Biomass Energy | Green World Investor

Green News – Fuel Cells and Biomass in USA gets boost with new orders, investment

11 Jan, 2012

Green Industry in US continues to flourish despite the general apathy towards global warming from a significant section of the population and parties. USA is the hotbed of green innovation despite stiff challenge by China which is spending billions of dollars to become the No.1 in Green Industry and Technology. US has the lead in Fuel Cell Technology with a number of top companies like Fuel Cell Energy, Bloom Energy. Now a start up ClearEdge Power has got one of the biggest fuel cell orders in the world worth $85 million from Austria’s Gussing Renewable Energy. The deal calls for supplying of 50 megawatts of power by the year 2020.

Last August, ClearEdge announced an infusion of $75 million in venture capital in which Gussing was an investor. Note Fuel Cell Energy has also got big orders from South Korea. Bloom Energy has got most of its orders from USA Technology Companies as well. Fuel Cell Technology is well behind the development curve though and it will take another 10 years for it to effectively compete. Compared to that other Green Technologies like Wind and Solar Energy are much ahead of the curve

A Biomass Power Project in Connecticut has got a $225 funding from Carlye to build 37.5 MW biomass power project. The Plainfield Renewable Energy (PRE) being built by biomass power producer Enova Energy Group will use wood available from construction and demolition debris, recycled wood pallets and land-clearing materials as feestock. Note Biomass Energy is a great way to reduce Carbon Emissions if it uses waste materials which would be wasted if not used for Energy.

List of Top Biomass Power Producers

Helius Energy - Helius Energy is an AIM listed company that develops and sell biomass projects.The company is currently developing the 100 MW project in Port of Bristol at Avonmouth.Also a 100MW biomass fuelled electricity pant in Port of Southampton
MGT Power – MGT Power is an independent British company currently developing two 300MW biomass power generation projects in the North East of England: the Tyne Renewable Energy Plant, and the Tees Renewable Energy Plant, which has received planning consent
Prenergy Power - The company is building the world’s biggest biomass power plant in Wales,England with 350 MW capacity which will use imported wood chips as feedstock.The London firm which is owned by a PE firm in on the sale block
Forth Energy - Forth Energy is developing Four Big Biomass Power Plants at the ports of Dundee, Grangemouth, Rosyth and Leith. The projects represent a £1.7bn investment in renewable energy and would have a total energy capacity of up to 500MW.The Leith Project is in the advanced stages of implementation.
Laidlaw Energy Group - The company is a small US based Independent Power Producer that is listed as LLEG.The company is building a 70 MW plant in Berlin,New Hampshire.The company is also in the process of acquiring a 14 MW Biomass Plant from Renegy in California.

Wood Pellet Companies

International WoodFuels
New England Wood Pellet
Woodstone
Energex Corporation
Forest Energy Corporation

Biomass Plants in India Shutdown as Feedstock Costs Race ahead of Prices

5 Jan, 2012

Biomass Energy,Energy

Biomass Plants in India are shutting down as feedstock costs have increased rapidly while government regulated electricity tariffs have yet to increase.60% of India’s Biomass Plants have closed down as they are longer profitable.Note India has a massive growth target for biomass electricity capacity up from 1 GW at present (2 GW if you count cogeneration).A number of agricultural companies have set up a number of plants besides dedicated green utilities.However inflation in India has affected the operation of plants specially those who don’t have inhouse feedstock supply.

Green Companies in India are appealing to the electricity regulation CERC to increase the mandated tariffs which are different for different states.Like the thermal power generators increase in fuel prices had made operation unviable.The electricity sector in India is heavily regulation and lack of a free market causes these periodic booms and busts.

