City Joins State In Support For Wood Pellet Industry
BRITTA ARENDT | HERALD-REVIEW | MARCH 2021
The Grand Rapids City Council has officially acknowledged support for a state proposed incentive program for the wood pellet production industry, recognizing that investments are required in expanding such businesses locally at this time.
According to the quarterly census of employment and wages, from 2008 to 2019, the seven counties of northeast Minnesota saw a loss of 1,466 jobs, 34 businesses and $28 million in wages from the forest product industry. This same data shows that between 2013 and 2018, Itasca County saw a loss of 20% of its independent forestry and logging operations and 12% of its independent truckers.
Despite these losses, a 2017 study by the University of Minnesota-Duluth’s Labovitz School of Business found that the forestry sector still contributes nearly 3,000 jobs, $160 million of labor income and more than $800 million in output to the economy of a 10-county region of north-central Minnesota and the sector still presents opportunities for growth.
Wood pellet production is an emerging industry that utilizes forest and wood mill residuals to produce an alternative fuel source for power generation and home use. During the March 8 meeting of the Grand Rapids City Council, a resolution was approved that recognized the opportunity the wood pellet industry presents for the region to help sustain sawmills currently threatened by the absence of a market for their residual materials.
According to an impact analysis prepared by the Minnesota Department of Employment and Economic Development (DEED), an industrial wood pellet plan would generate $56 million of annual economic activity in the state and is projected to provide 45 direct jobs together with the creation of 249 indirect and induced jobs in support services such as logging and transportation.
“The city council of the City of Grand Rapids strongly supports the addition of a wood pellet industry to our area, as it would directly advance the economic goals and strategies articulated within the City of Grand Rapids Comprehensive Plan; and the city recognizes that the establishment of this capital intensive new industry will require initial financial support at the local, region and state level and will work toward a successful outcome to that challenge,” reads the resolution approved during Monday’s meeting.