Tag: wood pellets

6 start-ups, ideas and power plants shaping biomass

4 June 2018

Sustainable bioenergy

Humans have used wood as a source of fuel for over a million years. Modern biomass power, however, is a far cry from human’s early taming of fire and this is down to constant research and innovation. In fact, today it’s one of the most extensively researched areas in energy and environmental studies.

With biomass accounting for 64% of total renewable energy production in the EU in 2015, the development isn’t likely to stop. Ongoing advancements in the field are helping the technology become more sustainable and efficient in reducing emissions.

Here are seven of the projects, businesses, ideas and technologies pushing biomass further into the future:

Torrefaction – supercharging biomass pellets

When it comes to making biomass as efficient as possible it’s all down to each individual pellet. Improving what’s known as the ‘calorific value’ of each pellet increases the overall amount of energy released when they are used in a power station.

One emerging process aiming to improve this is torrefaction, which involves heating biomass to between 250 and 300 degrees Celsius in a low-oxygen environment. This drives out moisture and volatiles from woody feedstocks, straw and other biomass sources before it is turned into a black ‘biocoal’ pellet which has a very high calorific value.

This year, Estonian company Baltania is constructing the first industrial-scale torrefaction plant in the country with the target output of 160,000 tonnes of biocoal pellets per year. If it’s successful, power stations worldwide may be able to get more power from each little pellet.

bio-bean – powered by caffeine

Biofuels don’t just come from forest residues. Every day more than two billion cups of coffee are consumed globally as people get themselves caffeinated for the day ahead. In London alone, this need for daily stimulation results in more than 200,000 tonnes of coffee waste produced every year. More often than not this ends up in landfills.

bio-bean aims to change this by collecting used coffee grounds from cafes, offices and factories and recycling them into biofuels and biochemicals. The company now recycles as much as 50,000 tonnes of coffee grounds annually while one of its products, B20 biodiesel, has been used to power London buses. bio-bean also produces briquettes and pellets, which, like woody biomass, can serve as an alternative to coal.

Biomass gasification – increasing the value of biomass waste

Biogas is often seen as a promising biofuel with fewer emissions than burning fossil fuels or biomass pellets. It’s an area undergoing significant research as it points to another means of creating higher-value products from biomass matter.

The Finnish town of Vaasa is home to the world’s largest gasification plant. The facility is part of a coal plant where co-firing biogas with coal has allowed it to reduce carbon dioxide (CO2) emissions by as much as 230,000 tonnes per year.

As well as reducing emissions, co-firing allows the power plant to use 25% to 40% less coal and when demand is low in the autumn and spring months, the plant runs entirely on biogas. More than that, the forestry residues which are used to produce the biogas are sourced locally from within 100 km of site.

(As part of our transition away from coal, co-firing biomass with that fossil fuel took place at Drax Power Station from 2003 until full unit conversions became a reality in 2013.)

Lynemouth Power Station – powering the move away from coal

After 44-years, the coal-fired Lynemouth Power Station in Northumberland is the latest UK power producer converting to biomass-fuel. Set for completion this year, the plant will supply 390 MW of low-carbon electricity to the National Grid, enough to power 700,000 homes.

Every new power station conversion poses different challenges as well as the opportunity to develop new solutions, but none are as crucial as the conversion of the materials handling equipment from coal to biomass pellets. While coal can sit in the rain for long periods of time and still be used, biomass must be kept dry with storage conditions constantly monitored and adjusted to prevent sudden combustion.

At Lynemouth the handling of 1.4 million tonnes of biomass annually has required the construction of three, 40-metre high concrete storage silos, as well as extensive conveyor systems to unload and transport biomass around the plant. 

BioTrans – two birds with one stone

Energy and food are both undergoing serious changes to make them more sustainable. Danish startup BioTrans is tackling both challenges by using one of the food industry’s key pain points – wastage – to create energy with its biogas systems.

The company installs systems that collect leftover food from restaurants and canteens and stores it in odour-proof tanks before collecting and turning it into biogas for heating and electricity production. More than just utilising this waste stream, the by-product of the gasification process can also be sold as a fertiliser.