CERC Feed in Tariff for Biomass Produced Electricity for Different States

Note India’s Electricity Regulator gives a number of Incentives for Biomass Generated Electricity namely

1) Depreciation

2) Feed In Tariffs for 13 Years out of a useful life of 20 Years

3) Sharing of Carbon Credits under the CDM Protocol

4) Preferential Loan and Interest Rates

5) Payment Rebates by Utilities

Some of the state Feed in Tariffs

India does not have a centralized rate of FIT for Biomass Electricity and it is different for different states depending on the assumptions.Here is the FIT for a few of the major Biomass States in India

State                          Feed in Tariff (Rs./kWh)
Andhra Pradesh    Rs4.15
Gujarat Cogeneration       Rs 5.17
Madhya Pradesh                 Rs3.93
Maharashtra                          Rs4.76
Maharashtra Cogeneration RS4.80
Punjab                                        Rs5.49
Rajasthan                                  Rs4.73
Tamil Nadu                              Rs5.08
West Bengal                             Rs4.88

Biomass Energy in India

India had set up around 500 MW of Biomass Capacity by 2007 and has increased it by almost 150 MW since then to reach around 1 GW capacity today.Most of Indias’ Biomass Electricity is being generated in Andhra Pradesh,Maharashtra,Tamil Nadu,Karnataka and Rajasthan.A lot of new capacity is being built in Punjab and Chattisgarh as well.India with a total biomass capacity of around 1 GW is planning to increase it by 10 times to 10 GW by 2020.Between 200-600 acres of land are required to support 1 Mw of Biomass Capacity .This is much more than what is required for even thin film solar energy which is around 10 acres.The large land requirements make Biomass Energy Scaling a difficult proposition,however it has a great use in niche applications where there is a large amount of crop and animal residue/waste

Renewable Energy in Poland (Wind,Biomass) in Brief – Increasing with Huge Prospects due to 90% Dependence on Coal

12 May, 2011

Biomass Energy,Coal,Offshore Wind,Renewable Energy,Wind Energy

Poland resiting EU mandate to shift from Dirty Coal to Green Energy Sources

Poland is one of the largest countries in Europe to have such a high dependence on Coal Energy to meet its Electricity Needs.Note European Union has a target to meet 20% of its Energy by 2020 from Renewable Energy sources which has mad the fossil fuel dependent Eastern European countries looks towards Wind,Solar and Biomass Energy.Note Eastern European countries like Romania have seen a boom in wind energy driven by incorrect Green Energy subsidy policies while the Solar Boom in Czech led to a drastic increase in electricity prices forcing the government to Bust it with a combination of FIT cuts,tax increases and strict regulation.Poland which is the largest Eastern European country in the EU has traditionally depended on Coal to meet most of its Energy Needs.Despite the major disadvantages of Coal,Poland has resisted reducing the support given to the Thermal Power Industry.The cheapness and abundance of Coal has made it hard for Poland to shift its Energy Policy like other Coal dependent nations like South Africa,China and India.

Poland Renewable Energy Target

Poland has established a target of 7.5 percent of energy production from renewable sources by 2010, and 15% by 2020. However, these targets have not yet been enforced, discouraging large scale renewable development. Even so, the aggressive targets combined with strong economic growth provide a healthy investment atmosphere for renewable energy developers. Utilities are required to purchase electricity from renewable sources, although prices are not regulated by tariffs.The Energy Act of April 2007 states that all energy companies selling electricity to end users have to obtain and present a specified number of renewable energy certificates or pay a substitution charge.

Solid biomass had the highest share in renewable energy production in 2008. It amounted to nearly 87% of the total domestic production of energy from renewable sources. Liquid biofuels were the next largest carrier in primary energy production from renewable sources (5.4%), followed by water (3.4%), biogas (2.4%) and wind (1.3%). Heat pumps, geothermal energy, solar radiation and energy from municipal waste were less significant in the total balance.

Renewable Energy in Poland Increasing with Wind and Biomass Energy

Biomass and wind appear to be the most promising renewable energy resources for development in Poland, with an estimated potential of about 4,000 MW each.

