In the realm of wood pellet and animal feed production, the devil lurks in the intricacies of pelletizing processes, revealing a historical technological immobility that has plagued the industry for decades.How did we get there? First, the design and constraints of the process—despite the multitude of pellet mill manufacturers, the design and stresses on roller bearings remain uniform across original equipment manufacturers (OEMs). Bearings endure extreme conditions, including high pressure, temperature, vibration, shock, humidity, oxidation, corrosive atmospheres and material pollution—a challenging environment for optimal bearing performance. In a nutshell, it is hard to find more devastating conditions for bearings.The two traditional solutions to limit premature bearing wear are excessive greasing and oversized, poorly designed automatic lubrication systems that inadequately cater to the specific needs of the pelletizing process. There are many negative influences on the total cost of ownership (TCO) of pellet mills that result from the consequences of the current approach. High grease consumption leads to higher costs. Often, the design of the lubrication system keeps the grease under permanent pressure, in some cases up to 120 bar. This leads to premature grease deterioration due to bleeding of the grease (separation of oil and thickener). Shorter bearing lifespan compared to roller shell life leads to elevated operational maintenance costs, unplanned stoppages, logistical challenges and degraded work quality for operators.So what are the root causes of technological immobility? The interests of grease suppliers, bearing manufacturers and pellet mill OEMs align to maintain the status quo, resulting in a lack of innovation and improvement. Grease suppliers want to sell as many tons of grease as possible. Bearing suppliers and third parties for roller refurbishment want to sell as many bearings as possible. Pellet mill OEMs and their subcontractors want to sell as many spare parts as possible. The conclusion is that apart from the pellet producers, the status quo is best.Breaking the Deadlock&nbsp; There are two solutions to the dilemma. Tribology (from the ancient Greek words "tribos" and "logos," meaning rubbing or sliding, and study or science, respectively) is the study of phenomena that may occur between two materials in contact, whether immobile or animated by relative motion. This term covers, among other things, all areas of friction, wear and lubrication. Tribology provides a pathway forward by addressing the constraints of the pelleting process and overcoming the mechanical and chemical limitations of standard lubricants. Synthetic-based specialty lubricants already offer an improvement in terms of quantity reduction and extending bearing life by 10% to 15%. However, the costs per ton are significantly higher and are often not worthwhile. The solution is to modify the mechanical and chemical limits of bearings and the lubricant coating the surface of the wear parts. High-performance greases containing solid lubricant particles, such as ceramic-based specialty lubricants, level roughness and form a coating. Such a hybrid surface has the advantages of ceramic bearings without the associated costs and constraints.&nbsp;The second solution is an advanced automated lubrication system. As the majority of bearing failures result from improper lubrication, automated lubrication systems are paramount and often the standard for pellet mill lubrication. The advantages are obvious: Controlled lubricant distribution ensures no lubrication point is missed, resulting in reduced contamination and lower risks of grease mixing and breakdown, ultimately leading to lower maintenance costs. However, in most pellet plants, too much grease is applied at too long intervals.&nbsp;The ideal hydraulic film between two moving surfaces is constant (see blue line in Figure 1). Each lubrication cycle of standard lubrication systems provides too much grease at once to the roller and main bearings (if the main bearing is grease-lubricated), causing a state of overgreasing. With high pressure in the bearings, the grease is pushed out quickly, reversing the state over the long interval to underlubrication. Underlubrication leads to corrosion and excessive wear, causing premature and labor-intensive equipment failures, in a worst case causing overheating and fire. Overgreasing leads to lubricant loss, higher cleaning costs, product contamination and reduced productivity.&nbsp;An advanced automated lubrication system focuses on minimum dosability and frequency over excessive flow and quantity. Here is a real-world upgrade of an existing automated lubrication system. The existing distributors did not allow for grease volume reductions. The distributor was equipped with three PMF 50 segments, giving a total displacement of 3x (.5x2) = 3 cc. Programmed at four pulses every three minutes, it provided 20 cycles per hour or 240 cc. The existing equipment does not have an integrated nonreturn valve and was leaking.The upgrade included a Graco MSP 3 distributor equipped with 3x 05S segments, configured in a single departure. This resulted in 2x .08cc = .16 cc per segment. The total displacement was 3x (.08x2) = .48 cc. This upgrade allows for a reduction of the hourly volumes. With precise .48 cc distribution or one-sixth of the former output delivery, a much shorter grease interval is possible.&nbsp;The results of both the upgraded lubrication system and the use of high-performance grease speak for themselves: reduced grease consumption and extended bearing life.The high-performance grease allowed for up to a 96.58% reduction in grease consumption over 2,000 hours of production, leading to cost savings and improved efficiency. The almost-ideal hydraulic film in the bearings led to a factor of four increase in bearing lifespan, enhancing reliability and reducing operational and maintenance costs. As a bonus, the significant reduction in grease resulted in a better carbon footprint. Nineteen tons of annual regular grease consumption has been replaced by 900 kilograms of high-performance ceramic grease.In conclusion, embracing advancements in tribology and adopting precise lubrication systems presents a revolutionary opportunity for the pellet industry. By breaking free from the chains of technological immobility, stakeholders can usher in an era of increased efficiency, cost savings and environmental sustainability. Author: Holger Streetz&nbsp; CEO, Bathan AG&nbsp; h.streetz@bathan.ch&nbsp;

2024-03-04 - Unlocking Efficiency Through Advanced Lubrication (Biomass Magazine)

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Precise lubrication systems present a revolutionary opportunity for the pellet industry.

