Final report on producers, traders and consumers of mixed … · 2014. 8. 11. · D5.1 – Final report on producers, traders and consumers of mixed biomass pellets Page 4 BAPE 1

Development and promotion of a transparent European Pellets Market

Creation of a European real-time Pellets Atlas

Deliverable 5.1

Final report on producers, traders and consumers of mixed biomass pellets

Copyright © Baltic Energy Conservation Agency

ul. Budowlanych 31

80-298 Gdansk, Poland

October 2009

Edited by Baltic Energy Conservation Agency

Edmund Wach

Małgorzata Bastian

Contact [email protected]

Tel. +48 58 347 55 34

This report is available at the pellets@las website at www.pelletsatlas.info

The pellets@las project is supported by the European Commission under the EIE programme (EIE/06/020/SI2.448557). The sole responsibility for the content of this report lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained therein.

D5.1 – Final report on producers, traders and consumers of mixed biomass pellets

BAPE

TABLE OF CONTENTS

1. Introduction 4

2. General results 7

3. Situation by country 11

- Austria 11

- Belgium 13

- Bulgaria 14

- Cyprus 15

- Czech Republic 16

- Denmark 17

- Estonia 19

- Finland 20

- France 21

- Germany 24

- Greece 26

- Hungary 27

- Ireland 28

- Italy 29

- Luxembourg 32

- Malta 32

- Netherlands 33

- Norway 34

- Poland 35

- Portugal 37

- Romania 38

- Slovakia 39

- Slovenia 40

- Spain 41

- Sweden 43

- Switzerland 44

- United Kingdom 44


Page 4 BAPE

1. INTRODUCTION

At the moment, fuel pellets are mainly made from sawdust, wood chips and wood shavings. The

market has essentially expanded in Sweden, Denmark and Austria, due to the availability of natural

resources and political reasons. Nowadays, the competition with the particleboard industry and the

current increased demand for wood pellets, both on the residential market and for large-scale use,

may lead to a future lack of sawdust and shavings. If demand (and prices) continues to rise, other

biomass wastes than sawdust, wood chips and shavings will be considered for pellet production.

Agricultural residues are among those future new raw materials. On the other hand, in southern

European countries, forest areas are far less important and forest industry is consequently far less

developed; in those conditions, the question of the agricultural residues potential may be tackled even

more directly.

Compared to wood, the most significant characteristics of straw are higher hemi-cellulose contents

and lower contents of cellulose and lignin. A tiny piece of straw tissue or an individual straw cell has

therefore lower tensile strength and lower compressive strength. Yet, this is a rather broad statement,

and large variations exist among individual species.

Table 1 – Comparison of tissue composition for straw, softwoods and hardwoods

Straw

Stalk Node Leaf Softwoods Hardwoods

Plant composition, % 100 100 100 100 100

Cell wall 90 79 76 95 93

Silica 3 8 11 <0.5 <0.5

Extractives 7 13 13 4.5 6.5

Cell wall composition, % 100 100 100 100 100

Cellulose 40 40 35 45 42

Hemi-cellulose 45 40 55 25 38

Lignin 15 20 10 30 20


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Table 2 – General characteristics of straw and wood pellets, and their respective raw materials

Density

(kg/m3)

Moisture

% w.b.

LHV

(MJ/kg)

Ash

(% d.m.)

Energy density

(GJ/m3)

Straw (chopped) 50 10-20 14.5 5 0.7

Straw (big bales) 130 10-18 14.5 5 1.9

Straw pellets 600 < 10 15 5 9

Wood chips 250 10-50 11-17 0.5 4.3

Sawdust 200 20-50 12-17 0.5 3.4

Wood pellets 650 < 10 17.5 0.5 11.4

Coal 850 10-15 24 12 20.4

Straw for example, contains high amounts of potassium and sodium. These alkali compounds are

present in all annual crops and crop residues in particular. During combustion, alkali combines with

silica and causes slagging and fouling problems in conventional combustion equipment designed for

burning wood at higher temperatures. Volatile alkali also lowers the fusion temperature of ash: in

conventional combustion equipment having furnace gas exit temperatures above 800°C, combustion

of agricultural residues causes slagging and deposits on heat transfer surfaces. Specially designed

boilers with lower furnace exit temperatures or low operation temperature (such as FBC systems) can

reduce slagging and fouling from combustion of these fuels.

The content of K+ and Cl- is a major obstacle for an efficient utilization of straw as a fuel for power

production, due to slagging problems as well as corrosion. The most efficient and economically feasible

option for the removal of those undesirable components is the leaching of straw using natural

precipitation in the field. Regarding the correlation between fallen precipitation in the field and K+

leached, researchers observed that the effectiveness of washed K+ reached a maximum with about a

25 mm of rainfall. Beyond that volume, leaching efficiency decreases, supposedly because of a

phenomenon of water saturation and in relation with the frequency of the wetting and drying periods.

When leached, "yellow" straw turns into "grey" straw and has a slightly increased calorific value.

% d.m. Yellow straw Grey straw

Nitrogen (N) 0.35 0.41

Potassium (K) 1.18 0.22

Chlorine (Cl) 0.75 0.20

Sulphur (S) 0.16 0.13

Experiments showed that straw pellets can be used as a fuel in large boilers, whereas ash and

particularly slagging problems make them less suitable for usage in small boiler plants. Straw pellets

can be pressed with an anti-slagging agent (e.g., kaolin) so as to counteract the tendency of the ash to

become viscid and form clinker. The calorific value of those pellets seems to be somehow lower than

the average.


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The first and direct consequence of increased ash contents for small scale stoves and boilers is that ash

boxes will have to be emptied more frequently, which is quite negative as far as users’ convenience is

concerned. Considering that the ash pan should normally be emptied once every 5 to 15 days with

wood pellets depending on the consumption, straw pellets would oblige to remove ashes almost

everyday when energy consumption reaches a maximum. Obviously, it also depends on the size of the

ash pan, and this one seems precisely to reduce the need for removal and increase the convenience of

the appliances.

Straw ash contains nutrients, primarily potassium and other soil fertilising matter like magnesium,

phosphorus, and calcium and can therefore be applied in agriculture as fertiliser. Depending on the

scale of the biomass plant, ash is either recycled to the fields and forests (in case of larger plants) or

more likely stored in landfills (in case of smaller plants) or used in gardens or disposed of in the public

waste (individual use). In any case, agricultural application of ash must meet national legislations.

Straw pellets are more friable and thus produce more fines. An increased amount of fines often causes

failure of the feeding systems used in the residential heating sector. An increased amount of dust in

the air also rises the risk of dust explosion. To a greater extent than for wood, delivery problems are a

challenge to the use of more friable pellets such as the ones made from straw without binding agent.

