Bioenergy Insight by Woodcote Media Ltd

MARCH/APRIL 2013 Issue 2 • Volume 4

Cheap gas = less biogas The shale gas drilling boom is having an unfortunate side effect

Making money less of an object

The UK’s largest finance asset finance provider advises on how to overcome one of the industry’s biggest stumbling blocks

Regional focus: North America

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contents Bioenergy

Contents Issue 2 • Volume 4 March/April 2013 Horseshoe Media Limited Marshall House 124 Middleton Road, Morden, Surrey SM4 6RW, UK www.bioenergy-news.com publisher & Editor Margaret Dunn Tel: +44 (0)20 8687 4126 margaret@bioenergy-news.com Deputy EDITOR James Barrett Tel: +44 (0)20 8687 4146 james@bioenergy-news.com ASSISTANT EDITOR Keeley Downey Tel: +44 (0)20 8687 4183 keeley@horseshoemedia.com INTERNATIONAL Sales MANAGER Anisha Patel Tel: +44 (0) 203 551 5752 anisha@bioenergy-news.com North America sales representative Matt Weidner +1 610 486 6525 mtw@weidcom.com PRODUCTION Alison Balmer Tel: +44 (0)1673 876143 alisonbalmer@btconnect.com SUBSCRIPTION RATES £130/€160/$210 for 6 issues per year. Contact: Lisa Lee Tel: +44 (0)20 8687 4160 Fax: +44 (0)20 8687 4130 marketing@horseshoemedia.com

No part of this publication may be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or other means without the prior written consent of the publisher. Whilst the information and articles in Bioenergy Insight are published in good faith and every effort is made to check accuracy, readers should verify facts and statements direct with official sources before acting on them as the publisher can accept no responsibility in this respect. Any opinions expressed in this magazine should not be construed as those of the publisher. ISSN 2046-2476

Bioenergy Insight

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Comment Biomass news Biogas news Biopellet news Technology news Green page Polish biomass market changes UK biofuels industry responds to ILUC proposals Barking up the right tree Cheap gas = less biogas

27 The shale gas drilling boom is having an unfortunate side effect of stagnating the biopower industry. For the short term, at least, potential producers need to perfect the right combination of location, biomass supply and legislative support in order to prove a success 31 Of benefit to everyone Jonathan Kahn, CEO of Geneva Wood Fuels, outlines his ideas for pellet use within the US following a comeback from adversity 33 Biopellet plant update – US

34 Renewable power plant update – US

36 Making money less of an object With so many other things, money is one of the biggest stumbling blocks within biomass projects. The UK’s largest asset finance provider Lombard offers its advice on overcoming this all important hurdle 37 Behind the torrefaction curtain Thomas Causer, president of Terra Green Energy, looks at the potential role of torrefied biomass in renewable energy and fuel industries

38 Planting the chain US biopower firms are convincing farmers to expand acreage of miscanthus, switchgrass and other dedicated energy crops on marginal lands, but an absence of federal funding could put all the progress at risk 40 Unravelling the miscanthus mystery

42 Increasing the options When Michael Jackson sang ‘It doesn’t matter if you’re black or white’ it was unlikely he had the wood pellet industry in mind. However, with two new facilities up and running, technology supplier Andritz hopes torrefaction will give more choices to energy producers 44 Living up to expectations Amy McLellan asks whether the world’s first Green Investment Bank is delivering on its promises 47 AD: still an underdeveloped market

49 Digesting the options Charlotte Morton, CEO for the UK’s ADBA looks at the advantages of bioenergy produced from anaerobic digestion over that generated through biomass 50 Banking on biomass advancement Andrew Johnson, the VP of industrial equipment supplier for the forestry industry TSI, discusses the future of the torrefaction sector in North America 52 Biomass: a tale of three parts Technologies developed to split wood into its constituent parts are helping to unlock new markets for lignocellulosic biomass 56 Keeping pellets on spec A US wood pellet manufacturer uses a compact halogen lab moisture analyser to ensure its products contain 6% moisture

MARCH/APRIL 2013 Issue 2 • Volume 4

Cheap gas = less biogas The shale gas drilling boom is having an unfortunate side effect

58 Mixing it up

Making money less of an object

One German biogas plant has realised a 75% reduction in energy costs just by changing its mixing technology 61 Speaking a reaction A fire in the biomass bunkers at a UK power station this time last year was a much needed reminder that storing

The UK’s largest ﬁnance asset ﬁnance provider advises on how to overcome one of the industry’s biggest stumbling blocks

wood pellet biomass still presents tough challenges

65 Events & ad index

Regional focus: North America FC_Bioenergy_March/April_2013.indd 1

18/03/2013 11:47

Front cover image courtesy of the Port of Amsterdam

March/April 2013 • 1

Bioenergy comment

Upping the ante

Margaret Dunn Publisher

2 • March/April 2013

he UK was the first member state to bring in sustainability criteria for solid biomass and biogas and it has just reconfirmed its commitment to the cause. The Department of Energy and Climate Change (DECC) has announced new regulatory changes that should be in place by the end of the year requiring companies to demonstrate their compliance with strict sustainability criteria in order to receive incentives. Starting 1 April 2014 recipients of the Renewable Heat Incentive (RHI) will need to prove they can meet a 60% greenhouse gas emissions saving limit, compared to fossil fuel-produced heat. Annoyingly for those affected compliance regimes for the RHI will be different from those for the Renewables Obligation (RO) and land criteria for this scheme will be enforced no sooner than April 2015 and no later than April 2014. The UK’s sustainable forest management criteria builds on established forest certification schemes such as Forest Stewardship Council (FSC) and the Programme for the Evaluation of Forest Certification (PEFC). These international schemes cover a broad range of social and environmental issues, such as protecting biodiversity and maintaining forest productivity that are part of managing a forest sustainably. The aim is to ensure that whether woodfuel is sourced from the UK, other EU member states, North America or elsewhere, that there are suitable controls in place to prevent deforestation or environmental degradation. This level of GHG savings is consistent with what the European Commission has in mind for its possible EUwide legislative proposal

(around 50-60% is expected) although the details on this have not yet been released. Also, the UK’s decision to include criteria relating to sustainable forestry management is an interesting one, as the European Commission has not yet announced how it will approach this issue. The European Biomass Association (AEBIOM) argues that sustainably managed forests can save at least 10 times as much carbon dioxide compared to unmanaged ones so is keen to ensure this is not overlooked. A study conducted by the Vienna University of Natural Resources and Applied Life Sciences found that unmanaged forests — over their lifecycle of around 300 years — emitted almost as much as they absorbed. This is due to natural degradation. On the other hand in a managed forest, where timber was harvested and used as a substitute for fossil fuels – this enabled carbon dioxide emissions to be avoided. The study concludes that it is favourable from an emissions standpoint to convert an unmanaged forest into a sustainable one to produce bioenergy. It will be interesting to see how the UK market responds to the sustainability criteria

and reporting process as one of the arguments against enforcing this at an EU level has always been the administrative burden. The decision on when and how to impose EU-wide sustainability criteria, which was expected at the beginning of 2012, follows a broad stakeholder consultation during 2011 to find out whether participants supported binding over non-binding sustainability criteria. The commission has confirmed that ‘the majority’ of stakeholders are in favour of binding sustainability criteria, after analysing the results of its stakeholder consultation and it’s easy to see why. There are over 50 national regulations on biomass sustainability at present and the current uncertainty surrounding these measures is delaying future investments to the sector, so it’s understandable that most people want a unified approach. The latest we’ve heard is that we should be expecting an announcement before the summer so we’ll keep you updated on this. To make sure you receive the news as soon as it happens make sure to sign up to our weekly newsletter at www.bioenergy-news.com Best wishes, Margaret

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biomass news Rice forms staple of new bioenergy deal in China Sino Bioenergy has announced the signing of a 10-year sales contract by its subsidiary Huizhou Shi Ji Wu Feng Agricultural Biotechnology (HB) to supply rice super seeds to Jiangxi Jingcai Nonglin Science and Technology (JJN).

The contract includes consulting and technical guidance as well as providing promotional materials to JJN. The contract is expected to generate $1.46 million (€1 million) in sales this year increasing to $14.6 million in 2014 and a projected $43 million by 2015. HB describes its super rice seeds as ‘disease resistant and a high-yielding genetically improved rice with an increased length of 25% over normal rice’.

Pick-me-up: the new contract will give Sino Bioenergy a guaranteed 10 years of business via its subsidiary

‘This 10-year contract to supply our seeds is a significant step for the company in executing a three-pronged business plan,’ says Sino Bioenergy

CEO Daniel McKinney, which also includes supplying biomass factories to municipal governments or for green electricity production. l

Tilbury power station given biomass lifeline UK-based Tilbury power station has been given the thumbs up to upgrade its facilities. The plant was due to be closed permanently in October after it used up its full allocation of operating hours imposed after opting out of the 2008 EU

directive. This was also despite providing more than half the UK’s renewable energy after converting to biomass in 2010. The use of biomass will be extended and, instead of closing, modifications will be made from the autumn. ‘This will allow the power station to meet operational and environmental standards required for a new biomass

power plant,’ Tilbury power station manager Nigel Staves was quoted as saying. ‘This is part of the consent and permitting process that is required in order to modify, reopen and continue to operate the power station.’ The next step for Staves and his team will be to secure a permit issued by the Environment Agency. l

New Zealand should ‘continue down bioenergy path’ believes Greenpeace A new report looking at renewable energy use in New Zealand states the potential for industry and economy boosts is huge. The report, published by Greenpeace and based on scientific modelling by experts in New Zealand, Europe and Australia, states

4 • March/April 2013

its economy could be given a multi-million dollar injection and create thousands of jobs via bioenergy and geothermal industries over the next 20 to 25 years. The country’s bioenergy industry, if it continues to grow, could save it NZ$7 billion (€4.3 billion) from lessing the burden on foreign oil imports by 2035. It could also support

27,000 jobs by utilising the country’s forestry industry as feedstock provision. The report also believes New Zealand has ‘the natural resources and people’ to create ‘huge wealth… by creating an economy based on 100% renewable energy, energy efficiency and sustainable transport.’ ‘Using our clean energy industries to keep our lights

on and power our businesses won’t just keep our air fresh and our water pure, it will also power a fresh wave of jobs and prosperity for our country,’ Simon Boxer, head of the Greenpeace energy campaign, was quoted as saying. ‘The only people who could possibly think this is a bad idea are foreign oil barons sitting in places like Texas and Saudi Arabia.’ l

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biomass news

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Biomass for biofuels needs Distillery to benefit from new biomass to meet new EU criteria Germany-based boiler in Scotland biofuels and bioliquid certification body Tüv Süd has obtained further accreditation for the testing of waste and residual materials. The news comes as the 36th Ordinance on the Implementation of the Federal Immission Control Act now requires EU companies operating in the collection of waste and residual materials to furnish proof of certification in accordance with REDcert-DE

or ISCC DE for the first time. ‘Since biofuels made from waste and residues can be counted twice towards the fulfilment of EU targets, reliable end-to-end certification of the entire supply chain is imperative,’ says Igor Dormuth, project manager at Tüv Süd. ‘Critical aspects in this process include reliable and transparent criteria defining sustainable biomass use. Without them, the reputation of biofuels as an important building-block within the scope of energy from renewable sources will be impossible to preserve.’ l

A new biomass boiler has been installed in Wick, Scotland as part of its district heating scheme. The 3.5MW steam boiler, installed and operated by Ignis Biomass, forms part of an initial £2.5 million (€2.8 million) investment into the scheme. A local whiskey distillery will also benefit from the steam produced too, allowing it to move away from fossil fuel use.

‘The district heating scheme currently supplies nearly 200 homes with renewable energy,’ says Ignis Biomass director Craig Ibbetson. ‘Our agreement to supply steam to Pulteney Distillery is a major part of the development plan that will allow us to expand the coverage of the scheme during 2013.’ Ibbetson adds that the Wick scheme is based on a model of Scottish government policy in regard to localised energy generation and efficient use of biomass resources. l

New biomass plant plans in Philippines moves forward It has been confirmed that Philippines-based Eastern Petroleum (EP) will begin construction of a biomass plant this year. The power facility represents EP’s first venture into the biomass sector and will cost $60 million (€44.7 million). Construction is hoped to begin in the third quarter and be fully operational in 2015. ‘We, through our subsidiary

Eastern Renewables Fuels, have also entered into a joint venture with the Manobo tribal council for the cultivation of a 10,000-hectare industrial tree plantation to secure the feedstock requirements of its proposed 20-MW biomass power plant,’ says EP CEO Fernando Martinez. The plant will be based in Agusan del Sur and expected to generate around 20MW of power. l

Current concern: the biomass plant should be online by 2015

New fuel stock for Akuo Energy increases biomass presence in France UK biomass users Nerea, a subsidiary of Akuo Energy, has begun construction of a new biomass cogeneration facility in Estrees-Mons, France. The 13MW project represents a €65 million ($87.2 million) investment and aims to be fully operational by the end of 2014, producing 100,000MWh of electricity and

6 • March/April 2013

25 tonnes of steam per hour annually via wood pellets. This project is the third involving biomass for Akou Energy in France, representing an overall investment of €150 million. ‘These projects only represent the first step for Akuo Energy in biomass, since several other projects of the same type are currently being developed in France and abroad,’ said Jean Christophe Guimard, director of Akuo Biomass. l

UK-based Midland Bioenergy (MB) has added a new heat log briquette to aid domestic and commercial environments. The UK is aiming for a 15% renewable energy input from renewables by 2020 and home owners can be supported by the Renewable Heat Premium scheme that offers £950 (€1,100) towards the cost of an installed biomass boiler. ‘Currently just 1.5% of UK final energy consumption comes from renewables,’ says MB MD Andrew Brindley. ‘However heating equals a massive 47%. The Renewable Energy Directive target will also in turn help reduce CO2 emissions 80% by the year 2050.’ MB’s new briquettes offer a heat value of between 18.8 and 20mj/kg and a moisture content of below 8%. l

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Renewable energy facility celebrates year in production

Scottish logistics firm wins biomass contract Energy company RWE nPower has awarded a logistics contract as it further advances construction of a CHP facility in Scotland. To be housed on the site of a paper mill in Markinch, the 49.9MW plant is expected to burn over 400,000 tonnes of wood. Malcolm Logistics has won the contract to deliver at least a third of the required fuel needed. ‘This contract will make a positive impact on our own business and, in turn, the local economy,’ Malcolm Logistics MD Jim Clark was quoted as saying. ‘In order to service the contract we are expanding our fleet initially and opening a satellite depot close to RWE’s Cardenden-based processing site.’ The RWE facility is set to cost £200 million (€233 million) and will burn 90% recovered wood and 10% new wood from sustainable forests. l

US-based renewable energy company Ameresco has completed its first operational year at its renewable energy fuelled cogeneration facility at its Savannah River site (SRS). The facility came online in conjunction with the US Department of Energy’s (DoE) single largest renewable Energy Savings Performance Contract (ESPC), awarded to Ameresco in 2009 to finance, design, construct, operate, maintain and fuel the 34 acre renewable energy facility over the term of the 20-year contract.

ESPCs are contracts in which private companies finance, install, and maintain new energy- and water-efficient equipment in federal facilities. The facility operated without interruption in its first year and generated a total of 1.67 billion pounds of steam and 97,000MW of electricity. It processed more than 10,000 tonnes of tyres and 221,000 tonnes of clean biomass, consisting of local forest residue and wood chips. ‘The facility supports the DoE’s energy efficiency and sustainability goals and, with the success of this facility, it shows we are working to meet national challenges in strategic areas such as sustainability and clean energy,’ says SRS manager David Moody. l

Drax confident as biomass conversion gathers pace

UK power generating company Drax has highlighted the positive moves as it converts its coal-fired plant to biomass. The conversion comes in response to rising coal prices and government subsidies backing renewable energy sources. The company reveals that the first of its six units at the Yorkshirebased facility will be converted

to biomass in April, with a second planned to be ready next year. ‘With government support and our financing secured, both in the second half of 2012, we are on track to hit both those conversion targets,’ says Drax CEO Dorothy Thompson. The total capital cost for the biomass transformation is believed to be within a range of £650-£700 million (€750€808 million) including delivery, storage and distribution infrastructure for biomass fuel and potential investment

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News in brief

New bioenergy association aims to reinforce new US policies

A NEW association has been launched in Sacramento to promote bioenergy across California this February. The initiative, named the Bioenergy Association of California, will be led by former deputy secretary for climate change and energy at the California Resources Agency Julia Levin and consist of agencies and businesses interested in furthering sustainable development. ‘California is poised for huge growth in bioenergy development,’ Levin was quoted as saying. ‘We want to lead the way and ensure that recently enacted state policies help the industry grow quickly and sustainably.’

Biomass conundrum continues as Thunder Bay remains idle

Ontario Power Generation (OPG) is considering turning

the facility at Mission Island into a biomass-based generator. As the province moves away from coal-fired plants, work converting the Thunder Bay facility from coal to natural gas was suspended in November as OPG looks at other options. OPG Northwest Thermal plant manager Chris Fralick is confident that Thunder Bay will remain operational after 2014 but that ‘there’s a lot of uncertainty that needs to be sorted out but the need for Thunder Bay is not being questioned’. The other plant that falls under Fralick’s jurisdiction, Atikokan, is currently being converted to biomass burning.

Biomass recognition pleases UK Renewable Energy Association The Renewable Energy Association (REA) believes biomass could be key in helping the UK government meet its woodland priorities. That idea comes after the Department for Environment, Farming and Rural Affairs’ (DEFRA) Government Forestry and Woodlands policy statement, which states that effective management of country woodlands could boost the UK forestry industry. Additional avenues for biomass could be opened if people look at ‘how

unmanaged broadleaved woodlands could supply significant quantities of fuel without interrupting supply chains’. ‘By sitting alongside other industries, like construction and carpentry, bioenergy uses by-products that can find little other value — such as thinnings, off-cuts and residues. That provides an extra revenue stream which, coupled with robust sustainability criteria, helps landowners to invest in responsible forest management,’ says REA CEO Gaynor Hartnell, who adds that she was pleased with DEFRA’s acknowledgement of biomass’ potential. l

Extra biomass support for Northern Ireland

new levels of support for renewable energy have

been announced by the Northern Ireland government. From 1 April, under a revised Northern Ireland Renewables Obligation, new large-scale biomass CHP plants are eligible for an additional six months support from the government. ‘The additional six month eligibility period for eligible biomass stations, which retains support at the current Renewables Obligation Certificates level until autumn 2015, provides certainty for investors in a technology which offers great potential in Northern Ireland,’ energy minister Arlene Foster says. Responsible woodland management could help landowners earn extra business

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Bioenergy Insight

March/April 2013 • 9

biogas news

Biogas projects in US receive cash injection The California Energy Commission has dished out more than $4.4 million (€3.2 million) toward two biogas projects. Blue Line Transfer has received $2.5 million to continue its project in constructing a dry anaerobic compressed natural gas system to fuel five refuse and recycling vehicles. It hopes to convert 9,000 tonnes of plant and food waste into biomethane. The other beneficiary, to the tune of $1.8 million, is the Sacremento Municipal Utility District. It will use the funds to help complete a $13 million anaerobic digestor project by Clean World Partners, in which it aims to reduce CO2 production from the overall process. ‘These awards are helping to support the expansion of alternative fuels and zero-emission vehicles in California,’ says Robert Weisenmiller, energy commission chairman. ‘Additionally, the funded projects will reduce greenhouse gas emissions and other pollutants to protect our environment and improve the health of all Californians.’ l

New waste-to-energy plant finds home in UK UK-based logistics company AV Dawson has signed a 40-year deal to site a wasteto-energy plant at its Riverside Park base in Middlesbrough. Greenlight AD Power’s energy plant is the first project in the UK to benefit from the government’s Green Investment Bank (GIB) with funding of £8 million (€9.3 million) matched with private sector funding. It will be based on the site vacated by biofuels

firm D1 Oils, which was bought by Dawson in 2009 as part of a move to expand into other sectors. The anaerobic digestion plant will turn organic waste, such as farm slurry, food waste and garden cuttings into clean electricity which will be sent to the National Grid. ‘It’s anticipated that feedstock and by products from the plant will be transported by road, rail and by sea which fits in perfectly with our multi-modal freight transport activities,’ says AV Dawson MD Gary Dawson. l

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biogas news

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Hotel waste to back-up Indian biogas production India-based Vadodara Municipal Corporation (VMC) is to branch out its feedstock reach for its biogas plant, which is currently under construction in the Gajrawadi region of the city. Alongside vegetable waste and animal carcasses VMC will also look to incorporate hotel waste as raw material to feed to the plant. It already collects around 10 tonnes of vegetable waste from one market area alone, but believes hotel waste would

Towering idea: nothing Fawlty about VMC’s hotel feedstock option

act as a good additional source of feedstock. ‘There are 3,000 registered hotels and eateries in the city and they generate tonnes of kitchen waste

every day,’ deputy municipal commissioner for health R K Sugoor was quoted as saying. ‘If carcass and vegetable waste do not meet the requirement of

the plant, we shall use hotel waste to feed it.’ The plant is expected to be complete this summer and is aiming to produce around 250kg of biogas a day. l

Emerald Biogas’ new facility ‘online by July’ A new £8 million (€9.3 million) anaerobic digestion (AD) facility is well under development in County Durham, UK. Emerald Biogas claims the commercial food waste facility, to be based at Newton Aycliffe industrial estate, will be the

first in the north east of England. It will process 50,000 tonnes of food waste a year sourced across the north east and generate renewable energy for the local area. ‘We have invested in the latest AD technology which will result in a better quality product and will also enable the facility to expand further,’ says Emerald Biogas director Ian Bainbridge, who

reveals the company hopes the facility will by fully-operational by July. The excess heat generated during the plant processes will also be used across the industrial estate where the facility will be located. Funding for the project was provided by HSBC, WRAP and the Rural Development Programme for England. l

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March/April 2013 • 11

biogas news

Bioenergy Insight

Indonesian sugar company to diversify into News in brief Anglian further extends its bioethanol and biogas wastewater projects State-owned plantation company PT Perkebunan Nusantara (PTPN) is set to widen its product portfolio by expanding into biofuel production during 2013. It has been reported that its sugar and tobacco lines cannot be fully relied on to support the company, which is seeing increased manufacturing costs, so biofuels and electricity production are set to be introduced. ‘Sugar manufacturing costs continue to increase,

in line with the rise in sugarcane prices. On the other hand, we cannot increase sugar prices that easily. So one way to solve the problem is by diversifying our business,’ PTPN corporate secretary Moch Cholidid was quoted as saying. A bioethanol facility is being developed at one of its sugar mills in East Java and is expected to use molasses as feedstock. The resultant waste will be converted into biogas that is hoped to produce around 4MW of electricity. The biogas plant is expected to cost around IDR60 billion (€4.6 million). l

Saxlund international, a UK subsidiary of energy and

environmental technology group Opcon, is to provide its bulk material handling and storage knowledge to a new wastewater treatment facility this year. The contract comes from Anglian Water, the largest water and wastewater company in England and Wales, and represents the fifth time the two companies will have worked together on wastewater treatment projects. ‘We are proud to help Anglian with their commitment to reshape its business around a low-carbon model,’ says Matt Drew, MD of Saxlund, who believes it is his company’s experience in sludge and bulk solid handling that continues to further the partnership. The new order will benefit Anglian Water’s Canwick STW facility in Lincolnshire.

