PETE MADDEN Q&A

The Future Is Bright

valuable to the Endowment and our projects.

Another change is that we’re looking at ways to better communicate the outcomes of our projects not only across the industry, but also to the broader public. We recently brought on a new staff member to more effectively share what we learn from the many projects in which we are involved as part of our overall program execution. A major way we can strengthen the forestry industry and the communities they serve is by not only doing the projects and finding new and innovative ways to tackle issues, but also by sharing our findings publicly.

WB: Now that you’ve been in the role, and implemented those changes, what is next for the Endowment?

Madden: One thing that’s gaining traction not just for the Endowment but for the industry is carbon and the forest industry’s role in the future of carbon. From carbon sequestration and climate change to the effects on industry and the bioeconomy, it is a vast space. We’re attempting to look at forest carbon from a holistic perspective, including how it might be used to benefit forest-rich communities.

Another view into the future is TimberHauling.com, which we just launched. It focuses on providing financial benefits to independent trucking and hauling businesses. Right now, they’re facing many obstacles, including tight budgets, labor shortages, etc. TimberHauling.com gives loggers national buying power they have never had on parts and services that helps them focus more on growing their businesses. While it’s currently being piloted in North Carolina, South Carolina, and Virginia, we see great potential for this project for the industry and potential expansion to other areas of the country.

A final item as we look to the future relates to diversity, equity and inclusion. We recognize that improving diversity is paramount to success in business and that includes the forestry sector. While there’s increased attention to that fact, there have been limited and fragmented efforts to advance this opportunity. We want to develop a platform and commit to making sure that all voices are being heard with regard to their current and future needs. We will strive to foster success for all in the sector and in the communities our industry serves.

EDITOR’S NOTE: Pete Madden took over as President of the U.S. Endowment for Forestry and Communities in mid-2020. Madden joined the Endowment with more than 30 years of experience in the forest sector— and is a registered forester. He has held roles in land management, procurement, supply chain and logistics and renewable energy within well-known and respected industry players including Westvaco, Georgia-Pacific and Plum Creek. Most recently, Madden led Drax Biomass as president and CEO. He holds a Bachelor of Arts degree from Marlboro College in Vermont and both a Master of Science in Forestry and an M.B.A. from the University of New Hampshire. The Endowment, headquartered in Greenville, South Carolina, was established in September 2006 at the request of the governments of the U.S. and Canada in accordance with the terms of the 2006 Softwood Lumber Agreement. Madden agreed to answer several questions posed by the editors of Wood Bioenergy.

WB: You’ve been at the head of the U.S. Endowment for Forestry and Communities for almost a year now. What changes did you want to see the Endowment make when you first took over, and what is their status now?

Madden: The Endowment is a dynamic organization by design. We have a robust collection of initiatives and projects where we focus on large-scale change that most others are either unable or unwilling to do.

Right now, we’re in the midst of refreshing the way we tackle projects. That means reassessing our strategy and evaluation methods, as well as enacting a more disciplined approach to the way we allocate capital and resources. We have a great track record of success in these areas, but there’s always room for improvement and “We have the data and science to demonstrate the positive we’re taking some time to assess our approaches so we can climate influence of biomass energy. We need to argue have the greatest impact with our resources. against critics by using scientific rigor that demonstrates the We’re also looking at ways to best utilize the experience positive climate impacts forests and forest products proand expertise of our board of vide. Biomass utilization is a tool for landowners to help directors. Each of them represents different areas of our with sustainable forest management—a problem especially work and we recognize their perspective is exceedingly seen in areas with increased wildfire risk.”

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WB: Speculate on 10 years from now, where the world might be with regard to wood biomass heating and electricity as part of its infrastructure?

Madden: There are parts of the world that have embraced wood biomass heating and electricity. In my view, there’s only one way to go and that’s up. I believe that as markets expand, there will be great opportunities for the forest industry. Right now, much of the biomass that is being created for these heating and energy products abroad is being produced from right here in the U. S. With energy producers looking for alternative energy sources to replace coal, wood biomass is a natural successor.

WB: Where does the U.S. fit into it?

Madden: There are programs in place, including from the USDA, that are encouraging this development in America. The U.S. has well-managed and sustainable forests and that is a critical advantage that the sector is taking advantage of and why other countries are looking to the U.S. when they source alternative fuels and fiber. Our country can easily adapt what’s currently in place elsewhere and utilize wood biomass for future renewable energy projects. That means more sustainable energy production and greater markets for wood products right here.

WB: What are the biggest challenges facing wood energy and power in the world moving forward?

Madden: We at the Endowment know these challenges first-hand. One of the Endowment’s largest, most audacious ventures is in Restoration Fuels, LLC, which is a biomass torrefaction facility in John Day, Oregon. We know the bottlenecks in the supply chain and the hesitancy of small, independent businesses to embrace change. Change here, like with most things, is incremental. But we can overcome those challenges and open up a whole new world for those in the timber industry as long as we are persistent and show the value potential for future markets and revenue growth.

Another challenge is public perception around forest harvests. For some critics, showing pictures of logging has been a very successful fundraising tool. It’s been a very effective strategy to describe forest management as forest destruction. While we know differently, that the value forest products bring to landowners help them keep their forests as forests. We understand the growth cycle of trees and that low value markets like wood energy are critical to forest landowners as they provide opportunities to manage their forests for higher value products and create the kinds of incentives that provide for continuous renewal of these forests. Creating markets for low value biomass will strengthen the forestry infrastructure and enhance the local restoration economy.

WB: How do you view the incoming U.S. presidential administration’s possible impact on wood biomass power development?

Madden: We know that there are players within the administration that seem receptive to biomass power development. Energy Secretary Jennifer Granholm knows the impact. When she was Governor of Michigan, she created a state-level commission devoted to renewable fuels, to which I was honored to receive her

appointment. The bioeconomy was a concept discussed then and now that she’s Energy Secretary, I believe she will be key in forward progress on this matter.

Furthermore, Agriculture Secretary Tom Vilsack’s work during his previous tenure at USDA is noteworthy. USDA has continued to invest in biomass power bringing additional value to the landowners they serve and real value for the electric grid in terms of reliable baseload power. Vilsack’s return to USDA is welcome as his department has stated it will continue to promote biomass power as a climate solution.

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WB: How could we market U.S. sustainably harvested biomass better?

Madden: One thing that needs to be made clear and transparent is the full life cycle assessment (LCA) of biomass energy. We have the data and science to demonstrate the positive climate influence of biomass energy. We need to argue against critics by using scientific rigor that demonstrates the positive climate impacts forests and forest products provide. Biomass utilization is a tool for landowners to help with sustainable forest management—a problem especially seen in areas with increased wildfire risk. Market-based solutions are the path to restore resiliency and ecological function to these forests and provide the scale needed to address the forest health crisis in the West

But as part of that, we have to get the documentation and auditing of carbon neutrality right. Saying something is carbon neutral is one thing; pointing to hard evidence of that fact is another. Showing the public there are uniform guidelines as to what it means to be ‘carbon neutral’ and that this sector is, indeed, carbon neutral is essential for buy-in and credibility.

WB: How much potential is there in co-firing with coal in the U.S.?

Madden: The possibilities are substantial. We know many companies and industries are looking for alternatives to coal as a source for energy production and there is an opportunity for biomass to not only help wean communities from coal dependency, but also support the transition to a more renewable energy system. Right now, the industry is slowly but surely shifting toward more alternative, renewable energy sources and that is where biomass has a distinct advantage.