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UK Remains No.1 Consumer As North American Wood Pellet Exports Hit Record Levels
Wednesday 31 July 2013 09:15 The UK remains the number one destination for North American wood pellets as demand to fuel the nation’s growing number of biomass energy plants is boosting the supply chain. The latest export figures from the two primary pellet-producing regions on the North American continent – the US South and British Columbia – showed increases through early 2013, with the rate of growth now likely to increase further in the second half of the year. In the US South, pellet export volumes to Europe boasted double-digit growth after a brief pause in the fourth quarter of 2012. Export volumes were in excess of 1.7 million tons in 2012, as reported in the North American Wood Fiber Review Canadian exports also rose in 2012 to 1.5 million tons, but this increase was less than that seen in the US During the first quarter of 2013, total pellet exports from North America reached a new record of over 1 million tons for the quarter. This can be compared to the annual shipments of 750,000 tons just four years ago. The United Kingdom continues to strengthen its claim as the primary destination for North American pellets with over two-thirds of the export volume from the US and Canada going to the UK in the first quarter of 2013. Drax’s plans for its large power plant conversion from coal to biomass in Selby has created a stir across North America. Drax Biomass, a new sister company to Drax Power, that will manage North American operations, announced the construction of two pellet plants earlier this spring in the US South which will be sending pellets to fuel the UK facility. Also, in Eastern Canada, pellet producer Rentech announced an off-take agreement with Drax Biomass, which will result in new investment in ports to increase pellet-loading capacity, and in rail transportation, along with the construction and operation of two pellet facilities themselves. The increase in pellet production in Western Canada has pushed sawdust prices upward the past few years, with 2013 prices being about 15 percent higher than they were in 2010, as reported in the NAWFR. In the US South, where smaller logs from thinnings and treetops are commonly used for pellet manufacturing, there has not yet been any region-wide upward price pressure as a result of the new wood-consuming sector in the region. Continue reading
Biomass Revenues Could Reach Billions With Government Help, Navigant says
Biomass revenues could reach billions with government help, Navigant says Tomohiro Ohsumi | Bloomberg Wood chips that are burned to produce electricity at a power plant. Power plants fueled by biomass likely will rake in an estimated $11.5 billion a year in revenues worldwide by 2020, according to a new study from Boulder’s Navigant Research. Biomass is defined as any organic material that can be burned and used as a fuel source, including switchgrass, corn stalks and woody residue. Burning biomass to produce electricity offers several advantages, according to Navigant. It can be burned on demand, to produce electricity that’s dispatchable — meaning it’s available when its needed, according to MacKinnon Lawrence , a principal research analyst with Navigant. It also can be used in existing industrial systems, such as those that combine the production of heat and power. It also can be used onsite at biorefineries, which use biomass to produce fuel. “Offering dispatchable, baseload support to the grid with high load reliability, biopower will continue to play a cornerstone role in meeting renewable energy targets,” Lawrence said. “Logistical challenges associated with the collection, aggregation, transportation, and handling of biomass, however, will continue to limit the commercial potential of biomass power generation,” he said. But government mandates, in the form of targets mandating the use of biomass in power and heat portfolios, will dictate the expansion of the bio-power market, the report said. In May, Xcel Energy (NYSE: XEL), the state’s largest electricity and natural gas provider, announced it had asked Colorado regulators to approve its request for proposals for a power plant fueled by burning “forest biomass.” The Navigant report, titled “Market Data: Biomass Power Generation,” is available here . Cathy Proctor covers energy, the environment, transportation and construction for the Denver Business Journal and edits the weekly “Energy Inc.” newsletter. Phone: 303-803-9233. Subscribe to the Energy Inc. newsletter Continue reading
Biomass Loopholes ‘Big Enough To Drive A Logging Truck Through’
Posted on 27 August 2013 by Tom Grimwood Green campaigners have attacked the revised sustainability criteria for the UK’s burgeoning biomass electricity industry. The Department of Energy and Climate and Change (DECC) says its “tough” new demands will mean biomass-fuelled generators must hit targets on how much carbon is emitted and whether enough trees have been replanted, with rules kicking in from April 2015. But the new rules have taken flak from several environmental groups. Biofuelwatch claimed most of the carbon emissions from biomass will be ignored because DECC’s sustainability criteria exclude things like ‘substiution’ emissions – the carbon cost of burning biomass which could have had other uses. The group said DECC relies on a number of “dubious” schemes to certify sustainability and described the Ofgem carbon calculator they use to tot up greenhouse emissions as “deeply flawed”. A spokesman for Biofuelwatch, Duncan Law said: “DECC is more concerned with ‘keeping the lights on’ using existing technology than with real carbon savings and environmental impact. It is heavily lobbied by the energy companies who stand to make hundreds of millions from burning hundreds of millions of tonnes of imported wood.” Greenpeace also attacked DECC’s failure to mention ‘carbon debt’. They quoted a report by the European Environment Agency which found that burning biomass can be actually be a high carbon source of energy if forests aren’t re-grown to pay the ‘carbon debt’ back. Dr Doug Parr, the Chief Scientist at Greepeace said: “The loopholes in these sustainability standards are big enough to drive a logging truck through. Having learnt nothing from the biofuels debacle, the Government has ignored the latest scientific research and produced standards that will take a potentially sustainable industry and transform it into one more way to greenwash environmental destruction.” But the Renewable Energy Association (REA) said these arguments are based on worst-case scenarios involving the burning of whole trees and unsustainable forest management, when the industry mainly relies on cheaper leftovers. REA Chief Executive Dr Nina Skorupska said: “These sustainability criteria ensure that the UK can reap the benefits of biomass, safe in the knowledge that it is making a real dent in our carbon emissions and that ecologically sensitive land is being protected.” Continue reading