New biogas project set for Czech Republic

German-BASED biogas developer Envitech is to provide an anaerobic digestion plant into the Czech Republic. Envitech says the 527kW facility will be located on farmland owned by an agricultural company and represents the 19th project of its kind in the country overall. The plant will use a variety of feedstocks, plus liquid manure from 400 on-site cattle, to produce heat for its slaughterhouse and other buildings.

Zimbabwe capital urged to house biogas facility

harare city in Zimbabwe has been told to welcome a Ministry of

Energy and Power Development biogas project by the government. The city council has been reported as being wary of the project but local government, rural and urban development officer Ignatius Chombo says fears of gas explosions were ‘unfounded’. ‘I hereby direct that the council cooperate with the Ministry of Energy and Power Development so that the biogas project at Mbare Musika is up and running by the end of April,’ he was quoted as adding. The biogas project would generate electricity for the immediate environs of Mbare Musika from various waste products and the city is not expected to fund any part of the venture.

Additional revenue from sugarcane is hoped to spur on PTPN

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biopellet news Expansion at Port of Tyne to benefit pellet handling A multi-million investment will be ploughed into the Port of Tyne, UK to upgrade its wood pellet handling facilities. The port is already the largest handler of wood pellets in Europe and the plans are to enhance and expand its existing wood pellet storage facilities and associated quay and rail infrastructure to the tune of £180 million (€209.2 million). Discussions are ongoing with existing and new clients as to how to best serve the facility with the money but, initially, the Port will submit applications to extend its multi-functional berths at Riverside Quay by 100m and provide additional facilities for wood pellet including multi-purpose sealed storage, enclosed

Breaking forwards: port CEO Moffat claims his business is on course for ‘another year of record turnover’

conveyor systems and a new length of railway line. ‘It is in renewable energy where we see the next major area of growth for us,’ says Andrew Moffat, the Port of Tyne’s CEO. ‘That is why we are working with major companies in the power generation industry to identify

their future requirements and making sure we will be ready to meet their needs. ‘The Port is on target for another year of record turnover and profit,’ Moffat adds. ‘To continue to survive and thrive, we must maintain a competitive advantage and these plans will enable us

to do just that, significantly increasing the port’s impact on the regional economy.’ If the plans go ahead in full, it is believed 900 construction jobs will be created, 300 permanent positions thereafter and an additional 2,000 indirect roles supported. l

New wood pellet plant in Mississippi moving forward Gulf Coast Renewable Energy will locate a $25 million (€19.2 million) wood pellet plant in Mississippi, US.

CGRE says the plant will be situated on 40 acres in George County and should create around 30 new jobs. Construction will take 14 months and a request for help

with adding an access road is currently pending. Over 150,000 tonnes of pellets a year will initially be produced, with the company hoping to at least double that by 2017. George County’s economic development and communication director Ken Flanagan adds that offtake agreements are in place, mostly with utility companies in the UK. l

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March/April 2013 • 13

biopellet news

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‘Slow start’ not diluted Canadian wood pellet project Canada-based Viridis Energy (VE) believes its Scotia Atlantic Biomass plant will begin wood pellet shipments this autumn. VE anticipates the plant will be fully staffed and ramped up production could deliver 25,000 tonnes to European markets by September. ‘We are ramping up production slower than anticipated due to some delays relating to industry subsidies in the UK,’ VE CFO Michele Rebiere was quoted as saying. ‘But the exciting long-term market outlook for Nova Scotia wood pellets in European markets more than compensates for the slow start.’ The Scotia Atlantic Biomass facility has production capacity of up to 10,000 tonnes a month so expects to ship once a quarter per year. l

Future outlook ‘compensates slow start’ for VE

UK pellet storage project presses on

US biomass producer to expand operation base

A multi-million wood pellet storage facility is still a real concern at the Port of Liverpool, UK.

New Biomass Energy is expanding as it sees its third bulk shipment of torrefied wood pellets depart for Europe recently.

The two-stage facility, to be built by Peel Ports, is reportedly costing £60 million (€68.6 million) during phase one and will be able to store 100,000 tonnes of pellets to supply a biomass power station planned at the port. The new storage facility is expected to be housed at Alexandra Dock Three, which has a old grain terminal at its site. The overall project is set to come in around £150 million and ultimately have room for 350,000 tonnes of pellets upon completion. l

The delivery of 4,000 tonnes was produced at NBE’s plant in Mississippi and will end up at various coal-fired plants throughout Europe. The plant is currently increasing its production capacity, dependent on the energy density of the

pellet produced, up to between 150,000 and 250,000 tonnes. NBE is also adding additional facilities to its portfolio as it receives bulk interest from large power companies. ‘We see our three shipments during the past 12 months as an achievement, not only for us, but for the torrefaction industry as a whole,’ NBE executive VP Mike White was quoted as saying. ‘We believe torrefied wood pellets are a significant alternative energy option and want to help move the industry forward.’ l

New pellet mill opens in Georgia A new pilot pellet mill has been opened in Georgia, US by the Herty Advanced Materials Development Centre (HAMDC). HAMDC, which is a part of the Georgia Southern University, claims its $2 million (€1.4 million) mill will support local

14 • March/April 2013

and national feedstock suppliers by providing validating process technology and pellet design engineering. ‘The global demand for biomass pellets has been rising significantly in Europe and North America and, as we work on biomass conversion, we seized the opportunity to address a missing piece — a pilot mill that

allows our clients to confirm operating efficiencies and product performance before they commit to an investment in full-scale manufacturing,’ says HAMDC CEO Alexander Koukoulas. Capabilities and services provided by the mill include biomass preparation and pretreatment, as well as biomass testing and pellet analysis. l

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biopellet news

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North American wood pellet export to Europe rises

Scandinavian input into new Lithuanian pellet facility

A report by the North American Wood Fibre Review claims wood pellet exports over to Europe were up over 70% in the third quarter of 2012 year-on-year.

Norwegian investment company Byggleverandørene has added a wood pellets plant to its portfolio in Lithuania.

The total amount delivered was reported to be 860,000 tonnes and the increase has been put down to expansion of production in both the US South and British Columbia. ‘The three major European pellet import countries remain the UK, the Netherlands,

and Belgium, while Italy, Denmark and Sweden are notably involved in pellet imports from North America but on a much smaller scale,’ the report stated. Announced US South pellet export plants increased sharply in the second half of 2012 too. Export pellet facilities, which are under construction, conversion or redesigned, will add an additional 1.7 million tonnes of capacity during 2013. In addition, five more plants have been announced and, if they come to fruition, could bring another 2.3 million tonnes of capacity into play by the end of 2014. l

The Biowood Nordic plant cost LTL 4 million (€1.1 million) to construct via almost LTL 2 million of EU and government aid received under the scheme supporting migration of farming companies towards non-farming activities. ‘It is a new plant, built from scratch in Mazeikiai

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in northern Lithuania, and we have a capacity for 20,000 tonnes per year although it is currently operating at around 70% due to some start-up glitches,’ Morten Kroslid, head of Byggleverandørene, was quoted as saying. Biowood Nordic is near to three Baltic ports through which it ships the pellets. ‘We would like to export to Scandinavia as much as possible because prices are much better there than in Lithuania but currently the export level is at 60%, which also includes Italy,’ Kroslid adds. l

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March/April 2013 • 15

technology news BHSL introduces new material handling solution

New technology provides accessible inline characterisation Mettler Toledo has launched a new inline particle system characterisation tool that is suitable for the biotechnology industry. The electric ParticleTrack E25 measures aqueous particle and droplet systems. The probe-based technology eliminates

sampling’s measurement variability for a more cost effective system characterisation. Mettler Toledo says the ParticleTrack E25 is ideal for measuring modern manufacturing processes. Based on the traditional focused beam reflectance technology (FBRM) but with no air/gas supply, the FBRM probe is robust and allows for realtime product quality optimisation. l

GreCon unveils new website GreCon, a manufacturer of measuring equipment and fire protection systems, has launched a new website that has been operational since the beginning of this year.

It enables users improved access to business areas, optimised navigation and overview as well as more services and information for different user groups. In addition, it features five new language and country pages. GreCon says the new design

offers a clear structure and improved user guidance with easy access to expanded contents and an updated design. The new features and functions also allow for easy navigation. The newly designed product pages provide illustrative product and image films. The new tab ‘Industries’ introduces known and new concepts of fire protection and measuring technology. Under the heading ‘Information’ the visitor can find further information on recent press releases, training dates and external events and trade shows. l

Automated material handling company BHSL has unveiled its new patented solution for storing, transporting and dispensing large volumes of biomass and waste fuel products to boilers. The Toploader is driven by two low-energy motors which operate via a programmable logic controller (PLC) using in-house software designed by BHSL engineers. The technology can be supplied as a standalone unit consisting of a modular steel frame fuel storage bunker with retractable roof, or it can be installed to any new building, retrofitted into existing buildings and operated as multiple in-line units. Significant savings can be realised with this system as it requires no underground civil works and minimises labour costs. The Toploader is available in different sizes from 4-6m, with no restrictions in length. It is easy to install and suffers little wear and tear from dust or moisture ingress. Also included is the option of CCTV, remote monitoring and intervention. It is mounted on a dual-rail track above the storage bunker so all moving parts are above the fuel storage. The carriage moves on the rails and, at the same time, the blade lowers to gather the material. The load is delivered onto a conveyor and the Toploader clears the storage bunker, making for simple refilling. l

4R wins AD digestate contract In the UK, 4R Recycling, part of 4R Group, has been awarded a 25-year contract with Shanks Waste Management to process digestate produced by its AD facility proposed as part of the Wakefield PFI contract.

This contract will see 4R handle up to 40,000 tonnes of digestate annually when the facility becomes operational, expected mid-2015. The digestate

16 • March/April 2013

will be transported by 4R and used in land restoration across Wakefield and throughout the former Yorkshire and Nottinghamshire coalfields. Shanks proposes to build a residual waste treatment facility in South Kirkby, West Yorkshire, comprising a materials recycling facility, autoclave, anaerobic digestion plant and composting site. The plant will process up to 230,000 tonnes a year of residual household waste in Wakefield. The contract is being part funded by the UK Green Investment Bank. l

4R’s 25-year deal is part funded by the UK Green Investment bank

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LandEnergy awarded ENPlusA1 Wood pellets manufactured by UK-based Land Energy at its Girvan plant have been awarded an ENplus A1 certificate by the European Pellet Council. In order to achieve an ENplus A1 certificate, the European Pellet Council provides a thorough audit of Land Energy processes including origin and storage of

Woody crop longevity target from new joint venture

US-based agricultural technology company Arcadia Biosciences (AB) has signed an agreement with international woody crops enhancement business FuturaGene to look into sustainable development of eucalyptus and poplar trees. The contract will allow FuturaGene exclusive use of AB’s nitrogen and water use efficiency technologies, which both aim to increase tree yields while reducing resource inputs and their associated environmental consequences. ‘Plantation forestry is an important and renewable resource providing socioeconomic and environmental benefits,’ says AB CEO Eric Rey. ‘Planned and managed forestry preserves water quality, enhances biodiversity and contributes to carbon sequestration. As global demand for wood products increases, sustainable intensification by increasing and protecting yields will reduce pressures for extensive expansion.’ l

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raw material, production and product storage. Samples are taken of the wood pellets and sent to an independent laboratory to test for material, moisture content, bulk density and additives. Testing in the plant is then required on a continuous basis, with product sampled every hour. This gives assurance to the end user that Land Energy’s wood pellets meet quality standards and comprise maximum energy content with minimum ash output. l

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technology news

Welcome to THE WHOLE WORLD’S FORESTRY FAIR

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Megtec Systems acquires TurboSonic Technologies Design, engineering and manufacturing company Megtec Systems has acquired TurboSonic Technologies, a supplier of air pollution control and liquid atomisation technologies. The move included all of TurboSonic’s products, including wet electrostatic precipitator systems, semi-dry and wet scrubbers, Catalytic Gas Treatment systems, evaporative gas cooling

MOREbioenergy Sweden is the world leader in producing energy from forest biomass. At Elmia Wood you’ll understand why – thanks to the fair’s large special section on bioenergy. Use the unique opportunity to see and learn at the Pre Fair Bioenergy Tour and the Bioenergy Conference. www.elmiawood.com Subscribe to our newsletter

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5-8 JUNE 2013 In the forest · Innovations · Encounters · Machines · Demos · Technology · Bioenergy · Economics

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18 • March/April 2013

systems, NeNOx systems and related parts of services. TurboSonic will join the company as Megtec TurboSonic Technologies and operate as a wholly owned subsidiary of Megtec Systems, and as a separate business unit within Megtec’s Environment, Climate and Energy Group. The acquisition adds complementary product offerings to Megtec’s environmental portfolio and process expertise in key industries. This transaction will offer a broader range of products and services to an expanded customer base. l

Strain Systems offers free level measurement feature Strain Systems now offers its level measurement solution free of charge to customers who order its StrainCellbased weight measurement system for silo inventory management. The company’s level measurement feature incorporated into its Solo product line is designed for those customers who use level devices and calculate weight from often uncertain data. Its products were originally designed to provide a direct weight measurement for bulk materials stored in silos because raw

materials are bought, consumed and reconciled in terms of weight. This new feature allows customers to configure the Solo measurement system to monitor silo inventories in three ways: 1) by weight, 2) by level, and 3) by both weight and level simultaneously. ‘We understand that traditionally customers have been using level measurement on specific types of silos since they did not have any alternatives,’ says Kennan Yilmaz, the company’s president. ‘We are now offering the level measurement to our customers for free included in our weight measurement solution. As a result, customers can see silo weight and level on the display at the same time.’ l

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Komptech shredder lowers energy consumption Biomass technology company Komptech has designed a dual-shaft shredder that treats woody materials using little energy, retaining as much of the structure as possible. The Crambo dual-shaft shredder contains an extra-large shredding compartment, where 2.8m long counter-rotating drums actively draw in the bulky, coarse material. The slow speed of the drums minimises fine fractions and reduces dust and noise emissions, while the quick-change screen basket system ensures that the material is shredded to the desired granular size. The shredder is suitable for shredding green cuttings, untreated waste wood, driftwood and rootstocks, and the new Bio-Basket XL enhances performance. The system consists of a modified screen basket cartridge, a wide mesh screen basket and the cutter. Its large 640x200mm holes prevent material from circling around in the shredding

The Crambo dual-shaft shredder from Komptech

compartment, ensuring the biomass output retains the desired course structure. Fuel consumption is lowered with the new Bio-Basket XL, with the Crambo using up to a third less fuel for processing green cuttings. Throughput

has been increased by around 30%. The Carmbo is available as a mobile or stationary unit with an integrated change system for screen basket cartridges, helping users switch screen baskets regardless of how clean or dirty they are. l

Your Single-Source System Provider We offer complete systems for grinding and/or drying a wide variety of biomass materials including wood chips, algae, switchgrass, & kenaf. nt Biomass Handling Equipment ms Complete Engineered Systems Primary Hogs Secondary Hammer Mills Apron Pan Feeders Mass Loading Feeders Disc Screens Screw Conveyors Pneumatic Conveying Silos 2701 North Broadway, St. Louis, Missouri 63102 USA Phone: (314) 621-3348 Fax: (314) 436-2639 Email: sales@williamscrusher.com

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technology news

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New biomass facility ordered for Swedish operations Technology supplier Metso is to supply a biomass-fired power plant to Vimmerby Energi and Miljö AB for combined heat and power production at Tallholmen, Sweden. The start-up of the plant is scheduled for the end of 2014 and the order is valued at

€25 million ($33 million). Metso claims the plant will use bubbling fluidised bed combustion technology, with the boiler plant having a thermal output of 26 MWth and an electrical output of 7 MWe. In addition, a flue gas condenser will produce 4.5 MWth of heat. The plant will be designed to operate unmanned and will use local forest residues as feedstock. l

AD plant Category 3 benefits with new Biochop Landia has launched a new unit that mixes and heat treats Category 3 animal by-products so the resulting thin substance can be used as an energyefficient substrate in biogas plants. The free-standing BioChop Hygienisation Unit allows for small organic remnants to be liquefied, heat

treated and pumped back out as a valuable raw material in closed pipes in one efficient process. The technology offers labour, transportation and disposal savings and also minimises odours. The BioChop is suitable for AD operators, especially in enabling them to utilise Category 3 animal byproducts as part of their feedstock. It can also be used to benefit other industries, including poultry, fish and vegetable processing. l

New Russian biomass plant appoints technology supplier Technology supplier Metso is to supply Bioenergeticheskaya Kompaniya (BK) with a complete biomassfired combined heat and power plant in Russia. The 4MW CHP plant will use bark and wood residues from a Syktyvkar-based sawmill among other biomass. The produced power will be distributed to

the local grid and heat will be used in the internal belt dryer. ‘Sawmill residues that have long been stored at the Syktyvkar sawmill will now be used as fuel for the new power plant. The investment in the power plant will help to create more job opportunities and will improve the local environmental situation,’ says Alexey Kryukov, BK CEO. The power plant is scheduled to be in operation in 2014, but the value of the order has not be disclosed. l

Category 3 by-products include restaurant and household waste

Bandit upgrades stump grinder after failure Bandit Industries has developed a patent-pending update for two of its stump grinding models. The hydrostatic direct-drive Model 2250XP and Model 2550XP grinders have been upgraded to deliver additional strength and

20 • March/April 2013

support to the cutter wheel and shaft. The company says it developed the kit after learning of three isolated cutter wheel shaft failures on its 2250XP hydrostatic direct-drive stump grinder — the failures occurred in the hydrostatic motors supplied to Bandit. Further testing revealed that, in some

circumstances, shaft failure could result in the cutter wheel separating from the machine. Bandit developed, tested and implemented an update kit within 10 days of the initial report, which is designed to prevent cutter wheel separation in the event of shaft failure by securing the wheel to the stump grinder boom. l

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Don’t miss your chance to feature in the May/June issue of Bioenergy Insight magazine Anaerobic digestion

Cellulosic ethanol — enzymes

Looking at the latest developments in enzyme optimisation to increase yields, reduce costs and speed up full scale cellulosic ethanol commercialisation

Maceration

Examining the technology available to optimise digester performance

Biomass boilers: fixed and fluidised bed combustion

Comparing the best solutions available for biomass feedstock preparation

Which boilers are the most successful for CHP and biopower plants to run on?

