Tag: Sustainable Biomass Program (SBP)

How biomass wood pellet mills can help landowners grow healthy forests

29 January 2020

Sustainable bioenergy

International Paper’s pulp and paper mill, located in the Morehouse parish of Louisiana, had been in operation since 1927 and was once the largest employer in the area. However, as a result of the global recession of 2008, the company was forced to lay off over 550 employees and shut the facility. Other mills in the area have also reduced production including Georgia Pacific which let go around 530 people at its Crossett, Arkansas plant 18 miles to the north of Morehouse in 2019.

For an area dominated by forests, such as Northern Louisiana and Southern Arkansas, this decline in traditional markets came as a serious blow. It’s a region where a healthy market for wood products is vital for the local economy and, in turn, the health of the region’s forests. Luckily other wood product manufacturers and industries have since began to fill the gap.

Engineers in front of wood pellet storage silos at Drax’s Morehouse BioEnergy biomass manufacturing facility in northern Louisiana

Drax Biomass has opened a mill in Morehouse parish that uses some of the the low-grade wood previously used to supply the paper industry to produce compressed wood pellets, which are used to generate renewable electricity in the UK.

Commissioned in 2015, the plant employs 74 people and can produce as much as 525,000 metric tonnes of biomass pellets a year. This makes it an important facility for local employment and the wood market in the region. However, to ensure it is positively contributing to the area and its environment, the demand for wood must be sustainably managed.

Morehouse BioEnergy sources low-grade wood from a catchment area that covers a 60-mile radius and includes 18 counties in Arkansas and four in Louisiana.

As Drax Biomass doesn’t own any of the forests it sources wood products from, it regularly examines the environmental impact of its pellet mills on the forests and markets in which it operates. The aim is to ensure the biomass used by Drax to generate 12% of Great Britain’s renewable electricity is sustainably sourced and does not contribute to deforestation or other negative climate and environment impacts.

A new report by forestry research and consulting firm Forisk evaluates the impact of biomass pellet demand from Morehouse BioEnergy on the forests and wood markets within the mill’s catchment area.

Map of pulpwood-using mills near Morehouse timber market

It found that biomass demand in the region does not contribute to deforestation, nor increase forest harvesting above a sustainable level. Overall, growth of the region’s pine timberland, which supplies Morehouse BioEnergy, continues to exceed removals, pointing to expanding forest carbon and wood inventory.

Annual growth compared to harvesting removals

Growing forests and increasing timber stocks

The study focuses on timberland – working forests – in the plant’s sourcing area, which the US Forestry Service categorises as productive land capable of providing timber on an industrial scale.

The timberland here is made up of 63% softwood trees, which includes pines, and 37% hardwoods such as oak. Pellet manufacturing as a whole (including other pellet producers in the area), accounts for only 6% of the demand for wood products in the region. Of that, Morehouse BioEnergy contributes to 4% of total pellet demand.

Total area of timberland

Lumber – such as sawtimber – makes up the bulk of demand for wood products, accounting for 46% of total demand, largely as a result of its high market value and landowners’ aims to extract maximum revenue from their pine stands.

However, the less valuable wood – parts of trees that are misshapen, too short or thin to be used for lumber – can be sold at a lower price to biomass pellet mills. This wood might previously have been sold to paper and pulp mills exclusively, but with International Paper’s departure, Morehouse BioEnergy now fills a part of that role.

Total volume of growing stock on timberland

Maintaining healthy markets for both high and low-value wood is key to enabling landowners to reforest areas once they have been harvested in the knowledge it will provide a valuable return in the future. Ultimately, however, the way forests are maintained depends on the individual landowners and how they want to use their land.

The advantages of corporate ownership

Morehouse BioEnergy’s catchment area covers 28,000 square kilometres of timberland, within which 96% of the timber is privately owned. While some of that is owned by families with small patches of productive land, 54% is held by corporate owners. This includes businesses such as real estate investment trusts (REITs) and timber investment management organisations (TIMOs), which advise institutional investors on how to manage their forest assets.

This high percentage of corporate ownership influences forest management and replanting, as owners look to maximise the value of forests and seek to continue to generate returns from their land.

