THE COMMERCIAL IMPLICATIONS FRO BIOMASS BUYERS & SUPPLIERS

Background to the report

Opportunities to generate electricity from biomass are being pursued by companies and governments throughout Europe and throughout the world. In the UK, due to a combination of unique political, geographical and economic conditions, interest in biomass power has arguably become most intense.

Projects to build up to 6-7 GWe of biomass electricity generating capacity in the UK are currently being considered by utilities and project developers.

Even if a number of these projects never leave the drawing board, those that are completed could transform the UK into the world’s biggest biomass market, overtaking Japan whose pulp and paper industry has for years dominated the world market for woodchips.

The challenges

Not all of the feedstock will be in the form of wood and not all of it will be imported: energy crops, waste wood and non-wood biomass, will play a role. More wood will be sourced from British forests too.

Nevertheless, the larger of new plants are designed primarily to use wood chips or pellets and they are located on the coast specifically to receive imports.

Securing a sustainable source of biomass feedstock presents challenges for the electricity generators and for the whole biomass supply chain.

The scope of the report

• The report is a high-level strategic assessment of the commercial implications of the UK’s planned investments in biomass power.
  
• The main focus is the feedstock implications of these investments, but wider issues such as developments in the UK electricity market and the outlook for UK/EU energy and environmental policy drivers are examined. The operation of the UK’s support mechanisms is explained.
  
• The report includes profiles of 28 biomass power projects and assesses their likely feedstock requirements, individually and collectively.
  
• The report analyses the availability of solid biomass feedstock in the UK – including woody biomass, straw and other agricultural waste etc. – and presents forecasts of the UK’s demand for imported biomass, including separate forecasts for wood chips and wood pellets and other forms of biomass feedstock.
  
• The availability of biomass in likely supply regions worldwide will be assessed and factors that will influence trade flows are examined, including phytosanitary regulations, logistic infrastructure, etc.
  
• The constraints and risks (including political, financial, logistics, technology and feedstock risks) are discussed in depth.