Transportation/ logistics/hoppers/ pivots

Air quality/ emissions control Looking at the latest regulations and dust extraction options

Covering the latest innovations to make biomass transportation as safe, smooth and efficient as possible

Regional focus: Northern Europe / Scandinavia

FEEDSTOCK FOCUS Corn stover, bagasse, straw

Bonus distribution: UK AD & Biogas 2013

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green page Contaminated beef meals to become biogas in Sweden Following the horse meat scandal currently engulfing the UK and Europe, a Sweden-based supermarket chain is to boost biogas feedstock levels via recalled ready meals. Ica, which has reached capacity at its 63,000sqm storage facility in Helsingborg with the amount of returned ‘beef’ lasagne meals it has handled, will transport them to a recycling station in Angelholm to be turned into biogas. The meals were sent back after it was discovered that horse meat was being used as majority content, with frozen food brand Findus

No horsing around: biogas users will benefit from recalled meals

the most high-profile name affected by the inquiry so far. ‘The most important thing

is that these products are no longer sold,’ Ica Malmo store manager Jerry Rosengren was

quoted as saying. ‘Customers should always feel safe when they come to shop with us.’ l

Nothing sour about this biogas creation

A European water treatment plant is being powered by a feedstock more typically found on the dinner table.

New avenues: the popular side dish is now fuelling more than just stomachs

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Sauerkraut, particularly the juice, is mixed with specific bacteria to make methane and CO2 which powers turbines at the Bassin de l‘Ehn water treatment plant located in Northern France. Jerome Fritz, director of Bassin de l‘Ehn Water Treatment was quoted as saying: ‘The sauerkraut juice helps us to produce biogas to fuel the motors which produces electricity which we can sell on to the grid. ’ The highly acidic juice used to be transported by sauerkraut facilities to Strasbourg for processing, but is now being sold on directly to the water treatment plant as an additional new revenue stream. It is believed the biogas created this way creates enough power to serve 1,500 people for almost a whole year. l

March/April 2013 • 23

Bioenergy regulations Mark Döing, owner of independent energy technology consultancy Ecoprog, looks at how a new renewable energy law will affect Poland

Polish biomass market changes

oland plans to introduce a new law on renewable energies as coincinerating biomass in coal power plants is currently dominating throughout the country. But, in the future, the support of smaller monoincinerators and the use of CHP technology should be strengthened. This will lead to new opportunities to develop projects at industrial locations which produce large amounts of biomass. The current Polish system of green certificates does not differ between different forms of power production from renewable energy. Each renewable power producer obtains one green certificate for the generation of 1MWh. These certificates can be sold to both energy utilities and consumers. Those are obliged to trade or consume a certain share of renewable energy – in 2013 this share amounts to 10.9% of all electrical energy in Poland. This equal treatment of different modes of renewable energy production has led to a fast growth of the coincineration of biomass in coal power plants. About 50% of current Polish electricity from renewable energies is produced from biomass and almost a third comes from co-incinerating biomass in coal-fired power plants. Due to Poland’s strong biomass potential and its large number of coal power plants, the premises for biomass co-incineration were most favourable. Due to the use of domestic coal resources, about 90% of Poland’s electricity is produced in coal power

24 • March/April 2013

plants. By using this existing infrastructure, Poland was able to significantly increase its share of renewable energies in just a few years. Today, 30 of the 39 Polish coal power plants are coincinerating biomass. The ecological criticism of this practice, however, increases. Most co-incinerating coal power plants do not use the emerging heat waste; about 75% of the electricity from biomass is produced without using it. As a result of the booming coincineration in Poland, prices for the most popular biomass have almost doubled since 2006. This applies particularly to agricultural biomass that is obliged to use at increasing shares. In addition, the biomassto-energy boom in Poland has led to an increasing need for biomass imports like wood pellets from Russia or rapeseed meal from Ukraine. As a response to some of the unwanted developments, as well as preparation for future biomass use, the new Polish law on renewable energy will dramatically change the framework for biomass power production. The awarding of green certificates for co-incinerators will decline. New coincinerators will receive a third of a green certificate today. On the other hand mono-incinerators, with a power production capacity of less than 10 MW and CHP production, could gain up to 1.7 certificates for one 1 MWh. In addition, the obligation to use expensive agricultural biomass will be lower when compared to co-incinerators. The latter will have to reach

a share of 70% agricultural biomass in 2014. Monoincinerators, within the same time, are bound to use only a 20% share of agricultural biomass. Another change will be the guarantee of a consistent support for the period of 15 years, starting from the commissioning of the renewable energy plant. The support for co-incinerators will be limited to five years. The time schedule should also apply to plants that started operations before the Renewable Energy Sources Act comes into effect. In general, green certificates for co-incineration plants will be granted no later than 2020. For other plants, the current regulation states that green certificates can be granted by 2035. While the new regulation shall enhance the use of local biomass waste streams, the overall obligation in the power market for renewable energy shall rise from 10.9% to 12% in 2013. In 2014 it shall be 13% instead of 11.4% according to the current law. The latest version of the Renewable Energy Sources Act was drafted in October 2012. In early 2013, it was planned to come into force by mid-2013. Nevertheless, at present, the draft is stuck in the Polish parliament. Today, it seems to be possible to introduce a temporary act — the so-called small power three-pack. However, this could result in another delay so that the new legislation might not come into effect before 2014. Some large state-owned energy providers oppose decreasing subsidies for co-incineration but this

blockade will have to end soon as it is urgent to change the situation. The delay of the new law has resulted in temporarily slumped prices for renewable energy certificates. New power plants that were constructed with the new law in mind become operational. Nevertheless, old coincinerators continue to produce, even though many of them should leave the market due to the announced legislative changes. This results in overcapacities and declining prices that affect the power plant operators themselves. With the changes to come, the new Polish law on renewable energies will produce opportunities to develop new biomass power plant projects, at locations within the wood or furniture industry for instance. As the current support of co-incineration is strong, such locations have not played a role so far. Only 11 biomass power plants are operational throughout 450 locations that produce large amounts of biomass that were analysed in Ecoprog’s study. The largest plants, which are also co-incinerators, are operational three large Polish pulp mills. The eight existing mono-incinerators at industrial locations are considerably smaller and they produce less than 5% of the Polish biomass electricity. l

For more information

Ecoprog and local partners have jointly-analysed the Polish market for electricity generation from solid biomass in more detail. The report can be ordered at www.ecoprog.com

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regulations Bioenergy REA and EREC warn that shifting policy goalposts could prevent UK and EU realising economic benefits of 2020 renewable energy targets

UK biofuels industry responds to ILUC proposals

K energy secretary Ed Davey told the European Energy Council at the end of February that a one size fits all approach to the issue of indirect land use change (ILUC) for biofuels is ‘not helpful’. The overall cap on the use of crop-based biofuels at 5% of transport is making, according to the UK Renewable Energy Association (REA), the binding EU-wide 10% renewable transport target ‘virtually impossible to achieve’. The REA estimates that the proposals could cost the UK over £1 billion of investments and up to 3,500 jobs. Davey reiterated In a statement made on 1 March: ‘I agreed that a single approach is not helpful as the evidence indicated that bioethanol and biodiesel have different ILUC implications and suggested that basing the proposal instead on the ‘ILUC factors’ of biofuels would be a more appropriate way of tackling the problem and would allow investment to continue in more sustainable bioethanol.’ He revealed that other members states supported that stance and ‘many also considered that the 5% cap too restrictive and damaging to investor confidence’. Stay on target In response to the proposals the REA, the Agricultural Industries Confederation (AIC), British farming champion NFU and the Seed Crushers and Oil Processors Association (SCOPA)

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The UK is aiming to reduce carbon dioxide levels as part of its ‘Keep on Track’ obligations

have produced a unified industry position paper. The four entities represent the entire biofuels supply chain. The paper’s essence is that the assumptions behind these ILUC proposals are based on ’a purely theoretical approach’ which does not ‘account for the realities of biofuel development’. It also urges the European Commission to propose a dedicated target of 2% for transport fuels to come from advanced biofuels by 2020, while allowing electric vehicles and first generation biofuels to make up the rest. ‘We welcome Ed Davey’s useful intervention at the European Energy Council. ILUC is a serious issue, but the debate about the sustainability of biofuels and their effect on food prices is fuelled more by emotion than science,’ says REA head of renewable

transport Clare Wenner. ‘We need strong representation to ensure the Commission delivers a framework which encourages the reinvestment of revenues from the first generation market into the development of advanced biofuels. ‘We are working hard at home and abroad to inform decision-makers of the problems with these proposals, which not only threaten our climate change and renewable energy objectives, but over £1 billion of investment, and thousands of green industry jobs.’ The ILUC proposals were a major item on the agenda in early March when Wenner and REA chief executive Gaynor Hartnell explained to MEPs at the European Parliament in Brussels the particular challenges the UK faces in meeting its 2020 targets.

The meeting was part of the ‘Keep on track!’ project, which assesses member states’ progress on their 2020 renewable energy targets. The REA is the UK partner for the initiative, which is coordinated at European level by the European Renewable Energy Council (EREC). EREC has recently warned that, while the EU is presently on track to meet the 2020 targets, recent and upcoming policy shifts will make it difficult for many member states to remain on course over the next few years. The UK has the most challenging target in Europe as it is has started from one of the lowest bases. The REA estimates that meeting the 2020 targets would create an industry comprising 400,000 green jobs with a turnover of £12.5 billion. ‘Our renewable energy targets constitute a huge economic opportunity for the UK, with that many jobs potentially up for grabs. However, there is a long way to go, and industry needs strong representation across heat, power and renewable transport if we are to achieve these challenging targets, and reap the economic and environmental benefits that they offer,’ adds UK ‘Keep on track!’ project leader Mike Landy. ‘We welcome Ed Davey’s contribution to the ILUC debate, and we echo the sentiments of our colleagues at EREC: rushed and ill-conceived policy reversals must not be allowed to derail our renewable energy objectives.’ l

March/April 2013 • 25

Bioenergy regulations It could be a case of ‘Oh what a beautiful morning!’ for US renewable energy production from woody biomass if pending legislations are approved in two states.

Barking up the right tree

Oklahoma

irst up pending legislation is the Oklahoma Woody Biomass Energy Initiative Act of 2013, introduced by state representative Richard Morrissette just after the turn of the year to impress on a state plan for the development of heat and power from the renewable source. The bill outlays several stances to support biomass energy growth within the state but one important move would be the introduction of an advisory group called the Woody Biomass Energy Initiative Council. The group would be comprised of members from a variety of Oklahoma-based stakeholders including: • the House of Representatives • the State Senate • the Conservation Commission • the Department of Natural Resource Ecology at Oklahoma State University • the biofuel furnace manufacturing industry • the Department of Commerce The legislation would prompt all members of the council to develop an Oklahoma Renewable Woody Biomass Energy usage plan, which would include both harvesting and fuel burning guidelines and techniques, plus a funding plan for biomass utilisation and identification of state lands suitable for use in biomass production. It would also direct the council to take into consideration environmental quality and energy standards, as well as identify available grants, private resources and other funding to implement plans to support

26 • March/April 2013

the implementation of the Eastern Red Cedar Registry relating to the development of biomass production. That registry department keeps directories of producers of red cedar products, harvesters and land owners as the bill documents the native tree to be an abundant source of biomass fuel. The feasibility of putting woody biomass furnaces in places like schools, state correctional facilities and other state agencies would also be explored by the council. Co-generation and gasification technologies using woody biomass would also be investigated while approaches and recommendations to the legislature and governor’s office would be made too.

Washington Almost 1,500 miles to the east of the Sooner state, a Washington State legislation hopes to extend the existing sales and tax exemption for waste wood and residue used in the production of electricity, steam, heat or biofuels. The rule is set to expire at the end of June 2013 but hopes are to have it extended until 2024. According to the Washington legislature, these sales and use tax exemptions were originally brought out in 2009 and the Washington Department of Revenue approximates around $897,000 (€690,000) in credits would be claimed under the exemption in 2014. It goes further to estimate that, between fiscal years 2017 to 2019, claims made under the exemption could increase to just under $2 million. The legislation, if passed, would also add a new chapter to existing regulations that

Seeing red: as eastern red cedar trees encroach outside its natural habitats, its biomass bounty could be its saving grace

would require taxpayers claiming either the sales tax or use tax exemption to file a complete annual survey. This survey would include the amount of the tax preference claimed for the year along with information on employment positions at facilities in the state that are under common ownership and for which the exemption is claimed. Wage and benefit information would also be have to be included. The legislation is sponsored by several state representatives but was referred to the Technology and Economic Development committee in February as talks continue. New avenues And, in another recent boost, US ethanol producer

Front Range Energy (FRE), which is based in Colorado, has announced it will move away from using corn feedstock and looking at introducing woody biomass. FRE says it has tested a new process to make ethanol from wood waste and its 40 million gallon facility could start commercial production next year. ‘The idea to convert to ethanol is not a new idea, but the technologies to bring it to market are,’ says FRE VP Dan Sanders. FRE plans to produce 7% of its ethanol production from woody biomass via a conversion in 2014. This should reduce the company’s corn consumption by around 1.2 million bushels annually. l

Bioenergy Insight

biopower in the US Bioenergy The shale gas drilling boom is having an unfortunate side effect of stagnating the biopower industry. For the short term, at least, potential producers need to perfect the right combination of location, biomass supply and legislative support in order to prove a success

Cheap gas = less biogas by Amy McLellan

erlin, New Hampshire (population 9,945) proudly bills itself as ‘the town trees built’. For more than one hundred years, the abundant northern forest fed its booming saw mills and pulp and paper industries. By the 1940s, however, the good times were over as the pulp and paper giant Brown Company filed for bankruptcy and a seemingly terminal decline set in, accelerated by the arrival of the digital age; by 2006 the Berlin pulp mill had closed and the paper mill was in liquidation by 2010. In the space of four decades, between 1970 and 2010, the town lost nearly 40% of its population. But, like a forest, green shoots of recovery are becoming evident and both the pulp and paper sites are being reborn; in 2011 Gorham Paper and Tissue, backed by private equity group Patriach Partners, took over the paper mill while the pulp mill is being retrofitted as a 75MW biomass power plant, Burgess BioPower. ‘The mill was going to be demolished when the then governor John Lynch tried to see if there was any value in this big 11-storey Babcock and Wilcox black liquor recovery boiler,’ recalls John Hallé, founder of Mainebased Cate Street Capital, a green energy investment firm, which saw the retrofit potential. ‘We got involved, took it through permitting and signed a 20-year power agreement with Public Service,

Bioenergy Insight

The 75MW retrofit started life as a New Hampshire pulp mill

the state’s largest utility.’ Hallé says this was a great example of private and public sector working together to secure investment and jobs. The $300 million (€230 million) investment will need 750,000 tonnes of low-grade wood to fuel the plant. This was a win for the community and for Burgess Biopower and its backers, with Hallé believing the conversion knocks about 12 months off a greenfield construction schedule. ‘It saves both time and it saves interest costs,’ says Hallé. ‘And a brownfield development means you receive a lot less scrutiny from the community because they are used to seeing chimneys and industrial buildings on this site so it hasn’t been problematic getting permits.’ The construction is now about 70% complete and commercial operations are set to go live in October.

It is not the only biomass power project due online this year. The Gainesville Renewable Energy Centre (GREC) in Florida, a 100 MW plant, started construction in October 2011 and is now 85% complete. It has a 30-year power purchase agreement with Gainesville Regional Utilities (GRU), the municipal utility. The feedstock will draw on forest residue from the rich woods of northern Florida, wood processing residues and clean municipal wood waste. ‘All of the equipment has been procured, the turbine is onsite and we’re continuing piping and electrical work,’ says Albert Morales, managing director of project developer Energy Management and chief financial office of the Gainsville plant. ‘In the last two years, we have gone from a bare site to nearly functioning facility.’ The facility itself will employ 43 people directly and buy $30

million (€23 million) worth of fuel a year, all of which will occur within 75 miles of the facility, supporting truckers, forestry companies and saw mills. ‘The forestry products industry has been through some challenging times and one of the benefits of biomass is that it helps keep forest in the forest,’ says Morales. ‘It keeps the forest economically viable so that it remains as forest rather than being turned into condominiums.’ This is not the company’s only experience of developing a large-scale biopower plant in the US. It was also behind a mirror-image 100 MW plant at Nacogdoches in east Texas, but had to sell up to Southern Power in 2009 as the financial crisis hit. The project was shovel ready but with the banks and private investors in crisis it proved impossible to complete financing. A couple of years on and the Gainesville project benefited from improved market conditions, with private equity developing an appetite to invest in projects that can offer 30-year cash flow projections and the backing of a strong PPA. This meant the company was able to close on almost $500 million financing package of debt and equity. ‘The feedback from the banks was that this was one of the best structured biomass projects they had ever seen,’ says Morales, highlighting the strong PPA with a creditworthy off-taker set at a realistic price and a fuel price pass through mechanism. ‘We

March/April 2013 • 27

Bioenergy biopower in the US see reports of some PPAs for other biomass facilities but when you look closely they will not get built because the economics just don’t work.’ The financial challenge Developers need to think creatively to push the finance over the finishing line. Burgess Biopower, for example, involved a complex financing structure, drawing on different pots of monies, with senior debt sold to institutional investors, New Market tax credits of $70 million sold to tax equity player US Bancorp, and a section 1603 bridge loan. The latter is an initiative that rose out of the 2008 American Recovery and Reinvestment Act (ARRA), which gives renewable energy owners the option to receive a 30% tax exempt grant in lieu of an Investment Tax Credit for plants in operation before the end of 2013. Lacking support And while biopower developers agree the 1603 grant had been a very useful, they point out that biomass wasn’t able to leverage it to the same extent as other renewables. ‘There was a short window for projects to quality and that favoured intermittent renewables like solar and wind where you can put up a turbine or install a solar panel quickly,’ explains Bob Cleaves, CEO of the Biomass Power Association, which represents 80 biomass power plants in 20 states. ‘Biomass projects are much more complicated, they have long lead times and are capital intensive.’ The 1603 programme slowed down in 2011 and is now mired in budget sequestration, with FY2013 grants now facing a cut of 8.7% and forcing a number of biomass projects to rework their numbers. These include Atlantic Power’s newbuild 53.5MW Piedmont plant in Georgia, which at the time of writing was due online at the end of March, expects to see its

28 • March/April 2013

Savannah River: an example of a public-private partnership

cash flows sliced to $6-8 million a year, down from previous guidance of $8-10 million, due to reduced expectations on the value of the project’s renewable energy credits and potential sequestration impacts. Piedmont will use 500,000 tonnes of woody biomass a year, mainly urban wood waste and mill and logging residues, with the output sold under a 20-year PPA with Georgia Power. Those that got through the 1603 window are the lucky ones as there is little to no support for the industry going forward. ‘There’s a complete lack of any kind of energy policy, which combined with historically low natural gas prices, means there’s a lot of uncertainty,’ says Cleaves. ‘The development pipeline of future projects looks very modest right now.’ Cheap gas Certainly the glut of cheap natural gas in North America is working against biopower developers. Biomass just can’t compete when the boom in domestic natural gas production means gas prices are around $3 per MCF (thousand cubic feet). ‘For

the next five to 10 years it’s going to be very hard to justify a biomass plant at these power prices,’ says Halle. Morales agrees with this assessment. ‘Low natural gas prices and the wider economic conditions mean it’s a difficult market to develop additional facilities. We have other opportunities in very early stages of development, but given the economic situation it’s going to take time.’ There are still opportunities for the right project in the right location however, such as behind-the-meter transactions where industries seek to leverage their own feedstock supply, or colleges switch from coal to biomass for a mix of PR and energy savings. But, in the next few years, these projects will be small scale, around 30 to 40MW and around $200 million capital investment. Public private partnerships Some projects have got off the ground under the public-private pairing of an Energy Savings Performance Contract, where private companies finance and install energy-saving equipment in federal facilities. The government pays no up-front

cost, therefore saving taxpayer dollars, and the company’s investment is repaid over time from the cost savings generated by the new equipment. The largest ESPC ever awarded by the Department of Energy fell to a biomass plant in South Carolina. Massachusetts-based Ameresco inked the 20-year deal with the DoE to provide biomass power for the nuclear research facility Savannah River site in 2009. This was a rebuild of a 1950s-era coal plant that had many reliability issues, leading to downtime and financial penalties when the facility was then required to take power from the grid. There were also emissions issues, which meant the vintage plant was going to require some significant capital investment. With no natural gas infrastructure in the area, Amersco identified the opportunity for a biomass plant to replace the coal and draw on the region’s abundant woody resources. Ameresco undertook to deliver $944 million in savings over a 19-year period, provide all the fuel and operate and maintain the plant. In return it would get a $795 million