Unlocking Efficiency Through Advanced Lubrication

In the dynamic landscape of sustainable energy production, wood pellet plants play a pivotal role. This article evaluates plant design that is specific to Europe, which has an industry characterized by decentralized production featuring many medium- and small-scale plants. In demonstrating these principles, the analysis focuses on the recently commissioned production facility at Holzindustrie Hassel in Germany.Approximately two-thirds of Germany’s 50 biggest pellet plants are strategically located adjacent to sawmills or other wood processing operations. This proximity ensures an uninterrupted supply of feedstock from residual materials, eliminating the need for extensive transportation routes. One of these plants is based near Frankfurt and went into operation in 2023. When Managing Directors Stefan Hansen and Christian Zeinler acquired the existing sawmill of Holzindustrie Hassel in 2021, they initiated a substantial expansion program. This plan incorporated the construction of an 85,000-ton-per-year pellet plant on an adjacent horse pasture. Within a remarkably swift 13-month period from the initiation of construction, Hassel celebrated the production of its inaugural batch of pellets.Plant Layout&nbsp; The plant comprises silo storage for wet chips and wood shavings with an integrated wet chip mill, a hot water boiler system to provide the required heat for the belt dryer, a silo for the dry material, the pelleting unit equipped with two pellet mills, two silos for the storage of a total of 7,000 tons of pellets and an automated truck loading system.The hot water boiler system was constructed and installed by AGRO. It is fueled with low-quality sawmill residues, including bark. The system is highly adaptable and can operate with an input moisture content ranging from 20% to 60%. These residues are transformed into 2,100-kilowatt (kW)/715,000 Btu per hour of thermal energy, utilized to power the Stela BTU RecuDry 1/6,200-18 belt dryer with a processing length of 60 feet. From the outset, the system was designed to allow for doubling the dryer’s total processing length to 120 feet. The material feed comes from the wet chip silo capable of holding up to 60,000 cubic feet of wood chips and shavings. As the material exits this silo, it is processed in a wet chip mill before entering the dryer with a moisture content of approximately 50%. The primary reason Hassel decided to install a RecuDry system is its energy efficiency. With its innovative air-to-air heat exchanger, it saves 35% to 55% of energy compared to traditional belt dryers while also reducing emissions. The Hassel plant has a specific energy use of 720 kW per ton (2.45 million Btu per ton) of water evaporation. The material exits the dryer with a moisture content of 10% and is stored in a dry chip silo. This silo also serves as a buffer by allowing the intermediate storage of 70,000 cubic feet of dry material. This facilitates maintenance intervals and service operations in both directions: the dryer can undergo maintenance without the pelleting process coming to a halt due to a lack of material supply. Similarly, maintenance on the pelleting equipment can be conducted while the dryer continues to operate and fill the silo.From Fiber to Pellet&nbsp; Via conveyors, the material is transported from the dry chip silo into the pelleting hall. Once there, a hammermill reduces the material to the ideal size before it enters the conditioner, where starch and moisture are added. The preconditioned material then remains in a ripening container to ensure a uniform distribution of both starch and water. Upon exiting the ripening container, the wood fiber possesses a consistently homogeneous moisture content of around 12%. Subsequently, the material is divided between two conditioners, each dedicated to one pellet mill. The plant operates with two SALMATEC Maxima 840 pellet mills boasting a combined capacity of 12 tons per hour. For safety and process optimization, the press chambers of both pellet mills are equipped with temperature monitoring. If the temperature reaches a critical point, material input is halted to prevent a decline in pellet quality, damage to press tools, or even the risk of a fire outbreak. Within the pellet mill, the wood fiber is compressed through the holes of a 33-inch ring die. To ensure uniform pellet length, a multiknife cuts the pellets, avoiding excessively long or short ones. Due to the generated heat during the process, the pellets require cooling before storage. Subsequently, the pellets move into a screen cooler immediately after exiting the pellet mill. While the pellets cool, this machine filters out fine particles, reintroducing them into the material flow. To expedite the start of operations, the construction of this pelleting plant was divided into two phases. The first pellet mill started its production in April 2023. Over the following weeks, the conveying equipment and, eventually, the second pellet mill were installed during full operation.Storage and Loading&nbsp; Finally, the pellets undergo a hardening process as they are stored in one of two steel silos. With a storage capacity of 7,000 tons, Hassel can accommodate almost a month’s production on-site. Adjacent to the silos, a fully automated loading system enables truck drivers to fill their bulk trucks quickly at a rate of 65 tons per hour. This minimizes waiting times and eliminates the need for on-site personnel, as the loading process is overseen by the truck driver through a monitor panel. All produced pellets carry the EN Plus A1 certification, signifying their suitability for residential heating purposes.Conclusion&nbsp; In essence, Holzindustrie Hassel’s newly commissioned wood pelleting plant stands as a prime example of technical finesse in the ever-evolving landscape of sustainable energy production. The rapid establishment of this facility underscores the adaptability and strategic vision crucial for success in the renewable energy sector. Author: &nbsp;Timo Mueller&nbsp; SALMATEC&nbsp; Timo.mueller@salmatec.de

