| Appalachia has significant potential to contribute to both national energy independence and to achieve regional import substitution in the energy sector. There are opportunities for regional and community-scaled industrial development, especially in the areas of bio-fuels. Major choices exist in the selection of the new technologies but the Region possesses several comparative advantages in its indigenous energy resource base. Technologies in these fields are changing rapidly, thus planning for Appalachia’s energy future is dynamic.
The creation of new energy supplies associated with renewable and non-renewable energy sources is likely to generate substantial new employment. Appalachia’s industrial base already contributes major inputs to wind, solar, bio-fuels and other non-fossil fuel energy industries. Estimates of future growth in these sectors are significant and some research suggests thousands of new jobs will be created as these sectors expand in and outside of the region.
Demand for non-renewable resources such as coal, natural gas and oil is expected to expand, assuming energy prices remain high. At the same time, job growth in the coal sector may be limited by more productive mining practices. In contrast renewable energy sources may emerge as an important source of regional and local employment and economic development. The ethanol and bio-fuels industries and the wind and solar sectors are likely to expand as economies of scale and improvement in the technology make them more competitive in a rising energy cost environment. New industries can be expected to emerge as lignocellulose bio-refinery technology is developed. Similarly, methane sources such as municipal waste water, landfill, livestock manure, and mine ventilation air in Appalachia represent as yet untapped sources for energy and jobs.
This report examines the economic development potential of energy resources in Appalachia. Part one explores a set of scenarios that are used by researchers to develop estimates of the job impacts of various energy consumption and production profiles. This data and analysis provides a foundation to discuss the potential economic impacts of these developments. Part two examines the geographic distribution of a range of non-renewable and renewable energy resources within the Appalachian Region. Part three examines in more detail the industrial base of sectors supplying the biomass, wind energy and solar sectors in the Region. Part four identifies industry and supply-chain opportunities and offers recommendations.
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