Bioenergy Insight

biopower in the US Bioenergy payment, which means the federal government would be netting $150 million in savings and getting a new renewable energy plant. ‘When we did the financing in the fall of 2009 which was at the height of the fiscal crisis in the US, it was pretty challenging but we were able to pull it together which talks to the soundness of the projects finances and it means we were able to come up with a private sector solution to solve this unfunded capital requirement of this federal facility,’ explains Keith Derrington, executive VP of federal solutions at Ameresco. Construction started in 2009 and the 20MW plant came online in early 2012. The biomass comes from a 50 mile radius and, in the first year it consumed more than 10,000 tonnes of tyres and 221,000 tonnes of local forest residue and wood chips. Derrington says the inclusion of a 10% burn of tyre chips was helpful during rainy periods as it helped maintain better combustion conditions. The first year has seen a ‘few kinks and issues that had to be worked through but no outages,’ confirms Derrington. The amount of steam and electricity produced is constantly measured against the base case of the old coal plant to make sure the new facility is delivering the promised energy savings. ‘We met our performance requirements for steam and electricity and have been

able to operate a better efficiency from a combustion standpoint than we originally envisaged,’ he reports. While many of the biggest projects are sited near the dense wood areas of the southeast, other feedstocks are generating power in regional pockets, such as Agrilectric’s 12MW plant in Louisiana, which is fuelled by rice hulls, or Florida Crystal’s giant 140MW bagasse-fired plant in Florida. One biomass feedstock that is abundantly available across the US is, of course, municipal waste yet the pipeline of waste-toenergy projects is running dry. WTE’s postcode lottery Waste-to-energy (WTE) projects face the same obstacles as other biopower projects, namely competition from cheap natural gas, a lack of policy and fiscal support — both the Solid Waste Association of North America and the Energy Recovery Council have campaigned for an extension of the 1603 grant programme — plus the added hurdle of concerted public opposition to plants. There are 86 modern WTE plants in the US including some big plants, such as the 75MW Pinellas plant in Florida, now operated by Green Conversion Systems. But there has been little expansion in recent years, other than existing plants building additional units such as Covanta’s H-POWER

facility in Honolulu. Here, a third boiler was added in Q4 2012 to increase the capacity to 3,000 tonnes of municipal solid waste per year and 90 MW of energy, close to 8% of the island of Oahu’s total power needs, reducing its energy imports by one million barrels of imported oil per year. Indeed it seems WTE projects are very zip code dependent. Some states back waste-toenergy as a way of diverting waste from landfill and delivering green energy; others place regulatory roadblocks in the way of these projects. According to the Californiabased Bioenergy Producers Association, the state has lost potential thermal waste-torenewable energy investments amounting to at least $1 billion in capital investment in the past decade, because of its unfriendly business environment, consigning more than 250 million tonnes of municipal solid waste to landfill. Minnesota however, despite having ample space for cheaper landfill, likes WTE and it shows by having 10 plants in the state, which is seeking a 15% reduction in green house gas emissions by 2015. Among these is the Elk River Energy facility, which is owned by wholesale electricity cooperative Great River Energy. Plant manager Tim Steinbeck thinks this is perhaps one of the most unique plants in the world: it started life in 1950 burning coal and oil before, in 1963, it was converted

to a nuclear power plant. It reverted back to coal and oil in 1968 until 1989 when it was retrofitted to run on refuse-derived fuel as part of Minnesota’s push to control landfill. ‘The waste travels about 25 miles, 90% of it coming from the Twin City metropolitan area. ‘Originally there was a 20-year contract for a dedicated supply of waste but since 2010 the plant has seen its tip fees reduced and it has had to work hard to become more market based and efficient,’ says Steinbeck. The company has also worked hard to improve its energy recovery. In the original 20-year plan, for every unit of garbage 80% was converted into RDF, 4.5% was metals that were recovered and the remainder — either oversized and difficult to process or heavier residues — went to landfill. The facility wanted to improve this and invested capital, brought in some new systems and process changes, some inspired by creative thinking from employees, adds Steinbeck. There were some strange anomalies: a large proportion of shoes, for example, were found to be in the remainder stream because of their heavy but flat soles. ‘We are now able to pull them out and do energy conversion rather than sending them to landfill,’ says Steinbeck. As a result of these improvements, in 2012 less than 0.5% went into landfill making this a near zero processing facility. ‘It’s been quite a change — I don’t know any other RDF plant that would be anywhere near us,’ he adds proudly. He notes, however, that despite the successes at Elk River, this is an industry that isn’t expanding. ‘There are no large scale waste-to-energy facilities going in and it’s down to the low cost of natural gas.’ Looking ahead

Gainesville Renewable Energy Centre: The 100MW project is 85% complete

Bioenergy Insight

While the shale gas drilling boom is helping drive growth in the economy, with energy-

March/April 2013 • 29

Bioenergy biopower in the US intensive industries like petrochemicals and steel capitalising on cheaper fuel bills and hard-pressed householders feeling some relief on energy bills, the sustained low gas prices are making it impossible for biomass to compete. This has been compounded by the withdrawal of state support and the ongoing uncertainty about future policy which makes it impossible for developers to close investment on these sophisticated long-term projects. ‘What we need is a longterm fix that would make these tax credits permanent so there’s certainty for the industry,’ says Cleaves. ‘We need a long-term predictable federal energy policy that values alternative forms of energy because

it’s not just about energy independence or carbon emissions but about diversity because you can’t rely on just one form of energy.’ He points out that natural gas may be cheap now but that may change. After all, even with the shale bonanza, the supply is finite. And, like all commodities, it’s also subject to extreme volatility and price spikes — it’s only seven years ago natural gas was touching $14 per MCF. Importantly natural gas doesn’t reach all parts of this huge nation; in those regions without infrastructure, they remain dependent on coal and oil. Wherever that coincides with abundant biomass, there’s an opportunity for biopower developers. And this infrastructure gap creates additional opportunity:

building out the power generation, pipelines, compressors and storage to deliver cheap domestic gas at both the utility and residential heating level will require significant capital investment and that, in turn, will feed through to the gas price. ‘I expect gas prices to go up five years out not because of a shortage of gas but because of an inability to transport it effectively, efficiently and cheaply,’ says Halle. ‘In fact being able to finance a biomass power project at higher than the current market price but fixed for 20 years is not a bad bet.’ Indeed, most players agree that there’s room for optimism for those taking the long view. ‘Longer term there’s a very strong opportunity for biomass in the US because

as coal facilities are retired and the economy rebounds there will be a need for new generating capacity,’ adds Morales. ‘While natural gas will fill most of that, there does need to some diversity of supply and biomass is well placed to fill that because, unlike other renewables, it’s base load supply.’ These may be difficult times for the industry but there is still much to play for. In the short term, developers need to seek out opportunities for discrete projects that marry the right feedstock solution with regional pricing strength. Longer term, developers can look to higher gas prices, as predicted by most analysts, or fiscal incentives from the federal government, on which, however, there is far less consensus. l

A provider of Bulk Materials Handling Solutions

30 • March/April 2013

Bioenergy Insight

profile Bioenergy Jonathan Kahn, CEO of Geneva Wood Fuels, outlines his ideas for pellet use within the US, following a comeback from adversity

Of benefit to everyone

eneva Wood Fuels (GWF), based in the wood industrydominated US state of Maine, has risen like the proverbial phoenix to become a fixture pellet supplier in the north east of the country. A fire caused by a faulty dryer in the summer of 2009 threatened to derail the fledgling company’s aspirations but CEO Jonathan Kahn and his 20-strong team rolled up their sleeves, went again and now have a growing business with one keen eye on the future. ‘Our old technology supplier tried to get round emission constraints by hiding a fault in their dryer design that eventually caused the fire,’ explains Kahn. ‘But we didn’t rest on our laurels and have seen steady growth since we reopened in May 2010.’ Local business for local people GWF has entered its third continuous production year off the back of its best 12 months yet. The company made 11,000 tonnes of pellets since restarting production, which steadily rose past 30,000 and up to 45,000 tonnes to date. ‘We can process about six tonnes of feedstock an hour but we are still only operating at 50% of full capacity as we work to satisfy local demand,’ Kahn says. ‘We naturally invested in new technology after the accident and, since then, we’ve made sure to optimise it.’ GWF’s facility currently only uses locally-sourced hardwood as feedstock and Kahn believes that

Bioenergy Insight

GWF’s infeed takes in wood chips and forwards them to a wet grinding process in a dryer

won’t change for the foreseeable future, despite advances being made in

us the 100,000 tonnes of round wood or residues we use at the moment — those

‘If there are community silos filled with products dotted around, this could allow smaller trucks to make localised deliveries over short distances’ other raw material areas like various grasses. ‘Maine is full of trees and is well-known in the US for its logging and pulp industries,’ he explains. ‘We have around 65 suppliers which bring

suppliers range from large, mechanised businesses to one man on horseback.’ Kahn says that when the facility does reach full capacity, the need for feedstock could ‘potentially

double over 200,000 tonnes’. ‘As long as the wood supply is controlled then it could last forever,’ he adds. ‘The government has diverted a lot effort into wind and solar activities which I think are a false dawn. If there is no wind then there will be no power, but trees can offer an ever-ready feedstock supply as long as they are sustainably managed.’ Community hub The US is known as a big exporter of pellets on the global stage, but Kahn thinks the domestic market would total ‘on or maybe

March/April 2013 • 31

Bioenergy profile sector that Kahn feels could unlock the next stage of GWF’s progression. ‘Companies like us will have to look within our country’s boundaries to find the next business opportunities,’ Kahn

operation akin to that of the petrol industry as a good way for the local US pellet industry to move forward. ‘Petrol is delivered by tankers to service stations so that consumers can fill

‘Our suppliers range from large, mechanised businesses to one man on horseback’ - Kahn on GWF’s various feedstock providers up when they need to. That model of convenience could very well be replicated for the pellet industry,’ he enthuses. ‘The pellets could come from a producer which, in turn, allows a logistics

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muses. ‘The industrial sector is taken care of in terms of demand at this present time and technology advancement on a residential level could be the next big thing.’ Kahn would like to see an

company to deliver to homeowners or businesses on a bulk or “as needed” basis.’ GWF may very well discuss that idea with local regional heat source companies and logistical providers as a next step in its development. ‘If there are community silos filled with product dotted around, this could allow smaller trucks to make localised deliveries over short distances,’ continues Kahn. ‘At the moment some of our large trucks are driving over 100 miles to fulfil contracts but, with this idea, CO2 emissions could further drop by lessening the impact transportation has. Plus I think pellets could reduce heating bills for homeowners by 50% if converted from oil.’ l

just over a million tonnes’. A lot of information on the internal pellet industry varies greatly depending on who you talk to, but he feels it is a market that could start to grow exponentially. ‘We sell 85% of our product in bags through retailers and the remaining 15% goes out as bulk deliveries, some of which is for residential use and some for larger pellet boilers that service schools and government office buildings,’ says Kahn, who adds that many households use wood stoves and small central heating systems for their entire home heating needs. Some, like many over in Europe, also have small silos to store their pellets. But it will be developments and support in the residential

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Bioenergy Insight

plant update Bioenergy

Biopellet plant update – US Beaver Wood Energy and Vermont Hydroponic Produce Location Fair Haven, Vermont Alternative fuel Renewable power and pellet manufacturing plant in a new biomass hub Capacity 30MW of renewable energy and 110,00 tonnes of pellet Feedstock Wood residues such as tree tops, branches and bark chips Construction / expansion / Construction acquisition Project start date February 2013

Biomass Power Louisiana Location Baton Rouge, Louisiana Alternative fuel White wood pellets Capacity 1 million tonnes (Phase I) Feedstock Whole trees and chipped fibre Construction / expansion / Construction acquisition Project start date Mid-2013 Comment The subsidiary secured a six-month options to lease a site where it is proposing to build a new pellet plant

Drax Biomass International Location Two pellet production plants: 1) Amite BioEnergy, Mississippi 2) Morehouse BioEnergy in Louisiana Alternative fuel Wood pellets Capacity A combined capacity of 900,000 tonnes Feedstock Fibre from sustainably managed forests Construction / expansion / Construction acquisition Project start date First half of 2013 Completion date 2014

Bioenergy Insight

Enova Wood Pellet Group Location Three wood pellet plants in Georgia and South Carolina Alternative fuel Wood pellets Capacity 450,000 tonnes each Construction / expansion / Construction acquisition Project start date October 2012 Investment $330 million (€253 million) Enviva Location Alternative fuel Capacity Construction / expansion / acquisition Project start date Investment

Virginia Wood pellets Two 500,000-tonne pellet mills Construction of the two pellet plants in addition to the expansion of its deepwater port terminal to 100,000 tonnes January 2013 (loan secured) $120 million (€92 million)

Herty Advanced Materials Development Centre Location Georgia Alternative fuel Wood pellets Capacity Pilot-scale Construction / expansion / Construction acquisition Completion date February 2013 Investment $2 million (€1.4 million) Comment Capabilities and services provided by the mill include biomass preparation and pre-treatment, as well as biomass testing and pellet analysis New Biomass Energy Location Alternative fuel Capacity Construction / expansion / acquisition Project start date

Mississippi Torrefied wood pellets 150,000 and 250,000 tonnes Expansion from 4,000 tonnes to 150-250,000 tonnes January 2013 (announced)

*This list contains biopellet plant projects in the US, including the information available at the time of printing. If you would like to update or list any additional plants in future issues please email keeley@horseshoemedia.com

March/April 2013 • 33

Bioenergy plant update

Renewable power plant update – US Agri Beef

Location Toppenish, Washington Alternative fuel Biogas Feedstock Methane captured from its beef processing operations Construction / expansion / Construction acquisition Completion date December 2012

Anaergia Location Fair Oaks Farms, Indiana Alternative fuel Biogas Feedstock Manure from 11,000 cows Construction / expansion / Construction acquisition Completion date March 2013 Comment The fuel is used to power a fleet of 42 milk trucks

Blue Line Transfer Location California Alternative fuel Biomethane Feedstock 9,000 tonnes of plant and food waste Construction / expansion / Construction acquisition Investment The company received a $2.5 million (€1.9 million) grant from California Energy Commission in February 2013 to continue with the development of the plant

34 • March/April 2013

CH4 Biogas and Campbell Soup

Location Ohio Alternative fuel Biogas Capacity 9.8MW Feedstock Multi-feedstock including soup, sauce and beverage waste Construction / expansion / Construction acquisition Project start date 2012 Completion date Mid-2013 Clean World Partners Location California Alternative fuel Biogas Construction / expansion / Construction acquisition Investment Sacremento Municipal Utility District received $1.8 million (€1.3 million) from the California Energy Commission in February 2013 to complete the $13 million anaerobic digester project by Clean World Partners Covanta Location Honolulu, Hawaii Alternative fuel Renewable energy Capacity 90MW Feedstock Biomass: municipal solid waste Construction / expansion / Expansion of the H-Power acquisition renewable power plant, increasing its handling capacity by 900 tonnes to 3,000 tonnes Project start date 2009 Completion date October 2012 Investment $302 million (€231 million)

Bioenergy Insight

plant update Bioenergy Doyon Utilities Location Alaska Alternative fuel Renewable energy Capacity 6.5MW Feedstock Landfill gas Construction / expansion / Construction acquisition Designer / builder GE supplied its Jenbacher gas engines to the plant Completion date August 2012

Green Power Solutions Location Laurens County, Georgia Alternative fuel Renewable energy Capacity 56MW Feedstock 1 million tonnes of woody biomass Construction / expansion / Construction acquisition Project start date May 2013 Completion date Beginning of 2015

Ineos Bio Location The Indian River Bioenergy Centre, Florida Alternative fuel Renewable energy Capacity 6MW Feedstock Local yard, vegetative and agricultural waste Construction / expansion / Construction acquisition Completion date 2012

New Generation Biomass Location Holloman Air Force Base, New Mexico Alternative fuel Renewable energy Capacity 20MW Feedstock Biomass Construction / expansion / Construction acquisition Project start date 2013 Completion date 2015 Investment $70 million (€53 million)

Novi Energy Location Michigan Alternative fuel Renewable energy Capacity 3MW Feedstock Biogas from 100,000 tonnes a year of food waste Construction / expansion / Construction acquisition Project start date 2010 Completion date Q4 2012 Investment $22 million (€16.8 million) Portland General Electric Location Oregon Alternative fuel Renewable energy from biomass Capacity 550MW Feedstock 8,000 tonnes a day of corn stover, wheat straw, poplar chips, special biomass sorghum and cow manure Construction / expansion / Converting its power plant from acquisition coal to biomass Comment The company is investigating suitable biomass materials to replace coal at its Boardman power plant Sherman Development Location Stacyville, Marine Alternative fuel Renewable energy Capacity 24MW Feedstock Biomass Construction / expansion / Liquidation and relocation of the acquisition former Boralax Biomass Power Plant Completion date The system will be transferred and reinstalled once sold Southern Co. Location Texas Alternative fuel Renewable energy Capacity 100MW Feedstock Woody biomass Construction / expansion / Construction acquisition Completion date July 2012 Investment $500 million (€383 million) Comment Southern Co. is supplying Austin Energy will the energy through a 20-year contract We Energies and Domtar

New Leaf Energy Location Greenville, Maine Alternative fuel Renewable energy Capacity 120,000MW Feedstock Biomass Construction / expansion / New Leaf Energy has signed a acquisition letter of intent to purchase the Greenville Steam plant, formerly owned by Gallup Power Greenville. The plant was closed in 2011 Project start date December 2012

Bioenergy Insight

Location Rothschild, Wisconson Alternative fuel Renewable power Capacity 50MW Feedstock Biomass Construction / expansion / Construction acquisition Designer / builder Boldt Construction Project start date 2011 Completion date 2013 Investment $255 million (€195 million) *This list contains major plant projects in the US, including the information available at the time of printing. If you would like to update or list any additional plants in future issues please email keeley@horseshoemedia.com

March/April 2013 • 35

Bioenergy finance With so many other things, money is one of the biggest stumbling blocks within biomass projects. The UK’s largest asset finance provider Lombard offers its advice on overcoming this all important hurdle

Making money less of an object

‘A

s with any financial application, timely preparation is key,’ explains Hiten Sonpal, relationship director for Lombard1. ‘It’s important to have a clear idea of what you want to purchase, how the repayments will be met and the specific benefits to your business, as well as having access to your financial accounts. A biomass system can cost between £10,000 (€11,500) and £10 million and can have an economic life of between 15 and 20 years, with system payback expected within four to six years depending on installation size and usage. Lombard is one provider that offers hire purchase and lease purchase facilities where the security is within the asset. This reflects Lombard’s confidence in the sector. The company does not require tangible security in the form of land or buildings. The benefits of funding green energy requirements and biomass assets through asset finance are considerable. It offers flexibility of repayment and helps businesses free up cash flow to be used

for development in other parts of the business. The monthly repayments offered through asset finance enable a business to spread the cost and, at the same time, they are able to reap the reward of lower energy bills. This, along with the Renewable Heat Incentive (RHI) payments, can be offset against their monthly repayments. Benefiting from the RHI It is important that a funder conducts due diligence to confirm that the supplier is accredited, and that there is a clear understanding of how the RHI programme operates and how the customer can benefit. The RHI is the UK government’s principal mechanism for driving forward the transition to deployment of renewable and low carbon heat over the coming decades. At Lombard we believe that the RHI is a genuine opportunity for businesses to benefit from the scheme. RHI is a key contributor in achieving the UK’s share of the EU’s renewable energy targets and the carbon plan. The government’s aim is to

Feeding efficiency

Overbrook Farm, a poultry farm in the UK wanted

to install biomass boilers in its 22 sheds to replace existing heating system that ran on LPG. The old system generated CO2 emissions and significantly these have been shown to suppress growth in poultry. Lombard worked with the farm to put in place a sale and hire purchase back arrangement to reimburse the £750,000 funding agreed under the hire purchase terms. This meant the farm did not have to borrow any money before the boilers were up and running. By using biomass the farm was able to reduce its energy bill by 30-40% which reduced its annual fuel bill by over £100,000. The business has been able to benefit from the RHI, which will generate nearly £300,000 a year for 20 years.