2024-03-04 - A Snapshot of European Pellet Plant Design (Biomass Magazine)

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A recently commissioned wood pellet plant in Germany provides insight into the technical design and layout considerations specific to Europe.

A Snapshot of European Pellet Plant Design

After years of seeing acres of flax straw being burned near his home in rural Saskatchewan, Prairie Clean Energy founder Trevor Thomas believed he had devised a solution that could provide farmers with an economical and environmentally conscious way to use flax straw waste—and one that could also generate bioenergy while helping address any feedstock shortfalls.&nbsp;That’s according to Mahmood Ebadian, chief product and supply chain development officer for the Regina, Saskatchewan-based company. Even more importantly, Ebadian says, this solution tackled the residue management issue for flax growers. “Oilseed flax has a significant percentage of long, tough-stem fibers that decay slowly over time,” he explains. “This makes it difficult to incorporate flax straw into the soil after harvest since the fibers wrap themselves around or plug disks, wheels and seeder-shanks.”After researching the potential of flax straw as a fuel source, Thomas established Prairie Clean Energy to bridge the gap between flax farmers and those seeking clean, reliable biomass fuel and other products. Over the past four years, Prairie Clean Energy has grown into a fully realized biomass aggregation and processing business that has built partnerships with farmers and organizations across Canada and the world to deliver their densified ag residue to customers worldwide.An Evolution&nbsp; Prairie Clean Energy has transitioned from proof of concept to minimum viable product to being named by the Vienna Institute as one of the top 10 clean energy companies to watch in the world in 2023—all in rapid succession. With financial support from Innovation Saskatchewan under a Saskatchewan Advantage Innovation Fund project and a $1.1 million grant from the Mining Innovation Commercialization Accelerator, the company and its academic partners successfully developed a proprietary flax straw pellet production process, which is patent pending, and they are now working on a second patent application.&nbsp;Last year, Prairie Clean Energy evolved to purchasing flax straw from producers and producing flax pellets in 2023 at a tolled facility to test logistics, process and product readiness.Feedstock Sourcing Strategy&nbsp; Transparency and trust have been the foundation of Prairie Clean Energy’s feedstock-sourcing strategy since the beginning. “We have tried to reflect that in our communication with farmers and crop growers,” Ebadian says. “We never contact a farmer just to discuss taking their straw but also to convey the social and environmental benefits of our business for local farmers, their families and other local communities. Our key personnel live in the region and have a deep understanding of the values that farmers believe in when it comes to long-term relationships.”Additionally, the company shares a portion of the economic benefits of the business, which is a welcome part of its feedstock-sourcing strategy. &nbsp;“Although we have been mainly focusing on flax straw due to the fact that it has been a residue management issue for crop growers, we have been looking into other crop residues, byproducts and wastes from food processing facilities,” Ebadian says. “Building the capability to collect, aggregate and process multiple types of feedstock is vital to our long-term growth.”The biggest challenge has been finding the right equipment set that has the capability to process and pelletize flax straw, given its unique fiber structure. “At the early stage of our journey, we learned that we cannot use the common existing biomass processing and pelletization equipment that is available in the market and being used mainly for wood pellet and animal feed production,” Ebadian says. “I mean, you can use the off-the-shelf equipment, but it comes with the cost of low-efficiency operations and pellets with inconsistent quality, as our trials showed to us.”Therefore, Prairie Clean Energy has been working closely with original equipment manufacturers to modify their existing equipment and machineries based on the physical and chemical qualities of flax straw and is currently in the process of filing two patents—one on size reduction and the other on the pelletization of low-bulky agricultural biomass such as flax straw.Intended Customers&nbsp; In the short term, the company focuses on the bedding market for three reasons, according to Ebadian. “First, based on the recent trials we did, flax straw pellets are a high-quality horse bedding product; second it is a relatively premium and established market, which allows us to generate revenue from our first facility and also enables us to advance in all fronts of our supply chains, including fiber supply security, straw and pellet logistics and straw processing,” he says. “Third is financing, as we need solid demands to make progress in all these fronts.”However, animal bedding is a relatively small market at around $1.1 billion, so based on other experiments the company has done, flax straw pellets are the right feedstock for low-carbon bioenergy, biofuels and biomaterials, and the energy and materials markets will be its long-term focus, as that is already a $119.8 billion market. &nbsp;Prairie Clean Energy has already signed MOU and off-take agreements with a few major bioenergy users and is promoting the use of biomass for bioheat, biogas and renewable natural gas (RNG) production in Saskatchewan. Additionally, it is in discussions with a global trading company regarding the use of flax straw for RNG, biochar and biocoal production. &nbsp;As of the first week of February, the company has a pending patent on flax straw processing and is filing another patent on the process in the next few months. “We have been able to secure flax straw from local producers for our 2024 production, and we’re at the final stage of our capital raising, so we should be able to place the order to purchase the flax straw processing equipment in late February or early March,” Ebadian says. That equipment will be housed in an existing building in Regina that the company bought in 2022. “Also, with the support from government research funding programs, including Saskatchewan Innovation and Mining Innovation Commercialization Accelerator, we are demonstrating the use of flax straw pellets for bioheat generation using a modern biomass boiler in collaboration with Saskatchewan Polytechnic.”Comparison to Wood Pellets&nbsp; Overall, the company does not view its product as being in competition with wood pellets, instead seeing flax straw pellets as supplementary.“As the global demand for biomass pellets is expected to grow and with the rising concerns over biomass sustainability, we will expect more use of agricultural-based pellets such as flax straw pellets,” Ebadian says. “Our product has been tested by major users of wood pellets, and we have not run into any major setbacks to stop these facilities from using large quantities of flax straw pellets.”Not that there aren’t some concerns with higher ash, nitrogen and chlorine contents of ag-based pellets compared to wood pellets. However, the bioenergy industry has figured out different ways to cope with lower-quality biomass. “We have done several quality assessments by ISO-certified labs, and the results showed superior quality of flax straw compared to other common agricultural biomass such as wheat straw and corn stover in particular energy content and ash content, and it is comparable with industrial wood pellets,” Ebadian says.Some believe flax straw shouldn’t be planted more than three years in any rotation, but the company has factored that into its equation. “Similar to any other crop, flaxseed is part of a crop rotation routine, but it does not mean that a crop grower won’t plant flaxseed in a year at all,” Ebadian says. “To mitigate the market risks, many crop growers divide their cropland into subdivided sections and grow different crops in each section, rotating crops between these sections. So, many farmers who have been planting flaxseed will do it annually, but the land size may change. That is why we have seen commercial production of flaxseed and straw in the prairies annually for many years.”Looking Ahead&nbsp; As a start-up company, Prairie Clean Energy has been focusing on building relationships with as many crop growers in the region as possible despite the distance from its first facility in Regina. “A deep understanding of cropland distribution in the region is the key for us for the optimal location of our future facilities,” Ebadian says. “And as we grow, we will optimize our logistics to minimize the transportation distances given the location of our facility and the availability of crop residues in the supply area.”The company is also looking at other crop residues to be added to its feedstock basket to minimize the risk of feedstock shortage given the nature of agricultural crop production. &nbsp; &nbsp;Prairie Clean Energy’s business aspiration is to become the major biomass aggregator and processor in the Canadian and U.S. prairies that supplies affordable feedstock with consistent quality to its clients, Ebadian adds. “We won’t stop at supplying only the existing markets such as animal bedding and bioenergy markets—we are already pursuing other high-value markets such as industrial absorbents, biochar, RNG, sustainable aviation fuels and hydrogen.” Contact: Anna Simet&nbsp; asimet@bbiinternational.com&nbsp; &nbsp;