“In general, corporate owners are spending more money on silviculture and actively managing their timber stands,” explains Forisk Consulting Partner Amanda Lang. “They are investing more in fertiliser, their seedlings and harvest control on pine stands, because that leads to larger trees of a higher quality and more profit in the long run.” This is reflected in the higher growth rates found in the private sector, leading to faster rates of carbon sequestration.

Annual growth per hectare by owner type

Smaller private landowners, meanwhile, may have other objectives for their land like recreation and hunting, in addition to timber income. As a result, some owners may be less inclined to intensively manage their timber stands, forgoing fertilisation and competition control (due to cost) and might harvest on a less regular basis. Although these landowners may not be maximising the productivity of their timber resource to the same degree corporate owners do, their unique management often contribute to greater diversity on the landscape.

Demand and forest health

In 2018 the annual average price for a metric tonne of pine sawtimber in Morehouse BioEnergy’s catchment area was $25.71, down from a 10-year high of $31.60 in 2010. Similarly, pine pulpwood, from which biomass pellets are made, was valued at $7.75 per metric tonne in 2018, down from a 10-year high of $13 in 2010.

These low wood prices have caused many landowners to delay harvesting forests in hopes for a more lucrative wood price. As a result, pine timber inventories have grown across Morehouse BioEnergy’s catchment area. In 2010 the US Forest Service counted more than 167 million metric tonnes of pine inventory. By 2018 this had increased by more than 35% to reach 226 million.

Morehouse BioEnergy market historic stumpage prices, $/metric tonne

The report suggests this price slump is an ongoing result of the 2008 recession, which greatly affected US house construction – one of the primary uses of sawtimber and many other types of wood products in the US. Some areas have already seen sawtimber prices increase as they recover from the recession, however, the report suggests this is not spread evenly on a national level.

The inventory overhang in Morehouse BioEnergy’s catchment area is expected to begin reversing in 2024 or 2025, as Lang explains: “We expect inventories to increase for a few more years and then start to decline. That said, inventories will remain higher than pre-recession levels.”

While high inventories suggest an abundant resource, lower inventory volumes are not indicative of declining or unhealthy forests. Rather, they can point to younger, growing forests that have recently been replanted, which will later grow to higher inventory volumes as they mature. Both suggest a healthy forestry industry in which landowners continue to reinvest in forests.

Overall, the analysis of the region points to healthy, growing forests and, importantly, a sustainable industry from which Drax can responsibly source biomass pellets. Ensuring the biomass used at Drax Power Station is sustainably sourced is crucial to its generation of renewable, carbon-neutral electricity, and in turn laying the path to negative emissions.

Read the full report: Morehouse, Louisiana Catchment Area Analysis. A short summary of its analysis and conclusions, written by our forestry team, can be read here. Explore every delivery of wood to Morehouse BioEnergy using our ForestScope data transparency tool.

Letter from Will Gardiner to the Independent Advisory Board on Sustainable Biomass

Will Gardiner, Chief Executive Officer, Drax Group

21 January 2020

Opinion

Dear John,

Thank you for your letter of the 9 January, detailing the findings and recommendations from the first meeting of the Independent Advisory Board on Sustainable Biomass.

I want to begin by reiterating how important the work of the IAB is to Drax’s purpose and ambition. As you know, we recently announced our intention to become the world’s first carbon negative company by 2030 by scaling up our pioneering biomass with CCS (BECCS) pilot project. This ambition will only be realised if the biomass we use makes a positive contribution to our climate, the environment and the communities in which we operate. To that end, both you and the IAB will play a vital role by guiding us on our sourcing choices and challenging us to be as sustainable and transparent as we can be.

I enjoyed meeting with the IAB and hearing your conclusions from the first meeting. I am also pleased to hear from my team that the longer discussions were useful and constructive. Please pass on my thanks to all the members of the IAB for their time and consideration.

In particular, I am grateful for their consideration of our new sustainable biomass sourcing policy and the insight and recommendations that were given. I am pleased to hear that you agree our policy is an accurate representation of the criteria laid down in the Forest Research report.