A significant barrier to the development of biomass fuels might be the supply reliability and quality of

the raw material, and the consequent quality of densified fuels. It should be noted that straw yields

vary greatly with varieties, soil, climatic conditions and fertilising. In addition this last aspect triggers

problems concerning the variability of quality. Straw quantities can vary also considerably by growing

season, with markedly lower production in abnormally dry years.

Straw-fired plants built today are rather using straw directly. Considering operation costs, it is much

more beneficial to combust straw bales than pelletised straw. The transportation costs for straw bales

remain far lower than the cost of pelletising. With this in mind, the main possibilities for straw pellet

development lay in the conversion of existing energy plants, as illustrated by the Amager example in

Denmark.

[Source: “Analysis of the technical obstacles related to the production and utilisation of fuel pellets

made from agricultural residues”, Pellets for Europe project, Olivier Pastre EUBIA]


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2. GENERAL RESULTS OF THE DATA COLLECTION

Mixed biomass pellets (MBP) have a great potential in enlarging the use of biomass for energy

conversion. With the exhaustion of biomass residues for wood pellets production (particularly

sawdust) the production of MBP will be of greater interest to project developers and biomass

producers. Hence, in this market not the availability of the biomass resource is the most critical factor,

but the availability of a sales market itself.

MBP are a newcomer on the pellet market, and national quality standards for MBP do not exist

(reference only on CEN standards). Furthermore, MBP are currently hardly used in domestic small

scale applications (due to technical problems accompanying their burning). Therefore, trade and

market structures for MBP differ from those for wood pellets. For many European countries a market

for MBP does simply not exist.

The research made by project partners shows that in 11 countries, out of 27 covered by their

investigation, no MBP market exists. Market development in the remaining 16 countries is not

impressive, though. Noticeable sales may be observed only in Denmark and Finland. Also, large

consumers appeared on the British market, and this will probably stimulate further market growth.

Activities are mainly happening on bilateral agreements between producer and consumer. In order to

give an outline of the small existing MBP market, and to give new markets the opportunity to create

transparent market structures right from the beginning of their development, the Pellets@las project

investigated the existing markets by data collections from producers, traders and consumers about

their locations, about the amount of produced / traded / consumed pellets and about prices. However,

the small size of the companies, changes of their production profile and minor production volumes

made this task rather complicated. This document presents all information one may trace on MBP in

Europe.

As the combustion properties of most agricultural raw materials and waste products do not equal the

advantageous chemical characteristics of wood fuels (e.g. higher element contents, worse ash

softening behaviour, higher ash contents etc.), the use of MBP is mainly suitable for medium to large

scale heat and power plants. These plants can be equipped cost-effectively with flue gas cleaning

systems that meet national laws and regulations for the combustion of agricultural products. However,

one may notice single cases of MBP utilisation by individual, small users. These trials usually do not last

long, as technical problems with the equipment occur. Some burning equipment manufacturers have

already started intensive R&D works on the appliances adjusted to MBP burning, predicting further

growth of this sector.


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Countries with

developing MBP markets

Countries with

some initiatives under way

Countries with

no MBP market

Czech Republic Austria Belgium

Denmark Greece Bulgaria

Finland Sweden Cyprus

France Estonia

Germany Ireland

Hungary Luxembourg

Italy Malta

Netherlands Norway

Poland Portugal

Slovakia Romania

Spain Slovenia

United Kingdom Switzerland

It is not easy to comment on collected data, as no common conclusions may be drawn. Many

companies operate on experimental level only. It happens that due to lacking legal regulations, or

unfavourable economic conditions, further production is not possible. However, in many cases, one

may expect further development of these markets, as large consumers appear (large plants interested

in co-firing) and fuel is needed to satisfy their demand. Also, boilers’ manufacturers claim that they

work intensively to create small scale appliances that will efficiently burn MBP. Their success will

stimulate a large market of individual users.


Page 9 BAPE

Generally, 56 companies have been identified:

Data collected on installed production capacities and level of real production are presented below:


Page 10 BAPE

Breakdown of installed capacities by country:

*) Installed production capacity in France is very high, but the production is mainly destined for food

industry, therefore not relevant for our data collection

Below exemplary prices of some companies are presented:

Total production is often contracted for large consumers and no market price exists.

A wide range of biomass raw materials is used for MBP production in Europe. These include soy husk,

coffee husk, sunflower shells, straw, hay, rapecake, olive stones and almond shells.

Detailed information on particular European markets is presented below.


Page 11 BAPE

3. SITUATION BY COUNTRY

MBP market in Austria

Location of MBP producers:

General information:

At the moment a MBP market hardly exists. There is only one company selling straw pellets as heating

fuel (production started only in the end of 2008).

Still there are many discussions and projects about the use of MBP. Listed below are projects based

on the possible use of biomass:

• In Upper Austria Miscanthus is cultivated on an area of nearly 400 hectare already. A project

group called “ARGE Elefantenwärme” was formed to promote their product. It is sold as horse

bedding, burned directly or worked to briquettes. The pelletizing process was too expensive.

• Another company produces straw pellets with a production capacity of 4000-5000

tonnes/year but doesn´t sell them as heating material because of the missing legal regulations. Straw

pellets are granulated again and sold as horse bedding.

• In the course of a project hay pellets were produced and the quality investigated. Costs were

high throughout the production chain and it was impossible to fire the hay pellets in standard

commercial wood pellets firings due to higher ash content and lower ash softening point of the

agricultural biomass. Boiler companies are working on new developments to control these properties.

[data source: Rathbauer J. 2006: Nutzungsalternative Gras als Brennstoff, FJ-BLT Wieselburg]

Some heating systems manufacturers already offer special boilers for agripellets that make it possible

to meet the proposed requirements for the maximum emission values. The main barrier for the use of

MBPs is the current legal situation in Austria.


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Name of the company City www

Oberwaltersdorfer

Kommunalbetriebs GmbH

Oberwaltersdorf -

Production capacity: 6000 t/y

Real production: 1000 tonnes in 2008

Average prices: No official price available

Pellets quality: An Austrian standard on straw pellets is pending.

Traders: Factory outlet only

Consumers: District heating


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MBP market in Belgium


There is little information about the Belgian MBP market. According to the Belgian biomass

association (VALBIOM), no MBP market exists in the Wallonia Region.

At the moment it seems that MBP development is hampered by the use of traditional wood fuel

(logs, chips, pellets).

At this time, no real development is foreseen until specific issues as combustion quality and durability

of devices will be solved.

Some R&D works on the combustion of straw pellets have been lead by UCL (University of Louvain)

and especially the faculty of Applied Sciences.