2024-03-04 - Fueled by Flax Straw (Biomass Magazine)

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Prairie Clean Energy is finding success in its pursuit of an environmentally sustainable solution to burning agricultural waste, beginning with flax straw waste pellets.

Fueled by Flax Straw

For Gordon Murray, mitigating climate change isn’t just a tagline for the wood pellet industry and his association members. To him, it’s personal—and it’s hitting home.The 2023 wildfire season was unmatched in Canada’s history, with 45.7 million acres burned and none of its 13 provinces and territories left unscathed. Murray, executive director of the Wood Pellet Association of Canada, sums up living through it in powerful words. “It was terrifying,” he says. “There were fires close to communities—my family got chased out of their homes in Kamloops and Blind Bay. Fortunately, that was a precaution, and no damage was done, but fires got very close to urban areas—a big one only about 10 kilometers from where I live. Every surface was covered with ash, and driving at nighttime, there was an orange glow everywhere. It was pretty tough to live through.”Sections of the Trans-Canada Highway—Highway 1 that travels through all 10 provinces from coast to coast—were closed for days at a time due to the fires, which disrupted logging operations and put a strain on fiber supply, Murray says. “Fortunately, we got pounded by rains in the fall and into early winter, and now snow,” he says. “It’s all a distant memory ... until a few months from now when it starts again because of climate change.”Unprecedented wildfires are just one catalyst fueling the global race to decarbonize, which continues to gain momentum and offer new opportunities for wood pellets and biomass to play a role in the race to decarbonization.Contemplating Taiwan&nbsp;&nbsp; While Europe, Japan and South Korea have continued to be major markets for wood pellet exports, new destinations are on the horizon—such as Taiwan. Although the country is roughly the size of Maryland, it is home to 23.5 million people. For context, that’s the equivalent of the population of all of New England plus New York state. In 2022, nearly 80% of Taiwan’s power was derived from fossil fuels, mostly natural gas and coal, and the country relies on imports for almost all its energy—approximately 98%, according to state-owned power utility Taipower, the independent power producer of the country.In late December, U.S. FAS Gain released a report indicating that Taipower would likely issue a tender for wood pellets in the coming year to convert its 500-MW No. 1 coal-fired boiler at Kaohsiung Hsinta Power Plant to wood pellets. A $300 million opportunity for producers should the investment decision be made. While the report is new to some, Murray says that WPAC has been exploring the opportunity for well over a year. “I got a call from our embassy, which alerted us to the Taipower conversion and connected us to Taipower and the Taiwan paper industry association, where they’ve got many operators who produce their own power from coal and have a need to convert. After some conversations, we decided we’d organize a trade mission, and we’re in the midst of planning that right now—we’ll start promoting it soon.”Murray underscores he believes opportunities to supply into Japan should not be a competitive situation. “It’s potentially a massive new market that I see as on the same scale as South Korea or Japan,” he explains. “Taiwan has that same feel to it. We’ve been talking to their bioenergy association and have been given a list of dozens of individual companies, IPPs, that are using in some cases pulverized coal boilers, and stoker and circulating fluidized bed boilers, and there seems to be pressure—government pressure, momentum to change—and motivation on the part of companies. We’ve just started putting pen to paper, I can’t give you exact tons, but it’s millions of tons of potential.”Gordon says the Taiwan government seems cautious of biomass and whether enough is available. “I think they’re just uninformed, so we’re working with our embassy and the bioenergy association to put on a one-day conference and a one-week trade mission to go visit potential customers and power plants, port facilities and so on. I know that there have been a couple U.S.-based companies over there investigating as well.”If the broader wood pellet industry were to make something happen in Taiwan, it would take everyone to come together for that supply. “It’s no good if one country or one supplier holds the opportunity to themselves, and then they don’t have enough critical mass to make the thing take off—I think it’s going to take all of us,” he says. “There is nobody sitting around with millions of tons of unsold pellets—everybody’s out there chasing deals, and our industry is largely based on long-term contracts. This isn’t something we can turn on tomorrow. It’s going to take a collective will of a lot of people to make it happen, and convince their government that the risk [of] converting from one fuel type to the other is worth taking and the environmental benefits are worthwhile. Hopefully, a few of our US-based colleagues will find this interesting and want to come and join the conference.”Statements provided by the U.S. Industrial Pellet Association indicate that the trade organization has an eye on Taiwan as well. “Asia is currently the primary driver of global wood pellet demand, with the region experiencing about