Biomass exports fall sharply

Although the global recession has hit wood chip sales this year because of reduced demand for paper, the sector is expected to pick up over the year ahead due to increased interest among European energy companies in using woody biomass as a source of power generation.

While the wood chip market grew by an average of four per cent per annum between 2004 and 2008 to see shipments hit 32 million tonnes last year, global sales slumped by 26 per cent during the first half of 2009, compared with the same period a year ago. As a result, volumes fell to a mere 25 million tonnes – the lowest level since 2002.

The largest single drop in shipments was to Japan, the world’s biggest market. Its pulp mills account for 53 per cent of globally traded hardwood chips and 15 per cent of softwood chips, but the country saw imports drop 34 per cent compared with last year.

Declines were seen across the board, however, with only Turkey, China, Sweden and Portugal upping the amount of wood chips they purchased. Therefore, Australia, the largest exporter, saw shipments fall from 3.1 million tonnes in the first half of last year to 2.3 million tonnes now. Uruguay saw its export tally fall by 65 per cent and South Africa by 40 per cent.

But demand for woody biomass products is growing in both the UK and Europe, mainly because wood-based biofuels generate between two and nine times less carbon emissions than equivalent agriculturally based ones, according to UK-based environmental organisation the World Land Trust.

The UK government gave the go-ahead for a raft of large biomass plants over the summer as it seeks to hit its target of generating 15 per cent of the UK's energy from renewable sources by 2020.

In September, the Environment Agency authorised the building of the UK’s largest wood-fired power station. The 350MW Prenergy plan in Port Talbot, South Wales, is expected to generate power for up to 500,000 homes while cutting emissions by between 50 and 80 per cent compared with gas or coal-fired power stations.

And black liquor, a by-product of the pulp and paper industry, is also currently being used in Finland and Sweden to generate about 10 per cent of their primary energy requirements, respectively. Black liquor is a watery solution that is left over once the cellulose has been extracted from wood. It comprises lignin and a range of inorganic chemicals used in the pulping process.

The mills burn the liquor to recover caustic soda and sodium sulphide, and use the resultant steam to generate power. Work is also taking place in Sweden to separate the lignin from the black liquor using an evaporation and filtration process in order to produce a secondary, more intense, fuel for broader commercial use.