Page 27

Bioenergy no 3 May 2015

PELLETS "SHVTSFTVSHFOUEFNBOEXJMMTVQQPSUUIFNBSLFU A rare opportunity to get the low down on the Thunder Bay advanced pellet project, feedstock to furnace, with both Ontario Power Generation (OPG) and Arbaflame on-site. (Left) Les Marshall, Senior Technology Officer, OPG; Arne-Erik Kristiansen, Strategic Advisor, Arbaflame; Chris Fralick, Regional Manager Northwest Operations, OPG; Rune Brusletto, Technical Director, Arbaflame and Rolf Aalberg, CEO, Treklyngen. Arbaflame have been awarded the second supply contract. The insightful panel session on Asian markets and what it holds for pellet suppliers. Bioenergy International No 79, 3-2015 27 THE ANNUAL ARGUS European Biomass Trading event in London, UK has become a fixed mid-April appointment for most business stakeholders in the biomass to power supply value chain. And quite rightly so, the UK has rapidly emerged as the single largest net importer of pellets at over 4.5 million tonnes 2014 with the lion’s share of course attributed to Drax. As Jessica Dell, Biomass Editor, Argus Biomass Markets, highlighted in her overview and industry outlook, the EU consumed roughly 20 million tonnes 2014 with about a 50:50 split between industrial and residential. Whilst uncertainty remains in the UK ”resurgent demand elsewhere in Europe will support the market” she said citing the Dutch agreement and developments in Belgium and Denmark. Although growth in the EU residential market slowed last year, consumption has over doubled since 2010, from 4 million tonnes to about 10 million tonnes last year, significantly larger than the 7 million tonnes combined total non-EU countries consumed 2014. Drax the driver Representing the world’s single largest pellet consumer and Europe’s “largest carbon reduction project”, Deborah Keedy, Head of Biomass Procurement, Drax Power confirmed during the European utility panel discussion, that its unit 3 is on track for “high biomass burn” in Q3 this year. Keedy also suggested that unless funds become available for conversions under future contract for difference (CFD) allocation rounds, with a general election taking place before the next round, a fourth unit conversion is unlikely. Korean co-firing A valuable insight into the workings of the much talked about South Korean market was given by Jae Hyeon Park Asia with the Procurement and Cooperation Department for KOSEP, one of the 14 power utilities obligated under the Renewable Portfolio Standard (RPS) to have a designated year-onyear incremental share from renewable power. Failure to fulfill to the designated share incurs a penalty on the outstanding portion priced at 150 percent of the average Renewable Energy Certificate (REC) price. Last year KOSEP used over 900 000 tonnes of pellets a third of which was supplied from Vietnam. According to Hyeon Park the company is still testing co-firing but even so expects to procure over 500 000 tonnes of pellets this year most of which will imported. Parallel tests are being carried out with OSF “Organic Solid Fuel”, an illustrious name for pre-processed sewage sludge. Text & photos: Alan Sherrard BI79/4861/AS Deborah Keedy, Head of Biomass Procurement, Drax Power was arguably, the VIP at the Argus event. – Biomass is only a true renewable if it is sourced responsibly, sustainably and able to show it’s a low carbon alternative. The Sustainable Biomass Partnership (SBP) framework provides a tool to demonstrate compliance while providing greater transparency to address NGO concerns, she said.


Bioenergy no 3 May 2015
To see the actual publication please follow the link above