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Drax loses appeal over CfD, expected to proceed with conversion

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By Erin Krueger

August 07, 2014

Pellets Power UK 

On Aug. 7, Drax Group plc released a statement indicating that its second unit conversion is no longer eligible for an investment contract. Rather, the company is expected to proceed with the conversion with support under the Renewables Obligation.

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The USDA has issued a final rule eliminating the restrictions on including mature market wood products and other materials in the BioPreferred program. The action implements changes included in the 2014 Farm Bill.

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Resolute Forest Products Inc. provided a brief update on the status of its pellet plant under development in Thunder Bay, Ontario, during its second quarter investor conference call. The facility is expected to be operational in the fourth quarter.

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A recently released report about the greenhouse gas implications of making power from pellets puts arrows into our industry's quiver, but also the quivers of our detractors.

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ReEnergy Holdings has announced plans to resume operations at its biomass-to-electricity facility in Ashland, Maine. The 39-MW facility was acquired by ReEnergy in December 2011 and has been idle since March 2011.

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The USDA has published its Biogas Opportunities Roadmap, a document that builds on progress made to date to identify voluntary actions that can be taken to reduce methane emissions through the use of biogas systems.

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Michigan State University has been awarded $1 million from a joint U.S. Department of Energy and USDA program to develop hardier switchgrass, a plant native to North America that holds high potential as a biofuel source.

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Miscanthus, a perennial grass with vast potential to produce biomass, would deliver even better yields than once thought in Iowa, according to research by agronomists at Iowa State University.

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Covanta Holdings Corp. recently released its second quarter 2014 results, reporting revenue of $432 million, up from $411 million for the same period of last year. Net income from continuing operations was $2 million.

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Waste Management Inc. has reported second quarter financial results and announced an agreement to sell its waste-to-energy business, Wheelabrator Technologies Inc., to an affiliate of Energy Capital Partners for $1.94 billion.

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Genera Energy Inc. has announced the deployment of two new proprietary feedstock management systems, Energy Grange and Supply AssureBoth systems were developed through years of R&D and in-the-field testing.

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The Drax Group plc has announced financial results for the first half of the year, reporting that biomass now accounts for more than 20 percent of the its output. Both the first converted unit and the enhanced cofiring unit are performing well.

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The pellet market outlook dominated presentations at the Pellet Fuels Institute annual conference held July 28-29 in Orlando, Florida. During the event, several speakers highlighted the expected growth markets around the globe.

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Dalkia and the Canadian investment fund Fengate Capital Management Ltd. are again joining forces to develop a second biomass power plant in Merritt, British Columbia. The facility is expected to have an annual capacity of 40 MW.

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A joint venture of an M&G Chemicals subsidiary and China-based Anhui Guozhen Co. Ltd. has been created to develop a commercial-scale cellulosic ethanol plant in Fuyang City, Anhui Province, China. The project was first announced in late 2013.

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On July 29, N.Y. Gov. Andrew Cuomo made two announcements that will benefit bioenergy projects within the state, including the official launch of Renewable Heat N.Y. and the availability of funding to support clean energy generation projects.

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A recent regulatory filing made by the Drax Group plc indicates the company could be one step closer to securing an investment contract for a second biomass unit conversion under the Final Investment Decision Enabling (FID Enabling) mechanism.

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Consumers Energy is taking steps to diversify its energy supply and help the environment by selecting four Michigan farms to produce renewable energy with anaerobic digesters.

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A recent report filed with the USDA indicates the European Commission expects heat and power production from biomass to account for about 45 percent of the renewable use in Europe by 2020.

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The U.K. Department of Energy and Climate Change reported that scientific analysis has proven that biomass from North America can help decarbonize U.K. electricity supplies. The analysis was performed using a new model developed by the DECC.

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Agriculture Secretary Tom Vilsack recently announced that the USDA has selected 36 energy facilities in 14 states to accept biomass deliveries supported by the Biomass Crop Assistance Program, which was authorized by the 2014 Farm Bill.

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The U.K. Department of Energy and Climate Change has announced that starting in October, renewable energy projects in the U.K. will complete for a budget of more than GBP 200 million as part of the government's reforms to the electricity market.

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A biomass power plant in Athens, Maine, received certification for Maine New Markets tax credits from directors of the Finance Authority of Maine. The facility is run by Athens Energy LLC, a sister company of Maine Woods Pellets Co.

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EIF Renewable Energy Holdings and Seneca Meadows Inc. have announced the opening of Seneca Energy II, a landfill gas-to-renewable natural gas facility located at the Seneca Meadows Landfill in Seneca Falls, New York.

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Himark BioGas International is expanding its presence in the U.S. through a signed agreement with NEO Energy LLC for the design, construction and start-up of three integrated anaerobic digestion (AD) and fertilizer facilities.

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Millar Western Forest Products Ltd. has awarded Poyry with the assignment for engineering, procurement and construction management (EPCM) services for an anaerobic bioenergy project at its Whitecourt pulp mill in Alberta, Canada.

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The Federal Energy Regulatory Commission has released its Energy Infrastructure Update for June 2014, reporting the U.S. added 28 new biomass power generation units during the first half of the year with a combined capacity of 87 MW.

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Omnitek Engineering Corp. has received an order from National Raisin Co. Inc. based in Fowler, California, for a 250 kW power generator to produce heat and electricity from biogas derived from an anaerobic digester.

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A Union of Concerned Scientists report estimates the U.S. agricultural industry could sustainably provide up to 155 million tons of crop residues and 60 million tons of manure annually by 2030 for use as feedstock to produce fuels and electricity.

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