When oil prices were still climbing towards their record highs and before the financial crisis brought them back to earth, the expectations being heaped upon second generation liquid biofuels were almost limitless. They were the environmentally benign solution to climate change, energy security and escalating food prices. Investors flocked to invest in companies with technologies that promised to produce liquid biofuels from wood and other non-food biomass at prices that could eventually compete with fossil fuels.
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Vyborgskaya Cellulose, a pulp and paper producer near the port of Vyborg in northwest Russia, is building what will be the world's biggest pellet mill. It will have a production capacity of 900,000 t/y, about 50% bigger than any existing pellet mill in the world. Construction is already underway and production is due to start in Q3 2010.
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The cost of the Biomass Crop Assistance Program (BCAP) will reach $517 million during Q1 2010. This compares to the original Congressional estimate of just $70 million during the whole five year lifetime of the program. This colossal gap in the funding expectations of the subsidy has pushed the initiative into the political spotlight, while various unintended market implications mean the programme is now fraught with controversy.
[Read more....]
It has been a cold winter in the northern hemisphere, with snow falling as far south as Florida and the Middle East and with parts of northern Europe shivering in the coldest temperatures for twenty years. So it is not surprising to hear reports from established European markets that the demand for wood pellets from existing consumers has been generally good. What is less good is that the economic recession continues negatively to affect sales of new stoves and boilers. [Read more...]
Selected by FEM
1 February
UK government announces details of its proposed 'Renewable Heat Incentive'
DECC website
26 January
Vyborgskaya Cellulose and Ekman & Co collaborate on the world's largest wood pellet plant in Russia
Lesprom
20 January
RWE innogy is to build a 750,000 t/y pellet plant in southern Georgia
Press release
15 January
Prenergy, the 350 MW biopower project in the UK, is offered for sale by Clessidra
Bloomberg
13 January 2010
State of the Forest Carbon Markets 2009 (Study)
Ecosystem Marketplace
7 December
ENDS
11 November
London firm raises money for Scotland biomass plants
Biomass Magazine
28 October
Electrabel & Ackermans jv to convert coal plant to pellets
Reuters
25 October
Russia will delay (again) the hike in wood export duties
Associated Press
22 October
America’s farmers threaten to block climate legislation
The Economist
More suggestions that biofuels are not an environmental free lunch
The Economist
16 October
Magnolia Biopower plans to build a 1 million t/y wood pellet plant in Georgia, USA
Jacksonville.com
13 October
OPEC sees 2010 oil demand up almost 1 percent
Associated Press
8 October 2009
Global oil depletion- An assessment of the evidence for a near-term peak in global oil production
UK Energy Research Council
E.on puts Kingsnorth plant on hold, citing reduced electricity demand
Financial Times
4 October 2009
US climate bill not likely this year, says Obama adviser
The Guardian, UK
2 October 2009
European utilities to start-up 19 gas plants this quarter
Bloomberg
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Forest Energy Monitor - an essential source of news and analysis of biomass and wood pellet markets, investments, technology, policy and legislation.