UK, Denmark boost NWE biomass burn in Dec

  • Spanish Market: Biomass, Electricity
  • 12/01/22

A sharp year-on-year rise in wood pellet-fired generation in the UK and Denmark supported biomass burn in northwest Europe in December.

UK generation rose by 126MW to 2.6GW, data from National Grid's BMRS website show. This is equivalent to just above 1mn t of pellets, up by around 49,000t from December 2020, assuming 40pc efficiency, Argus calculates.

The increase was driven by stronger generation from Drax, whose output rose by 121MW to 2.2GW — an 85pc utilisation rate. This was despite unplanned outages at 645MW base-load unit 1, where output fell by 171MW — generation rose significantly at the utility's other three units.

Output at the UK's biomass-fired 396MW Lynemouth and 55MW Markinch plants was steady on the year, at 395MW and 55MW, respectively, in December.

Danish biomass burn rose to 730MW in December from 618MW a year earlier, according to Entso-E data for plants of at least 100MW. This was despite the 254MW Avedore plant running at just 156MW on 1-4 December and being offline on 5-13 December for maintenance.

French biomass burn rose slightly, while generation in Belgium and Germany fell.

Record generation in 2021

Record power prices provided a strong incentive for utilities across Europe to ramp up in 2021, with biomass-fired units no exception. European biomass-fired generation probably hit a record high in 2021, barring any major outages at Dutch co-fired plants. Available generation data suggest power plants in key northwest European importing countries burnt around 1.5mn t of additional wood pellets in 2021, assuming an average 40pc efficiency rate (see table). These figures exclude the Netherlands, for which data has not been published yet.

Danish biomass-fired output rose fastest in Europe last year — by 210MW to 557MW on an average hourly basis, Entso-E data show (see table). This would be equivalent to 970,000t of additional pellets burnt, assuming 40pc efficiency.

The UK, which is Europe's largest importer of pellets, recorded the next largest increase — by 127MW to 2.2GW — equivalent to just over 560,000t of additional pellets, assuming 40pc efficiency.

French burn rose slightly, while Belgian output fell, mostly as a result of the closure of the 80MW Les Awirs plant in August 2020. German biomass burn for power fell, although the country is mostly self-sufficient and trades smaller volumes than other European countries.

Dutch biomass-fired generation could turn out significantly higher for 2021, although data — available on a quarterly basis — for October-December is yet to be published. German utility RWE doubled its co-firing allowance by 225MW at the Netherlands' 1.5GW Eemshaven plant, effective from November. But only a part of this additional capacity might have become operational in the fourth quarter because of physical limitations at the site. Eemshaven was completely offline in May-November 2020 because of technical problems. Pellet-fired generation at Eemshaven and RWE's other Dutch plant, the 630MW Amer 9, increased in January-September.

Overall biomass-fired generation also rose in the rest of Europe in 2021 — equivalent to 456,000t of additional pellets, assuming 40pc efficiency — with the biggest gains in Finland, Spain and Italy.

Current forward power prices offer an incentive for generation to remain strong throughout 2022.

European biomass-fired output
MWMn t
20202021±20202021±
NWE* excluding Germany3,0263,35132514161
UK, Drax1,6911,8061157.98.40.5
UK, Lynemouth349375261.61.70.1
UK, Markinch5542-130.30.2-0.1
Denmark3475572101.62.61.0
Belgium252215-371.21.0-0.2
France332357251.51.70.1
Germany4,5854,475-11021.320.8-0.6
Rest of Europe2,6812,78710612130
Finland680744643.23.40.3
Czech Republic266284181.21.30.1
Poland276219-571.31.0-0.3
Italy653690373.03.20.2
Portugal37037561.71.70.0
Spain436474382.02.20.2
Total Europe10,29310,61332047.949.21.4
*efficiency assumed at 40pc; total y-o-y change is 316MW when adjusted for one additional calendar day in 2020, which was a leap year

