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Dalkia Bio Energy Ltd
RHI and Biomass Fuel Supply
Wood Waste Markets –The Truth!
Stuart Howarth – Wood Procurement Director
Personal BackgroundInvolved in Wood Recycling for a decadeDeveloped 7 of the key wood recyclers in EnglandRepresented UK in Europe for 5 yearsInvolvement with major wood studies in UK & EuropeKey Advisor various partiesWRAP Technical Development Task ForceAssisted the Biomass Taskforce 2006Assisted the WIP Waste Wood as Biomass Report 2008Presented across EuropeInvolvement with establishment of wood processingand fuel supply for 30Mw Wilton 10 Biomass - TeessideDirector Wood Procurement for Dalkia Bio Energy Ltd
Who are Dalkia Bio Energy Ltd?Owned by Dalkia plc, part of Veolia EnvironnementDalkia operate more than 170 wood biomass schemes across Europe:
638MWe green electricity generation2,963MWth heat generation
In addition operate Commercial and Industrial Energy schemes:UK Heat capacity 2,228MWthUK CHP capacity 256 MWe
Bio Energy Division set up to establish Biomass feedstock infrastructure inUK to compliment European OperationsDeal with both WID and Non WID BoilersExisting Pellet Supplies through WPE Durham
Who are Dalkia Bio Energy?Joint venture with CO2 Sense for 50kt Pellet Mill at Pollington, Jn 34 M62New wood processing facility at Pollington - 350kt within 3 yearsNew 17.5MWe dedicated WID Compliant Biomass CHP at Chilton NrDurham (circa120kt p/a) firing Q1,2011We have a dedicated team of biomass engineers covering all aspects ofprojects from design, installation, maintenance, financing, fuel supply andmodelling
IntroductionDalkia welcomes any legislation that brings around carbonreductionsDalkia supports any legislation introduced to achieve thisDalkia considers it is a European wide necessityWhich will assist renewable energy targetsWe must ensure any policy can be supported and deliveredIt must be environmentally sound, sustainable and efficientLongevity must be taken account of including volumeavailability and forecastsSo what’s the reality?How has it been assessed?
Assessment through Existing Reports andStudies
WRAP 2005 Report suggested 10m/t of wood waste perannum available for recyclingBiomass Task Force in 2006 increased fossil fuel content to10% by CV - Clause 3.14, Page 14, suggested 3 MillionTonnes of wood waste could be directed annually to energyrecoveryApril 2008 ‘Waste Wood as a Biomass Fuel’ report by WIPExecutive summary para 2 suggested 10m/t per annumarising as per 2005 WRAP ReportSeptember 2009 WRAP Revised Report down to 4.3m/t perannum arising for the whole of the UKCurrently the Yorkshire and The Humber Region stands ataround 500kt per annum arising
UK Legislation for Recovered WoodEnvironment Agency Permit required up to 50,000tonnes p/a (Exempt from Waste Management License)Reducing within 3 years to 25,000 tonnes (underreview)Waste Management License will be required for volumeThe UK environmental legislation 1990 ‘Duty of CareRegulations’UK Waste Packaging Regulations 1997PPC Regs 2002EWC Jan 2002WID 2004Hazardous Waste Regs July 2004
What is wood waste?Any form of wood thrown out or discardedOff cuts from productionConstruction or demolition wood wastePallets, boxes and cratesOld Furniture – Kitchens, Bedrooms, Chairs, Tables etcFlooringHWRC’s or Local Authority TipsLog wasteForestrySaw Mill ResiduesOnly concerned with pre and post consumer – excludeforestry!
Wood Waste Products & Volumes 2009
Panelboard feedstock to makechipboard/Laminates Egger, Sonae, (1.2mt p/a)Horse Bedding (200kt p/a)Poultry Bedding (200kt p/a)WID Biomass Fuel (300kt p/a)Non WID Biomass Fuel (100kt p/a)Cattle BeddingSmall Pet BeddingMulchesCompostPlay Surfaces
What are the Grades and types?Grade A
BeddingNon WID Biomass Fuel
Grade BPanelboard Feedstock
Grade CWID Biomass Fuel
Grade DWID Biomass Fuel
Virgin soft and hard woodno paint additives orfinishes, i.e. pallets andpackaging
Painted soft andhardwoods including theabove
Melamine, chipboardincluding above
MDF, Formica andhardboard including above
Grade A Soft wood and Hard wood
Grade B Mixed Wood
Grade C and D Low Grade
Grade D Low Grade
Grade D Low Grade
Wood Waste Fuel Grading
Grade A - Non WID Fuel Virgin Soft and hardwood unpainted, finished or
added to in any way e.g. soft and hard wood offcuts, virgin pallets, packaging, etc
Grade B - WID Fuel Any other Non Hazardous wood waste including
painted, Melamine, Chipboard, MDF, Plywood,Formica e.g. C&D, Kitchens, Furniture, etc
‘Availability Summary or Reality’Current arising 2009 WRAP Report - 4.3m/t in UK2008/9 we used 2.3m/t as per WRA evidenceRemaining availability is 2m/t per year across UKTotal availability Yorkshire and Humber 500ktYorkshire and Humber utilisation around 450ktCurrent large scale biomass planning demand is in theorder of 18m/t per annum or 9 times availabilitySee GermanyCurrent ratio’s by wood waste types suggest availability of15% for Grade A Non WID and 85% WIDThis means 645kt of Non WID and 3.655mt of WID woodfuel is available per annum in the UKOr 45kt Non WID Fuel and 1.7mt of WID Fuel remaining!
How can we help?
Dalkia have over 170 facilities across Europe andin the UKWealth of experienceOffer a full turn key solution100kt per annum of Grade A pelletNew 100 Acre processing facility at Pollingtonproducing 350kt in under 3 yearsState of the art cleaning technologyEstablished contracts – wood fuel securityAlready ahead of the game!
Dalkia Bio Energy LtdInternal Supply Arrangements
Biomass Wood Chip/Pellet Supply
Chip/pellet supplied to specificationSources of materials already identifiedFull audit providedEach load is analysedMoisture content measured on arrivalAll work performed under contractRegular inspection and visits to suppliersLoads downgraded and rejected when necessaryAll permits and EA documents in placeLong term contracts secured
Summary
Sometimes all is not what it seemsWood volumes 60% less than originally statedWaste wood is a highly competitive marketHigh Capital costs involved in processing woodBiomass Facilities – need volume andsustainabilityMost wood waste in Yorkshire and Humber isbeing utilisedDalkia Bio Energy Ltd have the ability to reduceyour risks and fears through established facilitiesAssessments are now available!
Thank you any questions?
Stuart Howarth
Wood Procurement Director