BIOMASS A ComTechAdvisory Whitepaper world leader in these technologies and supply chains. The switch to wood pellets has also had an impact on supply chains making them longer and more complex. A 2015 UK Government publication demonstrates this,“ In 2008, Russia was the UK’ s largest single trading partner in wood pellets, with some 26 per cent of all UK imports; by 2014, these were almost negligible. Russian imports and those of several EU
countries( notably the Netherlands, Belgium and Spain) have been completely displaced by a large increase in wood pellet imports from the United States, whose share of total UK imports increased from five to 58 per cent between 2008 and 2014. The United States is now the largest exporter of wood pellets to the UK, ahead of Canada’ s 21 per cent share of the market.” 3
FUEL SWITCHING
Utilities and other generators that have switched to this form of biomass for generation have done so for a number of reasons including to meet renewable goals, produce and sell‘ green’ power at a premium, and obtain various credits and certificates that can defray costs and increase profits. The quantum and duration of the public subsidy required in the form of CFDs( Contract for Difference) are under attack from some quarters.
In order to be eligible for, and to process payments claims, proof is needed in the form of traceability and end-to-end GHG emissions documentation. In parallel there is a need to manage the supply chain effectively with respect to operational risk, logistics, and financial risks. Sufficient inventory needs to be acquired, shipped, and stored to meet the burn requirements of the generation facility. In turn, this has created a greater need for solutions that can help with the procurement, movement, inventory management, traceability, and use of biomass. To date there are few biomass logistics and traceability solutions available on the market that meet these“ end to end“ user requirements.
INCREASED COMPLEXITY AND LIQUIDITY
As supply chains grow more complex and longer, the operational risks increase. Being able to prove that wood chips were produced under mandated and sustainable circumstances, and demonstrate proper end to end supply chain GHG accounting and audit trails, and that the resulting power generated is truly
3. https:// www. gov. uk / government / uploads / system / uploads / attachment _ data / file / 462361 / Trade _ of _ wood _ pellets. pdf
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