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Rising Demand In Europe For Wood Pellets As Alternative Fuel

In order to minimize waste and maximize energy efficiency, the 16 MW of thermal energy from the upgraded system generates 1.1 MW of electricity as well as heats the operation's wood pellet dryer.
by Staff Writers
Richmond VA (SPX) Nov 20, 2008
Intrinergy has announced that its German subsidiary, CompacTec KG, is doubling its wood pellet production capacity. Due to volatile and rising fossil fuel prices, the demand for wood pellets continues to grow throughout Europe.

Wood pellets are used in furnaces as a substitute for heating oil and natural gas. In Austria, for example, it is estimated that two-thirds of all new residential heating furnaces are pellet burners.

State-of-the-art cogeneration technology at the CompacTec facility converts renewable biomass into thermal and electrical energy. The thermal energy is used during manufacturing to dry the pellets while the electricity is sold to the local grid under the German green power program.

Drawing from local resources, the facility is fueled by waste material byproducts of sawmilling, planing, and general forestry activities. Production of wood pellets at the facility will increase from 5,000 to 10,000 metric tons per month. The wood pellets are marketed under the"1Heiz" brand.

"By using biomass to manufacture a sustainable alternative fuel for residential and commercial buildings across Europe, the CompacTec facility exemplifies the holistic approach of the Intrinergy solution," said John Keppler, chief executive officer of Intrinergy.

"In addition to the environmental benefits, the facility also realizes significant cost savings by using locally-produced biomass instead of fossil-fuels."

In order to minimize waste and maximize energy efficiency, the 16 MW of thermal energy from the upgraded system generates 1.1 MW of electricity as well as heats the operation's wood pellet dryer.

Although drying the wood pellets is the largest use of energy in the manufacturing process, it represents less than two percent of the energy available in the finished pellets, demonstrating the extraordinary efficiency of wood pellets as a fuel source.

In addition, green electricity from biomass provides a continuously-available base load, unlike other forms of renewable energy.

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