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MBP market in Bulgaria


Solid agricultural wastes can be used for energy production - mainly straw, corn stalks, sunflower

corns and stalks, tobacco stalks, wastes from vineyards and orchards trimming. Assessments show

that in Bulgaria about 30 % of available straw, 65 % of the corn-stalks and about 80 % of the rest of

solid agricultural wastes can be considered for energy purposes, which makes about 800 000 tonnes

annually. Generation of this type of waste is in direct dependence on the yield and harvested areas

for the respective year. Utilisation of this type of biomass depends, to a large degree, on the

development of technologies for prior treatment and biomass preparation for the subsequent

transformation into energy.

There is hardly any information about the Bulgarian MBP market. According to the Austrian biomass

association there is no MBP market in Bulgaria.

One market actor in Bulgaria, selling seeds for the energy crop Rumex OK 2 “Uteush“, reported on

plans to cultivate the crop for electricity production by means of direct firing only.

Another company gives information on the internet website concerning the production of “pellets

out of wood sawdust or other energy crops – such as straw, corn stalks, wheat, corn, sunflower

flakes, etc;”.

At the moment it seems that the production of MBPs competes strongly with the direct firing of

biomass, due to higher investment costs for the pellets production.

For the future it will matter which kind of biomass is mainly promoted under the national short-term

programmes.

[data origin: Ministry of Economy and Energy 2008: National long-term programme to encourage the use of biomass for the

Period 2008-2020]


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MBP market in Cyprus


There is no pellets production in the country (wood or MBP). The current use of biomass is limited to

log wood burning in household fireplaces, and in special cases for energy purposes in wood

industries, where wood by-products are burned in large boilers without any processing.

The main factors hampering pellet market development are:

• Lacking national support policies and lacking social awareness;

• Warm climate resulting in limited domestic heat demand;

• Lack of water and arable land; Competition with other biomass use types;

On the other hand, Cyprus is heavily dependent on energy imports. Increased MBP usage could help

to decrease this dependency and contribute to rural development. For that reason, the Institute of

Agricultural Research of Cyprus carries out research in order to determine the energy plants that can

be cultivated in Cyprus for different kinds of biofuel production.


Page 16 BAPE

MBP market in Czech Republic



Druzstvo EKOVER Brezovice www.sps-mb.cz/ecover.en

ZZN Polabi a.s. Kolin V www.zznpolabi.cz

Vopol a.s. Pomezi u Policky -

Agrochem a.s. Lanskroun Lanskroun www.agrochem.cz

MJM Litovel a.s. Litovel www.mjm.cz

BIMPEX s.r.o Presov -

Production capacity: several thousand tonnes

Real production: several thousand tonnes


The company ECOVER (a co-operative farm located in the Central Bohemian Region) is the holder of a

patent for the production of bio-fuel pellets made from non-wooden agricultural by-products. Due to

low production costs, this bio-fuel became very attractive and the company now awarded the

production license to at least ten other legal entities in the country. Altogether, it is estimated that

several thousand tonnes of this bio-fuel are produced currently by these manufacturers.

Source: www.access-ret.net


Page 17 BAPE

MBP market in Denmark


The straw potential in Denmark is presented in the table below. Residues originate mainly from

wheat and barley. The total amount of agricultural residues is 8.3 million tonnes corresponding to an

energy resource of approximately 33 TWh.

Agricultural residues potential 1000 t

Wheat 3796

Durum wheat 0

Rye 486

Barley 3821

Oats and mixed cereals 251

Maize 0

Other cereals 0

Total 8354

Table: Agricultural residues potential, Denmark, 2000.

The Danish MBP market is not very developed. It consists of two types of supply chains:

• The first consists of approx. 8 manufacturers that sell small amounts of MBP in order to

satisfy the needs of small to medium scale customers, who demand a cheap fuel and wish to

experiment with their plant installation. Most of the manufacturers market feed pellets or

rape seed oil, and sell a few tonnes of mainly rape seed cake pellets for fuel purposes. Two

manufacturers market sunflower seed shell pellets. Character of these small manufacturers

makes it irrelevant to talk about MBP production capacity and actual production.

• The second type is made out by one large manufacturer, the utility company Vattenfall that

produces annually 80-100,000 tonnes of straw pellets at the factory in Køge for its own use at

the plant Amagerværket in Copenhagen. In 2008 80,000 tonnes have been used in an old

block at the plant, while in 2009 a newly refurbished block will be put in operation and is

expected to use 100,000 tonnes annually along with a significant amount of wood pellets.

Straw for the straw pellets is bought locally/regionally from farmers on Sealand.

During the past 20 years Denmark has seen several projects on development, production and

combustion of MBP, however, the conclusion has often been that possible advantages within price

and heating value do not outweigh the risks of malfunctions of the combustion plant.

There are numerous examples of plant owners that have bought and used cheap pellets in their

residential wood pellet plants, and shortly after have had to remove hard cindered slag from vital

boiler parts. Due to these experiences as well as corrosion and fouling experiences in larger plants,

Danish consultants and the Centre for Biomass Technology have been rather reluctant to recommend

the use of MBP.


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Vattenfall A/S Køge www.vattenfall.dk

Aller Mølle Christiansfeld www.aller-molle.dk

Østjysk Rapsolie Fredericia www.jysk-rapsolie.dk

Sdr. Feldings Bioenergi I/S Sdr. Felding

Nørkærgård Rapsolie & Rapspiller Ringkøbing www.vestjysk-rapsolie.dk

Grøn Eneregi Nyborg http://gronenergi.dk

Unipres Saltum www.unipres.dk

BlochBioenergi Varde www.blochbioenergi.dk

BioSyd Lundby http://biosyd.dk

Production capacity: 130000

Actual production: 110000

Average prices: N/A

Pellets quality: No specification

Traders: -

Consumers: See section above

Denmark has very good and long experience with using straw locally in small district heating plants, as

well as regionally in medium sized CHP plants, and centrally in large CHP blocks. All these plants are

dedicated to loose straw combustion, ranging up to very advanced steam data and high efficiency.

There is simply no need to introduce pellets in these plants. However, in future, when co-firing will be

more relevant, it cannot be ruled out that MBP might play a role.


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MBP market in Estonia


The idea of producing pellets from other materials than wood is quite new in Estonia. Research

activities on non-wood biofuels addresses both agricultural biomass (e.g. straw) and non-agricultural

biomass (mainly reed).

Considerable amounts of non-wood biomass are available for energy purposes in Estonia. The amount

of agricultural straw was ca. 810 thousand tons in the year 2007 [Olt, Kiviloo & Laur 2008] and the

potential for reed is 105 thousand tons [Kask & Kask 2007]. 894 tons of straw were used in 2007 for

energy production, which is about 0.1% of the whole straw yield.

