The Challenges

Contrary to the world’s large commodity trade in, for instance, sugar, corn, palm oil, wheat, or soybeans, there is a lack of credit-worthy biomass supply-chain companies, capable of providing predictable and reliable long-term deliveries of adequate biomass to support power generators around the world.

Also, there is still a lack of investments to convert existing coal-fired power plants into cogeneration utilities or dedicated biomass-to-energy facilities. Many utilities and airlines are feeling very “comfy,” and want the final biomass product to be delivered in their backyard. They do not invest in the whole value chain to secure a permanent, long-term, feedstock supply, which I think is a big mistake. Luckily there are also exceptions, like the German utility giant RWE. It is now producing 750 000 tonnes of woodpellets from its own plantations. The company does not sell the pellets to third parties, but uses it all in its own boilers in England and Holland.