While the southeastern United States, including the state of Mississippi, has a strong natural resource base, woody biomass is not fully utilized to produce bioenergy in this region. This study intended to explore opportunities, issues, and the economic potential of wood-based bioenergy in the state of Mississippi. Realizing the importance of private forest landowner decisions in sustaining a bioenergy feedstock supply, one aim of this study was to understand their choices for preferred harvesting methods of supplying woody biomass for wood-based bioenergy industries. Study results indicated that landowners were interested in optimizing revenue from woody biomass utilization while minimizing damage to the surrounding environment and facilitating less site preparation. Similarly, by administering a survey instrument, total and unused volumes of residues in primary and secondary mill operations were also estimated. Availability of woody residue was higher in the primary wood processing industry. Similarly, the likelihood of getting feedstock would be higher if a wood-based bioenergy generating facility could be located near a larger, year round operational forest product industry. This study further accounted for the potential direct, indirect, and induced economic impacts of a state wood-based bioenergy industry. Three potential wood-based bioenergy industries namely wood-pellet, bio-oil and methanol-based gasoline facilities were considered for an economic analysis. Study results revealed that operation of a wood-pellet industry would contribute 82 full- and part-time jobs to the economy with $12 million worth of economic output to the Mississippi economy. Likewise, the operation of a bio-oil industry would generate 165 new full- and part-time jobs and provide an economic output of $17 million. Also, $96 million in economic output and 795 full- and part-time more jobs would be added by establishing a methanol-based gasoline industry. Clearly, these impacts are substantial and are likely to draw the attention of policy makers and investors towards wood-based bioenergy in Mississippi.

Woody residues are byproducts with high lignocellulosic content, such as mill residues, logging residues, and other woody waste. This study estimated the impact of different mill characteristics, procurement attributes, constraints, and geospatial features on the utilization of woody residues to produce bioenergy by primary forest products manufacturers in the southern United States. Data were collected using a mail survey, and USDA and Esri geodatabases. Data analysis was conducted using analysis of variance, two-stage least squares, binary logit, and spatial logistic regression models. Approximately 70% of mills utilized woody residues for bioenergy purposes and 11% were willing to utilize additional logging residues to produce electricity. Mills were willing to pay US$12 (2012 dollars) per metric ton of logging residues at the mill gate and haul them for up to 93 kilometers. Mills with a larger capacity to utilize woody residues were more willing to utilize additional logging residues, pay a higher gate price, and haul them over longer distances. Regarding a mill type, pulp, paper, and paperboard mills and composite wood products mills were the largest woody residue utilizers and were willing to increase utilization of logging residues, pay higher prices, and haul them over longer distances. Utilization of woody residues increased with a processing capacity increase, equipment upgrades, and lower transportation costs logging residues. Mill willingness to utilize additional logging residues was higher for mills with the larger utilization of woody residues, lower quantities of disposable mill residues, anticipated equipment upgrades, and low importance for lack of storage space. Mills were more likely to utilize additional logging residues within proximity to a sawmill; pulp, paper, and paperboard mill; and a major road system, and less likely if a mill was in the vicinity of a river, forest, and mill producing other forest products. Results will help formulate future bioenergy policies, guide biomass energy investments and financial incentives, and help mill and land managers make more informed decisions regarding production and utilization of woody biomass. Future research is needed to evaluate the feasibility of utilizing logging residues by other facilities such as power plants and bioenergy facilities.