Pellet-fired burn at key Dutch plants in Jan-Sep MW

December biomass burn up in NWE GW

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

06/05/24

Brazil state faces power outages after record flood

Brazil state faces power outages after record flood

Sao Paulo, 6 May (Argus) — Brazil's Rio Grande do Sul state is facing power outages following record floods that killed more than 80 people and forced over 130,000 people out of their homes. The extreme weather took three substations, 25 transmission lines, five hydroelectric plants and 11 power transformers off line, according to grid operator ONS. In response, ONS started importing power from neighboring Uruguay and requested that the 250MW hybrid natural gas and diesel Canoas and 345MW coal-fired Pampa Sul power plants increase power generation. Earlier today, an estimated 435,000 consumers did not have electricity. The rains affected 341 of the 497 cities in the state, where the government declared a state of emergency in 336 municipalities. The government is working to re-establish power to the state as quickly as possible, the mines and energy ministry said in a social media post. The ministry also held an emergency meeting early yesterday and today to guarantee fuel supplies in the state . State capital Porto Alegre is expected to receive more rain later this week, according to Rio Grande do Sul-based weather forecaster MetSul. Metsul warned that parts of the Porto Alegre metropolitan area could remain uninhabitable for weeks or months. Brazil's airline association Abear said that the Salgado Filho international airport will remain closed indefinitely, after the airport's runway flooded. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil hydroelectric dam bursts under record rains


03/05/24
03/05/24

Brazil hydroelectric dam bursts under record rains

Sao Paulo, 3 May (Argus) — Brazilian power generation company Companhia Energetica Rio das Antas (Ceran) found a partial rupture in its 100MW 14 de Julho hydroelectric plant following record precipitation in Rio Grande do Sul state. Flooding from the record rains has left 37 dead and forced more than 23,000 people out of their homes, causing widespread damage across the state, including washed out bridges and roads across several cities. Ceran reported that the dam of the hydroelectric plant on the Antas River suffered a rupture under the heavy rains and the company implemented an emergency evacuation plan on 1 May. Ceran's 130MW Monte Claro and 130MW Castro Alves plants are under intense monitoring, the company said in a statement. Rio Grande do Sul state governor Eduardo Leite declared a state of emergency and the federal government promised to release funding for emergency disaster relief. Leite said the flooding will likely go down as the worst environmental disaster in the state's history. Brazil's southernmost state along the border with Argentina has been punished by record precipitation over the past year owing to the effects of the strong El Nino weather phenomenon, according to Rio Grande do Sul-based weather forecaster MetSul Meteorologia. Brazilian power company CPFL Energia controls Ceran with a 65pc equity stake. Energy company CEEE-GT, which is owned by steel manufacturer CSN, owns another 30pc, and Norway's Statkraft owns the remaining 5pc. The state had declared a state of emergency as recently as September 2023 because of unusually heavy rains that resulted in the death of more than 30 people. Weather forecasters expect El Nino conditions to abate in the coming months over the eastern Pacific. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Beccs revenues 'dependent on sustainability'


03/05/24
03/05/24

Beccs revenues 'dependent on sustainability'