I agree that a key topic for us to explore is how science can be further developed with regards the use of small, early thinnings and small roundwood. I also agree that understanding the counter factuals in the usage of wood that has come to us is important. This is an area we have, and continue to, explore, and I would refer the IAB to a report we have published subsequent to the meeting, “Catchment Area Analysis of Forest Management and Market Trends (2019)”– which contains an independent analysis of the impact of our sourcing at our Amite pellet mill in Mississippi. The team look forward to discussing this with you at a future meeting and receiving your input to shape the next phases of this work.

I also agree the need to continuously improve our sustainability policy and seek to update it as new findings come to light, as well as ensure that the current policy is embedded into our operations. For that reason, our policy will be kept under regular review to accommodate changes in science and new evidence as it emerges. We have also committed to advancing scientific research in the areas applicable to our operations through partnerships with academic institutions and direct support for academic research.

With regards your suggestion of a restatement of the academic evidence on biomass sustainability, we shall give this interesting approach due consideration. I do believe that better alignment through a shared understanding of the evidence among the academic community, environmental groups, policy makers and industry would be a welcome development and would be grateful to the IAB for its further consideration of how this might be achieved.

I will also raise your considerations regarding the Sustainable Biomass Program (SPB) in my position a member of the SPB Board. You are correct that our new policy goes beyond SBP, and so an important work programme for us is how we demonstrate we are meeting the new policy.

Lastly, I welcome the addition of two interim telephone calls which will help to keep momentum between the half yearly meetings and will support us as we develop our policy, research and implementation projects further. Thank you for this commitment.

As the work of the IAB progresses, I look forward to hearing how you believe Drax can best build the evidence required to demonstrate that we are sourcing according to the best available science. As the world’s largest biomass consumer it is important that we lead by example. This means not only having a world leading biomass sustainability policy in place, but also the data and evidence available to give all our stakeholders the confidence that we are fulfilling our purpose of enabling a zero carbon, lower cost energy future.

Thank you once again for your participation and expertise.

Yours,

Will Gardiner

Group CEO

View/download the PDF version here.

Responsible Sourcing

17 October 2019

Sustainable bioenergy

The Sustainable Biomass Program

21 March 2018

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

7 principles of a sustainable forest biomass policy

28 November 2017

Sustainable bioenergy

Biomass is playing an important role in moving the UK away from coal. At Drax Power Station, in the form of compressed wood pellets, biomass is already supplying roughly 17% of Great Britain’s renewable power.

But more than just being a low carbon replacement for fossil fuel generation, it is also crucial in maintaining the stability of the power network. Among renewable sources of power, biomass is unique in being able to provide the same range of ancillary services that can be provided by coal power stations – such as frequency control and inertia. This inherrent flexibility is vital in maintaining stability on Britain’s high voltage transmission system. Wood pellets can also reliably generate power, helping to fill in the gaps left by intermittent renewables when the wind doesn’t blow and the sun doesn’t shine and avoiding reliance on diesel, coal and gas.

However, for the UK and the wider global environment to reap the maximum benefits from biomass, it must be produced sustainably. More than this, its supply chain must be low in emissions so that clear savings can be made versus power generation with fossil fuels.

To ensure this, the use of biomass is regulated in the UK under EU Timber Regulations and the Renewables Obligation (RO). But further guidelines are set to be introduced as part of the European Parliament’s update to the Renewable Energy Directive (RED), which will specify criteria for all biomass.

There is a clear need for this, but for these to be truly successful they need to be based on a set of robust key principles. A new report by Drax outlines seven of these which can ensure sustainable biomass usage in the future.

1. Forest biomass for bioenergy should be sourced from sustainable forests

The sustainability of the forests from which biomass is sourced is key to ensuring its usage has a positive impact on the environmental, social and economic health of that supply region.

For example, a properly managed forest can boost carbon stock as the younger, faster growing trees that are replanted after felling absorb more CO₂ than older, over-mature trees. Thinning operations also increase the growth of the biggest and best trees, ensuring more carbon is stored in longer term solid wood products.