Wind Energy in Poland

Poland also has some of the best documented wind resources in Central and Eastern Europe with areas reaching up to 1,000 W/m² in power density. Poland has started to increase its Renewable Energy Industry with 460 MW of Wind Energy installed in 2010 .Poland is set to install around 500 MW of Wind Energy this Year.Poland had 1,005 MW of installed capacity for wind-generated power in the middle of 2010.

The Polish Wind Energy Association predicts very dynamic growth of installed capacity in the wind power sector, amounting to about 13 GW in 20203). The figure comprises almost 11 GW of onshore wind farms, 1.5 GW in offshore wind and 600 MW of small wind.

Biomass Energy in Poland

Thermal Power Plant are being converted into a Biomass Power Plants because Biomass Energy has a number of advantages over Coal Energy.Both liquid and solid biomass are considered to be the main sources of renewable energy in Poland, for both electricity and thermal energy production. Currently, biomass is mainly used as heat in small and medium scale boilers in industrial settings. Common fuel is wood pieces, sawdust, and wood shavings. Combined heat and power (CHP) plants using organic waste from pulp and paper operations, and straw and wood fired heating plants are also in operation.

The amount of electricity generated from biomass between 2006 and 2008 increased nearly twofold – from 1818 GWh to 3267 GWh. A large part of it was generated in co-combustion processes (84% in 2008). Also the amount of electricity produced from biogas increased almost twice during the three analysed years, from 117 GWh in 2006 to 221 GWh in 2008. Over half of this was generated from landfill biogas (63% in 2008), one third from biogas produced in sewage treatment facilities and the remaining small part was generated in the agricultural sector (4% in 2008).

French energy company GDF-Suez plans to convert a 225 MW Coal powered Plant will be converted into a biomass powered plant making it one of the biggest biomass plants in the world,The 205 MW Biomass power plant in Polaniec, south-eastern Poland will use about 1 million tonnes of biomass a year.GDF is also interested in purchasing assets from Sweden’s Vattenfall. The latter company intends to leave the Polish market by selling its major holdings there.Poland’s second-largest utility, Tauron, has taken a z?.30 million loan to help it finance the conversion of its coal-fired power plant in Tychy so that it can burn biomass instead.Note Pure Play Biomass Companies are difficult to invest in as Biomass Power Plants are built by the utilities.

Electricity in Poland

Polish power generation system is the largest in Central and Eastern Europe in terms of capacity.Poland has around 3 GW of Total Electricity Capacity with 90% coming form Thermal Power .It also has around 2 GW of Renewable Energy Capacity. Household electricity prices have increased by 32% since 2004, but they remain about 14% below the EU-15 and EU-25 averages. Prices for industrial customers are about 28% below the European averages The power system is very fragmented, with nearly 400 power plants.Solar and Hydro Energy Resources in not well developed in Poland though a few companies have started to manufacture solar energy products in the country.

More Links on Poland Energy

1) http://www.elektrownie-wiatrowe.org.pl/en/

2) http://en.wikipedia.org/wiki/Wind_power_in_Poland

3) http://www.enercee.net/poland/energy-sources.html

4) http://www.sourcewatch.org/index.php?title=Poland_and_coal

5) http://www.iea.org/stats/electricitydata.asp?COUNTRY_CODE=PL

Biomass Energy and Rice perfect partners as Electricity Costs rise in India

11 Apr, 2011

Biomass Energy,Energy

A number of Agricultural Companies and Green Utilities are focusing on setting up biomass plants in different places in India.Note Biomass Energy accounts for almost 20-30% of the Energy Requirements of the country and is the main source of energy for most of the rural communities for cooking and heating.Biomass Energy is best suited where Crop and Animal Residue are cheaply available.Most of India’s Biomass Power Plants have been built by companies involved in agri industries particularly sugar.Now Rice Companies are finding Biomass Energy perfect for their needs as they generate huge amounts of waste Rice Husk which can be used to generate electricity for their inhouse needs as well as for sale to the power grid.Note on top of this,Rice Biomass Electricity is also eligible for Subsidies from the State Governments.Haryana is seeing a surge in Rice based Electricity Plants with 16 MW installed already.Note Haryana is one of the top agri states in India alongwith Punjab and provides a lot of potential.Note a number of Rice Companies such as Lakshmi Energy and Foods have made Biomass Electricity a key part of their growth strategies even changing their names.Here are a couple of Rice Companies with aggressive Biomass Electricity Plans.

