Vermont Eases Biomass Rules After Finch Paper Closure Strands 2,000 Tons of Wood a Week

Rubber and Wood  |  2026-09-24 10:39:21   |   By Paul Ploumis

Vermont temporarily eased wood-sourcing requirements at the McNeil and Ryegate biomass plants after Finch Paper stopped taking roughly 2,000 tons of Vermont pulpwood a week, removing a critical outlet for loggers, sawmills and low-grade forest material.

MONTREAL (Scrap Monster): Vermont has temporarily eased wood-sourcing requirements at its two utility-scale biomass power plants after the closure of Finch Paper's pulp operation in Glens Falls, New York eliminated a major market for low-grade wood from Vermont loggers and sawmills.

The Vermont Public Utility Commission approved temporary waivers for Burlington's McNeil Generating Station and Ryegate Power Station on September 9, allowing qualifying wood originally destined for Finch to be redirected to electricity generation.

Finch had been purchasing roughly 2,000 tons of Vermont pulpwood each week before announcing in July that it would stop taking the material.

Finch Paper Closure Removes Major Pulpwood Market

The loss of Finch's Glens Falls pulp operation created an immediate problem for Vermont's forest-products industry because low-grade wood needs a market even when higher-value logs continue moving to sawmills.

Finch had purchased approximately 2,000 tons of pulpwood from Vermont loggers and mills every week.

Without that outlet, contractors and landowners suddenly faced fewer options for wood that does not qualify for higher-value lumber markets.

Vermont forestry officials say the problem extends beyond Finch. Loggers have reported that the number of suitable outlets for their wood has declined roughly 40% over the past five years, contributing to lost revenue, layoffs, fewer customers and fewer timber harvests.

McNeil and Ryegate Can Temporarily Take the Wood

Following Finch's announcement, the Vermont Agency of Natural Resources asked utility regulators to allow McNeil Generating Station and Ryegate Power Station to purchase qualifying material for use as biomass fuel.

The two facilities together consume approximately 600,000 tons of wood chips annually to generate electricity.

Normally, their Certificates of Public Good require wood-chip sourcing from timber harvests that undergo advance review for potential effects on wetlands, deer wintering areas and habitat for threatened and endangered species.

The temporary orders waive certain review requirements only for a limited category of wood affected by the Finch closure.

Waiver Has Strict Eligibility Requirements

The temporary measure does not create a blanket exemption for new timber harvesting.

To qualify, the wood must meet all of the following requirements:

• the wood was harvested, or harvesting began, on or before July 31, 2026;
• the material was originally intended for sale to Finch Paper;
• McNeil or Ryegate purchases or procures it by December 31, 2026; and
• the wood comes from land covered by Vermont's Current Use program, another qualifying third-party certification program, or a sustainable forest management plan prepared by a Vermont-licensed forester.

All other applicable operating and sourcing requirements remain in effect.

Low-Grade Wood Markets Support More Than Logging Revenue

The loss of pulpwood markets can also affect how forests are managed.

Low-grade markets help make thinning, restoration and improvement harvests economically viable by creating an outlet for diseased, poorly formed or otherwise lower-value trees.

Without buyers for that material, landowners and logging contractors receive less value from each harvest and may have fewer economic reasons to undertake forest-improvement work.

Hemlock Market Faces Particular Pressure

The Finch closure is especially significant for Vermont's eastern hemlock market.

Gagnon Lumber in Pittsford had sold pulpwood to Finch for roughly 50 years. Owner Ken Gagnon told Vermont Public that approximately half of a harvested hemlock tree can sometimes end up in pulpwood markets.

Finch had been particularly important because it was the region's only mill purchasing hemlock chips for pulp production.

Without a replacement buyer, mills that produce hemlock timber may ultimately have to reduce purchases and harvests because they have fewer outlets for the lower-grade portion of each tree.

Biomass Provides an Outlet, But at a Lower Value

The temporary waiver gives affected material another destination, but it does not fully replace the economics of the paper market.

Wood sold as biomass fuel generally commands less value than material sold for pulp production.

That means the McNeil and Ryegate option may help move inventories and preserve cash flow for logging contractors and sawmills without completely replacing the revenue previously available through Finch.

Why Vermont's Logging Industry Needs Low-Grade Markets

Vermont's forest economy supports thousands of jobs across logging, sawmilling, wood manufacturing, forest management and energy.

The state's Department of Forests, Parks and Recreation has repeatedly identified maintaining markets for low-grade wood as important to the economic viability of working forests.

The agency's Forest Future strategy also identifies development of new markets and wood products as an important part of strengthening Vermont's forest-products sector.

Temporary Waiver Runs Through December 31

The special sourcing treatment expires at the end of 2026.

That makes the McNeil and Ryegate arrangement a short-term response to wood already affected by Finch's decision rather than a permanent restructuring of Vermont's forest-product markets.

The longer-term challenge for loggers and mills will be replacing the pulpwood demand that disappeared with Finch, particularly for hemlock and other low-grade material with limited alternative markets.

Final Takeaway

Redirecting Finch-bound pulpwood to Vermont's biomass plants gives the logging sector an immediate outlet for material that abruptly lost its traditional market.

But the waiver expires at year-end, and biomass fuel does not provide the same economics as pulp production. For Vermont loggers and mills, the longer-term issue remains finding stable buyers for low-grade wood and hemlock that help keep both logging businesses and forest-management projects economically viable.

Courtesy: www.vermontpublic.org

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