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Poultry farm based in Derbyshire:2 Facility: Hire purchase • Install cost £1m • Amount financed £750k • Annual DSC £180k • Fuel savings per annum £105k • RHI income per annum £220k • Total revenue from biomass boiler £325k • Surplus per annum for first five years £145k • Total revenue over 20 years excluding debt costs £5.6m Representative example3 • Cash price • Advance payment • Total amount of credit • Duration of agreement • 20 quarterly payments of • Rate of interest • Representative APR • Administration fee

£1m £250k £750k 60 months £44,225.98 6% above RBS 1 month sterling LIBOR (variable from time to time) Representative 6.9% APR (variable) £3.75k

increase the deployment of renewable heat technologies in order to keep the UK on track to meet the 2020 target in the most cost-effective way. The RHI scheme went live for the commercial sector in November 2011 and £860m has been set aside to pay the RHI. The RHI will be funded from general government spending, not through the utility companies as was the case with the Feed in Tariff. The best way of demonstrating this is through the experience of the customer highlighted earlier, and by highlighting the financial statistics involved in this case, the ultimate outcome of which is a total revenue after 20 year of £5.6m, excluding debt costs. As the Overbrook example shows, using asset finance to acquire biomass boilers can limit the risk and highlights how the payback in lower energy bills is almost immediate. The significance of the relentless escalation of fuel prices cannot be ignored and, as an established technology,

biomass offers businesses such as those operating within agriculture and manufacturing, an opportunity to reduce energy bills, reduce carbon emissions and benefit from the RHI programme. In general terms, as with any form of finance, it is important to be prepared. Consider your business plan and what you want to achieve. In this way your funder can work with you to meet your energy efficiency objectives and to benefit from the specific advantages that biomass provides. l 1 Lombard is an appointed representative of The Royal Bank of Scotland, which is authorised and regulated by the Financial Services Authority. 2 The RHI is index linked and the above calculations are based on today’s tariff. Security may be required. Product fees may apply. 3 Security may be required. Product fees may apply. It is important to note that this is a current indication of terms and does not constitute a formal offer or commit Lombard North Central. The rates are subject to change should monetary terms differ in the interim and additional security may be required. These terms may be withdrawn in whole or in part without notice and without any reason being given.

Bioenergy Insight

torrefaction Bioenergy Thomas Causer, president of Terra Green Energy, looks at the potential role of torrefied biomass in renewable energy and fuel industries

Behind the torrefaction curtain

orrefaction is a mild pyrolysis or ‘roasting’ process which involves the thermal conversion of wet, green biomass into a consistent quality, extremely dry, hydrophobic and easily grindable product which can be efficiently utilised in both energy and non-energy applications. The ‘roasting’ process is undertaken in an oxygen deficient environment, maximising the conservation of energy while minimising the generation of combustion by-products such as carbon dioxide. During the torrefaction process, the majority of moisture is eliminated and the nature of the remaining biomass solids rendered significantly different and improved. On average, 90% of its original energy content is preserved yet only 40% of the original mass of the wet, green biomass remains — as such, torrefaction is an excellent biomass pre-treatment process. All about the processing Biomass consists primarily of cellulose, hemicellulose and lignin and comes in many different forms. Commercial sources of biomass include wood, grasses and agricultural byproducts. Without exception, all types of biomass are cumbersome to handle, low in energy density and contain excessive amounts of moisture. Biomass is difficult to use on an industrial scale without some type of processing to a consistent size and the removal of moisture. Biomass can be grown,

Bioenergy Insight

harvested, and supplied to a torrefaction facility and subsequently to the customer as a sustainable carbon neutral commodity. Terra Green Energy has developed an energy efficient system that uses no fossil fuels in its torrefaction process, which allows the material produced to have a much smaller carbon footprint than if fossil fuels were used. Proper torrefaction involves the uniform heating and drying of the biomass followed closely by the volatilisation of the hemicellulose component of the biomass. The thermal degradation of the hemi-cellulose occurs between 250˚c - 300˚c. With the volatilisation of the hemicellulose, the rigid cellular structure of the biomass collapses rendering the product hydrophobic, friable and easily grindable. A well-designed and operated torrefaction system uniformly processes the biomass within a narrow temperature range under controlled conditions without producing either under-reacted or over-reacted (charred) product. The gases generated by the volatilisation of the hemicellulose would also be sufficient to provide the majority of the energy required by the process. Uses of torrefied biomass include both energy and non-energy applications. The use of torrefied biomass in energy applications represents the highest volume potential but it is difficult to compete with fossil fuels on a unitof-energy cost basis without financial incentives. An example of an energy

application is co-firing with coal in a pulverised coal boiler. This can be accomplished without the need to modify either the facility’s fuel handling system or its combustion system. Non-energy applications, like specialty material and chemical applications which are currently in development, may represent the highest value potential. Advantages

Biomass has been used by mankind as a fuel for thousands of years. Its role however, and subsequent importance, as a fuel has diminished during a time of continued growth of fossil fuel use. This development has led to ever increasing levels of carbon dioxide in our atmosphere. Torrefaction offers a number of potential advantages, some of which have been mentioned earlier, but the fact that torrefied biomass has a higher heat density and is hydrophobic will allow for substantial storage and transportation cost savings. This advantage is most evident when biomass is shipped over long distances, such as when supplying the European or Asian markets from North and South America. In addition, use of torrefied biomass to displace coal can reduce the emissions of air pollutants such as mercury, SOx and NOx. Often a discussion on torrefaction doesn’t necessarily include the subjects of liquid transportation fuels or economic development. Given that torrefied biomass has physical characteristics similar to coal, any pathway to liquid transportation fuels (including aviation fuels) may seem weak.

While there are challenges, it is suggested that torrefaction could be an excellent biomass pretreatment process to enable the production of a sustainable and carbon neutral supply of liquid transportation fuels. Spokes of glory One challenge is the large economies of scale required for the efficient production of liquid fuels from biomass. A second is supplying a large quantity of biomass feedstock. One possible solution is illustrated in the following example: Imagine a wagon wheel with an F-T synthesis facility at its hub. That facility, utilising entrained flow gasification, would consume torrefied biomass from multiple facilities located throughout the surrounding region. The supply area would encompass an entire region, utilise sub-prime agricultural land and could include any number of different feedstocks such as hybrid poplar, willow, and various grasses such as switchgrass and miscanthus. Torrefaction can efficiently process all these different biomass feedstocks. For economic development, consider the value generated throughout the whole supply chain, ultimately ending in sales to the transportation fuel market. While it’s capital intense, it has the capability to have a positive impact on every person and business in the production region. l For your information:

Thomas Causer is president and COO of torrefaction technology licensing company Terra Green Energy, tcauser@terragreenenergy.com

March/April 2013 • 37

Bioenergy feedstocks US biopower firms are convincing farmers to expand acreage of miscanthus, switchgrass and other dedicated energy crops on marginal lands, but an absence of federal funding could put all the progress at risk

Planting the chain

t is a complex equation of economics, behaviour, timing and risk management to create an industry for dedicated energy crops. ‘For one, nobody builds an oil refinery without knowing where the oil is going to come from,’ says Texasbased Aloterra Energy’s (AE) Scott Coye-Huhn. AE knows building a refinery to process fuel and power from energy crops often involves this paradox however. ‘There has to be a processing facility for farmers to plant energy crops, but developers also need to know where the feedstock is coming from before they build,’ he adds. Recognising the difficulty of the situation, the United States Department of Agriculture (USDA) created the Biomass Crop Assistance Programme (BCAP). It brings marginal lands that do not compete with feedstuffs into production, while simultaneously creating a manufacturing base for biopower, chemicals and fuels. ‘BCAP was created to solve the ‘chicken or egg’ scenario,’ Coye-Huhn says. January’s ‘fiscal cliff’ deal extends a cut version of 2008’s Farm Bill, but does not mandate funding for BCAP. Technically defunct since September, it includes important bioenergy supports like the Biobased Markets, Biorefinery Assistance, Rural Energy for America, Biomass Research and Development and the Biomass Crop Assistance programmes. For the biomass power industry, the legislation also includes language that allows

38 • March/April 2013

Farmers’ revenue options could vastly increase via energy crop options

certain open- or closed-loop biomass and biogas facilities to continue to qualify for renewable energy production. USDA’s energy programmes have a combined goal of developing rural economies as well as second generation biofuels technology. ‘Under BCAP, if a crop fails and we have sufficient funds we will try to provide the support to re-establish it. There is not a lot of insurance out there for energy crops and there isn’t a lot of data,’ says USDA energy advisor Todd Atkinson. The circumstances have become increasingly fragile though, as the federal support system for energy crop establishment falters. ‘For bioenergy developers involved, it’s been hard to write a longterm business plan without knowing if BCAP is going to be there or not to foster crop

establishment,’ Coye-Huhn says. Although the fiscal cliff deal extended the programme, Congress needs to act swiftly on the passage of another long-term Farm Bill. ‘It’s been really tough,’ he adds. ‘It seems almost oxymoronic to say that a programme has been extended but not funded. These are being ‘transitioned’ to appropriated rather than mandated programmes, Atkinson explains. ‘So now it is dependent on the Appropriations Committee which has the funding authority in Congress. It’s now unknown. There has been successful participation in 11 project areas, so, when funding is available, there has been significant establishment of energy crops in targeted areas.’ AE is optimistic about the work done to educate

members of congress on the merits of the programme. ‘BCAP had a rough start, but it recovered and its reputation is stronger now on both sides of the congress aisle,’ Coye-Huhn says. The integral role funding for USDA (and programmes like BCAP) plays is that it absorbs a portion of risk involved as rural economies develop energy markets virtually from scratch. ‘Farmers are risk takers by nature, but they are not willing to take all the risk,’ Coye-Huhn believes. ‘We signed up 18,000 acres in three months with BCAP in place because farmers felt more comfortable trying to do something they’ve never done before.’ Markets It is a long-term project. ‘The difficulty with biomass crops is it takes up to three years to build a supply chain that is what we are aiming for,’ says Delane Richardson VP of business development at Chemtex. ‘It’s been helpful to have BCAP while farmers are waiting for biomass to reach maturity. But even if there is no funding we can’t stop. We have 14,000 acres signed up and we are trying to secure more by June.’ Chemtex, a company mixed in the engineering conglomerate behind the world’s first and largest operating commercial-scale cellulosic ethanol plant in Cresentino, Italy, says it will keep up the work it started even without BCAP, which is good news. ‘The economics aren’t quite there for this

Bioenergy Insight

feedstocks Bioenergy work to proceed totally independently, but it is making progress,’ Atkinson says. Miscanthus production will support Chemtex’s Project Alpha, a proposed cellulosic biorefinery slated for construction in North Carolina. Like the Cresentino plant, its expected annual production is 20 MMGy of cellulosic ethanol, along with biobased chemicals and onsite biogas for power generation. ‘The plant in Cresentino proved the technology, so to duplicate it in the US we have to build the biomass supply chain,’ adds Richardson. In each of its project areas, AE is developing refineries that will produce pellets for domestic and international markets, biobased products and chemicals, and eventually liquid fuels as those technologies mature. ‘We are really operating close to the cooperative model — AE serves as marketing arm for the farmer,’ explains Coye Huhn. On that note, downstream diversity is key. Cellulosic ethanol is designated as a major market for dedicated energy crops, which will generate high prices per gallon and also Renewable Identification Numbers. Pellets, ethanol, green gasoline and diesel fuel, RIN and biobased chemical markets are all needed to establish mature demand for energy crops. ‘When a corn ethanol plant was proposed, the plant might not materialise, but farmers still grew corn because they had other markets to sell it,’ Atkinson says. ‘But if farmers establish an energy crop and the plant falls through, they might not have access to another market. It is important that there are customers for these crops.’ AE says export opportunities abound for pellets in coming years. ‘We’re especially excited about Europe. EU’s 20% renewable energy by 2020 target means they are being aggressive in their carbon reductions and we think that

Bioenergy Insight

the biomass pellet is going to be a big part of that. If coal plants in the US would convert just 10 to 15% of their capacity to biomass capabilities it would create enormous markets, but the cost structure just won’t work here.’ AE feels it can create an excellent product for biopower markets. In terms of quality, miscanthus and switchgrass pellets compete with wood — the closest to a standard the pellet industry has. ‘It’s kind of the Wild West in terms of quality and standardisation,’ Coyn-Huhn says. ‘We are a little bit higher in chlorine and ash levels in the emissions, but we compete in all the other categories.’ ‘There are competitive advantages upstream as well,’ Richardson adds. ‘We don’t have to compete with corn and soybeans. We’re competing with pasture land, not row crop land—maybe pig spray fields, reclaimed surfaces and other marginal acres not suited for food production, we have a directive not to compete with food. ‘A lot of land in North Carolina is not good for corn. I don’t want to hurt anybody’s feelings, but we just don’t get the same yields as at the Corn Belt. We are looking for marginal lands that are well suited for perennials, a mixture of rye straw, miscanthus, fibre sorghum. Chemtex wants to show farmers the economics and let them choose.’ In New York, Pennsylvania and Ohio — where AE is managing BCAP project areas — Coye-Huhn reveals active cattle and milk ranchers are still keeping pasture land even if they do convert some of their acreage to energy crops like miscanthus: ‘In fact, most of the land farmers are signing up for energy crops is not being used at all.’ Establishment and expansion A lot of details have to be accounted for when

new crops are introduced on a commercial scale. Planting and harvesting equipment may not exist, for instance, or might have to be specially ordered. ‘Agsco built new a new miscanthus harvester as result of some USDA grants in 2010,’ Coye-Huhn says. ‘Special techniques were also adopted, but miscanthus grows strong and dense, so it’s easy to harvest and collect — an advantage over other potential pellet and cellulosic ethanol feedstocks. ‘It’s not rocket-science, we don’t have to invent something totally new, like the people dealing with with crop residues. Miscanthus generates 10 to 15 tonnes per acre, and corn stover, in comparison, gets about one tonne. When you are only getting one tonne of biomass per acre, efficiencies have to be almost perfect.’ Farmers in other states working with AE and MFA Oil Biomass, a partnership between AE Energy and MFA Oil, have already committed 20,000 acres to grow miscanthus. Its goal for the New York region is 50,000 acres, which will produce 600,000 tons of biomass annually. ‘For our Project Alpha, we need 300,000 tonnes annually for the projected production capacity of the cellulosic ethanol plant in North Carolina,’ Richardson says. AE and MFA Oil Biomass were awarded Project Sponsorship of 4 of 9 BCAP project areas in 2012, MFA Oil Biomass was one of only three projects approved for BCAP funding by the USDA. To date, farmers have planted 18,000 acres of miscanthus with AE and its partners in Ohio, Pennsylvania, Missouri, and Arkansas. Including New York, these projects will mature at 250,000 acres, totaling 3 million tons of biomass produced annually. Miscanthus and switchgrass are considered non-invasive

perennials which need minimal fertiliser and no herbicides or pesticides. They aren’t difficult to maintain, but can be expensive to establish. This is where BCAP steps in to assume the risk. ‘One participant was able to cut cost from $1400 (€1000) per acre to $250 per acre with just a couple of years’ assistance,’ Atkinson says. ‘With establishment of a crop you’re not working with one person, you are working with hundreds of farmers and ranchers and you have to pay attention to patterns, best practices, what works for planting and harvest season.’ The goal is to cut costs so farmers growing energy crops no longer need government assistance and can proceed independently. ‘We know the cost of corn and soyabeans, but with energy crops there are a lot of unknowns. In the production of alternative fuels a strong part is getting the feedstock price right, and people are starting to focus more on that part of the equation,’ Atkinson continues. ‘You can have the greatest conversion technology in the world, but you also have to have relationships with the farmers and landowners, and those take time to build.’ ‘With miscanthus, the first year you might get 30 % yield, the second you might get 60%, but you’re not at 100 % until at least the third year,’ he adds. ‘It’s hard to get farmers to plant perennials knowing that the next year is only going to bring 30% yields. But that is just in the short-term, it is beneficial long term. We want to show them the reasonable economics they can expect when planting perennials and offer take or pay contracts. ‘We want to sign 10 year contracts with them and don’t want them looking for someone else a year later. We want to offer some level of security as a long-term agricultural partner.’ l

March/April 2013 • 39

Bioenergy feedstocks Repreve Renewables’ Jay Brinson talks about the future of miscanthus as a viable renewable feedstock

Unravelling the miscanthus mystery

iscanthus grass is helping North Carolina renewable energy company Repreve Renewables (RR) create a double-pronged renewable energy solution for its local communities, which could also potentially extend across international waters in the future. The company is a commercial grower of Freedom-brand giant miscanthus as a bioenergy crop for renewable power, advanced ethanol and renewable plastics. RR currently centres on the production of rhizomes, an underground part of miscanthus that stores proteins, starches and other nutrients, plus it is to produce straw feedstock for both established and future facilities too. ‘The grass can provide high yields per acre and outperforms other energy grass crops,’ RR sales manager Jay Brinson says. ‘Now that the RFS2 has upped the amount of supported cellulosic ethanol production, miscanthus, which is included on the list of approved feedstocks, is gaining more notoriety.’

up to 2,000 acres being added for both rhizome and straw production. ‘The rapid growth, low mineral content and high biomass yield of miscanthus make it a good choice as an energy crop,’ Brinson explains. ‘The grass itself is typically harvested between December and February and it retains less moisture, around 10 to 15%, against woody biomass at approximately 50% for example.’ As a biomass crop miscanthus can be used as fuel for a furnace to provide steam power, converting to

hot gas, thermo conversion to bio-oil as crude for diesel fuel, bedding for livestock or as feedstock for cellulosic ethanol. ‘Our main focus with our current fields is the production of rhizomes, not strictly miscanthus straw for sale,’ he says. ‘However, we do have over 1,200 tonnes of straw that could be used both for testing by, or qualifying our products to, end users.’ Last year RR worked with Cool Planet Biofuels (CPB) by supplying miscanthus that helped CPB produce 4,000 gallons of cellulosic petrol

per acre of the feedstock during pilot testing. CPB claims this fuel process is ‘a drop-in, tank ready petrol chemically identical to petrol made from fossil fuels’. Ramping up North Carolina is one of the only states in the south east that is part of the 30-strong renewable energy portfolio nationwide so RR’s input into overall consumption is relatively small to date. However, over the past 12 months, Brinson and his colleagues

Versatility RR has over 650 acres solely dedicated to building its rhizome inventory, with plans to expand that foundation stock later this year, with

40 • March/April 2013

Stalking: Brinson standing at the Repreve miscanthus foundation plantation

Bioenergy Insight

feedstocks Bioenergy have been championing the use of miscanthus as much as possible. ‘As miscanthus is a relatively new dedicated energy crop coming to market in the US, much of our time has been focused on educating end users about the benefits of it and getting our product approved as a qualified feedstock source,’ he explains. RR is building its reserves and increasing its plantations so that it is ready to ‘supply the expected demand’. Brinson believes the market for miscanthus is developing and continues to gain momentum within both large- and smallscale project owners. ‘We’ve had some good response from small power facilities throughout the state

particularly, and it helps that miscanthus can help fill the void if and when woody biomass supplies shorten at any time,’ he adds. ‘The biggest challenge we face right now is the evolution of the delivery process to ensure this downstream process flourishes at every point.’ Brinson clarifies that further by saying end users vary in their processes and so RR needs to be flexible enough to accommodate any opportunity. ‘If an end user wants us to provide a full delivery service, RR is able to dig up and transport our rhizomes intact to be able to supply a quality product to a producer, or provide straw to meet the end user needs. Any challenges would then arise depending on what scenario awaited us

at the other end,’ he muses. ‘Another end user may want to pick up feedstock orders from our foundation, so we must ensure they know how to handle it properly and have the right technology in place to use it back at base.’ Knowledge is power And, as mentioned, RR already has future international aspirations for its business with Brinson doing some globetrotting as part of his duties. ‘Aside from visiting other pilot projects throughout the US in locations like the midsouth, I and some colleagues have been over to the UK to look at feedstock locations, attend conferences and learn from other feedstock providers. I think Australia

could also become a key market in the future,’ he says. Brinson says the Renewable Obligation Certificates that UK companies benefit from are something he’d like to see in the US as they would offer ‘a long-term stability’ to RR and other similar companies. ‘There is still uncertainty in the US as the Farm Bill only got a one-year extension and it will run out later this year unless further extensions can be sorted,’ he says. ‘There are a lot of great grant programmes which help progress, but there needs to be a solid long-term strategy in place. The industry is moving forward but, as every producer operates differently anyway, there needs to be more momentum so that everyone can be supported on a base platform.’ l