a 20% year-over-year increase in 2023,” says Elizabeth Woodworth, interim executive director of USIPA. “U.S. suppliers have adapted to meet this rapid growth by expanding operations and supply chains across the Pacific. In 2020, the first shipment of U.S. wood pellets arrived in Japan, and today, we are the country’s third-largest supplier. Like Japan, Taiwan is an island nation rapidly transitioning to a more secure and cleaner energy mix. U.S. wood pellets represent an ideal solution, and our members are well-positioned to support Taiwan in these goals.”Murray adds that within Taiwan, additional promising sectors include plastic, petroleum and paper. “They’re producing their own process electricity and heat with a variety of different sizes and types of boilers—the smaller-scale ones can use a multitude of fuel types like palm kernel shells, chips and pellets. There is pressure [from] the Taiwan government for all these guys to stop using fossil fuels. They’re working on solar and wind solutions as well, but increasingly looking at biomass, and it’s up to us to take advantage of this opportunity.”Rachael Levinson, associate director at Hawkins Wright, says that although the market intelligence firm has its eye on Taiwan, no final investment decisions have been made yet. “It’s definitely interesting, they’ve got quite a bit of coal and there seems to be government support,” she says. As for other markets on the horizon, Levinson says heavy industry is quickly unfolding.Heavy Industry&nbsp; “[Heavy industry] has been keeping us busy—in the past two years, we’ve seen more interest from both sides of the market, particularly the metals industry, but also lime producers,” Levinson says. “There is a need to replace fossil fuels in producing heat and steam, and so for many of them, wood pellets or biomass in general make sense. Wood pellets make sense when talking about big volumes being transported over long distances. It’s very early days still, but we know that it’s happening.”While potential is huge, she says, it’s difficult to quantify at this point, and all decarbonization options are being looked at. What’s particularly interesting, Levinson adds, are the drivers. Rather than government subsidies as common in the energy sector, it’s carbon prices and self-set company decarbonization targets. “But longer-term, I think they’re hoping that they get a green premium for products produced without using fossil fuels,” she says.The metals industry, including steel and silicon producers, needs a fossil-free carbon molecule, particularly blast furnace steel producers, which is most common and uses coke and pulverized coal. “Biomass is a good option to replace that because you can use it in the existing blast furnaces,” she explains. “However, you need a high fixed carbon content, which normal wood pellets or biomass can’t offer—but black pellets, biocoal or biocarbon do. Even with electric arc furnaces, carbon reduction is needed—a much smaller volume than with the blast furnace, but again, there are limited options. How do you get carbon that’s not from fossil fuels? The only solution really is biomass.”Levinson points out that ArcelorMettal commissioned a waste wood-to-biocoal plant in Ghent, Belgium, in early January. The facility will produce 37,500 tons of biocoal per year to be used in the blast furnace process, a first for the European steel industry, according to the company. Biogas will be produced during the process and converted into ethanol to be jointly marketed by ArcelorMittal and LanzaTech. “It’s exciting for black pellets,” Levinson says. “Maybe now that market will finally take off, but there are still a lot of challenges and technical barriers in terms of producing this high fixed-carbon production.”As for other country-specific developments, Japan continues to have a large pipeline of new power plants coming online, according to Levinson.Other Markets&nbsp; Around 10 or so new Japanese biomass plants are due to start up this year, but there have been some technical and start-up issues. For example, although two of Renova Inc.’s 75-MW wood pellet and palm kernel shell-fueled plants began operations at the end of 2023, adding to its four already in operations, the company announced delays for both its Omaezakikou and Ishinomaki Hibarino biomass power plants, both now expected to begin commissioning in March. “So, much of that demand is delayed a bit, but we’re still confident it will come online,” Levinson says. “It’s locked in, and they’ve got a subsidy.”Japan’s total pellet demand was around 6 million tons in 2023 and is expected to double by 2026, according to Hawkins Wright’s latest numbers. Total global demand for heating and industrial wood pellets was about 46 million tons in 2023.Moving to Europe, things are currently in a bit of a limbo, Levinson says. “We have subsidies to 2027 in the U.K. and Netherlands, and the focus now is definitely on BECCS [biomass energy carbon capture and storage],” she says. “Drax recently got government approval for a planning application for BECCS at their power station, and that’s a positive sign. We’re expecting them to announce a new subsidy in the next week or two—they call it a bridging mechanism—for when the current subsidy ends in 2027 to when the BECCS units come online in 2030. There will be three years in there where Drax and Lynemouth wouldn’t want to go offline—for a number of reasons, but one of the big ones, I think, is that they don’t want to lose