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USIPA: Wood biomass given all clear by Europe's highest court

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By U.S. Industrial Pellet Association

May 13, 2020

Pellets Power Thermal UK 

The U.S. Industrial Pellet Association on May 11 welcomed an order from the European Court of Justice dismissing a case against wood biomass. The court ruled the applicants lacked standing to challenge the EU's inclusion of wood biomass in the RED.

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FutureMetrics LLC on May 6 published a whitepaper discussing how converting existing coal-fired power plants to be fueled with wood pellets offers a low cost, easy-to-deploy way to generate low-carbon electricity.

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The U.K. government on April 28 published the results of a 2018 public consultation focused on the use RHI support for biomass in urban areas, geographical restrictions on biogas combustion, and maintenance checks for existing biomass boilers.

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Covanta discussed the impact COVID-19 is having on its business and operations during an April 15 conference call. Several of the company's WtE plants are taking in COVID-19 medical waste and construction is continuing on two U.K. WtE facilities.

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Network Rail has reopened one of the most important freight lines in the U.K. after an unprecedented 24/7 operation to keep the lights on. The line into Drax Power Station was inundated with flood water in February when a nearby river flooded.

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Drax Group plc released a trading statement on April 22 providing insight into its first quarter financial performance and confirming the company is in a strong position to support its employees, customers and communities during the COVID-19 crisis.

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The U.K. government recently released updated energy statistics showing the renewables share of electricity generation reached a record 36.9 percent last year, with 119 terawatt hours (TWh) of electricity generated from renewable sources.

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Teams at GB Railfreight are continuing to work closely with Drax to maintain supplies of the sustainable biomass needed for the U.K.'s largest power station to generate electricity needed by millions of homes and business during the COVID-19 crisis.

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Simec Atlantis Energy Ltd. announced on April 14 that the target financial close date for its Uskmouth Power Station conversion project in the U.K. may be delayed by the COVID-19 pandemic and associated ongoing workplace disruptions.

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Drax has received the 100th cargo of sustainable biomass from its export facility at the port of Baton Rouge in Louisiana, marking an important milestone in five years of its operation supplying wood pellets to the U.K.'s largest power station.

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The U.S exported 546,435.2 metric tons of wood pellets in February, up from both 500,904 tons in January and 501,563.9 tons in February 2019, according to data released by the USDA Foreign Agricultural Service on April 2.

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Enviva Chairman and CEO John Keppler sent a letter to stakeholders on March 30 announcing the company's operations have not been significantly impacted by the COVID-19 outbreak and reaffirming the company's financial guidance for 2020.

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Industry leaders are urging government to keep U.K. wood fuel supply chains fully open to ensure suppliers can continue delivering to home heating customers and key frontline organisations and businesses during the coronavirus outbreak.

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Construction on the Tees Renewable Energy Plant (Tees REP) a 299 megawatt (MW) biomass power plant in the U.K. was suspended on March 24 due to the COVID-19 pandemic. A small number of critical maintenance staff remain onsite.

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Will Gardiner, CEO of Drax Group, released a statement on March 25 explaining how Drax and its employees are working to ensure the U.K. is supplied with the power it needs during the COVID-19 pandemic.

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Associated British Ports and Drax announced on March 20 that a shipment of 63,907 metric tons of wood pellets had been received and unloaded earlier in the week. It was the largest shipment of wood pellets handled to date at the Port of Immingham.

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The outlook of the U.K. wood pellet market is mixed.

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In the midst of the global coronavirus pandemic, U.S. industrial wood pellet producers continue operations, ensuring no supply disruptions for global customers depending on their product for renewable wood heat and power production.

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The U.S. Energy Information Administration recently released data showing U.S. manufacturers produced approximately 810,000 tons of densified biomass fuel in November, with sales reaching 850,000 tons.

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The U.K. government recently released provisional energy statistics for 2019, reporting that renewable energy production increased by 4.9 percent last year. Bioenergy output of was up 2.1 percent for the year.

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Drax achieved an industry-leading safety record during 2019 with Morehouse BioEnergy surpassing the two-year mark with no recordable safety incidents. The company's port operation in Baton Rouge also reached a new safety benchmark.

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The U.K. government has proposed to exclude new coal-to-biomass conversions from future rounds of its CfD scheme. Under the proposal, dedicated biomass with CHP and various forms of biogas projects would continue to be eligible for CfDs.

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Drax announced on Feb. 27 that the company will stop burning coal by March 2021, far ahead of the U.K. government's 2025 deadline. Drax also released full year 2019 financial results on Feb. 27 and provided an update of its biomass strategy.

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Biomass electricity production set a new record in the U.K. last year, according to the fourth quarter 2019 Electrical Insights Report, produced by researchers at Imperial College London in collaboration with Drax.

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Covanta Holding Corp. produced a record volume of electricity at its energy from waste (EfW) plants last year, according to information released during the company's fourth quarter earnings call, held Feb. 21.

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Leaders from the U.K.'s biomass heat industry have called on the chancellor for support ahead of the spring budget to help government meet heat decarbonisation targets, address climate change and deliver on its 30 million tree planting initiative.

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In its first report, an Independent Advisory Board has found that Drax's sustainable biomass sourcing reflects recommendations made by Forest Research—the research agency of the Forestry Commission widely considered the industry gold standard.

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UK waste-to-energy facility achieves financial close

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By Covanta Holding Corp., Biffa plc and Macquarie’s Green Investment Group

February 11, 2020

JV partners Covanta, Biffa and GIG announced that the Newhurst Energy-from-Waste Facility in Leicestershire, England, has reached financial close. Covanta and GIG will own 50 percent of the project while waste provider Biffa will own the other half.

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The U.K. recently released third quarter 2019 energy statistics, reporting the renewables share of electricity generation reached a record 38.9 percent during the quarter, up from 32.9 percent during the same period of 2018.

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The U.K. Department for Transport recently announced funding to support four advanced biofuel projects, including those that aim to produce low carbon aviation fuel, fuel for heavy goods vehicles, and cellulosic ethanol.

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