BioBusiness Alliance publishes industry strategy

Nov. 16, 2010, St. Louis Park, MN – The
BioBusiness Alliance of Minnesota (BBAM) has released a publication called Minnesota’s
Forest Biomass Value Chain: A System Dynamics Analysis. The paper is the result of a yearlong project involving more than
100 experts in the forestry community to develop a strategy to capitalize on
future opportunities in Minnesota’s forestry industry.

In July 2009, BBAM partnered with Scott T
Johnson, a System Dynamics consultant, and an array of statewide organizations,
including the Minnesota Department of Natural Resources and the Minnesota
Forest Resource Council, to identify issues and opportunities in the growth of
biomass-based industries, particularly those relating to forest
products. To guide the discussion, BBAM used a method known as system dynamics modelling. “System dynamics modelling creates a data-driven framework
in which experts from multiple perspectives can interact to solve complex
problems,” says Dennis Becker, assistant professor with the University of
Minnesota’s Department of Forest Resources. “Too often, important and costly
initiatives and policies are undertaken without the data that such analyses can
provide.”

During the one-year analysis, BBAM
consulted over 100 experts from around the state. Input was received from
loggers, existing and emerging industry players, environmental groups, consumers,
government and non-government organizations, and academic researchers. The
analysis and input from the community culminated in BBAM making four
recommendations and related actionable tactics that are detailed in the
industry paper.

“The recommendations focus on sustaining
our forest resources while ensuring the long-term availability of forest
biomass to supply existing industries, and fostering development of new
markets that expand wealth creation opportunities within Minnesota,” says Dale
Wahlstrom, CEO of BBAM. “This strategy and vision for a diversified
forest-based economy focuses on the issues facing the existing forest products
supply chain infrastructure while overlaying them with the needs of emerging
industries.”

Using the model, it is predicted that
implementation of these strategic recommendations would result in a net gain of
1,400 jobs in the state of Minnesota, including direct and indirect jobs.
Furthermore, the assurance of a long-term stable supply of wood could spur
additional investments in the forest products industry. In a best-case scenario
that includes expansions in lumber, oriented strand board, and paper
production, in addition to pellet manufacturing, heat and electricity
production, and aggressive investment in biofuels and biochemicals, an
estimated 3,300 jobs across the state would be created.

To read the white paper, click here.