Generators should be able to demonstrate they are avoiding biomass sourced from higher-risk areas where extracting biomass could cause long-term carbon stock decreases in soils or ecosystems, as well as other factors such as biodiversity loss, soil erosion or depletion of water sources.

2. Bioenergy from forest biomass should not be produced from high-risk feedstocks

Feedstocks, the raw materials turned into biomass pellets, must come from sustainable sources and avoid protected and sensitive sites that could be considered a risk.

In 2016 around 40% of all feedstock supplied to Drax originated as a sawmill residue. Processes such as thinning also serve as a source of biomass feedstock, while also benefitting the overall health and quality of the forest. Thinning a semi mature stand of trees allows the forest owner to maximise the production of higher value saw-timber trees, storing more carbon and generating more stable revenue streams. Having a variety of wood products markets from saw logs through to biomass incentivises land owners to maintain healthy forests and reduces the risk of conversion of forest to agriculture or urban development.

3. Carbon savings and emissions should be properly accounted

To understand the effectiveness of biomass sustainability policy, carbon savings need to be measured.

Factors such as fossil fuel substitution and the emissions associated with harvesting, processing and transporting biomass are relatively straightforward to measure.

4. Bioenergy should be limited to what can be sustainably supplied

Unlike coal or oil, which will eventually run out, more trees can be planted, grown and harvested.

That said, there is a natural limit to the amount of biomass available on the planet, and so it should not be considered an infinite resource. This is why it’s crucial biomass is sourced from sustainable forests managed following set guidelines. In short, to ensure biomass truly is sustainable, it is essential that working forests are actively managed and maintain or increase productivity.

5. Support should be given to all technologies that achieve significant carbon savings

One of the major advantages of biomass over other renewable sources is its potential to help the UK rapidly adapt to meet the EU target of achieving 27% of final energy consumption from renewables.

The fastest way for biomass to make an impact to the UK’s carbon emissions is through converting coal power stations to biomass, as is the case at Drax Power Station.

This repurposing of existing facilities not only offers rapid adoption of renewable energy, but also the ability to provide vital ancillary services other renewable sources can’t.

Quickly deploying biomass solutions in this manner will serve to help it become an established part of the energy system as it continues to decarbonise.

6. The efficient use of raw materials is supported by encouraging buoyant forest biomass markets

Globally, there are substantial amounts of forest residue and forestry industry by-products that currently go unused.

Biomass should be sourced from regions where the largest surpluses exist and the forest carbon balance can be maintained. To enable this to function effectively on a global scale, trade restrictions should be avoided.

Pelletisation offers one of the most efficient ways for this raw material to be used by making it safe, cost-efficient and low-carbon to transport around the world.

These principals are tried and tested by Drax and known to protect forests and ecosystems, as well as optimise supply chains to ensure carbon emissions are kept to a minimum. Ultimately, Drax’s experience in sustainably using biomass serve as a guide for other producers and governments to quickly decarbonise energy systems.

7. The sustainability of forest biomass should be independently verified

One of the best ways to guarantee biomass is sourced sustainably is by introducing third-parties and official guidelines that generators and suppliers can work with.

In Europe, forest level management certification schemes can act as an effective indicator that forests are managed in accordance with the guidelines laid out by Forest Europe. Outside of Europe, where Drax sources most of its biomass, independent, third part auditors can ensure the UK’s stringent criteria are being met on the ground.

Read the full report: The 7 Principles of a Sustainable Forest Biomass Policy – Proven to Work

Keeping the options open

19 October 2017

Sustainable bioenergy

Roughly 750 million acres of the US is covered in forestland – an area nearly 12 times the size of the UK. Approximately two-thirds of that land is working timberland, producing wood used for construction and furniture. In short, US forestry is a massive industry.

Enviva is the world’s largest wood pellet producer and biggest biomass supplier to Drax Power Station, but in the context of the US forestry industry in which it operates, Enviva does things differently.

“We’re leading the industry in sustainability and transparency in our sourcing practices,” says Jennifer Jenkins, Vice President and Chief Sustainability Officer at Enviva. “We’ve created unique tracking systems and we conduct science-based sourcing, both of which encourage sound forest stewardship.”