Drax and C-Capture – cutting emissions from the source

Carbon capture, usage and storage (CCUS) is one of the most important fields in the energy sector today. The technology’s ability to capture CO2 from the electricity generation process and turn it into a revenue source before it can enter the atmosphere means it’s attracting significant investment and research.

Drax is partnering with C-Capture, a company spun out of the University of Leeds’ chemistry department, to trial a new form of CCUS. The pilot scheme will launch in November and aims to capture a tonne of CO2 per day from one of Drax’s biomass units.

C-Capture’s technology could make the process of capturing and storing CO2 less costly and energy intensive. It does this using a specially developed solvent capable of isolating CO2 before being recycled through the system and capturing more.

If the pilot proves successful, the technology could be implemented at an industrial scale, seeing up to 40% of the CO2 in the flue gases from Drax’s biomass units captured and stored. If the technology tested at Drax leads to the construction of a purpose-built carbon capture unit elsewhere, scientists and engineers at C-Capture believe the CO2 captured could exceed 90%.

Back in North Yorkshire, the eventual goal is negative carbon emissions from Drax Power Station – its biomass units already deliver carbon savings of more than 80% compared to when they used coal. And if a new revenue stream can be developed from the sale of the carbon captured then the power produced from biomass at the power station could become even more cost effective.

With thanks to Biomass UK and The European Biomass Association (AEBIOM).

Drax Biomass invests in greenhouse gas efficiencies

21 March 2018

Sustainable bioenergy
close-up of truck raising and lowering

We have increased the capacity at Drax Biomass Amite and Morehouse pellet plants to increase capacity and made them more greenhouse gas (GHG) efficient. Central to the projects was the addition of storage silos and handling equipment to allow increased use of dry shavings and other mill residuals. The developments included the addition of an extra truck dump at each facility to allow delivery of increased volumes of these feedstocks.

Drax biomass pellet trucks

Use of mill residuals and dry shavings reduces the energy required to make a pellet, as such material does not need to be de-barked, chipped and re-sized in the same way as roundwood. Some of the material has a low moisture content and is therefore able to enter the process after the dryer, which effectively increases the capacity of each plant. This drives down the average GHG emission per tonne of pellets produced. A key measure of this is the KWh of electricity per tonne of pellets, and we saw this reduce by about 10% in the final months of the year compared with the start of the year, with further savings anticipated.

LaSalle BioEnergy in Louisiana

At LaSalle, a significant amount of our investment is going into allowing pellets to be transported to the port by rail, rather than truck. For the 250 km trip to Baton Rouge, a significant carbon saving compared to trucks will be achieved when LaSalle reaches its capacity of 450,000 tonnes per year. Moving pellets by rail should start in the next year.

The Sustainable Biomass Program

Sustainable bioenergy

In 2013, Drax co-founded the SBP together with six other energy companies.

SBP builds upon existing forest certification programmes, such as the Sustainable Forest Initiative (SFI), Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC). These evidence sustainable forest management practices but do not yet encompass regulatory requirements for reporting greenhouse gas (GHG) emissions. This is a critical gap for biomass generators, who are obligated to report GHG emissions to European regulators.

There is also limited uptake of forest-level certification schemes in some key forest source areas. SBP is working to address these challenges.

SBP certification provides assurance that woody biomass is supplied from legal and sustainable sources and that all regulatory requirements for the users of biomass for energy production are met. The tool is a unique certification scheme designed for woody biomass, mostly in the form of wood pellets and wood chips, used in industrial, large-scale energy production.

SBP certification is achieved via a rigorous assessment of wood pellet and wood chip producers and biomass traders, carried out by independent, third party certification bodies and scrutinised by an independent technical committee.

Working with our suppliers

Sustainable bioenergy

Pinewells, Lda. is part of Grupo Visabeira with global interests in the telecommunications, construction, manufacturing, technology, real estate and energy sectors. Constructed in 2009, the biomass plant in Portugal is one of the strategic investments of the group in the renewable energy sector. The plant has an annual biomass production of 150,000 tonnes, supplying both the international industrial and the internal domestic biomass markets.