Peat usage for energy purposes is an important topic in Estonia. Also peat pellet production is well

understood. Usually milled peat is used and the technology is similar to wood pelletizing. However,

there is still no peat pellet market in the Baltic States, as peat is used traditionally as sod peat (in

district heating boiler plants) or briquettes (households). With the slowly growing popularity of wood

pellets also the peat pellet market might develop.


Page 20 BAPE

MBP market in Finland


In 2008 the MBP market represented approximately 30% of the whole pellet market (approx. 120

thousand tons).

This mainly concerns peat pellets, for which the market barriers are of non-technical nature. Instead,

legislation hampers further use. In the EU peat is not considered as a renewable resource. Due to the

technological aspects of wood pellets producing – easier and cheaper - and the fact that Finland has

huge wood reserves, one may presume that the share of MBP in pellet market will not grow further.


Page 21 BAPE

MBP market in France



All existing MBP production plants were formerly active in the feed industry, especially in dehydration

of alfalfa (cattle feed). For environmental (regulation on coal combustion, CO2 emissions) and

economic reasons (new markets), agro pellets were tested to supply local consumers (mainly

households or farmers) in rural areas.

Only small quantities have been produced because of lacking regulations on agro pellets, and since

the start of market development in 2005, the French MBP market remained at small local level.


Page 22 BAPE

Company www Production Capacity

ALPHA LUZERNE - 3 000 30 000

NATURAL ENERGIE www.naturalenergie.com 8000 (*) 20 000

DUREPAIRE SAS 50 000 (*) 50 000

SODEM www.thermobois.fr 1000 ? 50 000

MG GRANULES www.mg-granules.com 500 ? 12 000

SARL CVE (Combustible

Végétal Ecologique)

http://cve-bouchons.paille.over-

blog.com 1000 ? 20 000

RAGT www.ragt.fr 1 000 200 000

COOPERATIVE DE BLE www.coopdeble.fr 2 000 25 000

(*) all these productions are mainly sold to food industry

Production capacity: 407 000 tonnes

Real production: 66 500 tonnes

(58 000 tonnes are sold to food industry)

Average prices: 120 €/ton

Pellets quality: Thanks to “NF Granules Biocombustibles”, a French quality brand,

which certifies pellets produced from wood or agricultural by-

products, standardization for MBP is available in France.

Two possibilities to be standardized:

- Agro + : automatic and domestic biofuel boilers

- Agro: automatic boilers (biomass, mobile grille) according to

technical specifications of devices manufacturers


Page 23 BAPE

Pellets quality:

Specifications AGRO+ AGRO

Dimensions D = 6 to 8 mm ± 1mm

L = 10 to 30 mm

D = 6 to 16 mm ± 1mm

L = 10 to 30 mm

Moisture content ≤ 11% ≤ 15%

Net caloric value (MJ/kg) ≥ 15.5 ≥ 14.7

Net caloric value (kWh/kg) ≥ 4.3 ≥ 4.1

Bulk density (Kg/m3) ≥ 650 ≥ 650

Mechanical durability ≥ 95% ≥ 92%

Amount of fines (after production) ≤ 2% ≤ 3%

Ash Content ≤ 5% ≤ 7%

Cl Content (on dry matter) ≤ 0.2% ≤ 0.3%

N Content (on dry matter) ≤ 1.5% ≤ 2%

S Content (on dry matter) ≤ 0.2% ≤ 0.2%

Ash temperature Agro+ ≥ 1000°C Agro ≥ 800°C

Heavy metals (mg/kg)

As ≤ 1

Cu ≤ 40

Cr ≤ 10

Cd ≤ 0.5

Hg ≤ 0.1

Ni ≤ 15

Pb ≤ 10

Zn ≤ 60


Page 24 BAPE

MBP market in Germany


The MBP market in Germany is still at the initial stage.

MBP, mainly straw pellets, are produced by several small producers (at least 10), and the annual

production capacity is probably still below 20,000 tonnes.

The produced straw pellets are mostly used for purposes such as littering or animal feeding, and their

use for heat and energy production is insignificant.

One type of organisations involved are drying cooperatives (Trocknungsgenossenschaften), who

specialize in drying all kinds of biomass (also wood for wood pellet production). Some of them (there

might be more than listed in the table below) also produce straw pellets for several forms of usage.

Production capacities installed can be significant, but they are usually only partly used for MBP

production. Typical production volumes would be 1,000 tonnes per year, of which only a fraction is

marketed for energy purposes. Some of the listed companies only market their product for littering.

Pusch AG is a company following a special business strategy. The company plans to set up

decentralised MBP production capacities. Basis will be a licensing system, in which special pellet

production equipment is given to farmers, who produce MBP from local agricultural and waste

materials. Two types of pellets will be produced: one type made of dry manure, remains of biogas

production and other available materials will be produced for the combustion in large scale plants.

The other type will be made of other available plant materials, without the use of waste materials, for

the combustion in household heating. Currently, the company is engaged in Romania, where the

concept (including boiler contracting schemes) is promoted in schools and other public buildings.

MBP are rarely used for heating purposes in households, because most boilers are optimised for the

use of wood pellets and the use of e.g. straw pellets can cause technical problems, although some

boiler producers are working on the adaptation of boilers to the use of MBP.

The use of MBP in larger combustion units (> 100 kW) does not seem to be feasible, compared to the

direct use of straw bales.

Although straw is available in large amounts in Germany, the prices for straw are volatile depending

on the harvest period. Thus, the production of MBP might not be feasible in unfavourable harvest

years. This does not promote consumer confidence.


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Kaliro GbR Rheine www.kaliro.de

Natur Energie Ostalb Ellwangen www.naturenergie-ostalb.de

Trocknungswerk Donaualtheim Donaualtheim --

Landw. Trocknungsgen. Neuhof

a.d.Zenn eG

Neuhof a.d. Zenn www.neuhof-eg.de

Pusch AG Marienrachdorf www.pusch.ag

HTN GmbH Drognitz www.htn-heros.de

Lange & Meyer GbR Hilgermissen www.strohpellets.de

Agrarhandel B+B Müller Dietingen-Böhringen www.agrarhandel-mueller.de

BauerPower Rüsselsheim www.energievomland.de

Reinhard Wissmiller Bad Wörishofen www.1streu.de

Production capacity: < 20 000 tonnes

Real production: approx. 15 000 tonnes

Average prices: 160 – 180 €/tonne

Pellets quality: No specification

Traders: Trade is organised by producers

Consumers: Mainly households

(consumption below 5 000 tonnes)


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MBP market in Greece



ANGELOUSIS SA VELESTINO - VOLOS -

Production capacity: 20.000 tonnes

Real production: 50 tonnes (90% exported to Italy)

Average prices: 210€/tonne

Pellets quality: no formal quality standard for MBP

Traders: Do not exist

Consumers: Do not exist


In Greece the MBP market remains at initial stage.