The Green Business Class. Simple. Better. Sustainable. Neuson Ecotec forestry and environmental equipment facilitates your work, ensures the attainment and compliance with mandatory industrial standards and boosts the overall value generation: An upgrade for the industry that delivers better performance and is made of higher quality material. A good investment into the future. Welcome to the lounge of the very best. Neuson Ecotec GmbH, Actualstr. 32, 4053 Haid, Austria Tel. +43(0)7229 78 000-0, Fax +43(0)7229 78 000-100 office@neuson-ecotec.com, www.neuson-ecotec.com

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13.09.12 11:43

March/April 2013 • 41

Bioenergy torrefaction When Michael Jackson sang ‘It doesn’t matter if you’re black or white’ it was unlikely he had the wood pellet industry in mind. However, with two new facilities up and running, technology supplier Andritz hopes torrefaction will give more choices to energy producers

Increasing the options

‘W

hen you drive moisture and hemicellulose out of wood biomass without burning it, you create a fuel that is approaching the characteristics of coal,’ explains Brian Greenwood, technical director for biorefining at Austria-based Andritz. ‘Power producers love it because they avoid making costly modifications to their boilers and feed systems, so they can co-fire with higher proportions of biomass.’ Torrefied biomass is very dry, organic rich and easily turns into powder. ‘The ability to both torrefy and pelletise biomass at commercial-scale without expensive binders is challenging,’ Greenwood continues. ‘Labs can produce kilos of pellets, not the tonnes needed for industrial use.’ However Andritz has a new biomass torrefaction pilot plant in Denmark which is gaining attention as it is designed to not only prove the technology concept for large-scale production, but also to pelletise the torrefied fuel. The plant is partially funded by the Danish Energy Technology Development and Demonstration programme. Alongside the plant in Denmark, the company is also demonstrating a complementary technology for smaller decentralised plants at another pilot facility in Austria. Converting mass to gas The Denmark pilot plant combines three Andritz technologies — rotary dryers, torrefaction processes and

42 • March/April 2013

Proof in the pudding: Orla Fielso (left) and Henning Juhl Moller from Andritz Feed and Biofuel in Denmark

pelletising machinery. ‘If our concepts and technologies can be proven at this scale, it will open the door for dark-roasted torrefied wood pellets (also known as ‘black pellets’) to replace the standard, or ‘white’, pellets of today,’ Greenwood says. Torrefaction is conducted at relatively low temperatures (250˚c to 300°c) in an oxygen free atmosphere. During the process the hemicellulose in the biomass is decomposed, creating by-products such as water, carbon dioxide, carbon monoxide and various organic acids. Depending on the process, up to 30% of the mass is converted but little energy is lost, which causes the overall energy density to rise. The increase in calorific value of the biomass (energy per unit of weight) can be more than 20% on an energy/ mass basis. The gas released is burned to generate the heat needed to breathe life into the torrefaction process.

EU driving the development The coal-like properties of torrefied biomass are important according to Jaap Kiel, biomass programme development manager at the Dutch research institute ECN: ‘EU directives are pushing for reducing carbon emissions and increasing renewable energy shares up to 20%. Co-firing biomass with coal in power stations is an attractive short-term option.’ Co-firing of traditional wood pellets has been demonstrated at several locations and the boiler efficiencies have not suffered considerably. However, without major modifications, the maximum share of wood in the fuel blend can only be around 5 to 15% as the chemical and physical properties of the wood pellets differ too much from coal. Kiel explains that the differences between ‘white’ pellets and coal sets demanding requirements for power plants. ‘For conventional wood

pellets, outside storage is not practical,” he adds. ‘Separate, dedicated storage and milling facilities are required and a high percentage co-firing will lead to a substantial derating of the power plant.’ ‘From a technology development point of view, there are two ways to approach it,’ Greenwood continues. ‘You can either adapt the power production technology to fit the biomass, or vice versa.’ This is why the power industry is looking so closely at torrefaction; the calorific value is higher and denser, the absorption of water is significantly lowered and the microbial degradation is slowed thus making it possible to store outside. Plus, little or no modification to existing boilers is required. ‘With standard pellets, co-firing requires substantial investments and leads to lower plant capacity,’ Kiel adds. ‘With black pellets, co-firing levels of between 50 to 100%

Bioenergy Insight

torrefaction Bioenergy

Torrefaction drum at the ACB pilot plant in Austria

can be reached without major investments, while largely maintaining plant capacity.’ Two approaches Apart from their size, the primary difference between the Danish and Austrian pilot plants is in the technology approach says Doris Thamer, Andritz’s senior sales manager for thermal systems. ‘Our Austrian plant uses an indirectly heated drum reactor that we developed, which is designed for 50,000 t/a, a size that can be transported by truck to a decentralized site,’ Thamer reveals. ‘The facility in Denmark uses moving bed technology, which is used in

the pulp and paper industry and better suited for use in extremely large plants.’ The drum reactor is based on Andritz’s Accelerated Carbonised Biomass process involving drying, torrefaction, combustion of lean gas, conditioning and briquetting. Its design keeps out oxygen with a seal and makes it possible to control the retention time and temperature effectively. ‘The mechanical design of this drum is well-proven in sludge drying applications and we have more than 110 units installed in the Austria facility,’ Thamer adds. The pilot plant in Denmark incorporates biomass receiving, drying,

torrefaction and pelletising in an integrated system. The torrefaction process blends patented ECN and Andritz technologies and fresh wood chips are first dried in a rotary drum dryer to reach the desired moisture content for the torrefaction reactor. The heart of the process is a vertical pressurised reactor which has trays stacked vertically inside. Dried wood chips enter the reactor at the top, ‘roast’ in the hot gases passing through the biomass and perforated trays, which rotate to ensure even distribution, then drop to the tray below for another stage of torrefaction. The torrefied material is finally discharged at the bottom

of the reactor vessel. From the reactor, the torrefied material passes through a cooling screw to a storage silo. For the densification process the material passes through an Andritz Hammermill for crushing to uniform size before entering a pelleting machine, resulting in an energy-dense torrefied pellet that can be stored and shipped. The dust created by the process can create a potentially explosive atmosphere so, to nullify that situation, the process design was analyzed according to EU ATEX directive procedures. ‘Torrefied dust is potentially explosive when mixed with air,’ says plant manager Allan Melsen. ‘We spent considerable engineering effort and investment to reduce the risk, including testing different types of wood dust.’ Counter choices Greenwood believes that torrefaction is not just a matter of black pellets vs. white pellets, but having options so that an energy producer can choose the right product for a particular boiler. ‘It is kind of like going into a coffee shop and specifying light, medium, or dark roast,’ he smiles. ‘But we have to walk before we can run, so now our attention will be on developing the first stages of torrefying and densifying.’ l

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March/April 2013 • 43

Bioenergy finance Amy McLellan asks whether the world’s first Green Investment Bank is delivering on its promises

Living up to expectations?

t has been three years in the making against a backdrop of gloomy economic forecasts, Whitehall squabbles and industry sniping, but the Green Investment Bank, the world’s first investment bank dedicated to greening the economy, has now clocked its first transactions. Three years ago bioenergy developers, struggling to raise funds for projects that are many years in the making, involve complex risk analysis and emerging technologies, saw the emergence of the Green Investment Bank (GIB) as something of an industry saviour. More recently, however, that enthusiasm has waned as it became clear the bank was not going to bankroll the industry and did not even count bioenergy as one of its priority sectors (the priority sectors are offshore wind, waste, non-domestic energy efficiency and green deal, accounting for 80% of the bank’s initial funding base; the other 20% will target biofuels for transport, biomass power, carbon capture and storage, marine energy and renewable heat). ‘We had really high hopes but it became clear the bank was going to take a low risk approach and match existing funds rather than step into the breach left by the financial crisis,’ says one bioenergy developer who asked not to be named, and whose project has been shelved for now. Yet the bank makes

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Edward Northam: Analysing and pricing risk is a key skill for the Green Investment Bank

no apologies for this approach, stressing it is not a lender of last resort. ‘Our role is not to go to those ends of the market where no one else will go because the returns don’t match the risk profile,’ says Edward Northam, the GIB’s MD for waste and bioenergy. ‘Quite the opposite. We are acutely aware of whose capital we are investing here.’ The Edinburghheadquartered bank — and that fact alone has caused no end of political griping — opened for business in November 2012 with £3 billion (€3.5 billion) of government money. It has no ability to

borrow until after April 2015 — and only then if public sector net debt is falling as a percentage of GDP. With the economy showing anaemic growth, public borrowing is not expected to meet this target until 2016-17. This worries some. According to Nelson Ogunshakin, CEO of the Association for Consultancy and Engineering, confidence will be damaged if the GIB’s powers fall short of industry expectations. ‘It makes it difficult for industry to plan with any certainty if there’s no date for those borrowing powers to come into force,’ he says. The bank itself is staying

clear of this debate. ‘We have a mandate from our shareholders to invest £3 billion in our priority sectors on the basis they deliver an attractive return and we take that extremely seriously,’ says Northam, who has 15 years in the global renewable energy industry. ‘What happens beyond that initial three year investment period depends on how we do our job. If we do it really well then we have a range of options about how we take it forward, whether that’s leveraging the balance sheet, other forms of capital raising or recycling our invested capital. If we do our job properly the future will take care of itself — and if we don’t then we should not be given another go.’ There’s no question this is an industry that has faced a funding crunch in recent years, in part because of the wider financial belt-tightening and in part because of industryspecific issues including policy uncertainty, project complexity and the nuances of the sustainability debate. ‘Bioenergy is an incredibly complex subject and this makes it difficult to attract investment,’ says Geraint Evans, head of biofuels and bioenergy at bioenergy consultancy NNFCC in York. ‘Companies want to know that they are doing the right thing and this isn’t always obvious so investment can head for easier options.’ He sees a role for the bank. ‘Bioenergy has the

Bioenergy Insight

finance Bioenergy potential to be a very valuable renewable energy source in the UK with the advantage that it is one of the few renewable energy options that can provide much needed dispatchable energy. But, it needs support, both in terms of finance and policy certainty.’ Policy is beyond the remit of the GIB, which is focused on providing liquidity to projects that offer an attractive rate of return. This is, after all, a ‘for profit’ institution working with hard-earned taxpayers’ money. It is a challenging role, particularly given the complexity and risk profile of the industry. ‘In a market where liquidity is tight, those with liquidity can be very choosy and don’t need to spend time on the complicated stories because they can pass straight over to projects where they feel more comfortable,’ says Northam. ‘We do not have that luxury.’ This means the bank is more willing to listen to developers seeking funding support. ‘We can make an informed and intelligent process of assessing risk,

Drax power station: its conversion to biomass secured GIB backing

procurement strategy and the choice of technology. ‘Telling a compelling story across both platforms will materially increase your ability to access finance,’ says Northam, although he says there is more room for manoeuvre here. ‘Feedstock and technology are areas that are never going to be risk free but it’s about understanding those risks, mitigating them and then pricing the residual risk.’ Contracted feedstock is a highly attractive feature to investors but where this

‘Bioenergy is an incredibly complex subject and this makes it difficult to attract investment’ - Geraint Evans, head of bioenergy and biofuels, NNFCC how it can be managed and mitigated, pricing the capital accordingly and hopefully bringing others along with us.’ Northam has a number of criteria for projects passing over his desk. ‘One of our binary elements is the deliverability capability of the project team. In today’s environment, strong sponsors who have aligned their interests with the success of the project are more likely to access capital efficiently.’ The next two critical elements are the feedstock

Bioenergy Insight

is not possible sponsors need to demonstrate an abundance of feedstock in the location and that it can compete for the feedstock on a higher basis than anyone else. On the technology front, it really helps to have reference plants that can show a proven track record. ‘In the current environment it’s extremely challenging to get a first-of-kind technology away from a low-cost capital perspective,’ says Northam. ‘It’s a stretch too far.’ What proportion of

the projects crossing his desk tick all the boxes? ‘A lot don’t,’ he concedes. ‘Sometimes sponsors think they have ticked the boxes but on the other side of the table it looks a lot less convincing. But we do see some propositions that we are optimistic about getting into shape to be interesting investment opportunities.’ The bank’s first investment was an £8 million commitment to a waste-to-energy project in north east England, a transaction that attracted a further £8 million of matching funding for the project. The project itself involves a 5.1MW anaerobic digestion (AD) plant at Teesside, the first of six planned over the next five years for a total investment of £100 million to deliver more than 30MW of energy to the grid, making it the largest single AD project in the UK. The bank has also participated in the funding round for Drax’s conversion to a biomass-fuelled electricity generator. The North Yorkshire power station is the largest in Western Europe with generating capacity of 3,960MW, providing around 7% of the UK’s electricity supply. Drax is converting three of its six 660MW coal units and supporting infrastructure to operate on biomass in what is a highly strategic project, both for the UK’s

emissions targets and its energy supply and security. The GIB is backing this transformation, providing an amortising term loan facility of up to £100 million, alongside the Prudential and M&G UK Companies Financing Fund who committed £100 million in July 2012. ‘Drax is a strategically significant asset in the UK generation mix so this transaction is concomitant with our mandate to accelerate the transition to a green economy,’ says Northam. ‘And when we ran the analysis, it looked fairly attractive from an investment point of view as well.’ A spokesman from Drax says the involvement of the GIB and the UK Infrastructure Guarantee backed by HM Treasury represented a ‘real vote of confidence’. He adds: ‘We agreed certain specific requirements around sustainability to help GIB comply with its obligations as a government-backed institution so that provides an extra degree of certainty in regard to our already very high sustainability standards.’ The hope is that in time the GIB’s involvement in a project will make it easier for private sector sources of funding to sign up too, with the institution providing a kind of kite mark of quality. But, as Northam acknowledges, it first has to earn that reputation. He is only too aware that there are many almost waiting for the bank to fail. ‘This is taxpayers’ money and there should be a level of scrutiny and absolute transparency,’ he says, acknowledging the responsibility of being the world’s first green investment bank. ‘Everyone who works here is very aware of the fact that we are creating something that can make a real impact and that could go far beyond any financial market dislocation.’ The coming years will put these ambitions to the test. l

March/April 2013 • 45

Bioenergy boiler

46 â&#x20AC;˘ March/April 2013

Bioenergy Insight

US biogas Bioenergy

AD: still an underdeveloped market by Nnamdi Anyadike

he boom in North American biogas is expected to accelerate in the coming years, buoyed by a renewed commitment to green energy by the second term US administration and the growing number of anaerobic digestion (AD) initiatives at state level. North of the border, Canada is making significant advances in bioenergy. Although the US bioenergy mindset still has some way to go before it can match that of Germany, where organics are seen as a source of energy rather than a waste management problem, the US trend is positive. Wayne Davis, chairman of the American Biogas Council (ABC) and VP of government and community affairs at Harvest Power told Bioenergy Insight: ‘The industry in the US is growing strong and in 2009 we received a nice push from the US Treasury’s 1603 programme, which provides payments for specified energy projects in lieu of tax credits. Prior to that, our industry had to wait some considerable time before it received the tax credits that it was entitled to.’ The grants and loans, awarded by US Department of Agriculture’s (USDA) rural development through the Farm Bill, have helped to increase the deployment rate of manure digester systems. There are also a growing number of state and federal programmes that are designed to share

Bioenergy Insight

cost in the development of these systems. The US EPA estimates US food and yard waste at 65 million tonnes. An estimated additional 10 to 15 million tonnes are thought to be available in Canada. The EPA claims that Americans generate 34.76 million tonnes of food waste per year, or 13.9% of total municipal solid waste (MSW). Of this total, just 2.8%, or 970,000

to generate much higher quality renewable energy. The technology commonly divides into two types: wet, otherwise known as ‘low solid’ and typically containing around 8 to 10% solids, and dry, otherwise called ‘high solid’ which typically contain around 40% solids. Wet AD is predominantly used in wastewater treatment plants. It is also better suited to manure processing and

‘A herd of 100 milking cows can produce 15-20kW of power. But, by adding 25% of good quality off-farm feedstocksinto the mix, electrical output could triple to 60-75kW’ tonnes, are composted. The key to unlocking North America’s massive bioenergy potential is AD. It took the development of more technically reliable AD systems for livestock manure treatment and energy production, together with growing concern by farm owners about environmental quality, to accelerate the pace of the industry in the US. This process, which breaks down organic waste with bacteria and the absence of oxygen, is still a relatively untapped waste management method and has yet to receive the sort of policy attention that is given to wind and solar energy. This is despite the fact that AD plants are acknowledged

yard wastes. Food waste is typically better suited for use in dry AD facilities. However, the wet and solid AD system designation is in fact an over-simplification and there are many different systems that are commercially available, depending on the organic waste stream type. The EPA’s AgSTAR programme, whose mandate is to encourage the development and adoption of AD technology, recognises four general categories: the covered anaerobic lagoon digester with a sealed flexible cover; the plug flow digester; the complete mix digester; and the dry digester. But in any AD system, the availability of quality feedstock is crucial. Indeed,

for any AD enterprise to be a success the systems needs to be designed around available feedstock, preferably with established and long-term contracts secured early in the project. Feedstocks come in three types: by-products from farming such as manure, bedding, feed waste, crop residue and culls, and runoff from silos; off-farm source materials such as by-products from food processing plants; and energy crops such as corn silage, sugar beets etc. Of these, says Davis, the most important is off-farm feedstock as it contains the most energy and hence produces the most biogas. ‘A herd of 100 milking cows can produce 15-20kW of power. But, by adding 25% of good quality off-farm feedstocks into the mix, electrical output could triple to 60-75kW,’ he adds. However, the ABC sees quality assurance of off-farm feedstock as presenting a challenge for its industry due to the potential for it to contain contaminants such as plastic, metal, chemical and antibiotics. The EPA sees a great potential for biogas recovery systems from the estimated 8,200 dairy and swine operations in the US. It calculates that biogas recovery systems at these facilities have the potential to collectively generate more than 13 million megawatthours (MWh) per year and displace about 1,670 megawatts (MW) of fossil fuel-fired generation. As an indicator of the success of

March/April 2013 • 47

Bioenergy US biogas its AgSTAR programme, since it was established in 1994, it points to the 176 systems operational digester systems that are now place across the US that in 2011 alone produced approximately 541,000 MWh equivalent of energy generation. But the ABC, which promotes the US biogas market, believes that the US still has far to go. Of the over 8,000 dairy and swine farms, around 2,200 currently operate as biogas producing sites. However, just 100MW is produced from the 170 plus digester systems. This compares with a potential power production of 1700MW. And 1,500 digesters at wastewater treatment plants (WWTPs) only 250 use the biogas they produce. ‘The nation’s 3,250 WWTPs should be capable of producing 750MW,’ believes Davis. An example of the sort of farm-based AD development that the ABC wants to see

