PELLETS US pellets can help EU meet targets study finds Panamax’ed with Pinnacle pellets Bioenergy International No 80, 4-2015 23 Wood pellet supplies from the southeastern US could help the European Union (EU) to meet its 2020 policy goals for increased renewable energy and reduced greenhouse gas (GHG) emissions without decreasing US forest inventories or diminishing their carbon storage capacity. A new analysis by researchers at Duke University’s Nicholas Institute for Environmental Policy Solutions and North Carolina State University examined the contribution by forests in the southeastern US to EU wood pellet markets. The study was conducted, in part, with funding from the Southern Forest Resource Assessment Consortium and published in the journal Global Change Biology-Bioenergy. It examined how participation in those markets will affect forest inventories and carbon storage in this US region and whether EU sustainability guidelines for pellets can be met. – In our modelled scenarios, we found that future increases in wood pellets from the Southeast US could meet sustainability guidelines set by the EU to achieve its larger renewable energy and GHG emissions goals. In fact, the analysis indicates that the projected level of future demand could actually promote increases in forest area and forest carbon storage in the US, said lead author and Nicholas Institute Senior Policy Associate, Christopher Galik. EU sustainability guidelines require that biomass sources of heat and electricity, including wood pellets, meet initial greenhouse gas reductions of 35 percent, increasing to 60 percent by 2018. Galik and co-author Robert Abt combine — for the first time — an economic model of forest markets in the southeastern US with spatially explicit information on sensitive forest lands to examine the implications of new demand for biomass sources under these guidelines and to track how that demand feeds into the economy. Their work shows that increased biomass demand would expand the area of southeastern forests by over 6 million acres (≈2.4 ha) and lead to a small increase —roughly 1.5 percent — in forest carbon storage by 2040 as compared with a scenario in which biomass demand remained at current levels. – Our approach allows us to observe the complex interactions between local forest conditions and broad market feedbacks triggered by the increase in biomass demand. In doing so, we provide a more realistic account for how applying EU sustainability guidelines to actual locations could positively or negatively affect evolving forest markets and landscapes in the southeastern US, said Galik. Editor’s note: The study “Sustainability Guidelines and Forest Market Response: An Assessment of European Union Pellet Demand in the Southeastern United States” is available at http://onlinelibrary.wiley.com/doi/10.1111/gcbb.12273/full REN21: 2015 Global Status Report BI80/4916/AS Canadian pellet producer, Pinnacle Renewable Energy Inc. based in British Colombia (BC), has announced the world’s first full loading of wood pellets into a Panamax class vessel. The loading took place at the Pinnacle’s Westview Terminal in Prince Rupert, BC at the beginning of June and, according to the company it will be the largest single consignment of wood pellets ever shipped anywhere in the history of the industry. Panamax vessels are purpose-built to utilise the maximum capacity of the Panama Canal. Destined for UK utility major Drax Power, the vessel will carry almost 60 000 tonnes of pellets to Immingham. – Pinnacle is excited about its leadership in the use of Panamax vessels for wood pellets. They are presently an under-utilised class of vessel, so this additional cargo option will suit ship owners, shippers and receivers alike, said Vaughan Bassett, Senior Vice-President of Sales and Logistics at Pinnacle in a statement. According to Vaughan the use of Panamax class vessels will allow Pinnacle to fully optimise its marine logistics between BC in Western Canada and ports in Europe, further establishing the company as one of the lowest-risk wood pellet suppliers in the world. The larger load will also allow receivers to improve discharge efficiency on arrival. The M/V Popi S was chartered by Grieg Star Shipping in Norway and has a DWT of 80 400 tonnes. She will take 34 days to sail between Prince Rupert and Immingham, UK, arriving in early July. BI80/4914/AS The global renewable energy policy network, REN 21, has released it’s 10th annual ”Renewables Global Status Report”. According to the biomass for heat, power and transport section, bio-heat production remained stable in 2014, increasing 1 percent over 2013 while composition of bio-heat portfolios continued to vary widely by region, ranging from large-scale production in industry to vast numbers of residential-scale bio-digesters. Global bio-power production increased approximately 9 percent, with China, Brazil, and Japan leading for capacity additions, and the US and Germany leading for generation. Liquid biofuel production was up 9 percent in 2014, reaching its highest level to date. Although the US and Brazil dominated overall volume, Asia experienced particularly high production growth rates. Policy positively influenced biofuel markets where blending mandates increased demand, but policy uncertainty, particularly in Europe, the US and Australia, had negative effects on industry. Low oil prices in the second half of the year had some positive effects, particularly in feedstock production, but reduced turnover for some bioenergy businesses. Trade patterns in both solid and liquid fuels saw some shifts in 2014, with a considerable share of North American wood pellets flowing to Asia, reducing the domination of flows to European markets. The share of traded biofuels destined for Europe declined slightly, while new markets (particularly for fuel ethanol) expanded in other regions. BI80/4927/AS Photo: James Spyker
Bioenergy no 4 july 2015
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