that supply that they’re getting now. We expect a subsidy to be available for [those] three years until they can convert their units to BECCS.”Levinson adds that the subsidy for BECCS is still not finalized so there is some uncertainty in the U.K., but Hawkins Wright is positive about it and believes it will happen.In the Netherlands, RWE has indicated that it wants to convert its units to BECCS after the subsidy ends in 2027 but is waiting for government approval. “The Dutch government hasn’t been as vocally supportive about biomass and BECCS, so I would say there’s more uncertainty on that,” Levinson says. “In Denmark, Orsted’s plans are progressing, and they’re also looking at BECCS. They have started work on converting one of their straw-fired plants to install BECCS, and I think they’ll probably consider that for their other power plants as well. In Europe, the focus is really on carbon capture and the value it can bring to governments looking to get to net zero by 2050.”In December, Orsted announced it had begun construction of two carbon capture facilities—one at its straw- and wood pellet-fired unit at Avedore Power Station in Greater Copenhagen and another at its woodchip-fired Asnæs Power Station in Kalundborg. The company expects to begin capturing carbon in 2025 and at scale in 2026.While much of the activity and buzz around BECCS is outside of the U.S., USIPA believes there is now unfolding opportunity domestically as well. “BECCS is another bright spot where we are seeing continued progress,” Woodworth says. “In the U.S., the Inflation Reduction Act includes a tax incentive of $85 for every ton of CO2 sequestered, opening the door for wood pellet use in domestic coal-fired utility power plants.”As for domestic build-out in Canada, Murray says it’s similar to the U.S.—in areas off the gas grid—and that although the increase in biomass and pellet use is happening slowly, it’s steady, with some new opportunities on the table.Domestic Canada&nbsp;&nbsp; WPAC, which represents both the export and domestic sectors in Canada, has been focusing on growth in areas including the Northwest Territories, Yukon and Atlantic Canada, and Quebec. “They’ve got abundant electricity in Quebec coming out of Labrador and the north, but the Quebec government is able to export it down to the U.S. where they can make more money as opposed to selling it at a low cost to their citizens,” Murray says. “But we’ve found that there is support for policies within Quebec for the increased adoption of biomass.”WPAC’s big focus as an association is on New Brunswick and Nova Scotia, as the current gas line running through the provinces hits few of the main communities. &nbsp;“There are huge rural populations for which the only alternative is electricity or fuel oil,” Murray says. “We know the cost of those are going up and carbon taxes are being introduced, and with population growth and aging electricity-generating infrastructure, it’s putting in a good opportunity for pellets. There is a pretty dirty electricity grid there with lots of coal generation, so we’re just slowly making headway—organically, I would say. A school here and a hospital there. We’ve got some university campuses, swimming pools and government buildings, and we’re just slowly making progress on our own without any kind of policy support.”In Nova Scotia, discussions are ongoing with the government to replace aging boilers in government buildings. “We did a building study with them and looked at a range of options and what the greenhouse gas output would be compared to heating oil, the existing option or switching to electricity or pellets,” Murray says. “In some cases, for the largest buildings, we looked at wood chip options as well. In almost all cases, the best solution ended up being wood pellets. We have a soft commitment from the NS government that, as the budget allows when they start phasing out these aging boilers and replacing them, we’ll have the opportunity to get into those government buildings.”WPAC has also been collaborating with NB Power, the primary electric utility in New Brunswick, on a work plan to phase out coal. “There’s a couple of strategic options that they’re looking at—it’s early on yet, but for the first time, the power utility is seeing how we’re an ally and not a competitor.” Murray adds that NB Power has a large, single-unit power plant (450 MW) at Belledune that runs on coal and mainly runs to handle winter and peak loads. “The government is looking seriously at converting it from coal to 100% biomass, and at the moment, they’ve got an expression of interest out for black pellet supplies,” Murray says. “They’re looking at both torrefaction and steam explosion technology, as they want to try to avoid the capital cost of converting. We know there’s been endless talk about torrefaction, but they’re committed to seeing if they can make it work and are taking expressions of interest from technology suppliers. So far, our operators are watching and observing, but we’ll see where this goes. They may end up being fully committed to it—determined to buy the product and offering long-term contracts. Then, I suppose our guys would certainly look at creating capacities and supply.”If the project moves forward, it could become operational within five years, Murray adds. “That’s a million-ton-plus opportunity there, and it would probably be the largest conversion in North America to date.”Contact: Anna Simet&nbsp; asimet@bbiinternational.com&nbsp;