Drax worked closely with Pinewells in 2017 to ensure the feedstock used for production is both harvested lawfully and sustainable by meeting the requirements of the Drax supplier data return and third-party audit. Working with the forest and quality engineers at Pinewells, we have supported the company to develop and implement their monitoring and inspection system within their own supply base.

Key features of this system include desk-based research to determine the characterisation of harvesting areas and field audits to approve the felling areas, highlight the Good Forest Practice Guide and deliver focused training. This work has provided a valuable foundation for Pinewells to implement the Sustainable Biomass Program (SBP) within their supply chain.

“Working with Drax this year has provided us guidance and understanding towards the requirements of SBP certification. The encouragement and advice from the Drax sustainability team proved both valuable and practical.”

— Alexandra Pedro, Pinewells’ Overseas Sales Director

Drax Group plc: Full year results for the twelve months ended 31 December 2017

27 February 2018

Investors
RNS Number : 9871F
Drax Group PLC
Twelve months ended 31 December20172016
Key financial performance measures
EBITDA (£ million)(1)229140
Underlying profit after tax (£ million)(2)321
Underlying earnings per share (pence)(2)0.75.0
Total dividends (pence per share)12.32.5
Net cash from operating activities (£ million)315191
Net debt (£ million)(3)36793
Statutory accounting measures
(Loss) / profit before tax (£ million)(183)197
Reported basic (loss) / earnings per share (pence)(37.2)47.7

All areas of the business contributing to positive EBITDA for the first time

  • EBITDA up 64% to £229 million – improving earnings quality from biomass generation and Opus Energy
    • Pellet Production – EBITDA up £12 million to £6 million – 35% growth in production
    • Power Generation – EBITDA up £64 million to £238 million – contribution from biomass generation
    • B2B Energy Supply – EBITDA up £33 million to £29 million –acquisition of Opus Energy
  • Strong cash flow generation and balance sheet – 1.6x net debt to EBITDA
  • Final dividend of £30 million, representing 60% of the recommended full year – £50 million
  • £50 million share buy back programme consistent with capital allocation policy
  • Statutory loss before tax principally driven by unrealised losses related to foreign currency hedging of £156 million

Delivering strategy and remain on course to hit >£425 million EBITDA target by 2025

  • Accelerated energy supply growth with acquisition and on-boarding of Opus Energy
  • Increased biomass self-supply through acquisition and commissioning of third biomass pellet plant, LaSalle Bioenergy
  • Government support received for fourth biomass unit conversion at Drax Power Station
  • Development of options for future generation: coal-to-gas repowering option, two OCGTs (4) to enter next capacity market auction in December 2018

Focused on operational excellence and investment in strategy

  • Continued focus on safety, operational excellence and project development
  • Targeted investment in long-term growth opportunities
  • Continued growth in EBITDA and cash generation
  • Sustainable and growing dividend, with opportunities to return capital in line with policy

Will Gardiner, Chief Executive of Drax Group plc, said:

“We continued to transform the business in 2017, delivering a strong EBITDA performance, in line with expectations. This was delivered by all parts of the business making positive contributions for the first time.

“We also made good progress delivering our strategy, which is clear and unchanged. We are increasing biomass self-supply, developing projects to diversify our generation mix and growing our B2B energy supply business.

“The UK is undergoing an energy revolution, starting with a significant reduction in carbon emissions, and to support that we are helping to change the way energy is generated, supplied and used.”