Specifically, Enviva draws on best practices to make decisions about which areas it sources from and how it protects the areas it doesn’t.

Protecting bottomland forests

A bottomland forest is an area of low-lying marshy area near rivers or streams that can be home to unique tree and wildlife species. These forests are flooded periodically and they can be ecologically important. However, they’re also a part of south-eastern America’s working forest landscape.

In fact, Enviva sources 3-4% of its wood from these areas, but only where harvesting improves the life of the forest. For example, in some cases, harvesting mimics naturally occurring storms, clearing the canopy so young seedlings and forest floor species thrive. More than that, harvesting can also help keep forests as forests.

“In the areas where we work, one of the biggest threats to forests is being converted to another use – specifically to developed or agricultural land,” explains Dr. Jenkins. “Our goal is to keep forests as forests. We want to preserve those with the highest risk of being converted for another use.” If landowners can gain a steady income from regular harvests, they’re likely to keep their land as working forests.

However, this is only true for carefully assessed forests where harvesting is deemed safe. Any land that doesn’t meet Enviva’s set of strict criteria means Enviva won’t source from it – it can simply walk away. The landowners, on the other hand, don’t have that luxury.

“Isn’t it our responsibility to provide another option for a landowner who might not want to facilitate a harvest?” asks Dr. Jenkins. “Maybe they recognize its value. Maybe they would prefer to conserve it instead. In recognition of our responsibility, we made a commitment.”

A fund that keeps forests as forests

Enviva’s commitment was to partner with the US Endowment for Forestry & Communities to set up the Enviva Forest Conservation Fund, a $5 million, 10-year programme designed to protect tens of thousands of acres of sensitive bottomland forests in the Virginia-North Carolina coastal plain.

It works by inviting submissions from projects looking to protect areas of high conservation value. Last year it awarded its first round of funding to four projects. More recently, in June 2017, the Enviva Forest Conservation Fund announced a total of $500,000 to go toward a second round of projects with partners such as Ducks Unlimited, an organization which – with the grant – plans to acquire more than 6,000 acres of wetlands to operate as a public Wildlife Management Area.

The Fund follows a history of proactive sustainability programmes, including a strict supplier assessment process and the company’s Track & Trace tool, a one-of-a-kind publicly-accessible system that tracks every ton of primary wood Enviva purchases back to the forest from which it was sourced. It is entirely transparent and is a testament to Enviva’s commitment to sustainability and doing things differently.

As Dr. Jenkins explains, this approach stems back to the origins of the company in 2004: “As a company that makes wood pellets, Enviva’s reason for being is to help lower greenhouse gas emissions. An emphasis on sustainability has always been a part of Enviva’s DNA.”

Sustainability, certified

24 March 2017

Sustainable bioenergy

Of all the changes to Drax Power Station over the last decade, perhaps the biggest is one you can’t see. Since converting three of its six generating units from coal to run primarily on compressed wood pellets, Drax has reduced those units’ greenhouse gas (GHG) emissions by over 80%.

And while this is a huge improvement, it would mean nothing if the biomass with which those reductions are achieved isn’t sustainably sourced.

For this reason, Drax works with internationally-recognised certification programmes that ensure suppliers manage their forests according to environmental, social and economic criteria.

Thanks to these certification programmes, Drax can be confident it is not only reducing GHG emissions, but supporting responsible forestry from wherever wood fibre is sourced.

Sustainability certifications

The compressed wood pellets used at Drax Power Station come from various locations around the world, so Drax relies on a number of different forest certification programmes, the three main ones being the Sustainable Forest Initiative (SFI), Forest Stewardship Council^® (FSC^®)¹ and the Programme for the Endorsement of Forest Certification (PEFC).

The programmes share a common goal of demonstrating responsible forest management, but adoption rates vary by region. European landowners and regulators are most familiar with the FSC and national PEFC standards, while North American landowners generally prefer SFI and American Tree Farm System (also members of the PEFC family). In instances in which Drax sources wood pellets carrying these certifications, or in instances in which Drax purchase pellets sourced from certified forests, these certifications offer an additional degree of assurance that the pellets are sustainable.

