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New York company exports woodchips to Sweden

By Erin Voegele
Web exclusive posted Feb. 18, 2009, at 4:30 p.m. CST

New York-based woodchip supplier Green Energy Resources Inc. has signed a two-year $50 million contract with an unnamed entity in Sweden to supply fuel woodchips. Green Energy Resources will ship the entity approximately $2 million worth of woodchips each month for the next two years.

According to Joseph Murray, Green Energy Resources' president and chief executive officer, the company specializes in fusing urban waste wood streams and forestry products. "We are using different types of wood that are mixed together," he said. "We are blending them to get a dry woodchip."

Before the woodchips are exported, they must be treated to kill any pests or insects that could be present in the wood. According to Murray, woodchips bound for Europe must be heat treated, as chemical fumigation is not currently permitted. The USDA has approved the export of woodchips treated using Green Energy Resources' heat treating methodology. "Each time you make a shipment, you have to go through the [approval] process," he said.

According to information released by the company, their heat treating methodology, in combination with low freight rates, low fuel prices and the conversion and completion of new biomass power generating stations in Europe has led to a huge surge in demand for woodchips. Furthermore, Green Energy Resources is able to deliver wood chips with low moisture content and high British thermal unit values to precise specification for power plant generators who are willing to pay premium dollars for the commodity, Murray said.

The company currently ships woodchips out of its Linden, N.J. location and has plans to activate its Baltimore, Md., port within the next few months. Green Energy Resources is also considering purchasing at least one woodchip carrier ship.
 

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