(openPR) Wood is a very heterogeneous source of energy, the variety extends over wood chips to highly processed pellets. By crushing, drying and densification, the properties of wood and coal converge. The proportion of technically and logistically sensible co-incineration in coal-fired power plants increases. The incineration of ten percent woody biomass in the form of wood chips is technically considered safe, and promising to increase to up to 50 percent by the use of refined wood pellets. The mobilization of the necessary timber potential encounters in Germany to its limits, since the use of wood for the construction, paper and furniture industries as well as the energetic field are already well advanced. In the cultivation of short rotation coppice (SRC), but especially in the import of woody biomass, there are still significant untapped potentials. Only the global potential of wood waste and residues from forestry and processing exceed the expected global demand for wood energy in 2020 by far.
The planned increase in the share of renewable energies in electricity generation and thus the integration of high levels of fluctuating energy sources such as wind and photovoltaic requires an extensive reorganization of the energy supply system. In addition to measures such as the expansion of network infrastructure, the construction of storage facilities and a more flexible demand side, there is a need for a sufficient degree of secured power generation capacity to help to ensure security of supply in Europe at any time. Currently, control energy comes primarily from thermal power plants (mainly coal and gas power plants). The co-combustion of woody biomass in such coal-fired power plants is a great way to increase renewable energies in the energy system and simultaneously secure power plant performance and key system services(including frequency and voltage control).
The expansion of biomass energy use is facing great challenges. The demand for imports will increase. Sustained international biomass markets, logistics capabilities have to be available. Sustainability criteria are to be introduced globally. However, since coal-fired power plants have relatively large handling tools and storage capacities are available, logistic conditions exist to handle larger biomass imports. In many EU countries such as Belgium or Great Britain is the co-combustion of biomass in coal power plants is an integral part in the field of renewable energies. The co-firing in these countries is mostly sponsored by a feed-in tariff for electricity generated from biomass quantity. Associated with pressing and torrefaction, technological processes for refining woody biomass are available, which not only enhances the logistics properties of wood, but also a much higher co-incineration rate can be achieved, than currently practiced. This means that a wealth creation and economic development potential exists for suppliers of refined fuel pellets.
The United States is an attractive location due to its timber resources. The southeastern U.S., with its mild climate and fertile soils, has significantly higher forest-growth rates in cubic feet per acre than Europe. The high volume of raw materials makes the region attractive for us and supplements our existing sources of supply. In addition, the paper and pulp industry in the region has significantly reduced its production levels and even closed entire facilities, meaning that sufficient quantities of wood are available on a long-term basis and at reasonable prices.
Experts have predicted that the global market for wood pellets will develop significantly in the coming years. By 2020, pellet consumption in Europe alone is expected to increase from the current annual consumption of eleven million metric tons to 15-25 million metric tons. This opens up new sales opportunities in Europe. The shipping distance from the southeast U.S. to Europe is short.
The ideal site is a site of a former wood-chip mill. One advantage of building on a site like this is the possibility of using the existing supply structures and infrastructures, especially with respect to raw material supply. You can also take advantage of the large number of skilled workers from the local wood industry. Roughly 250 jobs will be created, both directly and indirectly, through the construction of the pellet plant. The pellets from the U.S. plant will be transported by ship to Europe via a port, what indicates our possible sites.
Wood pellets are a fuel of the future. They are produced from the renewable raw material wood, meaning that a sustainable supply is guaranteed. In addition, wood pellets are significantly less expensive than fossil fuels. Pellets are a clean, CO2-neutral fuel, which means they do not contribute to climate change or pollute the environment. They are used as a fuel for heat production in pellet heating systems and stoves, as well as for the production of green power in large power plants.