LT Foods - This is also a well known rice producer and refiner with well known brands.It is similar in profile to Lakshmi Energy and Foods and plans to set up a 5 MW plant in Punjab with more investment in further expansion.

Lakshmi Energy and Foods is engaged in manufacturing and processing food grains and related products. The product includes rice, basmati rice (branded as Lakshmi Foods), parmal rice, rice bran edible oil, wheat flour, de-oiled cake, refined oils, and cattle feed (branded as Heera Moti). It also has 30MW biomass-based power generation business using rice husk as fuel.The company plans to expand this capacity to 105 MW.Note the company is trading at extremely low valuations and is traded on the Indian stock exchange

Rice processors in Haryana run captive power plants

Rice processors in Haryana are all set to have hassle-free operations from this year as many of the units have commissioned their own captive power plants run on biomass.According to the information obtained from Haryana Renewable Energy Development Agency (Hareda) five new projects of 11 Mw capacity have been commissioned last month.The promoters get a subsidy of Rs 20 lakh per megawatt or a maximum of Rs 5 crore from the Centre for such projects.

The production manager of Shri Vishnu Overseas Private Limited, Kaithal told that they draw power at 4.40 paise per unit from the grid and spend about Rs 10 per unit on power generated in-house from generator sets. The cost of power from biomass is about Rs 2.40 per unit, he added.Amit Jain of Best Food International, Karnal who recently commissioned a 4 Mw plant told that they were already burning husk to get steam for paddy processing so only a turbine had to be added for power generation.

Biomass Disadvantages – Not Many and Easily Solved

10 Apr, 2011

Biofuels,Biomass Energy

Biomass Energy is the oldest source of Energy known to mankind and till the 19th century was the primary energy source.Even now Biomass Energy is used of Heating and Cooking by a large percentage of the Human Population.Biomass Energy with improving technology is being now used to construct large biomass power plants.Growing Concerns over Climate Change and soaring Coal Prices are making some Power Plants convert from Coal to Biomass as a Fuel Source.Biomass Energy has many advantages such as being Carbon Neutral,using Animal and Crop Wastes in a useful manner,being poor friendly etc.However Biomass Energy like other Renewable Energy forms of Geothermal Energy faces problems of resources.However Biomass Energy suffers from some unique drawbacks like the problem of regular feedstock which becomes tough to acquire in times of drought etc.Biomass Energy also if not used appropriately can result in terrible air pollution as is the case with a majority of the Biomass Energy being used in the backward areas of the world today.Here is a list of the Cons of Biomass.

Biomass Cons

1) Large Biomass Plants face NIMBY Concerns- Large Biomass Plants like the one in Scotland have run into massive protests as people think it might lead to air pollution and health hazards if constructed near their homes.These protests by local people and the consequent problems in getting clearance from regulators leads to cost and time overruns.In some cases this has led to the ultimate cancellation of the project itself

2) Black Carbon Phenomenon – If Biomass is not completely combusted it leads to Air Pollution.lack carbon is a form of particulate air pollution, produced from incomplete combustion from biomass burning, cooking with solid fuels, and diesel exhaust.Over the last few years there has been a concerted effort to address the impact of black carbon emissions on global warming. However, the knowledge and understanding about black carbon is incomplete and uncertain.India and China account for 25-35% of global black carbon emissions.

