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USDA funds 18 projects to increase wood energy markets

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By Erin Krueger

May 16, 2016

Pellets Power Thermal 

The U.S. Forest Service has announced more than $8.5 million to expand and accelerate technologies and strategies that promote the use of wood in heat and power generation, commercial construction, and other wood product innovations.

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The May/June issue of Pellet Mill Magazine covers the industry's relationship with feedstock, the market dynamics impacting feedstock buyers and sellers, as well as industry requirements ensuring sustainability within a feedstock program.

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The Metsä Wood mill in Lohja, Finland, is a 100-percent energy self-sufficient mill.

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Stockpiled inventory throughout the pellet supply chain is putting downward pressure on raw material prices—a possible advantage for some producers long-term.

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Earlier this month, FutureMetrics LLC published a white paper that discusses why an editorial the Washington Post published at the end of April, and the letter to U.S. Congress the article was based on, are wrong about biomass for energy.

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Change the Game

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By Michele Rebiere

May 11, 2016

Diversification and sustainability are key to the future of the pellet sector. Rebiere says the industry must band together to invest in the long-term development effort of a domestic industrial market to support pellet producers of all sizes.

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Fortum Värme, jointly owned by Fortum and the city of Stockholm, has inaugurated its new, biomass-fired-combined-heat-and-power (CHP) plant in Värtan, Stockholm, Sweden. The plant is expected to begin commercial operations this fall.

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On May 11, Rentech Inc. reported first quarter results significantly below historic levels, attributing a main reason as being the struggles faced by the domestic wood pellet industry in the face of a warm winter and low oil prices.

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U.S. Energy Information Administration released its International Energy Outlook 2016, which continues to show rising levels of energy demand over the next three decades. Renewables are the fastest-growing energy source over the projection period.

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Sustainability factors weigh heavily on biomass projects, in development or in operation, and some have led seasoned investors and operators to cease operations.

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Coming to Terms With Sustainability

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By Charlie Niebling

May 10, 2016

Heating with pellet fuel exists by virtue of a social license, and to keep it, Niebling says, industry must come to terms with the concept of sustainability and incorporate its consideration into everything it does, especially sourcing feedstocks.

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The European Biomass Association (AEBIOM) welcomes the initiative of the European Commission to define a sustainable European Union bioenergy policy for the period post-2020, and to open up the debate through its public consultation.

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The law firm of an attorney serving as insolvency administrator to German Pellets GmbH has released a statement noting three of the company's pellet plants in Germany have been sold, with negotiations ongoing in the sale of a fourth.

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The Cost of Doing Business

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By Ron Kotrba

May 09, 2016

As the Sustainable Biomass Partnership gains momentum, the first U.S. pellet producer to achieve accreditation shares its journey to this status.

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Recognizing the importance of biofuels to energy and climate security, the U.S. Department of Energy has announced up to $90 million in project funding focused on designing, constructing and operating integrated biorefinery facilities.

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On May 5, Enviva Partners LP released its first quarter results, reporting that solid operating and financial performance during a historically high cost quarter lay a strong foundation for the remainder of the year.

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Queensland University of Technology researchers are leading the way in developing and testing new technologies as part of a $5.7 million three-year project with the potential to eliminate the use of fossil fuels in the sugar industry.

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The USDA has updated its Farm Storage Facility Loan Program, which provides low-interest financing so agricultural producers can build or upgrade permanent facilities to store commodities. Renewable biomass is among the eligible commodities.

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A bioenergy project in Queensland could become a reality thanks to early stage funding support from the Australian Renewable Energy Agency. The project would produce ethanol, lignin for power production and fuel pellets.

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On May 4, Clean Water Services, Energy Trust of Oregon and the Oregon Department of Energy formally announced the implementation of a new cogeneration system that converts wastewater and grease into renewable energy.

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Project Liberty in Emmetsburg, Iowa, has produced and shipped several tank cars of cellulosic ethanol even as the plant is ramping up to its full 20 million gallon-per-year capacity.

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North America exports of wood pellets reached record-highs in 2015, with the U.S. Gulf States increasing shipments by 70 percent from 2Q/15 to 4Q/15, according to the North American Wood Fiber Review.

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The University of California is on the verge of purchasing the Sierra Pacific Industries Loyalton, California, mill and associated property, including a 20-MW, combined-heat-and-power (CHP) biomass unit.

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Nippon Paper to install torrefied pellet demonstration plant

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By Nippon Paper Industries Co. Ltd.

May 03, 2016

Nippon Paper Industries Co. Ltd. signed a joint research and development agreement with Phoenix Pulp and Paper Public Co. Ltd. to install demonstration facilities in Thailand for the production of torrefied pellets.

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The U.K. Department of Energy and Climate Change's consultation on the reform of the Renewable Heat Incentive closed April 27. The U.K. Renewable Energy Association weighed in on how the reforms could impact the biomass and biogas industries.

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U.K. DECC published monthly statistics and summary of quarter one deployment data for RHI program. During the quarter, there was a large number of biogas applications for the nondomestic scheme and fewer biomass applications in the domestic scheme.

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Two Texas A&M AgriLife Research scientists are studying the virtual tug-of-war that takes place when a pathogen attacks a plant. Better understanding those changes could unlock new ways to improve plants by making them more disease-resistant.

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On May 5, Biomass Research and Development Board operations committee is expected to hold a listening session, titled “Building a Billion Ton Bioeconomy in the United States.� The two-hour webinar is scheduled to begin at 2:00 p.m. EDT.

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Despite an off year overall for the global pellet market, Astec Industries reported that its pellet division continues to be a bright spot for the company. In its Q1 2016 financial earnings call, Astec reported net sales for Q1 as $278.7 million.

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Pentair Haffmans has launched a compact enclosed skid CO2 recovery system that can be connected to any existing biogas upgrading plant. The system helps maximize yield and minimize environmental impact.

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