SUMMARY
Forest biomass used for heating, electricity, and biofuel production is a source of energy that could reduce the dependence on energy imports while reinvesting domestically. Using the appropriate scale and technology, the US state of Minnesota is poised for increased forest bioenergy production due to the large existing forest products industry. Forest bioenergy investments have been slow to materialize despite state and federal incentives, and this research aims to determine what barriers there are to bioenergy development from the perspective of supply-chain actors by applying theories of natural resource governance. Findings from interviews include the need to create an equitable playing field in terms of energy subsidies and integrate forest bioenergy production with bio-based markets, including traditional forest product markets. Additionally, interviews indicate poor coordination and shared responsibility among state agencies, industry associations, and nonprofit organizations, resulting in a fragmented policy system. Principles to guide enabling forest bioenergy development are identified and discussed in the context of the study findings.