Notes for analysts and editors

2017 Group Financial Review

  • Underlying earnings per share decreased to 0.7 pence
    • Accelerated depreciation of coal-specific assets, amortisation of intangible assets associated with the acquisition of Opus Energy and an increase in net finance charges.
  • Reported basic earnings per share – a loss of 37 pence, which includes unrealised losses on derivative contracts of £156 million (principally related to the foreign currency hedging programme) in addition to one-off items – transaction costs relating to the acquisition of Opus Energy (£8 million) and refinancing (£24 million)
  • Tax – one-off non-cash charge of £16 million – a reduction in US federal tax rates from 35% to 21% resulting in a revaluation of deferred tax balances, offset by £13 million cash tax credit from UK Patent Box tax regime, which rewards Drax patented innovation in biomass generation
  • Investment in line with guidance
    • Acquisition of Opus Energy (£367 million)
    • Acquisition and commissioning of LaSalle Bioenergy (£48 million)
    • Maintenance and improvement (£133 million) including pellet plant optimisation, strategic spares, Haven Power information systems, research and innovation and Opus Energy office consolidation
    • Continue to expect ongoing maintenance capital investment of £50-60 million per year
  • Net debt of £367 million (31 Dec 2016: £93 million), including cash on hand of £222 million

2017 Operational Review

Pellet Production – Focus on good quality pellets at lowest cost

  • 35% increase in pellet production to 0.8M tonnes (2016 0.6M tonnes)
  • Low-cost expansion of Amite and Morehouse plants complete
  • Improving operational performance whilst providing supply chain flexibility
  • LaSalle Bioenergy commissioning ahead of plan from November 2017, increasing output through 2018
  • Biomass self-supply increased

Power Generation – Focus on optimisation of existing assets and development of projects

  • Electricity output (net sales) 20.0TWh (2016: 19.6TWh)
  • 65% of generation from renewables (2016: 65%)
  • £88 million from system support and flexibility
  • £90 million capacity market payments secured for 2017-2022

B2B Energy Supply – Profitable business with growth in sales and customer meters

  • 12% increase in customer meter points to more than 375,000
  • 46% of energy sales from renewables
  • Opus Energy EBITDA in line with plan; Haven Power exceeded EBITDA breakeven target
  • Continued investment in next generation IT systems

Notes:

(1)  EBITDA is defined as earnings before interest, tax, depreciation, amortisation and material one-off items that do not reflect the underlying trading performance of the business.

(2)  2017 underlying earnings exclude unrealised losses on derivative contracts of £156 million and material one-off items that do not reflect the underlying performance of the business (2016: unrealised gains of £177 million).

(3)  Borrowings less cash and cash equivalents.

(4)  Open Cycle Gas Turbine.

Contacts

Enquiries:

Drax Investor Relations: Mark Strafford

+44 (0) 1757 612 491

Media:

Drax External Communications: Ali Lewis

+44 (0) 1757 612 165

 

View full report

View investor relations presentation

How do you keep a 1.2 tonne steel ball in prime condition?

18 January 2018

Power generation

There are 600 giant balls at Drax Power Station. Each one weighs 1.2 tonnes – roughly the same as a saloon car – and is designed for one simple, but very specific, purpose: to pulverise.

Every day thousands of tonnes of biomass and coal are delivered to the power station to fuel its generators. But before this fuel can be combusted, it must be ground into a powder in pulverising mills so it burns quicker and more efficiently. It’s the giant balls that do the grinding.

And although these balls may be incredibly durable, the constant smashing, crushing and pulverising they go through on a daily basis can take its toll. Maintaining the 600 balls across the power station’s 60 mills is a vital part of keeping the plant running as effectively as possible.

Surviving the pulveriser

Each of the six generating units at Drax (three biomass and three coal) has up to 10 mills that feed it fuel, all of which operate at extreme conditions. Inside each one, 10 metal balls rotate 37 times a minute at roughly 3 mph, exerting 80 tonnes of pressure, crushing all fuel in its path.

Air is then blasted in at 190 degrees Celsius to dry the crushed fuel and blow it into the boiler at a rate of 40 tonnes per hour. To survive these extremities, the balls must be tough.

Drax works with a local foundry in Scunthorpe, Lincolnshire to manufacture them. First, they are cast as hollow orbs of nickel steel or chrome iron and then smoothed to within one millimetre of being perfectly spherical.

