The state of Utah may want to start supporting biomass, particularly wood-based, fuel in light of lack of support from federal tax and energy policy. Land managers would like to see state government support biomass to incentivize thinning out forests and, in turn, help combat climate change.
Though not the cheapest source of energy, biomass-derived electricity has advantages among renewable-energy sources, noted Ballard Spahr Energy and Project Finance partner Daniel R. Simon. It’s cheaper than solar energy, more expensive than wind, and almost twice as expensive as natural gas—but it provides a steady supply when one of the other sources has dried up. Mr. Simon also said there are two tax breaks to encourage biomass use, but both expire at the end of 2011.