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move forward is Wisconsinbased biogas developer GreenWhey Energy’s project to construct and operate a 3.2mW wastewater AD facility capable of processing some 500,000 gallons of wastewater from the local dairy industry. The facility is expected to be completed this summer and will be one of the largest facilities of its kind in the US. The wastewater, diluted with whey and milk, will be packed with fats and proteins that have the potential to innate a lot of energy. The electricity will be sold to Xcel Energy and will be sufficient to power 3,000 average Wisconsin households. Another example is the AD facility at Stonyvale Farm in Maine. The project, which has now been running for a year, is said to be the only one of it kind in New England that co-digests manure and food waste on a large scale by Adam Wintle

the managing partner of Biogas Energy Partners, the development arm of Exeter Agri-Energy. t In its first year, it combined about 7.3 million gallons of cow manure with food waste, allowing the facility to produce 5.2 million kilowatt hours of electricity for the grid. There is a possible issue with regards to emissions even though ADs are an odour reducing technology. ‘One challenge for our industry is the methane emission when conversion to electricity takes place. In certain areas of California for example there are strict emissions controls. A preferred conversion to energy route is to convert the biogas into pipeline quality gas that can be used for grid power generation,’ says Davis. Many states have air, solid waste and water permitting requirements for AD systems and, as the number increases, AgSTAR anticipates requirements will continue to be refined. The ABC also believes that much can be done to encourage demand in the US including the expansion of the expansion of the US natural gas vehicle (NGV) fleet and infrastructure. Currently, this lags well behind many countries in Asia. Brett Jarman of NGV Global told Bioenergy Insight: ‘We can learn a lot from nations that have developed big NGV markets. They have done that entirely with converted vehicles and all the fuelling stations have grown organically.’ ‘The same can be said about Pakistan, which has about 2,500 fuelling stations and more than 2 million vehicles… it was driven by consumers.’ Davis adds. ‘NGVs are an important emerging area and a lot of municipalities are interested in this option. We see fleet vehicles as being in the vanguard of NGVs, rather than the individual motorist.’ An example is the City of Columbus government in

Ohio. The Columbus Fleet management division operates around 5,600 vehicles and last year it was ranked as the second best Fleet in North America. The Fleet operator has turned to using natural gas as a fuel over other alternatives such as propane and electric vehicles. Kelly Reagan, fleet administrator with the City, says the decision to use gas was its low cost. In comparison with diesel, which retails at close to $4.50 (€3.50) per gallon, CNG can sell for $1.80 per GGE. The City of Columbus currently operates one CNG fuelling station with another in design phase and a third to come. ‘Columbus’ intention is to own/operate its CNG stations as well as building an infrastructure to encourage alternative fuel growth in the Midwest,’ says Joshua Bull of the NGV Global. ‘But the City of Columbus is not limiting itself to an additional two CNG stations. There is a CNG coalition that it is involved in and there are other public entities that are in the business of building some CNG, like COTA the local transit authority.’ The ABC is also pushing for the passage of a new Farm Bill with renewed mandatory funding for bioenergy programmes and the strengthening and improvement of the Renewable Fuels Standard among other moves. Work is undertaken through the ABC’s Legislative and Regulatory Affairs (LRA) committee which meets regularly to track policy developments in Capitol Hill and within federal regulatory agencies. As to the future, Davis is cautiously optimistic: ‘To date the take up of AD technology has been a little bit disappointing. However, by 2020 we are confident that the various remaining logjams in the US will have broken and we expect to see a significant surge forward.’ l

Bioenergy Insight

sustainability Bioenergy Charlotte Morton, CEO for the UK’s ADBA looks at the advantages of bioenergy produced from anaerobic digestion over that generated through biomass

Digesting the options

he Committee on Climate Change has said that 10% of the UK’s energy requirement must be met with bioenergy if the UK is to meet its 2050 emissions targets, as well as its other benefits to the UK’s energy security, technology export potential and innovation in waste management. Clearly bioenergy must be sustainable and government policy which supports bioenergy must therefore reflect the evidence which is already available on the relative sustainability of different forms. The difficulty however is in deciding and then advocating what should be pursued. How do we ensure that policy encourages investment and growth in technology that is truly sustainable? DECC’s Bioenergy Strategy is the government’s approach to providing a ‘holistic view of uses in setting bioenergy policy’ with the aim of ‘informing policy decisions on electricity, heat and transport’. Within this DECC has set sustainability principles, stating that bioenergy must ‘reduce emissions, be cost effective, bring wider benefits and the criteria must be regularly reviewed’. Failure to meet these principles will cause government to consider future regulation and eligibility for subsidies. At present in order to fulfil the requirements of the Renewable Energy Directive (RED) DECC requires biomass electricity generators over 1MW to report against sustainability criteria in order to claim support under

Bioenergy Insight

the Renewables Obligation. The current standards require a minimum 60% GHG emission saving for electricity generation using solid biomass or biogas relative to fossil fuel; and restrictions on using materials sourced from land with high biodiversity value or high carbon stock, such as primary forest, peatland and wetlands. While it certainly makes sense to set sustainability criteria, and for bioenergy sustainability reporting to be a requirement for receipt of incentives, it is critical that we have wide agreement on the nature of these criteria and they take into account more than just quantitative measures of carbon savings or emissions, energy efficiency and land use if they are to accurately reflect whether a project is sustainable or not and the total benefits brought. Anaerobic digestion (AD), the breakdown of organic matter to produce biogas — a mixture of methane and carbon dioxide — and a biofertiliser, is a prime example of why it is also important to consider the way that bioenergy production interacts with farming practice; how the crop is actually grown and how it works within the whole farming system. Crops for AD can and are already used as break and cover crops, meaning that this land is not diverted from food production for the whole year. In fact crops for AD can form a crucial component of a sustainable agricultural cropping rotation, improving soil quality, increasing renewable energy

production and ensuring food security, while maintaining and enhancing biodiversity. There are many different plants that are suitable for AD and which can be grown in rotation, with land quickly or easily diverted back to food production if necessary. Biomass for AD does not even have to been grown on agricultural land. In the UK there are 1.23 million hectares (mha) of temporary grassland and 9.90 mha of permanent grassland available for food production, while there are approximately 860,000 ha of marginal or idle lands which have the potential to produce 4.8 million tonnes of biomass for energy production. Subject to using appropriate measures to preserve and increase biodiversity, this marginal or idle land has the potential to supply grass silage for AD without displacing any land currently used for food production. In addition it is common practice for crop matter grown specifically for digestion to be combined with slurry and farm yard waste, meaning that methane emissions otherwise associated with the slurry are diverted to support energy generation. Another key advantage of bioenergy from AD is that the nutrients and trace elements contained within the organic matter are not lost. As already mentioned, the process produces digestate, an excellent biofertiliser, which can be used effectively to recycle those nutrients back to land, reducing the need for oilbased commercial fertilisers, which are responsible

for 14% of UK farming’s greenhouse gas emissions, and creating a ‘closed loop’ process. The role crops grown for AD play in increasing the sustainability of UK agriculture should therefore be recognised across a range of areas including nutrient preservation, mitigation of methane emissions, renewable energy generation, protecting the environment and supporting the financial viability of farming. The crux of the matter is best use of available resources, be that land, soil, nutrients, energy, water or waste and how the government decides to define this. Arguably biogas from the AD of crops is one of the most efficient forms of bioenergy. In 2008 the German Agency for Renewable Resources found that biomethane realises significantly greater final energy in terms of kilometres driven per hectare of production compared to other biofuels. Separately the University of Southampton has shown that biogas from AD is 5 to 9 times more landuse efficient than biodiesel and 2.5 to 9 times more efficient than bioethanol. Finally the innate flexibility of AD provides a significant advantage over other conversation technologies as the biogas can be used for electricity, heat, (in upgraded form) injection into the gas grid or as a vehicle fuel as required. l

For more information:

This issue will be explored at UK AD & Biogas 2013 in many free conference workshops, seminars and one-to-one consultancy clinics: adbiogas.co.uk.

March/April 2013 • 49

Bioenergy torrefaction Andrew Johnson, the VP of industrial equipment supplier for the forestry industry TSI, discusses the future of the torrefaction sector in North America

An example of a rotary dry system used by TSI

Banking on biomass advancement

he torrefaction business in North America has primarily been focused on developing plants that will make torrefied wood pellets (TWPs) for shipment to Europe as a renewable fuel by European power utilities. The technology is available, the business case is developed and it is entirely feasible to build a plant that can

50 â&#x20AC;˘ March/April 2013

produce TWPs and ship them to Europe at a competitive cost. It looks likely that some large-scale facilities will be built in North America over the next two years but, to date, no such facilities have been completed. Development of the industry is being held back by three things: 1) Hesitancy on the part of power utilities to fully commit to TWPs

2) Reluctance on the part of financial institutions to get behind projects without proven technology and guaranteed markets 3) Lobbying from quarters opposed to using biomass as a renewable fuel. The power utilities While some elements of the European power industry are charging ahead with

conversion for non-torrefied industrial wood pellets (IWPs), applications for TWPs as a drop-in fuel for coal are developing slower. This is partly due to there being little or no apparent advantage to using TWPs once a power station is converted for IWPs, and partly down to a lack of consistent supply of TWPs that can be fed into other power stations to prove the feasibility of the technology.

Bioenergy Insight

torrefaction Bioenergy Also, some power utilities are understandably reluctant to commit without a significant supply being available. This situation will eventually rectify itself as politically-imposed deadlines for CO2 reduction are approaching and as supply of quality TWPs becomes more available. In the meantime it is hard to build a plant without an established market and it is hard to establish the market without building the plants.

will make a product that will help develop the market. A large percentage of this product will probably end up in Europe to be used as fuel by its power utilities, however some will also end up in other markets and niche applications that may, in the short-term, be more attractive. This includes several North American power facilities that are seriously considering the

TSI’s methods US-based biomass plant designer TSI’s torrefaction technology begins drying the

The smart operator will hedge their technical risk by having the ability to produce either industrial wood pellets or torrefied wood pellets, so they have the option to make money in a more conventional way while the torrefaction market develops

Projects under development Since the financial meltdown a few years back the bank’s ‘caution pendulum’ has, in many cases, swung too far the other way. Financiers seem to want two prerequisites: guaranteed markets and guaranteed technology — neither of which can be an absolute certainty. Despite this, several plants will be built in the US in the next two to three years. These plants will range in size from 10,000 tonnes per year (tpy) to 500,000 tpy. Technology for these plants will come from half a dozen different and the plants will be commissioned with varying degrees of success, but all

conventional way while the torrefaction market develops. As the less successful technologies get weeded out and the better ones get refined then the end product will become more consistent and the market will grow.

switch from coal to TWPs. The smart operator of these new plants will hedge their technical risk by having the ability to produce either IWPs or TWPs so that they will have the option to make money in a more

Complementary tickets

CODE BGW13Ins

biomass in a conventional rotary dryer. It is then transferred directly to a second rotary vessel called the torrefaction reactor, where it is heated further in a low oxygen environment to volatise the

hemicellulose producing a torrefied material. The off-gas from the torrefaction process is fed back to the overall heat energy system where it is incinerated producing enough heat to drive the torrefaction portion of the process. During the development period TSI tested many different possible feedstocks and for the most part the system is able to torrefy most materials, although a conventional wood chip remains the preferred option, so it does open the possibility to use materials that would not normally be considered for IWPs, for example a feedstock derived from landscape trimmings. The process has been in development for three years and finally achieved patent recognition late last year. TSI is now in the process of building its first commercial scale plant for a US client. l

For your information:

This article was written by TSI’s VP Andrew Johnson www.tsi-inc.net, +1 425 771 1190

www.biogasworld.de/en/ticketcode.html

International Trade Exhibition for biogas technology and decentralized energy supplies

23.–25. April 2013

BERLIN International Exhibition Grounds

www.BioGasWorld.de/en Bioenergy Insight

March/April 2013 • 51

Bioenergy fractionation Technologies developed to split wood into its constituent parts are helping to unlock new markets for lignocellulosic biomass

Biomass: a tale of three parts

xcept for non-vascular plants like mosses, all plants are made of three distinctive and potentially useful compounds; cellulose, hemicellulose and lignin. Unfortunately these compounds form a tangled lattice of fibres, making it difficult to extract each compound separately. Now new pre-treatment technologies are allowing us to unlock the potential of these plants by separating the lignin, cellulose and hemicellulose. For some it is the realisation of decades of work on the subject. Pre-treatment of biomass separates the cellulose, hemicellulose and lignin, so it can then be further processed into useful products. Such processes have been in development for half a century but we are only now starting to see the technology used in the production of biofuels, biobased chemicals and bioenergy. Pre-treatment of wood was originally developed by the

pulping industry, who were interested in extracting the cellulose for making highquality paper. You can still find lignin in low-quality paper like newsprint, where it is responsible for turning a newspaper yellow with time. But the chemicals and fuels market is generally a lower value market than the pulping industry. This meant that new, cheaper pre-treatment processes were needed to separate the biomass. Why is pre-treatment important? Separating lignocellulosic biomass like wood, straw and municipal solid waste is becoming increasingly important as fuel and chemical companies look beyond food crops as a source of biomass. The edible parts of plants, like seeds and grains, contain starch which is a simple polymer of glucose (a sugar containing six carbon atoms) that can be easily broken down into a range of chemicals and

DuPont scientist Paul Viitanen develops biocatalysts for the DuPont Danisco Cellulosic Ethanol joint venture

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fuels. However, there are increasing pressures on the use of food crops in these markets. An alternative is lignocellulosic biomass which can be a by-product of food production, like straw, or it can be grown on land that would otherwise be unsuitable for food production, like many perennial energy crops. This minimises the conflict with food production. Lignocellulosic biomass contains cellulose, which is a more complex polymer of glucose than starch. Unlike starch, cellulose can’t be eaten by humans because we don’t have the correct enzymes to break it down, but there are a number of enzymes that can utilise cellulose. Companies are now developing enzymes that can produce different hydrocarbons from cellulose and this is attracting the interest of a number of major chemical and fuel companies. Furthermore, in addition to glucose, hemicellulose contains pentoses (sugars containing five carbon atoms) which can be fermented into ethanol or made in xylitol. New genetically engineered microorganisms, developed by a number of research institutions around the globe, have the ability to ferment both five and six-carbon sugars. But before you can use the cellulose and hemicellulose you need to extract most of the lignin because, as the amount of lignin in the biomass increases, enzyme activity decreases.

Heat and power market impact Once the cellulose and hemicellulose is separated from the biomass, you are left with lignin. Lignin is the compound that gives a plant its strength and it is also has a high calorific energy content, making it ideally suitable for energy production. One gram of lignin has on average 2.27 KJ, 30% more than the energy stored in a gram of cellulose. Lignin is no small resource, it is in fact the second most abundant natural polymer in the world. Typical land plants are composed of around 20 to 25% lignin but this can be vary between different species. In grasses lignin may be as low as 5 to 10%, but in hardwoods this can be as high as 40%. The increased use of lignocellulosic biomass in the chemicals and fuels industries is likely to increase the availability of lignin for heat and power combustion. This will be limited to on-site heat and power systems to begin with — creating possible opportunities for bespoke boiler manufacturers. However, as facilities grow larger and become more numerous, we may see the development of a lignin export market which could be used in largescale energy generation. But the picture is not black and white and there could be competing markets for this resource. Lignin has been described as a “synthetic organic chemist’s play box” because it contains a rich array of molecules which could be converted into a

Bioenergy Insight

fractionation Bioenergy range of chemicals. But to convert lignin into higher value products like speciality chemicals, the lignin needs to be extremely pure — with less than 5% contamination. Companies like Lignol in Canada have developed processes that can yield highpurity lignin. This version can be used in the production of high value renewable aromatic chemicals, as well as production of lignin derivatives. However, this is an expensive process and most lignin will continue to be produced as a impure by-product of cellulose extraction, best suited for combustion. Available technologies There is no ‘one-size-fits-all’ pre-treatment technology. Each one has particular advantages and disadvantages, and the technology deployed at any given facility will depend upon the feedstock, the scale and the quality of the material required by a specific downstream process and market. The technologies used in pre-treatment can be thermal, chemical, biochemical or a combination. Processes like steam explosion involve the thermal treatment of biomass with water under pressure; the pressure is then suddenly released, causing the biomass to break and explode with the simultaneous removal of lignin. Acid based pre-treatments use either mineral acids, water (which acts as an acid at high temperature) or acetic acid to promote the breakdown of lignin and hemicelluloses to increase access to cellulose. Similarly, alkaline pretreatments typically use calcium hydroxide, ammonia and sodium hydroxide to promote the breakdown of the bonds which link hemicelluloses to lignin. These include Ammonia Fibre Explosion (AFEX), Ammonia Recycle Percolation (ARP), lime and wet oxidation technologies. Whereas steam explosion

Bioenergy Insight

is suitable for pre-treating wood biomass, AFEX performs better with herbaceous and agricultural residues. Biological pre-treatments utilise enzymes from bacteria, fungi and other microorganisms to break down the lignin fraction of the biomass. These include enzymes derived from white rot fungi, marine woodborers and the termite hindgut.

Some pre-treatments, like AFEX, rearrange biomass while other pre-treatments result in the production of a sugar stream and a solid fraction, like acid hydrolysis, alkaline hydrolysis and liquid hot water treatments. The amount of residual components left within the biomass is dependent upon the efficiency of the process. Pre-treatments can affect downstream carbohydrate

hydrolysis and fermentation. High thermal severity pretreatments, such as steam, dilute acid and liquid hot water can produce furfurals and other degradation products. AFEX has been reported to result in hemicellulose oligomers, which are not easily fermented. Chemical pre-treatments are conducted under high temperature and pressure, so involve significant capital

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March/April 2013 • 53

Bioenergy fractionation investment. In the future, biological based pre-treatment methods are being developed which may allow significant reductions in energy use because they are carried out under milder conditions. More advanced pretreatments are being developed that can extract cellulose, hemicellulose and lignin at very high purity, like the organsolv process, ozonolysis and carbon dioxide. In the organosolv process biomass is cooked in an organic solvent

such as ethanol and water at 150â&#x20AC;&#x201C;200Â°C for 30 to 60 minutes at pressure, using a catalyst such as sulphuric acid or more rarely, sodium hydroxide. Organsolv processes result in cellulosic fibre fraction, a solid lignin fraction and aqueous hemicelluloses fraction. How close are we to cracking pre-treatment? Pre-treatment has been successfully demonstrated at scale and around 15

large-scale commercial plants are currently in early stage start-up or advancedstage development. Cellulosic ethanol enzyme company Novozymes estimate that in 2014 the production capacity of cellulosic ethanol will be around 250 million US gallons a year. The full potential is much bigger however as, according to Bloomberg New Energy Finance, there is enough biomass available to reach a cellulosic ethanol production

of 93 billion gallons by 2030. Some technologies, such as mild acid hydrolysis, steam explosion, dilute acid and mild alkaline processes are close to commercialisation and are being used in the facilities currently under development. Liquid hot water, AFEX, ARP and biological breakdown technologies are less advanced and there is little evidence that they have evolved beyond the lab scale of deployment. Pre-treatment processes that yield higher-purities of cellulose, hemicellulose and lignin are being developed. There are a number of different biomass fractionation technologies available. Full biomass fractionation is at the lab to demonstration scale. Although the organosolv process has been known for decades in the pulping industry, it has not been commercialised, largely due to unfavourable economics compared to other pulping methods. Canadian biofuel and biochemical company Lignol are closest to commercialisation and will use the organosolv method to produce cellulosic ethanol and high purity lignin at their pilot facility near Vancouver in Canada. These new technologies will create new markets for biomass heat and power production, particularly as scale develops so it will be important for boiler companies and those looking to source additional waste biomass for energy production, to keep a close eye on developments in the lignocellulosic biomass market. l

For your information:

This article was submitted by international biomass-to-bioenergy/ biofuels consultancy NNFCC www. nnfcc.co.uk +44 1904 435 182

54 â&#x20AC;˘ March/April 2013

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fractionation Bioenergy

Ramada Plaza, Antwerp, Belgium 11- 12 Sept 2013 With so much change ongoing in the European biofuels this event will keep you up to date on: l The latest updates on the Renewable Energy Directive proposals l The impact a 5% cap on first generation biofuels will have on existing producers l Industry reactions to multiple counting – is this really the best way forward?

