[en] In 1991, Nova Scotia's public power utility initiated a process to purchase privately produced electrical power. A proposal was received to produce 20--25 megawatts from the burning of 350 to 400,000 tonnes annually of wood residue and forest biomass in a co-generation facility in southwestern Nova Scotia, Canada. This proposal has been proceeding and is nearing the construction phase. As a result of this potential market, there is an opportunity for increasing the scope and extent of forest improvement operations. Options for a closer integration of planning, harvesting, and silviculture activities will emerge. Optimum end use allocation could occur and enhance overall economic efficiency. The objective of this project is to assess the effect that this emerging market for forest biomass could have on forest management in the supply area. This project has two phases. Phase 1, presented here, develops the framework and methodology. Phase 2 will apply a linear programming-based analytical model for evaluation. Phase 1 accumulated the required data and information for both the current management and marketing situation and that including the emerging biomass market. Growth and yield of the natural stand types were calculated for a mixture of conventional roundwood products and chip equivalents. Management regimes, based on current forest type, site class, and appropriate silviculture treatments, were established. Expected multiproduct yields, by regime were estimated. Silviculture and harvest costs along with product revenues were used to calculate standing timber and soil expectation values. In Phase 2, a stand-based optimization model will be developed to explore and evaluate the long term opportunities and differences between the present and emerging management and market situations