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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