Over 700 delegates and 100 exhibitors have benefitted from this event over the past five years – to sponsor contact Shemin Juma, +44 (0) 203 551 5751, shemin@biofuels-news.com

l Indirect land use change: the latest research l How to make more of by-products

international

March/April 2013 Issue 2 • volume 7

l Securing finance for expansions l The latest technology innovations l Anti-dumping measures and counterveiling duties – what are the predictions for future biofuels trade

‘Once again the conference was extremely worthwhile’ Sean Sutcliffe, CEO, Green Biologics

One small step for oil Nesté Oil is one company that should be delighted by the EC’s recent proposals favouring advanced biofuels – we find out if this really is the case

The second line of defense Left uninsured, certain liabilities could badly affect a producer’s financial performance

Reap what you sow Now Europe is being forced into taking cellulosic ethanol seriously, we look at what producers can learn from across the pond

RegionalRegional focus: biofuels in southeast AsiaAmerica and Australasia focus: biofuels in South FC_Biofuels_MarchApril_2013.indd 1

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To be considered as a speaker submit your abstract now to margaret@biofuels-news.com

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March/April 2013 • 55

Bioenergy pellet quality A US wood pellet manufacturer uses a compact halogen lab moisture analyser to ensure its products contain 6% moisture

Keeping pellets on spec

oisture content is an important quality control criterion for finished wood pellets. A US domestic standard is ASTM (formerly American Society for Testing and Materials) E-871, which has been adopted by the Pellet Fuel Institute. It specifies premium pellet moisture content equal or less than 8%, and for standard grade pellets equal or less than 10%. If moisture content is too high then customers will be paying for water weight, and the pellets will not burn efficiently. If moisture content is too low, producers will deliver more than needed to make up the weight, and pellets will tend to powder during or after the pelletising operation. Eureka Pellet Mills produces some 60,000 tonnes of wood pellets annually at its two Montana plants in the US and, according to Justin Johnson, GM at the company’s Superior MT facility, the company aims for 6% moisture content in its production lines. Only then are the product bags stamped ‘meets or exceeds Premium Pellet standards’. Mill operations Like many wood pellet producers, Eureka receives wood from a number of sources including sawdust, scrap wood and unusable stock from lumber mills. Following pre-processing and blending the wood pellet stock is transported through a 40ft triple-pass pelletfired dryer, after which it is pelletised and packaged. A

56 • March/April 2013

is critical, the operation remains the same. Once programmed for a specific analysis, the balance will store the procedure. Programming options include drying modes, standard being the most common, and shut-off criteria. After basic parameters are set moisture analysis can proceed on a straightforward basis. The procedures include:

The Kern MLB 50-3N moisture analyser from Tovatech plays an important role in Eureka Pellet Mills’ wood pellet quality

moisture analysis is performed at each stage: the raw stock sample on an as-convenient basis and, on an hourly basis (1) the pre-pellet mix, (2) upon exiting the dryer and (3) after pelleting just prior to packaging. The role of a halogen moisture analyser Eureka uses an analogue moisture analyser equipped with a heat lamp but was looking for a faster and more accurate means of assuring its pellets meet or exceed industry standards. The company settled on the Kern MLB 50-3N compact halogen laboratory moisture analyser from laboratory instrument distributor Tovatech. ‘We found it offered the greatest value for our investment for routine use and to deliver the

accuracy we need to meet our own integral moisture content standards,’ Johnson says. ‘It is used for the three hourly measurements we do during the production process.’ The Kern moisture balance works on the thermogravimetric process to measure loss of weight on drying (LOD). ‘The loss represents the amount of moisture given off during the drying process while the change in weight is recorded by the analytical balance and is displayed as the moisture content of the sample,’ Johnson continues. The moisture analyser consists of a 400 watt halogen quartz glass heater mounted on a precision balance. Whether for wood pellet mixed stock, finished product or any other measurement where moisture content

1. A sample tray approximately 3.6” in diameter is placed on the balance sample tray holder and tared 2. Evenly spread a small sample of product on the sample tray. The balance will show the weight of the sample 3. Close the moisture balance lid to start the analysis. The unit’s display panel continually updates the status of the process. The display shows the percentage moisture content, the drying profile, the switchoff mode, the previous sample drying time and the current temperature 4. The analysis automatically terminates when drying is complete and the dry weight is stable, or after a fixed time specified by the operator, or manually. At Eureka, shutoff is by stable dry weight. Johnson says a moisture analysis can be completed in approximately 15 minutes. At the end of the moisture analysis all relevant data concerning initial mass, residual mass, test parameters and results can be recorded by the dryer operator. This information allows the

Bioenergy Insight

pellet quality Bioenergy operator to adjust the bulk dryer accordingly. At the final step, data on finished pellets are also printed on a mini thermal printer via an RS-232 interface for record keeping. Alternatively, the moisture analyser can be connected to a PC for data acquisition. As Johnson explains: ‘While operating a digital halogen moisture analyser may appear complex, in fact it is easy after it is programmed. The important first step is programming, and the procedures are clearly spelled out in the instruction manual. ‘In addition, its performance parameters give us confidence in the quality of our product,’ he adds. These include readout of 0.001g (0.01% moisture), a 50g maximum weight

and a reproducibility of 0.02% for 10g samples. The drying temperature can be programmed between 50˚c and 160˚c in 1˚C increments. Results after drying can be displayed four ways: 1. As percent moisture calculated from weight loss divided by starting weight 2. As percent dry mass calculated from residual weight divided by starting weight 3. As weight loss in g 4. As residual weight in g. As with all precision balances, halogen moisture analysers are delicate instruments and require care in their operation. They should be placed in an area free of temperature extremes, away from drafts and vibrations.

Johnson agrees: ‘Moving a moisture analyser from location to location is not a good idea. If it becomes necessary to relocate the equipment it must be recalibrated to maintain its weighing accuracy.’ Even if the moisture balance is not moved about, recalibration should be done on a regular basis. Temperature recalibration should also be performed periodically. Delivering a quality product With the increasing popularity of wood pellets as a substitute for oil and gasfired heating and industrial processing resulting in a growing number of wood pellets manufacturers,

Eureka Pellet Mills is all too aware that it must remain ahead of its competitors. ‘To be competitive and viable in this market it is essential that we deliver a product consistent with industry standards, especially relating to moisture content,’ Johnson highlights. ‘Because sources of pellet stock change, there is no guarantee of moisture content consistency in the material we receive. A compact, accurate and easy to use moisture analyser is a small but critical piece of equipment in our operations.’ l For more information:

This article was written by Robert Sandor, director of Tovatech, +1 973 913-9734, rsandor@tovatech.com; www.tovatech.com

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March/April 2013 • 57

Bioenergy mixers One German biogas plant has realised a 75% reduction in energy costs just by changing its mixing technology

Mixing it up

orchheim in the Baden region of Germany is the home to one of the country’s largest biogas plants. Requiring 175 tonnes of silage a day, or 165,000 tonnes a year, the biogas plant was originally developed to produce an annual output of 500kW. However, efficient operation and good design means the plant currently generates 3.1-3.2MW a year. It operates two independent digesters so that, in the event of one being out of action for any reason, the plant can continue to operate. They are fed exclusively with renewable raw materials, primarily whole crop silage, a cereal grain that continues to grow at temperatures as low as 7ºc, together with maize and sorghum. Careful management of the 1,000-hectare estate means that two harvests a year are produced from just one-third of the area. Silage has to be available all year round to maintain full plant operation, so the owners have created a silo area of 11,000m² as a substrate store. The electricity generated is fed into the public power grid to provide revenue for the plant’s owners, but the plant also benefits from feeding the biogas into the local natural gas network. Commonly, the residual heat either goes to waste or is transported over long distances and incurs heavy energy losses. Unable to connect to a district heating system in Forchheim, the biogas plant owners examined other ways of utilising their residual heat. In 2010 the utility company Badenova installed a gas processing facility on site of

58 • March/April 2013

Forchheim plant requires 175 tonnes of silage a day

the biogas plant, a process that is only economical for outputs of 1MW and above and, as a result, part of the biogas yield is now being converted into ‘natural gas’ via a physical-organic scrubbing process. While the power generation efficiency level ranges from around 40%, the natural gas yield — some 900³m/hr on an average day — goes directly to the user with hardly any in-transit loss of energy. The role of mixers The role of mixers is often underestimated. However, selected correctly, this relatively small component can be considerable in attaining high levels of energy efficiency. A larger digester will contribute to better biology and, hence, a longer retention time. It takes 200 days for the pre-fermented material to pass through the four tanks: two main digesters, one post-digester and the digestate storage tank. The Forchheim plant keeps 27,000m³ of liquid mass in a suitable mixed state to ensure that identical conditions prevail at each point in the

digesters. The sensitivity of bacteria means it is essential to maintain an optimum supply of nutrients in order to maintain efficiency. Fresh silage, therefore, has to be moved down inside the digester to the bacteria and so an effective mixing regime is required. At the Forchheim plant, the original Mississippi paddle mixers selected for the digester did not measure up to expectations. The idea was to paddle the biomass downwards, but zones below the mixer blades remained poorly mixed. In order to solve this problem high-speed (and high energy-consuming) rod mixers were installed, an

unsatisfactory choice as the objective was to generate electricity by ecologically appropriate means. The eventual solution saw the rod mixers removed and replaced with a single Amaprop low-speed submersible mixer from KSB Group, a German manufacturer of pumps, valves and related systems. Whereas each of the the rod mixers consumed 30kW, the Amaprop mixer requires 6.5kW. At the same time, the amount of energy required by the Mississippi mixer was reduced by 50%. According to the plant’s owners, electricity savings have been reduced to 120,000kW, saving €15,000 a year. The payback timescale was less than 18 months. Optimal circulation KSB’s Amaprop horizontal submersible mixer has a low rotational speed that guarantees energy-efficient and reliable generation of biogas. The mixer installed in plant’s digester had a 2.5m propeller and a power rating of 6.5kW. The large diameter propeller is a key component as it is able to move large amounts of substrate at a

KSB Amaprop low-speed submersible mixer installed in the main digester

Bioenergy Insight

mixers Bioenergy low flow velocity, reducing flow losses and producing a gentle action that is allimportant to the bacteria. The hydraulic power is not introduced at the edge of the tank, but precisely where it is needed: inside the digester. Stringy material is not an issue for the Forchheim plant as all the substrate is finely chopped. However, the break-proof propellers made from glass-fibre reinforced epoxy resin with a metal hub insert, plus a protective gel coating, offer additional peace of mind. Two lubricated bi-directional mechanical seals assure long service life. Importantly, the biogas digester can remain in operation during a replacement of the mixer installation, allowing its biological processes to remain undisturbed. This is attributable to a proprietary ‘repowering pipe’ process supplied by engineering

Bioenergy Insight

company Maier Energie und Umwelt. The installation process involves lowering a large diameter pipe into the digester by crane, then pumping the biomass out of the pipe and into the remaining digester content. The mixer is then lowered down the pipe to the digester floor and bolted into place. Finally, the repowering pipe is flooded and removed. Installation took a little under four hours. The digester is the main component of any biogas plant and it must be water tight, impervious to gas and lightproof. The mixers in the two enclosed digesters at Forchheim bring the substrate to the bacteria and, after fermentation, it is pumped across to the digestate storage tank. From here it is retrieved and used as a fertiliser. There a just under 6,000 biogas plants in Germany, generating approximately

The mixer is lowered down the pipe to the digester floor and bolted into place

2,291MW of energy and accounting for 2.46% of Germany’s overall power demands. According to the German Biogas Association, only 45 of these plants are able to feed biomethane into

the natural gas network. One reason for this is that a gas processing facility is required to scrub carbon dioxide out of the biogas, only economical for ratings of 1MW and above. This is the case at Forchheim. l

March/April 2013 • 59

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www.bioenergy-news.com 64 • March/April 2013

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fire safety Bioenergy A fire in the biomass bunkers at a UK power station this time last year was a much needed reminder that storing wood pellet biomass still presents tough challenges

Sparking a reaction

ore than 120 firefighters, 15 fire engines, three aerial ladder platforms and a mass foam attack unit were deployed to tackle a fire at two biomass storage hoppers at Tilbury power station in February last year. Although successfully controlled by fire and rescue services, the business interruption losses ran into many millions of pounds. The challenges are two-fold: 1) Prevention: Wood pellet biomass creates dust in transit and that is a problem. Most of the UK supply comes from overseas, via the ports, in the same way that coal does. Dockside storage facilities hold a buffer stock and then trains move product efficiently to site. A standard storage

arrangement at the power stations is to use concrete silos and bunkers or large enclosures of light construction. Trains that previously supplied coal to the conventional coal fired stations move slowly over a drop zone and use gravity to offload onto conveyors which then transfer it into power station storage ready to power the boilers. All this movement creates fine dust which is the chief fire hazard. Dust clean-up at every stage in imperative because, with the right moisture content, biomass is self combusting. Those power companies that already have some experience of handling it know that keeping on top of it is a little like painting a long bridge: they have a team of people continually vacuuming around the leakage points in silos to prevent any accumulation.

2) Fire suppression: a mixed approach is the best solution. As always with fire suppression, the correct choice of media is the key to success. When it comes to wood pellet biomass water is to a large extent the enemy. Applying copious amounts of it must be avoided. Firstly, water allows

the product to expand to many times its stored volume. This means that storage containment can be breached. Secondly, it will encourage the formation of a solid crust on the top of the product while a fire smoulders away underneath. This will almost certainly lead to the need to dig out and

Hawkes Fireâ&#x20AC;&#x2122;s Firemiks turbine foam proportioner: water is the only power source required

remove enough product to reach the seat of the fire. This is no easy task when storage is in 30 + m Ă&#x2DC; silos that might also be 20m high. Smouldering fires can continue for many days. The solutions

Hi Ex generator in action

Bioenergy Insight

Fires will occur in two quite different scenarios - conveying and storage. Each one favours a particular approach. For conveyors, smaller modular systems that detect carbon ignition sources and combine to shut-down the conveyor at the same time as applying a limited amount of water at high pressure and low volume are most effective. Likewise, smaller areas on the conveying

March/April 2013 â&#x20AC;˘ 61

Bioenergy fire safety route can be equally well protected with this action. Fire suppression options High Expansion Foam: when it comes to large-scale storage, less is definitely more. The Tilbury fire was successfully extinguished using manually applied high expansion foam. However, this exposed firefighters to considerable risk and discomfort as they needed to move equipment to a high level in smoke logged areas with intense heat levels. This can be overcome by installing a fixed system that can be operated from ground level or safe adjacent areas. Importantly, immediate actuation of the system is achieved to contain any fire at an early stage. This particular fire was extinguished using UK-based Angus Fire’s Hi Ex foam system. One Angus generator, using a mix of 97% water and 3% Hi Ex foam concentrate, can produce up to 214 m3/ min of dry expanded foam. For example, only one generator is required for

Ironbridge Power Station recently

completed a conversion to wood pellet biomass. This will allow the station to continue to supply vital power to the grid for longer than anticipated as the coal station was due to close. Hawkes Fire supplied and installed via engineering contractors AJS, a Hi Ex foam system to 10 converted bunkers with one generator sufficient to cover one bunker. The foam is proportioned using a foam skid utilising a water driven turbine foam proportioner, tank and zone valves. An operator can choose to apply the finished foam to one or more of the bunkers. Vital supplementary

62 • March/April 2013

a bunker measuring 14m x 14m. This means that pipework installation costs are minimised as only a limited number of units are required and one generator will only require a water inlet of 38mm. The recognised design standard for Hi Ex is EN 13565-2 which ensures that the correct application rate is designed for. Extinguishment is achieved by reducing the oxygen content while applying a deep blanket of expanded foam that will drain slowly. More foam can be applied over time until the fire is suppressed. The capital costs are a lot less than for inert gas and watermist systems. Moreover, the system is only used in the event of a fire, rather than maintaining an inert gas atmosphere for the life of the project. The foam proportioning equipment can be either fixed in place or provided by a trailer unit and connected to local hydrants. Trailer units allow flexibility of deployment with the proviso that a risk assessment should be carried out to determine if more than one zone

protection to conveyors, filters and other confined space areas is provided by Grecon spark detection and extinguishing systems. Spark sensors are flush-mounted on the walls of the ducts to detect the infrared radiation emitted by sparks in the transport air system. Immediately upon spark detection, a water mist spray is released into the duct and the sparks are extinguished. The extinguishing device consists of a high-speed solenoid valve with one or more spray nozzles. These are flush mounted to the duct wall about 4 to 6 metres downstream of the sensors, depending on the conveying velocity.

needs to operate according the proximity of silos and bunkers to one another. Fixed pipework should be installed to allow pumping of foam solution to the top of the silo to allow for a safe operating position. No power source other than water is required to both drive and proportion the system. Inert gas systems — Gases such as argon and nitrogen, and their proprietary mixes such as Argonite (a 50/50 argon/nitrogen mix) and Inergen (argon/nitrogen and a small amount of CO2), are well-known for electrical hazard protection. On large biomass stores a dedicated nitrogen plant is a possible alternative to Hi Ex foam. However, the capital and running costs are higher than for Hi Ex. Watermist Watermist has been the medium of choice for a number of applications where the extinguishing mechanism is allowed to operate. That is to say that you need a ‘hot’ fire for the mist to turn

to steam which enables the evaporative cooling effect. An arrangement of precision engineered nozzles are required to achieve the coverage of what can be large areas. Considerable piping runs are needed to support and supply the water to all zones. High pressure pumps are normally required to combine with small nozzle orifices to achieve small droplet sizes. So, even though watermist is reducing water usage to a minimum the delivery system can be costly and complex. All aspects of fire safety and fire suppression should be subject to risk assessment. There are very few prescriptive standards when it comes to new and developing applications such as biomass so it is critical to also assess the various methods of fire suppression in a hazard specific way. l

For more information:

This article was written by David Owen, business development manager with fire protection company Hawkes Fire. www.hawkesfire.co.uk

GreCon unit fitted to typical ductwork arrangement

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xxxxxx Bioenergy

Linking biotechnology, chemistry + agriculture to create new value chains

XC E

bio.org/worldcongress June 16-19, 2013 Montréal, Canada

Palais des congrès de Montréal Over the past decade, the BIO World Congress has become the largest industrial biotech conference creating a unique forum for business executives, government officials, academic researchers and industry leaders.

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> Advanced Biofuels and Biorefinery Platforms > Feedstock Crops and Biomass Supply > Renewable Chemical Platforms and Biobased Materials > Specialty Chemicals, Pharmaceutical Intermediates, Food Ingredients > Synthetic Biology and Microbial Genomics > Technical Presentations

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EU BC&E 2013

21st European Biomass Conference and Exhibition Setting the course for a biobased economy

Bella Center - Copenhagen, Denmark Conference Exhibition

3 - 7 June 2013 3 - 6 June 2013

Register Now - early bird deadline 5 April 2013 www.conference-biomass.com www.exhibition-biomass.com xx â&#x20AC;˘ March/April 2013

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events & advert index Bioenergy Bioenergy events Event MonConference & Expo Tue Biomass

Venue Date Fri ThuMinneapolis, Minnesota Sat Sun2013 8 April 2013 - 10 April

Wed

1European Biomass to2 Power 2013

Krakow, Poland 5

10 April 2013 -711 April 2013

2013 China International Bioenergy and Biomass Utilization Business Summit

Shanghai, China

22 April 2013 -23 April 2013

BiogasWorld 2013

Berlin, Germany

23 April 2013 - 25 April 2013

European Algae Biomass

Vienna, Austria

24 April 2013 - 25 April 2013

Bioenergy Business Forum Hungary 2013 8Renewable Energy World 9 India 10

Budapest, Hungary

6 May 2013 - 7 May 2013

12 Mumbai, India

6 May 2013 - 814 May 2013

Ligna 2013

Hannover, Germany

6 May 2013 - 10 May 2013

Bioenergy and Biorenewables: Integrating scientific and societal agendas

Amsterdam

12 May 2013 - 15 May 2013

Biomass Generation Forum 2013

Birmingham, UK

14 May 2013 - 15 May 2013

Forestry, Biomass & Sustainability 2013

London, UK

22 May 2013 - 23 May 2013

15 16 17 21st European Biomass Conference and Exhibition

Copenhagen, Denmark

3 June 2013 - 7 June 2013

Renewable Energy World Europe

Messe Wien, Vienna, Austria

4 June 2013 - 6 June 2013

Elmia Wood

Jönköping, Sweden

5 June 2013 - 8 June 2013

Biochemicals & Bioplastics

Frankfurt, Germany

19 June 2013 - 20 June 2013

10th Annual World Congress on Industrial Biotechnology

Montreal, Canada

16 June 2013 - 19 June 2013

UK AD & Biogas 2013 23

Birmingham26 NEC, UK

3 July 2013 - 428 July 2013

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Jyväskylän Paviljonki, Finland

Biofuels International Conference 2013

Ramada Plaza, Antwerp, Belgium 11 Sept 2013 - 12 Sept 2013

Lignofuels 2013

London, UK

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Biofuels International is the industry’s ONLY audited magazine. Our BPA audit assures you that our circulation and readership numbers are correct. This information proves you’re saying the right thing to the right people in the right place. January/February 2013 Issue 1 • volume 7

The 5% equation

international

How is Europe reacting to the EC’s latest transportation fuel proposals?

Double counting Nothing but a headache?

UPM Biofuels

www.biofuels-news.com xx • March/April 2013

UPM Biofuels Regional focus: biofuels in southeast Asia and Australasia Regional focus: biofuels in Europe FC_Biofuels_November_2012.indd 1

22/01/2013 14:36

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