After 8,000 hours of use, engineers check how rapidly they’re wearing down by measuring their thickness using ultrasound equipment and, if deemed to be too thin (which usually occurs after about 50,000 hours of use), replace them.

For this, they must first remove the top of the mill – including the grinding top ring – and then individually lift out and replace each massive ball. Those that are removed are typically shipped back to Scunthorpe to be recycled.

Transforming for a decarbonised future

When Drax Power Station was first built in the 1970s, the mills were designed to only crush coal, but since it was upgraded to run primarily on biomass, in the form of sustainable wood pellets, they have been adapted to work with the new fuel.

For the most part, this requires only minor changes – the primary difference is that coal is harder to fully pulverise. Coal typically does not get entirely ground down in the first cycle, so a classifier is needed in the mill to separate the heavier particles and recirculate them for further grinding.

The process of switching one mill from biomass to coal takes about seven days and nights. This work was carried out on Unit 4’s mills ahead of this winter, following biomass trials in the spring and summer of 2017. Now that the decision has been made to permanently upgrade that fourth power generation unit, converting one of its 10 mills from coal to biomass later in 2018 will take about twice as long.

Using the same essential equipment and process for both fuels helps to quicken the pace of decarbonisation at Drax Power Station as the UK moves to end the production of unabated coal-fired electricity by 2025. Come seven years from now, one thing will remain consistent at the huge site near Selby, North Yorkshire: the giant pulveriser mills will continue their tireless, heavy-duty work.

Fourth biomass unit conversion

17 January 2018

Investors
RNS Number : 1114C
Drax Group PLC

Drax welcomes the UK Government response to the consultation on cost control for further biomass conversions under the Renewable Obligation scheme, which will enable Drax to convert a fourth unit to biomass.

The response proposes that, rather than imposing a cap on ROC(1) support for any future biomass unit conversions, a cap would be applied at the power station level across all ROC(1) units. This would protect existing converted units and limit the amount of incremental ROCs attributable to additional unit conversions to 125,000 per annum.

The response would enable Drax to optimise its power generation from biomass across its three ROC units under the cap, whilst supporting the Government’s objective of controlling costs under the Renewable Obligation scheme.

Drax will now continue its work to deliver the low cost conversion of a fourth biomass unit, accelerating the removal of coal-fired generation from the UK electricity system, whilst supporting security of supply.

Drax plans to complete the work on this unit as part of a major planned outage in the second half of 2018, before returning to service in late 2018. The capital cost is significantly below the level of previous conversions, re-purposing the existing co-firing facility on site to deliver biomass to the unit.

The unit will likely operate with lower availability than the three existing converted units, but the intention is for it to run at periods of higher demand, which are often those of higher carbon intensity, allowing optimisation of ROC(1) generation across three ROC(1) accredited units. The CfD(2) unit remains unaffected.

Will Gardiner, Chief Executive of Drax Group, commented:

“We welcome the Government’s support for further sustainable biomass generation at Drax, which will allow us to accelerate the removal of coal from the electricity system, replacing it with flexible low carbon renewable electricity.”

“We look forward to implementing a cost-effective solution for our fourth biomass unit at Drax.”

Enquiries:

Investor Relations:

Mark Strafford

+44 (0) 1757 612 491

Media:

Ali Lewis

+44 (0) 1757 612 165

 

Website: www.drax.com

Notes

  1. Renewable Obligation Certificate
  2. Contract for Difference

END

 

 

Giving up coal

Tony Juniper, Author, adviser and environmental campaigner

7 December 2017

Opinion
Tony Juniper at Drax Power Station between coal stock and biomass wood pellet storage domes

Tony Juniper* is an environmental campaigner, author and director at Robertsbridge, a consultancy helping advise Drax on its sustainability programmes

Back in 2006 while working as Director at Friends of the Earth I approved a new report to be published in support of our then campaign for a new Climate Change Act. We wanted to show UK government ministers how it would indeed be possible to make cuts in emissions so that by 2050 the UK could progressively have reduced greenhouse gas pollution by 80 per cent compared with emissions in 1990. It was a radical and demanding agenda that we’d adopted and it was important to show the practical steps that could be made in achieving it.