2) Costs Still Quite High – One of the biggest drawbacks of biomass energy is the problem of feedstock.The plants are forced to run at lower utilization leading to higher costs if feedstock is not available due to some reason like a drought.Except in some case where Feedstock is easily and cheaply available,Biomass Energy is quite costly to generate.

3) Good Management Required – The operations of a biomass plant requires very good management otherwise it may run into losses or even in some cases have to shut down.It requires a skill of high order to run the plant optimally and make use of alternative feedstock in case the regular one is not available

4) Limited Potential - Biomass Energy has smaller potential than compared to other forms of energy like solar,hydro etc.Note Biomass Energy has said to have huge potential but the potential to economically generate biomass energy is still not that high.

5) Water Requirement,Harmful Gases,Area Required – Biomass Energy is generated by combustion and that leads to emission of some gases such as CO,NO2 etc.Note while the process of Biomass Energy is Carbon Neutral it still does lead to generation of some GHG emissions.Though supporters would argue that these gases would be released anyway with or without Biomass Energy,critics can say that Solar and Wind Energy don’t produce such gases.Biomass Plants require a larger area to store the feedstock which occupies a large space.Biomass Plants also require large amounts of water

Renewable Energy in Phillipines – NREB sets ambitious 830 MW in 3 Years with High Feed in Tariffs Subsidies

6 Apr, 2011

Biomass Energy,Hydro Energy,Renewable Energy,Solar Energy,Tidal Energy,Wind Energy

Phillipines is heavily dependent on imported fossil fuels for its energy requirements as it lacks sufficient domestic resources of coal or oil.The country which already has a flourishing geothermal energy industry is looking to raise the alternative energy generation from other sources like biomass,hydro,solar and wind energy as well.The country’s Energy Regulator National Renewable Energy Board (NREB) has recommended a target of 830 megawatts (MW) as the total allowed capacity of the renewable energy facilities that will be put up in the country over the next three years.

The specific targets for different forms of Renewable Energy has been set as

1) 50 MW Hydropower

2) 250 MW Biomass

3) 100 MW Solar

4) 220 MW Wind

5) 10 MW Tidal,Wave

The Feed in Tariffs for Renewable Energy have been set at a high level to attract Green Investors with an equity return target of 16% for Renewable Energy Investors.Note NREB has accepted that these prices will lead to increased electricity rates as theFIT are higher than neighbouring South East Asian Nations like Thailand and Malaysia which have set their own FIT mechanisms to promote Renewable Energy.Note Solar Energy in Thailand has been promoted by a FIT known as a Solar Adder while Malaysia has a Renewable Energy Law modeled on Germany.

FIT Rates in Philippines for different Clean Energy Sources (Solar,Wind,Hydro,Biomass)

1) Solar Energy - P17/KwH (37c/Kwh)

2) Wind Energy – P10 /Kwh ( 22c/Kwh)

3) Biomass Energy – P 6.5/KwH ( 14c/KwH)

4) Run of River Hydro Energy – P6/Kwh ( 13c/Kwh)

FiT Allowance charges will be implemented January 2012, the conclusion of the initial period will be December 31, 2014.

Renewable energy companies hit capacity caps set by gov’t

The National Renewable Energy Board (NREB) has recommended a target of 830 megawatts (MW) as the total allowed capacity of the renewable energy facilities that will be put up in the country over the next three years.Based on the group’s recommendations, NREB head Pedro Maniego Jr. confirmed in a phone interview that only 250 MW in new installations would be allowed for hydropower facilities, 250 MW for biomass, 100 MW for solar, 220 MW for wind and 10 MW for ocean resources.However, local renewable energy developers remained “dismayed” at the recommended installation targets as these would effectively put a cap on the proposed renewable energy projects—a move that could derail the planned investments in the sector, according to Theresa Cruz-Capellan, president of the Philippine Solar Power Alliance (PSPA).

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