Aug. 28, 2009
Americas likely source for growing UK wood biomass appetite, projected at 22 million tons/year
RICHMOND, VA, Aug. 28, 2009 (RISI) - The United Kingdom is fast positioning itself as a huge potential consumer of wood biomass, having six projects proposed with a projected total demand of 22 million green tons/year. North America appears the likely candidate as a supplier for furnish, worth an estimated $550 million/year at the dock.
Most recently, Forth Energy announced plans to construct four wood energy plants in Scotland, all at ports capable of receiving ocean freight. The facilities will produce a combined 400 MW power, with an appetite for an estimated 4 million tons/year of wood.
Forth, a joint venture of Scottish & Southern Energy and Forth Ports, targeted locations in Dundee, Rosyth, Grangemouth and Leith. A Forth Ports source said, "Deep-water ports are the ideal locations for such developments, enabling the sustainably sourced softwood -- which will comprise at least 90% of the biomass plants' fuel -- to be transported directly to the plants by ship."
Forth's announcement was preliminary in nature, with no construction timetable noted.
Earlier this month, MGT Power announced plans for twin 295 MW facilities in Port of Tyne and Teeside, capable of inhaling upwards of 5.3 million tons of wood per year. The company plans to have the $830 million Teesport plant running by late 2012 and the $665 million Port of Tyne facility operational in 2014.
A 60 MW biomass plant was given approval recently for construction at Tilbury Docks, England, which will also receive wood by ship. Projected wood consumption levels are unclear, but could be close to 500,000 tons/year. Solid waste will also be used.
Tilbury Green Power, a subsidiary of Birmingham-based Express Energy Holdings, will construct the facility. Completion is targeted for 2011.
Last month, a draft environmental permit was granted to Prenergy for construction of a $665 million, 350 MW biomass power plant in Port Talbot, Wales, which is projected to consume between 2.8-3.1 million green tons/year of wood chips. Developers hope to have the facility running next year, though the timeframe seems optimistic.
In late 2008, British power producer Drax Group announced plans to build three 300 MW biomass electric plants in the United Kingdom, using 3 million tons/year of wood at each location, or 9 million tons overall. Construction cost of each location is estimated at $1 billion.
Americas in the sights
From a wood supply standpoint, North America seems firmly in the cross hairs for the UK's aggressive plans. MGT said wood for its plants would come from certified forest sources "in North and South America and the Baltic States, and in the longer-term UK sources."
However, infrastructure issues hamper South America, while the UK and Baltic States are limited in available volume. Prenergy will source only 5-10% of its fuel domestically, with the balance coming in via deep-water port. Speculation among forest industry observers pegs the Eastern US as a likely candidate to wood the huge mill, with one company suggesting publicly it could be among the supplier candidates.
Additionally, industry sources told RISI's Wood Biomass Market Report that Drax is actively courting wood suppliers in the US.