The analysis we presented was based on an electricity sector model that we had developed. Different data and assumptions could be inputted and using this we set out six possible lower carbon futures.

In our best case scenario we foresaw how it would be feasible to slash emissions by about 70 per cent by 2030.

This was based on an ambitious energy efficiency programme and a shift away from fossil energy and toward renewables, including wind and solar power. In that renewables mix was also an important role for biomass to replace coal in the country’s largest power station – Drax.

This was not only crucial for backing up intermittent renewable sources but also a key piece in a future electricity sector that we believed should avoid the construction of new nuclear power stations. In November 2008 our campaign succeeded and the UK was the first country in the world to adopt a new national law for the science-based reduction of greenhouse gas emissions. Since then I’ve been working as an independent sustainability advisor, including with the advisory group Robertsbridge, of which I was a co-founder.

My work has included assisting various companies in meeting the targets set out in that new law. For example, I was the Chair of the industry campaign Action for Renewables which sought government and public support for the large-scale expansion of wind, tidal and wave power.

Different campaigners tried to stop the expansion of these renewable sources of electricity, however, and succeeded in derailing support for on-shore wind power developments.

Although in its infancy, concerns were also raised about proposals for different kinds of tidal power.

In the years after the Climate Change Act I was encouraged to see that Drax began to switch over to wood pellets to generate power but concerned to see that this too had come under attack. The broadly agreed view that sustainable biomass could have a role in the phase out of coal had gone, and in its place were claims  that it was actually worse than burning coal. It was against this backdrop of changed perspectives that myself and Robertsbridge colleagues were pleased to be invited to help Drax in devising a new sustainability plan.

Early on in our conversations with Drax it became clear that part of the challenge with biomass — deciding the extent to which it is a rational choice to help with the process of decarbonisation, is how the answer to that touches so many different issues.

For example, when it comes to the exit from coal, cleaner alternatives must be brought forward to replace it, including wind and solar power.

But although these sources of renewable energy are growing rapidly, they still come with their own challenges, especially because wind can’t generate on still days and solar ceases at night. This intermittency raises issues about what the best electricity storage or complementary clean power sources might be to back them up when needed.

There are important questions about the best sources of biomass and the extent to which long-distance transport of that fuel is desirable. On top of that are issues linked with the management of the forests from which the raw material is sourced, and whether the extraction of wood to generate power can be compatible with carbon neutrality. There is the matter of nature conservation and the extent to which wood fuel demand will affect the status of species and habitats of conservation concern. For example, to what extent might the wood pellet industry be driving the conversion of semi-natural woodlands to plantations?

All of this is bound up with the economic and social conditions prevailing in the landscapes from which the wood is derived and the extent to which those buying wood fuel can pursue positive outcomes for the environment, even when carbon and wildlife are at best of marginal concern to the local forest owners growing the wood.

Then there is the extent to which economic incentives might be linked with the carbon stocks held in the forest. For example, strong demand for wood is held to be the main reason why since the 1950s the volume of carbon stored in standing timber in the forests of the US South has increased by over 100%.

Demand for wood might seem counter-intuitive as a positive factor in maintaining tree cover, but in the US South it has been a big part of the picture.

On top of all this is the question of what would happen if there were no demand for wood fuel. In landscapes that have seen volatility in demand arising from the decline in newsprint in favour of digital devices and the slowdown in US house building following the 2008 financial crisis, this is not easy to answer.

Although seeking answers is a complex task, our advice to Drax was that it should work with its many stakeholders in finding the best possible fit between its business planning and these and other questions.

One way of doing that would be to set out the different issues in an accessible manner and hence the production of the film that can be seen here.

It’s called ‘The biomass sustainability story’ And while most of us can agree with the basic idea that we have to stop burning coal, it seems the big questions are about what might be the best ways to do it? Might biomass have a role? I believe it does.

Have a look at the film and see what you think, especially if you feel as though you’ve already made up your mind.