32 Bioenergy International No 78, 2-2015 Drax enters UK pellet heat market In 2014 Drax used just over 4 million tonnes of biomass, mostly wood pellets, of which over 3.9 million was imported according to its Biomass Supply Power generator Drax has announced the acquisition of Liverpool based Billington Bioenergy Ltd (BBE), the UK’s second largest wood pellet distributor. Pellet usage for heat has recently begun to grow in the UK supported by the government’s Renewable Heat Incentive scheme (RHI). This market is anticipated to grow from the current levels of about 200 000 tonnes in 2013 to more than 1 million tonnes per annum by 2020. The move signals the power generator’s intention to enter the country’s growing biomass heat sector and complements the company’s core business. Combined with BBE’s experience and extensive network, this expertise provides an opportunity to grow a significant market for wood pellets as a source of sustainable heat in the UK. – This is an exciting opportunity to help transform the UK heat market in the same way we have made the UK power market so much less dependent on high carbon fossil fuels. BBE is a great business, it shares our customer service ethos and unswerving commitment to sustainability, said Dorothy Thompson, CEO of Drax Group. BBE will be continuing to run from its Liverpool office, and all the team and existing arrangements will remain unchanged. BI78/4790/AS Swedish high pressure for Salmatec German pellet press manufacturer Salmatec GmbH has via its Swedish sales agent UNY-Konsult a busy 2015 ahead. In southern Sweden Fågelfors Hyvleri AB plan to double its pellet production capacity to 50 000 tonnes per annum by installing a second pellet press. – We have taken market share in consumer pellets, said Lars-Ola Svensson, CEO of Fågelfors Hyvleri adding that 95 percent of production is sold through major DIY box store and home improvement retailers. The company also produces around 15 000 tonnes of heat logs. In northern Sweden the saw- and planning mill company Stenvalls Trä AB is also expanding its pellet production capacity to 23 000 tonnes per annum by installing a new press. The company operates three wood processing facilities and has increased its sawmilling and planning capacity expecting to produce 400 000 m3 of sawn and planed goods 2015. This will result in additional residues for pelleting. – Since we started with pellets in 2003, we have never reduced production, said Krister Backman from Stenvalls Trä. The company sells pellets both directly to heat plants and via builders merchants. BI78/4804/AH Report 2014.
Bioenergy no 2 - March 2015
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