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International News On Biomass Industry
- Nov 15, 2018 -

Kährs Group builds wood pellet plant in Sweden

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Major Swedish manufacturer of wood flooring and PVC-free resilient flooring, Kährs Group is constructing a wood pellet plant in Nybro, Sweden. The 60 000 tonne-per-annum plant is to be located right by its existing site and aims to be operational by the end of 2018.

The pellet plant is to produce a product more advanced than Kährs current wood powder biofuel and one that will offer “vast” environmental benefits. It plans to do this by offering a standardised wood pellet, one that will be widely available for more users who are demanding fossil free fuels.   

A long-term agreement with Ekman & Co has been signed that has made it responsible for selling all pellets produced by Kährs, as well as handling plant logistics and storage. Ekman & Co are a leading and respected global operator in biomass, paper trading and bioenergy market.

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Christer Persson, President and CEO of Kährs Group states, “We are proud of making this investment to build this facility, which is completely in line with Kährs sustainability profile. By further refining the wood fuel raw material to pellets we increase usability, while giving more opportunities to use the environmentally sustainable fuel option. We also look very positive on the cooperation with Ekman that through its experience and expertise will bring valuable knowledge of trading in bioenergy.”

Enviva to supply pellets to power plant being converted in 

Aioi BioEnergy is converting Unit 2 of Hyogo Prefecture's Xiangsheng Power Station from heavy oil or crude oil to wood pellets.

The Enviva Group announced that the off-take contract agreement with Mitsubishi has now come into effect. Earlier, Japan’s Mitsubishi Corporation announced that Japan is building a biomass power plant.

In its announcement, Enviva said that conditions precedent to its previously announced take-or-pay off-take contracts to supply 630,000 metric tons per year of wood pellets to a Japanese customer have been satisfied and the agreements are now firm. Under the terms of the agreements with Mitsubishi, Enviva said it will be the exclusive, long-term imported biomass fuel suppliers to Aioi Bioenergy Corp., a joint venture between Mitsubishi Corp. Power Ltd. and Kansai Electric Power Co. Inc., which is converting an existing oil-fired power plant to biomass.

According to Enviva, deliveries under the contracts are scheduled to begin in late 2022 and continue for at least 15 years.

“Our partners at Aioi Bioenergy and Mitsubishi Corporation are at the forefront of Japan’s commitment to reducing the impacts of climate change,” said John Keppler, chairman and CEO of Enviva. “We are privileged and honored to be the sole source of supply of sustainable wood pellet fuel to the Aioi facility, one of the largest dedicated biomass projects in Japan announced to date, and we look forward to helping Mitsubishi and Kansai deliver on the promise of renewable energy.”

On Oct. 30, Mitsubishi Corp. announced its wholly owned subsidiary Mitsubishi Corp. Power Ltd. has begun work to build a biomass power generation plant in western Japan that is being executed through 

Aioi Bioenergy.

In a statement, Mitsubishi said Aioi BioEnergy has reached an agreement with lenders for the procurement of a loan under a non-recourse project finance scheme, which is enabling Aioi Bioenergy to begin plant design and equipment procurement.

The project will convert the No. 2 unit of the Hiroshi Seibu Power Station into a heavy crude oil for use with wood pellets. Mitsubishi said that the unit has been out of service since April 1, 2018, but will be re-run once the conversion process is completed. Biomass fuel generation is expected to begin in January 2023 and will operate for 20 years.

Enviva to expand capacity at Northampton, Southampton plants

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Enviva Partners LP has released third quarter financial results, reporting increased revenue, net income and gross margin. The company also announced plans to expand its operations, including the addition of new capacity at two existing pellet plants.

During an investor call, John Keppler, chairman and CEO of Enviva, discussed expansion and growth opportunities that he said could more than double the size of the company over the next few years.

