Biomass-pellets in the Power Plant Sector – A Market Analysis

Project Number 280

Energy supply of biomass is gaining increasing importance in the energy- and environment-political discussion. Thus also for application of industrial pellets in power- and/or combined cycle plants a very dynamic market has developed during the last years; it will significantly develop and thus also change in the future.

In this project, quality guidelines/-standards for pellets as well as available quantities and price potentials are compiled for the market analysis on application of industrial pellets on the power- and combined cycle plant sector. Moreover, the energy economic marginal conditions for the application of industrial pellets are analysed in detail, including feeding compensations and CO₂-certificates in selected European countries.

The study gives an overview over possible substances in production of industrial pellets for the power plant sector. Further, the actual market situation as well as its potential development by 2010 is discussed. The study shows the price development to be expected for industrial pellets.

Procedures of power- and combined-cycle technologies are described and compiled, which have been practically tested for application of industrial pellets of various qualities and are expected to be easily realised.

The study is headed by Professor Dr. Martin Kaltschmitt of Institut für Energetik und Umwelt gGmbH under co-operation of Deutscher Energie-Pellet-Verband e.V. The results are expected in autumn 2006. The project is being supported by the Working Panel “Biomass”.