London, 3 May (Argus) — Danish state-controlled utility Orsted and UK utility Drax are increasingly dependent on sustainability criteria for their revenue streams from carbon removal (CDR) credit sales from bioenergy with carbon capture and storage (Beccs) projects, delegates heard at the Argus Biomass conference in London last week. "The key to be able to create such a project is to secure finance, which actually comes from the sale of carbon removal certificates," Orsted senior lead business developer for CCS David Fich said. Adding that the ability of companies to prove the sustainability of the biomass they source was now key to securing financing — including from CDR — for Beccs, and not only a matter of communicating that bioenergy and Beccs were environmentally friendly and carbon neutral businesses. Drax commercial director Angela Hepworth agreed: "Sustainability here is not a nice-to-have, this is the very foundation of our licence to upgrade and our ability to sell the credits and enable us to progress in these projects." Aligned standards within the industry and stronger incentives would encourage corporates to buy carbon credits against reputation backlashes, Hepworth added. Drax and Swedish utility Stockholm Exergi commissioned a methodology for measuring the net CO2 removal through Beccs published in October 2023, which was overall well-received by market participants. The utilities also presented it to the European Commission in the same month. A standardised approach to Beccs would encourage smaller buyers, which rely on certifications to identify the sustainable criteria of the carbon removal value chain when purchasing CDR credits, Fich said. While most larger corporates were doing their own due diligence. "The smaller buyers are those that are able to pay more," Fich said, adding that these companies were necessary to improve the liquidity of the market. Orsted signed a contract with Microsoft in May 2023 for the purchase of 2.76mn t of carbon removals over the next 10 years. Drax is also selling CDR certificates in the voluntary carbon market](https://direct.argusmedia.com/newsandanalysis/article/2441200) and is hoping to get the credits into the UK's trading scheme. Such deals "will help to make Beccs credits be seen in the more mainstream markets," Hepworth said. By Marta Imarisio Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Battery storage stands out in Japan clean power auction


02/05/24
02/05/24

Battery storage stands out in Japan clean power auction

Osaka, 2 May (Argus) — Japan's first auction for long-term zero emissions power capacity has attracted strong bidding interest with a plan to install battery storage, as investment in the power storage system is gaining momentum in line with expanded use of fluctuating renewable energy sources. Japan launched the clean power auction system from the April 2023-March 2024 fiscal year, aiming to spur investment in clean power sources by securing funding for fixed costs in advance to drive the country's decarbonisation by 2050. The first auction, which was held in January, has awarded 1.1GW capacity for battery storage, or 27pc of total contract capacity for clean power sources, excluding gas-fired generation that has been temporally included in the auction system to help ensure stable power supplies, nationwide transmission system operator Organisation for Cross-regional Co-ordination of Transmission Operator (Occto), which manages the auction, said on 26 April. Bidding capacity for battery storage totalled around 4.6GW, the highest volume among any other clean power sources. This means the contract ratio for storage batteries was 24pc compared with the 100pc ratio for ammonia co-firing, hydrogen co-firing , biomass dedicated and nuclear capacity, along with gas-fired capacity . Awarded capacity for battery storage as well as pumping-up electric power facilities reached 1.67GW, exceeding the 1GW sought by the auction. Japan has secured a total of 9.77GW of net zero capacity through the 2023-24 auction. Contract volumes covered 1.3GW of nuclear, 199MW biomass, 577MW of pumping-up electric power, 770MW for ammonia co-firing and 55.3MW hydrogen co-firing, as well as 1.1GW of battery storage. This also included 5.76GW of gas-fired projects. All winners under the auction can generally receive the money for 20 years through Occto, which collect money from the country's power retailers, although they need to refund 90pc of other revenue. The first auction saw total funding of ¥233.6bn/yr ($1.51bn) for decarbonisation power sources and ¥176.6bn/yr for gas-fired capacity. Japan's battery requirements are expected to continue rising, with uncertainty over future nuclear availability likely to spur Tokyo to accelerate the roll-out of renewable energy to meet a 46pc greenhouse gas emissions reduction by 2030-31 against 2013-14 levels — a target still far above the 23pc recorded in 2022-23. Japan will need to install 38-41GW of renewable capacity, nearly triple actual output of 14GW in 2019. Japan is looking to establish lithium-ion battery production capacity of 150GWh/yr domestically and 600GWh/yr globally by 2030. The trade and industry ministry projects the latter target will require 380,000 t/yr of lithium, 310,000 t/yr of nickel, 600,000 t/yr of graphite, 60,000 t/yr of cobalt and 50,000 t/yr of manganese. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia issues offshore wind feasibility licences