Subject to receiving the necessary permits, Keppler said Enviva plans to invest approximately $130 million to increase the aggregate production capacity at its Northampton, North Carolina, and Southampton, Virginia, pellet plants by approximately 400,000 metric tons per year. Information released by Enviva indicates the $130 million investment would include new production assets and emissions control equipment. In a statement, the company said the ability to expand capacity and improve the energy density of pellets through increased pine utilization at the two plants will create incremental, high-margin pellet sales opportunities. Construction on the expansion project is expected to be complete in early 2020, with startup shortly thereafter.

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Keppler also discussed new plants under development by the partnership’s sponsor. He said the Hamlet, North Carolina, plant is currently under construction and expected to begin operations during the first half of next year. That plant will have a nameplate capacity of 600,000 metric tons per year.

The second joint venture between affiliates of Enviva’s sponsor and John Hancock is also continuing to invest in its wood pellet facility in Greenwood, South Carolina. The facility is expected to expand its capacity from 500,000 metric tons per year to 600,000 metric tons per year, subject to receiving necessary permits.

The second John Hancock joint venture is also expected to make a final investment decision on a deep-water marine terminal in Pascagoula, Mississippi, and a wood pellet plant in Lucedale, Mississippi, in late 2018 or early 2019. A statement released by Enviva also notes the joint venture continues to evaluate additional development locations.

Enviva Partners said it expects to have the opportunity to acquire these assets from its sponsor and its joint ventures with John Hancock.

Enviva reported net income of $13.4 million for the quarter, compared to $5 million during the same period of last year. Adjusted EBITDA for the third quarter was $30.2 million, up from $25.8 million during the third quarter of 2017.

For the third quarter, the company generated net revenue of $144.1 million, up 9 percent when compared to last year. Included in net revenue were product sales of $142.5 million on 762,000 metric tons of wood pellets sold during the quarter, up from $125.4 million on 668,000 metric tons of wood pellets sold during the third quarter of last year.

For the third quarter, Enviva generated gross margin of $30.1 million, up from $20.4 million for the same period of 2017. Adjusted gross margin per metric tons was $55.64 for the third quarter, up from $46.9 for the third quarter of 2017.

Feds invest $15M in Canada's first integrated pellet and sawmill complex

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The federal government today revealed plans to invest $15 million in Granule 777 Inc. in Chapais, Que. The funds will go towards helping the company build Canada’s first fully integrated industrial wood pellet and sawmill complex.

In a news release, the government also announced a repayable contribution of $5 million to help Granule 777 buy production equipment. 

Once the complex is built, the mill will manufacture 210,000 metric tons of wood pellets per year; use 450,000 metric tons of biomass; and create 40 new jobs for mill operations. 

“We are very excited about the construction of this innovative integrated wood pellet plant, adjacent to our Barrette-Chapais sawmill. Over the past few years, we have successfully gathered the necessary winning conditions to move ahead with this project and make it a reality,” said Granule 777 president Benoit Barrette in a press release.

The funding is provided through Natural Resources Canada’s Investments in Forest Industry Transformation (IFIT) program and Canada Economic Development (CED)’s Quebec Economic Development Plan.

Sumitomo to build 100% pellet-fuelled power plant in South Korea

微信图片_20181115170142Sumitomo SHI FW (SFW) has been awarded a contract by SK Engineering & Construction Co., Ltd. for design and supply of SMG Energy’s SMG Biomass Power Plant to be located in Gunsan City in the Republic of Korea. Commercial operation of the new plant is scheduled for December 2020.SFW will design and supply the 100 MWe CFB steam generator and auxiliary equipment for the boiler island. The CFB steam generator will be designed to burn 100 per cent wood pellets, while meeting applicable environmental regulatory requirements. SFW has supplied over 30 CFB steam generators to South Korea and this is the fourth firing biomass as its primary fuel.

Tomas Harju-Jeanty, CEO of Sumitomo Group, said: “The use of higher efficiency and biomass in power generation can significantly reduce carbon dioxide emissions. Sumitomo Group's CFB technology is the perfect solution to meet these market needs. We are very happy again. Selected to help South Korea use renewable energy biomass fuel CFB steam generators to meet their energy needs.