospheric carbon through forest uptake of carbon dioxide.