Only one company produces MBP officially. There are two more companies producing MBP, but on

experimental level. Furthermore, there is one company which will start the production of both wood

pellets and MBP in 2009. However, there is no formal quality standard for MBP in Greece.

Greek legislation does not cover MBP production, which is a significant drawback for this market to

expand. There is a major need for legal coverage of this market, in order to promote it.


Page 27 BAPE

MBP market in Hungary



T. & T. Technik Kft. Szentes http://www.tandttechnik.hu/

Cropell Derekegyház http://cropell.hu/

Production capacity approx. 4 000 – 5 000 tons

Real production: 3000 tons

Average prices: 30000 – 40000 HUF (111-148 Euro)

Pellets quality: No regulations / agreements on pellets quality


Despite the availability of large amounts of agricultural biomass, this large potential for MBP

production is not used in Hungary.

There are only two permanent pellet producers active in the market (listed in the table).

The spatial distribution of the market actors is determined by the distribution of arable land which

concentrates in the south eastern part of the country where also the MBP producers are located.

Besides the two active MBP producers, numerous plans for establishing MBP production facilities have

appeared, but ended due to several reasons.

Concerning raw material potentials, a wide range of feedstocks can be used in Hungary to produce

mixed biomass pellets. Based on the assessment of the Hungarian Ministry of Agriculture and Rural

Development the amount of the available raw material (mostly by-product e.g. straw) from

agriculture would be around 5.5 million tons.

Agripellets are mainly (over 90 %) produced for the domestic market. Sometimes regional biomass

power plants buy bigger amounts of pellets (according to the interviewed producer). In Hungary,

innovation is advanced in small- and medium-scale boiler design, such as Carborobot, just to mention

one brand, to use different kind of solid fuels with a single equipment.

In general, the market status can be described by the absence of broad range of consumers and

trading chains. Consequently production is limited.


Page 28 BAPE

MBP market in Ireland


Currently, there is no known production or use of MBP in Ireland.

The Bioenergy Action Plan of 2007 for Ireland (p.15) states that total straw production in Ireland is in

the order of 1.m - 1.4m tones, with current uses being: animal bedding and ploughing back. With a

typical energy value of 13.5 MJ/kg (at a moisture content of 20%) the Plan states that the theoretical

straw energy resource is about 16-20PJ (4500-5500 GWh). A Sustainable Energy Ireland (SEI) study

examining the resource, estimated that in reality about 10% of this would be available for utilisation

on a practical and economic basis, i.e. 1,8PJ or 500 GWh.

Teagasc (the Irish Agricultural and Food Development Agency) is examining the economics of using

dry residues, such as straw, for heating purposes in various forms and state on their website (text

undated):

‘Straw as fuel will be more difficult to develop (than wood). Probably its best short-term prospect is as

heating fuel, either in pellets or chopped or in whole bales. The large boiler fuel market, supplied in

baled or pelletized form, may be the best opportunity. A feasibility study is needed on straw pellets.

They would have several advantages over loose straw, but their properties, especially ash content,

would be inferior to wood pellets. This may limit their use in domestic stoves. The scale necessary for

cost-efficient straw pellet production also needs to be clarified.’

Teagasc conclude that pellets made from dust are the best option and only when sawdust supplies are

exhausted, would other other sources of raw materials, such as wood residues, cereal and rape straw

and energy crops, such as willow or miscanthus, be considered as alternative feedstock for pellet

production. Another issue highlighted in relation to straw is that straw prices in Ireland fluctuate

widely, and large supplies are unlikely to be available at prices that would make its widespread use as

a fuel economical.

With a high dependence on imported fossil fuels for the production of electricity (approximately 90%-

said to be the highest in Europe) and stretching targets for the production of electricity (and energy

generally) from renewable energy, there is a desire in Ireland to look at non-fossil fuel alternatives,

particularly those that can be home grown.

However, it would appear that the wood pellet market has yet to reach its full potential in terms of

the use of available raw materials and that it is unlikely that other sources of biomass for the

production of pellets will be looked at, until the existing wood fuel resource has been more fully

realised.

Straw is one material that could be used for the production of MBP, but there are concerns about its

physical effect on plant and its economic feasibility resulting from large price fluctuations, due to

weather related variations in supply and the level of demand from other sectors, particularly animal

bedding.


Page 29 BAPE

MBP market in Italy



Mixed biomass pellet market is in its early stages in Italy. Even if MBP production and usage is very

present in the media and in the public discussion, MBP production is still very limited. The small

amounts of MBP actually produced in Italy are mainly used in medium and large scale power and CHP

plants.

3 MBP producers operate in Italy, all of them with very limited production. Installed production

capacities on the other hand are considerable, but cannot be fully used due top a lack of demand,

especially in the residential heat sector. In order to develop this sector for MBP, market actors are

working on improving chemical characteristics of MBP, as well as the adaptation of burning

equipment to MBP usage.

For now, the use of MBP in large scale applications (e.g. co-firing) remains the most realistic usage

type. MBP might become a serious alternative in this sector, even if a reliable supply with MBP

cannot be guaranteed at the moment and production capacities still need to be developed.

Olive stones and olive residues are promising feedstocks for MBP production. They are currently

being used within the related industries but their utilization may have positive effects on overall MBP

market development in Italy.


Page 30 BAPE


Cooperativa Le Rene Coltano - Pisa www.lerene.it

Roana Cereali Rovigo http://www.roanacereali.com/

Azienda agricola Tripaldi

Roberto

Vibo Valencia http://www.tipicimediterranei.it/Nocciolino-di-

Sansa/nocciolino-di-sansa-di-olive.html

Production capacity: 45 000 tonnes

Real production: approx. 6 150 tonnes

Traders: Self traiders

Consumers: Owners of boilers

Raw materials used: Miscanthus, cereals, olive stones

Comments on companies´ activities:

Cooperative Le Rene: used a pilot plantation (Miscanthus) for the MBP production. It is unclear

how Miscanthus will be marketed in the future and if pellet production will be continued.

Roana Cereali: Their product (Agrifire pellets) is a mixture of cereals (cultivated in set aside area not

suitable for food production) and wood residues. Physical and chemical characteristics of the

product are shown in the table below (see also:

http://www.roanacereali.com/agri_fire_homepage.html). It seems that the area used for cereal

production is not available any more and further production of these mixed pellets is uncertain.

