Demand for hardwood from plantation-grown stands for pulp and bio-energy in the southern US is more than 90 million tons per year and is increasing. In the specific case of bio-energy and pulp, demand for biomass from eucalypts could approach 20 million tons/year by the year 2022. Fast growing species and hybrids of Eucalyptus are being evaluated to partially fill this demand gap. Though widely grown in a number of countries for pulp as well as for bio-energy, eucalypts in the southern US have not been extensively researched. Initial growth rates of 18 to 36 green tons/ha/year on rotation lengths of 6 to 8 years are possible. Current estimated costs for energy production from eucalypts in the Southern US are estimated at $3.10 to $3.49 per MBtu, where landowner required return rates on reforestation capital invested range from 6 to 14 percent. Eucalypts as a bio-energy feedstock can be competitive with coal in cost per BTU in the southern US.
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