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European Pellet Conference opens with bullish outlook

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By Tim Portz

February 26, 2014

Pellets Power UK 

The morning speakers at The European Pellet Conference all outlined continued strong growth for both global pellet demand and production.

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Trade organizations serving the U.K. biogas industry have announced the U.K. Department of Energy and Climate Change has confirmed it will not review the feed-in tariff (FIT) for anaerobic digestion (AD) this year.

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Scientists at the University of York are to lead a new government-backed research project to investigate the potential conversion of waste biomass and waste carbon dioxide into safer and more sustainable raw materials.

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A new study has found the U.K. could generate up to 44 percent of its energy needs from domestic biomass sources by 2050. The study was completed by scientists from the Tyndall Centre for Climate Change Research at the University of Manchester.

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Drax Group plc has released preliminary financial result for 2013, reporting that earnings were ahead of expectations, reflecting good operations and healthy spreads. The company also announced it will consider adding additional pellet capacity.

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Iona Capital, in conjunction with Scotia Gas Networks, has announced the successful completion of an investment in Keithick Biogas Ltd., a joint venture company with Keithick Farms Ltd. in Coupar Angus, Perthshire, Scotland.

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The U.K. Department of Energy and Climate Change has opened a public consultation on its Offtaker of Last Resort proposal, which would provide eligible renewable electricity producers with a guaranteed backstop route-to-market at discounted prices.

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A 49.9-megawatt (MW) biomass power plant recently began operations at the Delfzijl port in the northern region of the Netherlands. The Bio Golden Raand facility is operated by the Dutch utility Eneco.

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Lantmannen and Neova AB are merging their respective wood pellet businesses. The new company will include Neova's wood pellet business in Sweden and the corresponding Lantmännen Agroenergi businesses in Sweden and Latvia.

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Switzerland-based AVA Biochem recently announced it has begun production of renewable 5-hydroxymethylfurfural (5-HMF) at its Biochem-1 facility in Muttenz, Switzerland. The facility can currently produce up to 20 metric tons of the chemical annually.

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The Netherlands-based Rabobank recently published a report that indicates European demand for bioplastics could require 1.2 million metric tons of sugar by 2020, up from 110,000 metric tons last year.

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U.K.-based REACT Energy plc, a company formerly known as Kedco plc, has announced approval from Ulster Bank Ireland Ltd. for the funding of the second phase of its joint venture biomass gasification project located in Newry, Northern Ireland.

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Swedish forestry company RusForest AB has announced the start of wood pellet production at the LDK-3 sawmill at Arkhangelsk in the northwestern region of Russia. Construction on the plant began in June 2103.

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More than 200 listeners tuned into Biomass Magazine's Jan. 30 webinar, which showcased pellet port developments and projects. The event featured four speakers who discussed various aspects of developing pellet export facilities.

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A report recently released by Innasol and business consulting firm Frost & Sullivan takes a detailed look at the U.K.'s heating industry and examines the savings homes and businesses can achieve by implementing renewable heating methods.

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Forth Energy, a joint venture between Forth Ports Ltd. and SSE plc, confirms that the Scottish government has granted consent for a wood fueled renewable combined-heat-and-power (CHP) plant at the Port of Rosyth.

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U.K.-based Emerald Biogas has opened its GPB 8 million ($13.26 million) food waste to energy facility at the Newton Aycliffe Industrial Estate in northern England. The facility will take in 50,000 metric tons of recycled food waste annually.

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Trade unions in the U.K. are asking to meet with government officials to discuss the omission of the Eggborough Power Station from a list of renewable energy projects that are likely to receive subsidies.

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The European Commission has published a proposal calling for a greenhouse gas reduction of 40 percent below the 1990 level along with an EU-wide 27 percent binding target for renewable energy by 2030. The proposal doesn't address transport fuels.

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A report recently published by the Netherlands-based Rabobank predicts that agricultural residues will play an increasing role in European bioenergy production through 2020. Woody biomass, however, is expected to continue to dominate the industry.

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The pellet industry is poised to have a telling year in 2014. Will the optimism and promise that marked 2013 carry forward into 2014? The following stories are must watch stories as the industry marches forward into 2014.

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The bioplastics market is predicted to grow from around 1.4 million metric tons of annual production capacity in 2012 to approximately 6.2 million metric tons in 2017, with the largest gain expected in non-biodegradable bioplastics.

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Metso announces Valmet's offerings will include boiler islands, small power plants based on bubbling fluidized bed (BFB) and BioGrate combustion technologies, and large heating plants based on BFB and pellet technologies.

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The U.K. Energy Act became law Dec. 18, when it received royal assent. The U.K. Department of Energy and Climate Change also made several accompanying announcements, including naming four biomass projects that are likely to receive subsidies.

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Several members of the U.K. parliament have issued a letter to Secretary of State for Energy & Climate Change Edward Davey, expressing concern that the Eggborough Power Station's planned conversion to biomass is threatened by recent policy changes.

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A new European project, named "New technological applications for wet biomass waste stream products," or NEWAPP, focuses on the application of hydrothermal carbonization (HTC) processes to convert wet biomass into coal-like products.

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Anaergia Inc. has announced that UTS Biogas Ltd., a wholly owned subsidiary of Anaergia based in the United Kingdom, has delivered a large-scale anaerobic digestion facility to Shropshire Energy, part of the G's Group.

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North American pellet exports to Europe continue increase

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By Wood Resources International LLC

December 12, 2013

Pellet export volumes from North America to Europe continued to rise during the second quarter of 2013, representing steady growth for the past seven quarters, according to data compiled by Wood Resources International LLC.

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Site work is set to begin on a 10.3-megawatt biomass gasification plant in Tyseley, England. The Birmingham Bio Power Ltd. plant, under development by Carbonarius, is expected to be operational in early 2016.

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