Characteristics Units Value

Diameter mm 6

Higher calorific value Kwh/kg 5.20

Moisture % 9

Specific weight 0.85

S % p/p 0.075

Organic solvent mg/gg < 0,05

Ash % 1.2

Below some details of the preparation of Agrifire pellets are listed.

• The cereals: non-food (mais, corn, sorgum). Only grains are used as their calorific value is higher

and less ashes are created during burning phases. When the grains are processed, the moisture

content is around 13-14%.

• Wood logs: beech, fir and poplar are chipped and dried. Then, both raw materials are mixed and

solvent is added. The solvent is used, not for the physical durability, but to reduce the

encrustation.


Page 31 BAPE

Azienda agricola Tripaldi Roberto: Their core business is olive oil production. During the last years,

the company started to satisfy the thermal demand of the oil mill by the utilization of olive residues as

fuels. Some information on the chemical and physical properties of olive stones can be found in the

following table.

Characteristics Units Value

Ash %(m/m) ≤ 4

Moisture %(m/m) ≤ 15

N mg/kg ≤ 30

Organic solvent Assenti -

Lower calorific value kcal/kg ≥ 4.000

This product is becoming a real alternative to wood fuels. Some of its properties are listed below:

• Lower cost: the price is lower than in the case of traditional wood pellets, but it is strongly

connected with the seasonal availability and with olive production. Prices may vary from 120 –

170 €/ton, at least 15% less than pellets.

• Versatile utilization: the product is granular and is available in bulk or in 20-25 kg bags.

• It is an economic, eco-friendly fuel, available mostly in winter season, as olive product is

processed during that period.

• The product can be derived from two kinds of raw material:

a) Olive residues with no treatment: no physical/chemical processing

b) Olive residues treated: during the production of oil some mechanical processing is made.

Additional information on olive residues:

Until few years ago, not all types of olive residues were allowed for heating purposes. In fact the

Italian decree dated 8 March 2002, mentioned that only residues classified as a) were allowed to be

used. Since 2006 (D.Lgs n. 152 del 3/04/06 ed al d.p.c.m. 8/10/04) also residues classified as b) are

allowed to be used for heating purposes. After 3 years, the effect on the market is visible.

Utilization of this fuel may grow in future in specific areas, having long tradition in olive processing.

Today there at least 402 olive mills in 13 regions, in Italy (data are available at the following link

http://www.frantoionline.it/frantoi/index.php).


Page 32 BAPE

MBP market in Luxembourg

MBP market in Malta


No MBP market exists in Luxembourg. There is no domestic production of pellets (wood or MBP) and

wood pellets are imported, mainly from Grmany and Belgium.

(Bendieck et al, 2006; Sollet publication "Guideline for combined solar thermal and wood pellet heating systems" )


Malta is heavily dependent on imported fossil fuels for all its energy needs. This factor is a strong

motivator to find means to increase fuel diversity and to use renewable and indigenous energy

sources. Mixed Biomass Pellets are not an option, because there is negligible potential for biofuels

from agriculture. The limited freshwater resources (50% of potable water is supplied from

desalination), high population density and poor soil fertility contribute to this situation.


Page 33 BAPE

MBP market in the Netherlands

Use of mixed biomass pellets by Dutch power plants

(Source: Utrecht University)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2006 2007 2008

Year

MB

P u

se

in

th

e

Ne

the

rla

nd

s (

ton

ne

s)

Soja Husk (byproduct Dutch agro industry)

Coffee Husk (byproduct Dutch agro industry)

Other MBP (imported)

Production capacity: no information available

Real production: 0

Traders: 2

Consumers: large scale industrial consumers:

Essent

Large-scale utilities wishing to remain anonymous


2006 & 2007:

About 15.000 ton of soy husks in pelletised form were bought by Dutch utilities from the Dutch agro

industry. The exact origin of these pellets is unknown. Also about 10.000 tons of other mixed biomass

pellets were imported in 2007. All MBP were used for co-firing.

2008:

One utility used 10.000 tonnes of MBP pellets (produced from agricultural residues) for co-firing with

coal to produce renewable electricity. The origin of these MBP pellets was Western Europe, but more

detailed information was not available.

Furthermore, the utility Essent started a pilot project with the use of MBP (coffee husks), imported

from Brazil. These coffee husk pellets were co-fired in the Amer coal power plant. The initial intention

was to increase imports annually to reach 250.000 tonnes per year in 2013. However, due to lacking

policy support, Essent decided to stop the import of coffee husk pellets for the time being, as it is

economically not possible to use them at this point in time. As soon as a subsidy scheme is put in

place that sufficiently rewards the use of MBP pellets, Essent intends to resume the use of MBP.

(Personal Communicaiton with I. Howes, Biofuels Portfolio Manager, September 2009)


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MBP market in Norway


Consumption of biomass for energy purposes in Norway is very limited. Norway has large hydro

power capacity and is self-sufficient with oil. New power capacity is mainly based on natural gas.

Norwegian biomass consumption is mainly in the shape of wood logs for residential heating and wood

pellets for an emerging pellet market. According to the Norwegian Biomass Association, NOBIO and

some interviewed wood pellet market actors, there is no production and no market for MBPs in

Norway.


Page 35 BAPE

MBP market in Poland

2. Location of MBP producers:



Production of mixed biomass pellets constantly increases in Poland.

However, the market is hard to describe due to the quickly changing situation. Companies often

change their production profile. Depending on the general market situation, demand, raw material

availability and price they temporarily change between wood pellet and MBP production.

In addition to the use of agricultural by-products for MBP production, also the usage of food industry

residues occurs. One coffee production plant in Poland started to produce pellets from their

production residues in order to decrease the volume of wastes, which are difficult to handle. These

pellets serve as a fuel in two regional schools.

Several traders claim to import sunflower shell pellets from Ukraine, but it is difficult to estimate the

volume of imported pellets.

Raw material resources are difficult to estimate, however straw surpluses that can be used by the

energy sector are assessed at 10 million tonnes. One factor hampering increased used of straw for

MBP production is the reluctance of farmers to eneter long-term supply contracts. As long as straw

producers can vary their prices freely, the development of straw prices remains a high risk for

potential straw pellet producers.