2024-03-04 - Opportunities Ahead (Biomass Magazine)

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From power plants to steel mills to hospitals, the continued global push to decarbonize may lead to new market opportunities for wood pellet producers.

Opportunities Ahead

Engaging in proactive federal advocacy can bring with it elements of reading tea leaves. The cyclical nature of beltway policymaking requires trade associations to consider congressional calendars and election cycles and how they both impact the timing of federal advocacy with the best chance of bearing fruit. Vast legions of professionals stand ready to help organizations like the Pellet Fuels Institute, divine from these cycles of the best times to be in Washington D.C., walking the halls of Senate and House office buildings, engaging in the timeless dance that is sometimes called lobbying.Gauging the effectiveness of any specific lobbying effort can test the limits of even the most seasoned and experienced professional. The seeds of cynicism find fertile ground amongst those engaged in federal advocacy, and for good reason. A coalition of wood heat interests worked for over a decade toward tax credit parity for wood and wood pellet appliances before seeing portions of the Biomass Thermal Utilization signed into law. The ultimate goal of securing tax credits for qualifying appliances for not only residences but also business installations remains unfulfilled to this day. This industry, like most others, makes policy progress in fits and starts. Trade organizations weighing the value of their advocacy efforts by the metric of the passage of a specific bill will ultimately be left wanting. Instead, trade associations would be wise to view each policy objective as an opportunity to once again tell the story of their industry, why it is relevant in today’s economy and why it is worth a policy boost or protection from misguided overregulation.Consider the policy environment the Pellet Fuels Institute finds itself in today. A sharply divided Congress is struggling to simply keep the federal government open for business, punting on critical pieces of legislation like the Farm Bill and choosing instead a one-year extension, presumably to buy some time. The Pellet Fuels Institute cites several programs embedded in the Farm Bill as legislative priorities, including the Advanced Biofuels Payment Program, Community Wood Energy Grants and Wood Innovations Grants. Each of these has been utilized by our sector and warrants our continued advocacy. The Farm Bill is also home to a declaration of biomass carbon neutrality that will only grow in importance as energy policy is crafted to drive down the carbon intensity of everything from transportation fuels to heating spaces. If Congress has selected a date to debate the thousands of items within the Farm Bill, including the small handful of provisions of interest to wood pellet manufacturers, they haven’t shared it with the Pellet Fuels Institute. It would be easy to point to this murkiness and swear off federal advocacy completely, but this fatalistic approach fails to recognize the real value of education. How can any industry expect federal policymakers to consider the impact of policies and regulation on a sector if they themselves haven’t articulated it succinctly, over and over?Lawmakers don’t understand wood pellet manufacturing. Most don’t even have a basic understanding of wood product manufacturing, despite the enormous economic contributions the sector makes to many of their states. Their notion of how any sector functions is shaped by those professionals willing to spend the time required to educate them. Recognizing this simple reality and turning it into a mandate is as good as any specific legislative priority the Pellet Fuels Institute might identify for 2024. Congress needs someone to tell it about wood pellet manufacturing and why it is a vital cog in the wheel of sustainable forest products manufacturing in the United States. The Pellet Fuels Institute is that someone. Who else can be expected to clearly articulate the economic contribution of annualized residual purchases by wood pellet manufacturers year after year? Who else is prepared to explain how the value of every harvested tree is increased because there is a robust market for wood pellets? Who else will remind policymakers that wood pellets offer rural Americans a viable, price-stable option for home heating?Whether or not the Pellet Fuels Institute will succeed in securing an appliance tax credit for commercial installations or see a biomass neutrality declaration with some real teeth included in a reauthorized Farm Bill remains to be seen. What is crystal clear is that it is up to the Pellet Fuels Institute to tell the story of the sector, again and again. Author: Tim Portz&nbsp; Executive Director, Pellet Fuels Institute&nbsp; tim@pelletheat.org&nbsp; www.pelletheat.org&nbsp;&nbsp; &nbsp;