Over 50% of the pellets used at Drax Power Station come from the southern USA, where SFI and American Tree Farm System are the most widely implemented certification programmes. Overall adoption levels in this region are relatively modest. However, the SFI offers an additional level of certification that can be implemented by wood-procuring entities, such as sawmills, pulp mills and pellet mills.

This programme is referred to as SFI Fiber Sourcing, and to obtain it, participants must demonstrate that the raw material in their supply chains come from legal and responsible sources. These sources may or may not include certified forests. The programme also includes requirements related to biodiversity, water quality, landowner outreach and use of forest management and harvesting professionals. Together, these certification systems have long contributed to the improvement of forest management practices in a region that provides Drax with a significant proportion of its pellets.

And since the SFI and ATFS programmes are endorsed by PEFC, North American suppliers have a pathway for their region’s sustainable forest management practices to be recognised by European stakeholders.

These certification programmes have been in use for many years. But with recent growth in the market for wood pellets, a new certification system has emerged to deal specifically with woody biomass.

New kid on the block

The Sustainable Biomass Program (SBP) was set up in 2013 as a certification system to provide assurance that woody biomass is sourced from legal and sustainable sources. But rather than replacing any previous forest certification programmes, it builds on them.

For example, SBP recognises the evidence of sustainable forest management practices gathered under these other programmes. However, the PEFC, SFI and FSC programmes do not include requirements for reporting GHG emissions, a critical gap for biomass generators as they are obligated to report these emissions to European regulators. SBP fills this gap by creating a framework for suppliers to report their emissions to the generators that purchase their pellets.

When a new entity, such as a wood pellet manufacturer, first seeks certification under SBP, that entity is required to assess its supply base.

Feedstock which has already been certified by another established certification programme (SFI, FSC^®, PEFC or PEFC approved schemes) is considered SBP-compliant.

All other feedstock must be evaluated against SBP criteria, and the wood pellet manufacturer must carry out a risk assessment to identify the risk of compliance against each of the 38 SBP indicators.

If during the process a specific risk is identified, for example to the forest ecosystem, the wood pellet manufacturer must put in place mitigation measures to manage the risk, such that it can be considered to be effectively controlled or excluded.

These assessments are audited by independent, third party certification bodies and scrutinised by an independent technical committee.

In conducting the risk assessment, the wood pellet manufacturer must consult with a range of stakeholders and provide a public summary of the assessment for transparency purposes.

Sustainable energy for the UK

Counting major energy companies including DONG Energy, E.ON and Drax as members, the SBP has quickly become an authoritative voice in the industry. At the end of 2016, the SBP had 74 certificate holders across 14 countries – including Drax’s pellet manufacturing arm, Drax Biomass, in Mississippi and Louisiana.

It’s a positive step towards providing the right level of certification for woody biomass, and together with the existing forestry certifications it provides Drax with the assurance that it is powering the UK using biomass from legal and sustainable sources.

Like the fast-reducing carbon dioxide emissions of Britain’s power generation sector, it’s a change you can’t see, but one that is making a big difference.

Read the Drax principles for sustainable sourcing.

¹ Drax Power Ltd FSC License Code: FSC® – C119787

The new Renewable Energy Directive and what it means for biomass

29 November 2016

Sustainable bioenergy

European union flag against parliament in Brussels, Belgium

***This story was published the day before the announcement by the European Commission. Please scroll to the bottom of this page for the Drax view ***.

When the European Union set out its policy for the promotion of renewable energy in the 2009 Renewable Energy Directive (RED) it set a very ambitious target: by 2020, renewables should make up 20% of the EU’s energy consumption. Each Member State was given a specific goal and made to detail exactly how it would hit this.

The Directive was comprehensive in many ways, but it didn’t include a clear sustainability policy for solid biomass, including compressed wood pellets. As one of the largest sources of renewable energy in Europe, this left a policy gap that many voices – including Drax – have called to be filled.

It’s a wish that will now be granted. A revised RED is set to be published by the EU that will specify clear criteria for all biomass.

