Biomass to energy in the Tees Valley

Mar 13 2007 By Dermot Roddy, The Journal

By Dermot Roddy Chief Executive, Renew Tees Valley - Helius Energy plc, the first dedicated biomass-to-energy company to list on the Alternative Investment Market (AIM), has confirmed that it has acquired an 18-month option on a site adjacent to Hartlepool Nuclear Power Station for one of its first UK plants.

Helius, which has established an office in the Tees Valley, identified the site, together with one to the south of the Humber estuary, as meeting a string of key criteria.

These include being adjacent to heavy industry and close to road, rail and a deep-water port, as well as potential feedstock from agriculture, forestry, food, drink and road transport fuel processing industries.

With its ambitious plans to establish a string of biomass to energy plants in the UK and South Africa, and its high profile flotation on AIM earlier this year, Helius Energy's public endorsement gave the Tees Valley a major promotional boost as a centre for biomass. Dermot Roddy, chief executive of Renew Tees Valley, is confident that potential biomass investors who investigate the potential of the Tees Valley will find plenty to support Helius' judgment.

SembCorp Utilities has already started recruiting some of the 15 personnel who will operate one of the country's largest biomass renewable energy projects at the prestigious Wilton International manufacturing site. A £60m project that has supported 400 construction jobs, Wilton 10 will generate 30MW of electricity, as well as steam, from 300,000 tonnes per annum of wood from recycled timber and forestry/sawmill waste, as well as specially grown energy crops.

At the head of the supply chain that has developed to serve Wilton 10 is the country's largest wood recycling plant, which was commissioned by UK Wood Recycling on the Wilton International site earlier this year. 40 jobs will be created.

Wilton International, incidentally, is also one of three prime Tees Valley locations for liquid biofuels production. The availability of power and steam generated from biomass will further increase its ability to provide a solution to one of the environmental downsides of biofuels - the high volumes of CO2 emitted during the production process.

Ensus, one of the four companies which last year announced plans to construct a bioethanol plant in the Tees Valley, calculates it will achieve a 50% improvement in green house gas emissions at Wilton International, compared with plants using a simple gas- fired boiler and taking electricity from the grid.

The synergy between these two key renewable energies also extends to feedstock. One of the co-products of bioethanol production is Dried Distillers Grain Solubles (DDGS) - Ensus alone would produce around 400,000 tonnes annually - which provides a convenient and local source of feedstock for biomass to energy plants.

TALL OIL

Access to a deep water port and excellent road and rail links were also key factors in attracting one of Europe's leading bio-energy companies to the Tees Valley to help spearhead the use of biomass as an environmentally benign and economical replacement for traditional fossil fuels in both the industrial and domestic sectors.

Swedish-based Tall Oil set up a 7,000 tonne capacity storage and distribution depot in co-operation with Cleveland Potash Limited in 2005 to receive shipments of wood pellets for onward distribution to customers in the North of England. Storage capacity is being increased to a planned 60,000 tonnes, which will make the store one of Europe's largest biomass distribution facilities.

It has also brought the benefits of Swedish expertise in biomass combustion to UK customers, generating a range of supply chain opportunities for boiler conversions and the distribution and installation of wood burning stoves.

ENERGY AND ENVIRONMENT FAIR 2007

The growth of the renewable energy and waste management sectors in the Tees Valley has been one of the North East's major industrial success stories over recent years. In addition to the high profile projects that are bringing massive inward investment to the Tees Valley, the environmental industries are providing opportunities for established companies to diversify, creating new supply chain opportunities and inspiring a new generation of innovative entrepreneurs.

The history of the Energy and Environment Fair, which was first staged by Renew Tees Valley in 2004, reflects the growth of these sectors. A one-day event with a strong Tees Valley bias, it attracted such a positive response that it was expanded into a two-day event for 2006, featuring an exhibition, a conference, and a diverse programme of seminars, workshops, surgeries and presentations. 2006 also saw the launch of the Energy and Environment Industry Dinner and Awards to provide a shop window for the range of activities and talents that have put the Tees Valley at the leading edge of these key sectors.

The clear message to emerge from participants and delegates was that the event should be an annual celebration of the contribution the environmental industries are making to the regional economy.

The Energy and Environment Fair 2007 will once again be held in September. If you are interested in attending as an exhibitor or a delegate or require further details, please contact Paul Jackson, commerce and community enterprise manager, at Renew Tees Valley Limited, South Tees Business Centre, Puddlers Road, Middlesbrough TS6 6TL; email: pajackson@renewteesvalley.co.uk.