The development of biomass based industries face many challenges. Technological and environmental questions are paramount. However, the organization of developing biomass based industries could be a key non-technical barrier. Given that industrial organization is not the focus of many research agendas, this article attempts to fill the void. Biomass sources could be a low cost feedstock for energy production such as cellulosic ethanol. This potential low cost hinges on effective and efficient methods of exchange. One way to address the need to understand the organization of future biomass based industries is to examine current related industries such as the United States biopower industry. This article first examines the broad industrial structure of the current biopower industry by briefly discussing inputs, technology, function and production trends. Then the discussion is narrowed to focus on the type of organizational form used to procure or transfer ownership of biomass materials in the current U.S. biopower industry. Based on survey evidence the current biopower industry is found to be highly vertically integrated with little use of spot markets. This result is found to be consistent across the type of biomass fuel used. (C) 2009 Elsevier Ltd. All rights reserved.