02/05/24
02/05/24

Australia issues offshore wind feasibility licences

Sydney, 2 May (Argus) — The Australian federal government has issued the first feasibility licences for offshore wind projects in the country following a competitive process, for up to 12GW of capacity off the coast of Gippsland in the southern state of Victoria and a potential further 13GW in the next stage. Six projects have received approval to explore the feasibility of offshore wind farms in the Bass Strait off Gippsland's coast, which was the first offshore wind zone declared in Australia at the end of 2022. Successful applicants include Danish investment firm Copenhagen Infrastructure Partners (CIP), Danish utility Orsted, Australian utility AGL Energy, European utilities EDP Renewables and Engie and Japanese utility Jera. The government also intends to grant another six licences, subject to consultation with First Nations groups. The 12 projects could have a potential combined capacity of around 25GW, the government said ( see table ). Projects that prove feasible will be able to apply for commercial licences and move to the construction phase if they secure financing, with the most advanced wind farms expected to start generating power in the early 2030s. CIP secured site exclusivity to develop two projects with a combined 4.4GW through a newly launched platform company Southerly Ten. The projects comprise the 2.2GW Star of the South, which claims to be the most advanced offshore wind project in Australia , along with the early stage 2.2GW Kut-Wut Brataualung. Southerly Ten is also developing the Destiny Wind project in Australia's second declared offshore wind zone off the Hunter region in New South Wales. Orsted was given one licence for a 2.8GW project and might receive another one for a 2GW wind farm. It said it will proceed with site investigations, environmental assessments and supply chain development, with a view to bid in future auctions planned by the Victorian government, which are expected to start in late 2025. Victoria is targeting 2GW of offshore wind capacity by 2032 and 9GW by 2040. "Subject to the above steps and a final investment decision, the projects are expected to be completed in phases from the early 2030s, with the aim to maximise dual site synergies through shared resources and economies of scale," Orsted said. The 2.5GW Gippsland Skies offshore wind project, belongs to a consortium made of Irish renewables firm Mainstream Renewable Power with 35pc, UK-based firm Reventus Power 35pc, AGL Energy 20pc and Australian developer Direct Infrastructure 10pc. The first phase of the project is expected to be operational in 2032, according to the consortium. The list of six projects already granted feasibility licences also include High Sea Wind, a proposed 1.28GW wind farm developed by EDP Renewables' and Engie's 50:50 joint venture Ocean Winds, along with Blue Mackerel North, a 1GW development by Japanese utility Jera Nex's subsidiary Parkwind. Parkwind is also developing another offshore wind project in Australia, with Australian utility Alinta Energy, the 1GW Spinifex in the Southern Ocean off Victoria, which was declared Australia's third wind zone in March. The other projects that might receive licences are being developed by companies such as Spanish utility Iberdrola, Spanish developer Bluefloat Energy, Australian firm Macquarie's wind developer Corio Generation, German utility RWE and a joint venture between Australia's Origin Energy and UK-based developer RES Group. By Juan Weik Australian offshore wind projects with feasibility licences Developer Capacity Licence Orsted Offshore Australia 1 Orsted 2.8 Granted Gippsland Skies Consortium* 2.5 Granted Star of the South Southerly Ten 2.2 Offered Kut-Wut Brataualung Southerly Ten 2.2 Granted High Sea Wind Ocean Winds 1.3 Granted Blue Mackerel North Parkwind 1.0 Granted Aurora Green Iberdrola 3.0 Under consultation Great Eastern Offshore Wind Corio Generation 2.5 Under consultation Gippsland Dawn Bluefloat Energy 2.1 Under consultation Orsted Offshore Australia 2 Orsted 2.0 Under consultation Navigator North Origin Energy, RES 1.5 Under consultation Kent Offshore Wind RWE N/A Under consultation Source: federal government, companies *Mainstream Renewable Power, Reventus Power, AGL, Direct Infrastructure Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more