2024-03-04 - Our Evergreen Legislative Priority (Biomass Magazine)

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The Pellet Fuels Institute discusses the importance of advocacy efforts and the upcoming Farm Bill.

Our Evergreen Legislative Priority

Global wood pellet demand reached 46 million tons in 2023, up approximately 11 million tons from 2018—a 24% increase in just five years. That number is projected to reach up to 59 million metric tons by 2030, with a good chunk of that new demand coming from Japan.In the spirit of forecasts, I decided to look back at what previous predictions for global demand looked like—it was interesting, with vastly different perspectives. About a decade ago, one source predicted demand to reach 51 million tons by 2020. Another forecasted that European consumption alone would reach 42 million metric tons by 2020. And another organization estimated total global demand to land between 50 million and 80 million tons by 2020. None of those predictions were particularly accurate, but the major drivers of this industry—policy, subsidies and the weather—are not very predictable. However, a new driver may be to a certain degree, and that is commitments to decarbonization targets.In particular, heavy industry—cement, steel, lime, paper—or any entity that produces its own heat, power or steam using fossil fuels, including government buildings is facing increasing pressure to reduce emissions. Goals to reach net zero, with incremental reduction targets along the way, are becoming commonplace—and necessary. Our page-12 feature, “Opportunities Ahead,” explores some of the potential applications unfolding for wood pellet manufacturers. In the article, I chat with Gordon Murray, executive director of the Wood Pellet Association of Canada, and he highlights decarbonization efforts in Taiwan and the work WPAC is doing to demonstrate the benefits of wood pellets, from larger-scale power plants to smaller boiler applications. Though Murray represents Canadian producers, these opportunities aren’t exclusive to them, and he is sure to mention that, saying, “I think that if we’re going to make something happen in Taiwan, it will take everyone to come together for that supply. It’s no good if one country or one supplier holds the opportunity to themselves, and then they don’t have enough critical mass to make the thing take off—I think it’s going to take all of us.”Rachael Levinson, associate director at Hawkins Wright, also discussed opportunities in industrial applications, saying that although it could be substantial and there has been a great deal of interest, it’s early on. She also gives a nice rundown of policy updates by country, from Japan to Europe.Our second feature article features Prairie Clean Energy, which has launched an operation in Saskatchewan to produce flax straw pellets, some of which will be used to help heat potash mines, replacing coal (the province produces 30% of global potash and has an abundance of flax straw waste). They’ll also be sold to customers outside the province for heat and power production as well as animal bedding in the short term. Mahmood Ebadian, PCE chief product and supply chain development officer, told contributing writer Keith Loria that these ag pellets should not be viewed as competition for wood pellets—rather, as a compliment—and that's what trials to date have indicated, despite their higher ash, nitrogen and chlorine content. “Our product has been tested by major users of wood pellets, and we have not run into any major setbacks to stop these facilities from using large quantities of flax straw pellets,” he says.I hope you enjoy this issue of Pellet Mill Magazine, and if you’re reading this at the International Biomass Conference &amp; Expo, be sure to stop by booth 701 and say hello.Author: Anna Simet&nbsp; Editor

2024-03-04 - Ample Opportunity Amongst Decarbonization Efforts (Biomass Magazine)

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The current issue of Pellet Producer Magazine addresses global wood pellet demand, market opportunities, industrial applications, and a Canadian business focused on the production of flax straw pellets. 

Pellet Mill Magazine Issue 1 2024

Columns

Our Evergreen Legislative Priority

Ample Opportunity Amongst Decarbonization Efforts

Featured

Fueled by Flax Straw

Opportunities Ahead

Contributions

Unlocking Efficiency Through Advanced Lubrication

A Snapshot of European Pellet Plant Design

Pellet Mill Magazine Issue 1 2024.css-7jxktu{position:absolute;bottom:0px;left:0px;right:0px;height:3px;border-radius:3px;background-color:var(--chakra-colors-brandBlack);}

Columns

Our Evergreen Legislative Priority

Ample Opportunity Amongst Decarbonization Efforts

Featured

Fueled by Flax Straw

Opportunities Ahead

Contributions

Unlocking Efficiency Through Advanced Lubrication

A Snapshot of European Pellet Plant Design

Pellet Mill Magazine Issue 1 2024