The Dutch government wants to make the co-firing of biomass in coal-fired plants mandatory. Amsterdam, transshipment and transport companies, traders — all are ready to provide Europe with biomass.
In the future it will be mandatory for coal-fired plants to co-fire biomass (usually woodchips or sawdust compressed to pellets), according to minister of Economic Affairs, Agriculture and Innovation Maxime Verhagen in the Dutch government’s 2011 Energy Report. Renewable energy must, over time, be able to compete with ‘grey’ energy (energy produced from fossil fuels such as coal and oil). By 2020, renewable energy should account for 14% of the national energy consumption, as opposed to 4% in 2010. Biomass is also gaining ground in Germany. Amsterdam is one of the ports where biomass will be imported by ocean- going vessels from source countries such as Canada, the United States and Brazil. Amsterdam is ready to become an important link in the growing transport of biomass.
 
GROWTH MARKET
“The Port of Amsterdam is strong in energy,” says managing director of the Commercial Department of the Port of
Amsterdam Koen Overtoom. “Most of the cargo that moves through the Port of Amsterdam consists of oil and coal. This provides the energy that the Netherlands, Europe and other countries in the world so greatly need. Everything we do requires energy.”
In the Netherlands, and increasingly in Germany, nuclear plants are controversial and the deployment of renewable energy is still very limited. Overtoom: “We will have to rely on coal and oil as sources of energy for the time being. However, it is our aim to become one of the most sustainable ports. In Amsterdam, existing terminals for fossil fuels are allowed to expand but we will not be building any new ones. We want to increase focus on bioenergy.” Biodiesel plants Greenmills and Vesta Biofuels are a prime example of this. Oil, coal and dry bulk companies are also investing in bioenergy. Due to the mandatory blending of biofuel in transportation fuels (petrol and diesel) — the target for the coming years being 4.25% in 2011 and at least 10% by 2020 — the transshipment and production of biofuels is already in full swing in the Port of Amsterdam.
 
READY FOR BIOMASS
Although the storage and transshipment of biomass has still to take off, port businesses recognize the potential of biomass and are starting to invest cautiously. As Amsterdam has a wealth of experience with dry bulk cargo such as fodder and oilseed, the introduction of biomass won’t pose any problems. The companies are in the process of drawing up the first contracts, but are all waiting for the legislation to become final. “We are confident that biomass will pick up speed within one or two years,” says Marco Holleman, Director of MAJA Stuwadoors, a specialist in the transshipment of dry bulk cargo.“We have one storage facility available and we will continue to invest as soon as there is more certainty about the import of biomass. The government should provide clarity on this.”
IGMA, a terminal for dry bulk cargo and subsidiary of Cargill, is in the process of negotiating, says Director Niels Boetje. “The most advanced project is wood pellets from Georgia (US). The paper production industry in Georgia used to be thriving. Now that less paper is being used, Georgia’s entire wood industry could be used for biomass as the ground is not suitable for crop production.” This is consequently also a sustainable solution, because biomass production would not replace the production of human consumption foods. Boetje expects to transship about 200,000 tonnes of biomass by the end of 2012, in particular for destinations in the Northern Netherlands and Germany. In anticipation of this, IGMA will build 5,000m2 of additional biomass storage facilities.
 
FLEXIBLE ENOUGH TO ADAPT
Bulk Terminal Amsterdam (OBA) is also conducting conversations with potential customers.“We have five storage facilities right under the cranes on our deep sea quay that can be used to store 110,000 tonnes of biomass,” says Hans Mattheyer, manager of the Commercial Department at OBA. “If demand increases, we are flexible enough to adapt because we see opportunities for expansion in covered storage.” According to Mattheyer, biomass is maturing as a product. “Five coal-fired energy plants in the south of the Netherlands are already blending in biomass. The cabinet decision to make co-firing mandatory for all coal-fired plants could result in a further increase of biomass supply. The developments in Germany are also important. The recent decision to close all nuclear plants over the next few years makes the question to which extent biomass will contribute to electricity generation in Germany very current. Germany is a huge potential market for biomass. These developments will strongly increase Amsterdam’s possibilities to play an important role in biomass logistics.”
 
BIOMASS IN GERMANY ON THE RISE
“The European market for biomass will grow due to mandatory
CO2 reduction,” says Ludger Spohr, Manager of Business Development at VIS NOVA Trading, one of Germany’s largest producers and traders of wood chips and wood pellets. In Germany, biomass is mostly used for heating public buildings and homes (with heaters). In 2011, biomass consumption is expected to reach 1.4mt (million tonnes), as opposed to 0.5mt in 2006. Growth expectations go as high as 140mt, but that is not just very optimistic; it is above all difficult to predict. Spohr continues: “This depends on so many factors, such as oil price, whether or not nuclear energy is phased out, government subsidies (currently for applications up to 20 megawatts).” The mandatory co-firing of biomass is not yet under discussion in Germany. Spohr:“We burn 250mt of coal per year in energy plants. A small percentage of mandatory co-firing would mean huge amounts of biomass being imported from overseas. The German government wants to be absolutely certain that co- firing is economically viable before making it mandatory.”
 
ATTRACTIVE PRICE AND SERVICE
Given the anticipated growth, as of this summer VIS NOVA will start buying and distributing wood pellets itself, in addition to importing wood pellets for customers. “The conditions in Amsterdam for the European import of biomass are excellent,” concludes Spohr. “Amsterdam is conveniently located. It is important that the price is attractive; minus 50 cent per tonne makes a huge difference given the amounts involved. Other important factors are storage facilities, a smooth running operation and whether or not the product is handled appropriately. No exposure to rain, for example.” The Port of Amsterdam supports the port businesses where possible by gaining knowledge, giving presentations in source countries and establishing contacts with hinterland customers, among other things. In co-operation with the Port of Duisburg, the Port of Amsterdam is developing a transshipment terminal to enable the storage and transshipment of biomass in Duisburg for customers from Amsterdam.
 
IMMINENT BREAKTHROUGH
The announced mandatory co-firing of biomass seems to herald a breakthrough. The Port of Amsterdam’s Koen Overtoom: “The overseas import of biomass in the Netherlands is currently around 1.5mt. By 2020, the need for import for the Netherlands and the hinterland (Germany, Scandinavia and Great Britain) will be an estimated 15mt, of which 6mt is expected to be moved through Amsterdam. As a result, the Port of Amsterdam will acquire a significant market share in the northwest European market for biomass transshipment.”