Tag Archives: conversion

Finding a Niche in Pellets

Last month, I was talking to Ontario Power Generation’s Director of Business Development Brent Boyko about the conversion of Atikokan Generating Station (from coal to wood pellets) and he mentioned that part of the wood pellets that will fuel the AGS plant after its conversion will come from Rentech Inc. Turns out, they have acquired Georgia-based Fulghum Fibers, the leading provider of contract wood chip processing services in the U.S. Fulghum has a total of 32 mills, 26 in the U.S. and six in South America, that process 15 million metric tons of wood and bark annually. A notice released from the company discusses how the acquisition provides a platform to launch into the growing and complementary global wood pellet industry. With the acquisition, it has also entered a joint venture with Graanul Invest, a European pellet producer, for development and construction of U.S. pellet plants. Graanul has designed, built, and operates six pellet facilities in Europe, which produce 830,000 tons of pellets annually. I think the stories you will find in this month’s Pellet Mill Monthly newsletter—as well as in the Q2 issue of Pellet Mill Magazine , which is just around the corner—further back that assertion up. Continue reading

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Carbon Farming Could Restore Australia’s Southern Coastal Wetlands

8 May 2013, 6.35am EST      Carbon farming could restore Australia’s southern coastal wetlands    Restoring our southern wetlands as carbon farms would have many additional benefits to the ecosystem and the public. Catherine Lovelock Australia’s southern coastal wetlands are more diverse than most people realise. In a recent paper , Paul Boon suggests they provide valuable ecological services that exceed those of inland wetland ecosystems. But these wetlands face enormous pressures from urban development and climate change. Fifty percent of coastal wetlands have been lost from the east coast of Australia. Despite this staggering loss we don’t know enough about them to manage or restore them effectively because of years of under-valuing, under-researching, under-funding and under-managing them. We now have an opportunity to redress the poor treatment of our southern coastal wetlands. Wasted wetlands to carbon farms Coastal wetlands store and sequester large amounts of carbon in their soils. “ Carbon farming ” is encouraged in the land-based environment to improve condition of the landscape and provide offsets for activities that emit carbon dioxide. Carbon farming could be encouraged in coastal wetlands, with restoration and improved management providing the possibility of benefits for biodiversity, fisheries, coastal protection and recreation. The carbon value arises because the plants of coastal wetlands are highly productive in contributing their own carbon to the soils. They can also “trap” carbon from other locations that is delivered with water flows. Additionally the low oxygen levels in their waterlogged soils inhibits decomposition of the carbon in the organic matter that is deposited leading to large stores of carbon in their soils. Recent studies of the carbon gains of restoration of saltmarsh in Australia indicates that about 0.6 – 1.4 tonne of carbon per hectare per year is stored in these wetlands ( Howe et al. ) compared to 0.1 – 0.3 tonne per hectare per year in agricultural soils when management is improved ( CSIRO agricultural soils report ). With the restoration of these ecosystems the potential for carbon sequestration far exceeds that of land-based ecosystems on a per hectare basis. Rogers et al. estimate that opening flood gates and allowing sea water with sea level rise into the Hunter River system could result in an additional 750,000 tonnes of carbon sequestered by 2100. Saltmarshes and mangroves are only two of the sixteen coastal wetland types listed in Boon’s paper. Other types, such as estuarine wetlands and melaleuca forests are known to have highly organic soils and are also likely to sequester large amounts of carbon. Siezing the opportunity Including coastal wetlands in the Carbon Farming Initiative (CFI) would not require any changes in the current legislation, because restoring drained wetlands is already listed as an eligible activity. This could be extended further to include restoration of degraded wetlands. The possibility of carbon sequestration projects in wetlands has already been established, with mangrove projects operating under the international voluntary carbon markets. Additionally, it is feasible that insurance can be obtained for carbon in wetlands. Multiple benefits would flow from including restoration in the CFI. Many coastal wetlands in southern Australia are contained within privately-owned properties, and recognising the carbon sequestration values of well managed wetlands can have a positive impact on property values. The Department of Climate Change and Energy Efficiency’s recent assistance package to regional Natural Resource Management groups could be used to explore the benefits from carbon farming by restoring coastal wetlands. Better still would be to include in the CFI a mechanism for including restoration of wetlands on public lands. This would go some way to reversing the degradation and loss that is occurring. National benefits Although coastal wetlands are currently managed mainly at the level of state and local government as well as by private landholders, they are a vital national asset. The Australian Government will benefit from coastal wetland restoration because of improved habitat for biodiversity, flood control and water quality improvement. But also the Government stands to benefit from the new wetlands accounting framework of the IPCC that is currently under review and likely to be ratified in October 2013. In this document the conversion and degradation of coastal wetlands will have an established carbon cost, and their maintenance and restoration will assist in Australia’s carbon balance. Although the Australian and state governments have legislative control over coastal wetlands, often the cost of day-to-day management of coastal wetlands is at local government level with a plethora of demands placed on their limited resources. A modified Carbon Farming Initiative that can include restoring publicly-owned wetlands may provide badly needed resources for local governments to manage wetlands in a way that increases their carbon sequestration with the additional benefits to biodiversity, fisheries, water quality, flood control and recreation. Ultimately our whole society benefits from having intact, functional and diverse wetlands. Colin Creighton of the Fisheries Research Development Corporation, Neil Saintilan of the NSW Office of Environment and Heritage and Anissa Lawrence of TierraMar Consulting also contributed to this article. Continue reading

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Drax coal-to-Biomass Project Will Be First Backed By UK Guarantee, Says Treasury

The conversion of a coal-fired power station to biomass will be the first project to be backed by a UK Guarantee, the Treasury has announced. 29 Apr 2013 It has provided a £75 million guarantee to power company Drax, enabling the company to obtain private financing from a “wider group of investors” than would otherwise have been possible, it said. Announced in July 2012, the UK Guarantees scheme was designed to benefit up to £40 billion worth of major infrastructure projects which are struggling to obtain funding. It is open to financially credible, nationally significant infrastructure projects, provided that work can begin on those projects within 12 months of the guarantee being given. The Treasury had previously announced that guarantees would be given to the procurement of rolling stock for the new Crossrail route , and for the funding of the £1 billion Northern Line extension to Battersea . However, the Drax project is the first of these arrangements to be finalised. “I am very pleased that the development of Drax has been able to benefit from the UK Guarantees Scheme,” said Chancellor of the Exchequer George Osborne. “This is another example of how we are using the credibility Britain has earned through its determination to deal with its deficit to support investment in the economy.” In a statement, Drax announced a new £75m loan arrangement with Friends Life, underpinned by the Treasury guarantee. The company plans to convert three generators from coal-fuelled to biomass-fuelled. It has obtained financing from several lenders, including £50m from the UK Green Investment Bank. “This further strengthens our balance sheet, as we progress our project to transform the largest coal-fired power station in the UK into an electricity generator fuelled predominantly by sustainable biomass,” said Tony Quinlan, Drax’s finance director. “The benefits are multiple, from securing jobs at Drax and across the UK in the supply chain to providing low carbon, cost effective and reliable renewable power for the consumer. We are delighted to secure the support of Friends Life and Infrastructure UK,” he said. Continue reading

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