Page 36 BAPE


Opec-bio Sp. z o.o. Grudziądz -

PBH Załubski Jelcz Laskowice www.pelet.zalubski.pl

„NASZA ENERGIA” Benedykt Nowak Sztum -

PPUH Walerian Grzegorz FABICH Drawsko Pomorskie www.fabich.pl

Vivena Krzanowice, Miękinia www.vivena.pl

FUREL Biały Bór www.pellet.com.pl

Production capacity approx. 60 000 tonnes

Real production: 40 000 tonnes

Average prices: 350 – 390 PLN (83-93 Euro)

Pellets quality: No regulations / agreements on pellets quality

Traders: impossible to track, too small companies

Consumers: large CHP plants- use MBP for co-firing

*) 1 Euro = 4,20 PLN


Page 37 BAPE

MBP market in Portugal


There is no MBP market in Portugal. Also the wood pellet market started developing only recently as

significant production capacities were installed in 2008.

As there is no domestic demand for pellets (wood or MBP), the major part of wood pellets produced

in Portugal is exported. Export opportunities for MBP hardly exist and MBP production therefore is

not considered by potential investors in Portugal. The second factor limiting MBP supply is the

shortage of raw material. Portugal doesn't have large volumes of agricultural residues, especially in

areas where pellet producers are currently located: around the city of Lisboa and Porto.


Page 38 BAPE

MBP market in Romania


There is hardly any information about the Romanian MBP market.

Nevertheless, extracting energy from renewable raw materials is an important alternative to the

limited fossil fuels, such as coal and natural gas, and an opportunity for agriculture at the same time.

With 14.8 million hectares, Romania is the second largest producer of agricultural products in Central

and Eastern Europe, behind Poland, and currently holds one of the best positions in Europe in terms

of biomass.

The large potential for biomass in Romania is far from being depleted. The market, which is still

experiencing strong growth, also offers farmers new sources of energy, whether it is in the production

of energy and/or heat from biogas, or cultivating energy crops for fuel production.

Within the country, the biomass energy sector is divided. Wood production is concentrated in the

Carpathians and the lower Carpathians, while agricultural by-products are produced in the south of

the country and the region of Moldavia. In order to guarantee an independent energy supply for the

rural population, concepts were developed to produce energy and heat out of agricultural by-

products.

[data origin: Press release – “RENEXPO® South-East Europe 2008”]

At the moment it seems that production of MBP competes strongly with direct firing of biomass, due

to higher investment costs for the pellets production.

For the future it will matter which kind of biomass is mainly promoted under the programme of the

Romanian Energy Conservation Agency (ARCE).


Page 39 BAPE

MBP market in Slovakia



Agrorama s.r.o Sala www.agrorama.sk

BIMPEX s.r.o. Prešov www.bimpex.sk


Situation on the market is changing very quickly and it is extremely difficult to complete the list of

producers and their capacities.

A clear market for bio-energy is still lacking in the Slovak Republic- however, as the country has poor

domestic energy resource base, and abundant biomass resources available, it becomes obvious that

the situation will change in the near future.


Page 40 BAPE

MBP market in Slovenia


According to our research, there are no producers, traders, retailers or consumers of agro biomass

pellets in Slovenia. There is no market present and no potential for its development.


Page 41 BAPE

MBP market in Spain


Pellet market in Spain is new and emerging. Until 2005 this biofuel was almost unknown, now it's

experiencing an encouraging development. Internal consumption is still quite low and current

production is mainly exported.

All identified companies state to produce pellets with pure wood as raw material, with the partial

exception of Biotermal Agroforestal and Reciclados (their pellet is made up by 95% of wood).

Therefore, we can assume that Spanish MBP market is negligible.

Some new pellets producers are appearing in the market, and some of them are trying to process

different kinds of residues. For example, company called Biomasa del Condado

(http://www.biomasadelcondado.com/whoweare.php ), declares that “they focus their work on the

treatment and recycling of waste residues from agroindustries, forestry, and other energetic

companies to transform it in to biofuels”.

Another company that is working in MBP sector is Carsan Biocombustibiles

(http://www.carsanbio.com/in/biomasa.php ). Their activities are defined as follows: “ With an ever-

changing marketplace, we began to offer Bio Mass Boilers and Fuel. At this moment we manufacture

large domestic capacity boilers and import industrial size and pellet stoves distributing throughout

Spain. This company is much more involved in boilers and technical equipment, but at the same way

provides fuels to its clients. Fuels, traded by them, are mixed and their pellets are made from

compressed sawdust, olive stones, peach stones, woodchips, etc. An analysis of their calorific value is

listed in the table below.

Pellets 4,300 Kcal. 6mm

Olive Stone 4,300 Kcal. 2mm - 5mm

Woodchips 3,500 kcal. 10mm - 50mm

Their distribution to the client is made in the following manner:

• Olive stones: bags of 20 kg of 800 kg bigbags.

• Almond Shells: bags of 20 kg of 600 kg bigbags.

Pellets: bags of 15 kg


Page 42 BAPE


We can suppose that the main factor hampering MBP market development is the low internal

consumption. Other Mediterranean countries, with a similar situation similar to the Spanish one,

will not very probably import any amount of MBP. Therefore Spain should look at more distant

markets, as Scandinavian countries, to export this kind of pellet.

The simplest solution in this situation is to limit pellets production to wood pellets only, and that’s

exactly what new pellets producers are going to do.

At the same time Spain has a long tradition in olive processing, and the sector has large volume of

residues available every year. These residues will be definitely used somehow, but it is very

difficult to find more precise data about the way of their utilisation.

Nevertheless, Spanish pellet market is increasing and pellets traders appear among all the regions.

During our research, the following international trading company was found:

Kampai International, S.L : professional traders of iberian biomass products since 2004. We supply

high quality & large quantities to international markets. Address: Riera de Sant Miquel 29, 08006

Barcelona, Spain; Tel.: 0034935129266, Fax.: 034935129267.

We offer high quality products in large quantities through continuous on time deliveries based on

long-term supply agreements. A broad selection of biomass products is available. The following

products are offered in bulk:

• Straw Pellets

• Olive Cake Pellets

• Pine Wood Pellets

• Olive Stone

• Crushed Almond Shells

• Natural Almond Shells.


Page 43 BAPE

MBP market in Sweden


Straw potential in Sweden is presented in the table below. The residues origin mainly from wheat,

barley, oats and mixed cereals. The total amount of agricultural residues is 5.2 million tonnes,

corresponding to an energy resource of approximately 21 TWh.

Agricultural residues potential: [1000 t]

Wheat 1731

Durum wheat 0

Rye 226

Barley 1703

Oats and mixed cereals 1402

Maize 0

Other cereals 207

Total 5269

Table: Agricultural residues potential, Sweden, 2000. (pelletcentre.info)

The Swedish University of Agricultural Science in Umeå has analysed that the annual energy use of

agricultural biomass in 2004 amounted to 1,1 TWh, corresponding to approx. 1% of the total biomass

consumption for energy purposes.