“Sustainability has always been absolutely central to our biomass strategy but Drax has always argued that there is a right way to source biomass and a wrong way.”

Dorothy Thompson, Drax Group CEO, July 2014

Importance of sustainable biomass

Biomass is a well-established and essential part of the renewable energy mix. It offers a unique mix of reliability, flexibility and affordability, all while helping to deliver carbon reductions. This makes it particularly important as countries like the UK seek to phase out coal generation and hit the targets set out in the Paris Agreement.

However, in order to secure these carbon benefits biomass needs to be produced sustainably. This means that it comes from responsibly-managed, growing forests, and that the emissions from the supply chain are measured and minimised.

In the UK there are already binding sustainability criteria but this isn’t the case across the EU. Biomass use in the UK is regulated under the EU Timber Regulations and UK’s own Renewable Obligation (RO) biomass sustainability criteria.

The RO is a form of government support designed to incentivise large scale renewable electricity generation in the UK, and to qualify for this, energy companies must adhere to sustainability standards such as properly accounting for their greenhouse gas (GHG) emissions and only sourcing from responsibly managed land and forests.

An EU-wide approach to biomass that follows the UK’s could see the implementation of a risk-based scheme that asks large energy companies to prove how they mitigate against a set of identified risks – like those in the RO criteria. However, it’s important that compliance with these is independently verified – something that could be done by using independent schemes such as the Sustainable Biomass Program (SBP).

The SBP carries out supply-base evaluation of pellet producers to ensure the wood they’re using is qualified as sustainable and they’re meeting the RO criteria. Programmes like the SBP are already being used by most major biomass power generators in the EU and could act as a blueprint for the future.

Efficiency where effective

Only a few of the power stations across the EU are suitable for conversion from coal to biomass but those that are, like Drax, can deliver fast, significant carbon savings.

The thermal efficiency of such stations may not be as high as a newly built plant, but they do allow governments to quickly move away from coal. More than that, these plants can continue to provide the critical services – such as voltage control and black start – the grid needs to remain stable and that other renewables can’t.

Drax is one of these stations, and in the first half of 2016 it was able to deliver around 20% of the UK’s renewable power. Thanks to its conversion to biomass, it now does this with over 80% carbon reductions relative to coal.

With the abundance of suitable and sustainably-grown fibre that can be used for biomass electricity generation, there is a strong case for the EU to encourage the coal phase out by encouraging others to undergo conversion from coal to biomass.

But what’s also needed is a clear set of sustainability criteria for biomass. The move to define this is a step in the right direction but the final EU proposal needs to be a practical one.

If the updated RED achieves this, it will mean a bright future for renewable energy in Europe and a clearer path for meeting the continent’s Paris Agreement targets.

* 30 November, 2016 UPDATE *

Drax welcomes Renewable Energy Directive proposal

Drax welcomes the publication of the Renewable Energy Directive and bioenergy policy proposal. Drax has been at the forefront of calling for standards based on a risk-assessment to demonstrate the sustainability of biomass used for energy production.

Matt Willey, Public Affairs Director of Drax Power had said that:

“Drax has campaigned for a robust, pragmatic biomass sustainability policy for the whole EU for many years and today is a step in the right direction. It is important that large users of biomass can demonstrate forest regeneration is taking place, that areas of high conservation value are protected, that soil and water quality is maintained and that harvesting does not exceed the long-term production capacity of the forest. We welcome the fact the Commission proposes that voluntary national or international schemes, including those which use a risk based approach, can be used to provide evidence of sustainability.”

“The UK already has the toughest sustainability rules in the world so Drax can be sure our compressed wood pellets are sustainable but it makes sense to have a common policy across the EU.”

Drax Power has made huge efforts to demonstrate the sustainability of its biomass. Sourcing from regions with large surpluses combined with low wood paying capability, Drax is able to track and trace every shipment back to low risk areas, which assures that biodiversity is protected and promotes sustainable forest management.

Tag: Sustainable Biomass Program (SBP)

How biomass wood pellet mills can help landowners grow healthy forests