Sweden has almost no production of MBPs for fuel purposes. Sweden is a wood industry country and

has abundant wood residues, that can be used for fuel purposes without the technical obstacles that

MBPs may have. However, some development is visible.

At the Swedish University of Agricultural Science in Umeå a pilot-plant for pelletising reed canary

grass has been tested. The capacity is 400 kg/h. The pellets were used in an internal heating plant for

examining combustion properties. The main identified problems were high ash content and low and

varying ash melting temperatures.

In the ongoing EU-LIFE project "BIOAGRO" Swedish companies are aiming to promote the use of

MBPs. The BIOAGRO project will "demonstrate an innovative method to reduce the discharges of

greenhouse gases by using energy from grain, waste from grain, seed and grass to produce heat".

MBP pelletising line is installed at the seed and grain producer, Skånefrö AB, along with a combustion

line producing heat.

More info is available at www.bioagrolife.se.


Page 44 BAPE

MBP market in Switzerland

MBP market in the United Kingdom


Information on a MBP market or MBP traders and producers in Switzerland cannot be found,

therefore it is assumed that there is no significant market for MBP in Switzerland.

Information campaigns on the use of wood pellets are organized by the “Holzenergie Schweiz”, who

do not promote the use of alternative raw materials. This results in a lack of information and hampers

the MBP market development.

Furthermore, the local availability of agricultural residues, such as wheat straw, is very limited.

There is no kind of alternative raw material available in larger amounts, while wood is produced in

large quantities. Governmental bodies do not seem to promote the use of MBP and no private

organisation promoting MBP could be identified.

Since the wood pellets market in Switzerland is still in an initial stage, the availability of regular pellet

raw materials, such as saw dusts, is not limited yet, there seem to be no need for considering

alternative raw materials.


The MBP market in the UK is small. There are two straw pellet manufacturers in operation: Charles

Jackson- with a relatively small production capacity, and Agripellets Ltd, capacity unknown.

The main market in the UK for MBP is in co-firing in coal fired power stations. The pellets are crushed

prior to co-firing. Currently there are no biomass boilers on the market that are suitable for the

burning of MBP on a domestic or community scale.


Page 45 BAPE

Companies active on the market:

Agripellets state on their website that they primarily produce Agri-Straw Pellets, which are sold in

bulk to the electricity power generation market to be co-fired alongside coal. They state that they

have supplied Scottish and Southern Energy plc and that their main customer is E.ON UK plc, with

whom they have an ongoing contract. Agripellets are developing a new range of high quality straw

based hybrid fuel pellets, which combine wheat straw with other agricultural crop by-products and

natural additives. Agripellets also produce 10mm miscanthus pellets, which are primarily produced

for the co-firing market. In March 2008 Agripellets received a HGCA (Home Grown Cereal Authority)

Enterprise Award of £26,000 to develop improved straw pellet for industrial boilers. By adding by-

products associated with the production of biodiesel, primarily glycerol but also rape cake, Agripellets

say they can improve straw pellet qualities and increase processing output. The target price for their

straw pellets is to be 30% lower than imported wood pellets. The project will use an additional

10,000 tonnes of straw per annum.

Agripellets give the following information on their website (as at 10th September 2009):

Product : Agri-Straw Pellets

High density pellets manufactured from local British wheat straw

Density approx. 550 kg/m3

Pellet diameter 10 mm

Heat value 4,4 kWh/kg

Moisture content < 10%

Additives < 1%

Mechanical durability 95%

Ash content 5%

Agri- Straw Pellets seek to conform to the draft CEN/TC 335 biomass standard.

Delivery options and price (excluding delivery charge and vat @5%):

• 1000kg Jumbo bags* (2000mm X 1000mm x 1000mm) - £115.00/t

• 500kg Jumbo bags (900mm X 900mm x 900mm) - £120.00/t

• 20kg paper bags (600mm X 300mm X 300mm) - 1 pallet* (50 bags, 1000kg) - £135/t

• Bulk tipper or pneumatic truck delivery - (2.5t to 25t deliveries)

Currently the focus of Charles Jackson, in relation to biomass energy, would appear to be on the

burning of straw for the production of electricity. They say on their website “We are planning to

produce electricity at Long Buckby through a 4 MW steam generating plant using straw as its main

source of fuel”. It seems unlikely that this straw will be pelletised prior to burning. Charles Jackson is

also working with farmers on the production of miscanthus for burning in power plants.

Another company- BICAL produces a miscanthus cube, approx 2.5cm in diameter, which is co-fired.

Like Agripellets, BICAL received funding of £16,000 from the HGCA in March 2008 to develop and

market a novel fuel pellet made from Miscanthus and grain. By including grain, Bical believes it will be

able to produce a pellet which is more robust than a pellet without the inclusion of grain. Designed to

compete with wood pellets, most of which are imported into the UK, Bical's pellets will be targeted

for use in renewable energy heating systems operated by local authorities and leisure sector.”


Page 46 BAPE


DRAX Power Station, a coal-fired plant, supplying about 7% of the UK’s electricity, set up a straw

pellet plant near Goole in 2009. Its annual production will be 100 thousand tonnes. Drax is

developing a 500 MW co-firing capability, which requires about 1,5m tonnes of biomass a year.

Produced pellets will partially satisfy this demand. In addition Drax have applied for planning

permission to build a second straw pelleting plant in Lincolnshire.

It is anticipated, that the use of both wood and MB pellets might decline after 2009 and/or 2015 as

some of the existing coal fired power stations in the UK close down rather than opting into the Large

Combustion Plant Directive*).

*) Large Combustion Plant Directive establishes emission limit values (ELVs) for new and existing plant, in addition to making

further provisions for pollution inventory reporting in support of the European Pollutant Emission Register (EPER)

requirements. Under this legislation, existing combustion plant must either observe lower emission limits, or achieve

equivalent emission reductions via a national emissions reduction plan, by 2008, unless it is intended to close the plant after

a further 20,000 operating hours between 2008 and the end of 2015.


Page 47 BAPE


Agripellets Ltd Warwickshire www.agripellets.com

Charles Jackson & Co Ltd Northants www.cjgrain.co.uk

Bical Devon (Head Office)

London/Swindon/Staffordshire

www.bical.net

Drax Goole www.draxpower.com

Average prices: £115/t (agri-straw pellets)

Pellets quality: Seek to conform to CEN/TC335

Traders: Sold directly by producers

Consumers: coal fired power stations using MBP for co-firing

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Final report on producers, traders and consumers of mixed … · 2014. 8. 11. · D5.1 – Final report on producers, traders and consumers of mixed biomass pellets Page 4 BAPE 1