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Renewable forest energy - update

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Issue date: 
December 1, 2009
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Timber Procurement


Wood Energy features in the news from India and the United States.  An Indian power generation company has recently announced that negotiations are ongoing with “Green Energy Resources” with respect to a supply of more than 7 million tons of wood chips, valued at over $576 million over a 12-month period. Green Energy Resources sources its wood from urban wood waste streams, recycled wood, storm damage and tree farms.

The five year deal, would be valued somewhere in the region of $3billion and discussions are ongoing. As a part of their renewable energy obligations under the Kyoto agreement, India is planning to purchase in excess of 36 millions tons of wood chips annually from various sources worldwide, and India’s international procurement programme is reported to be well under way.

Based in the United States, Green Energy Resources, formerly, New York International log & lumber co. was founded in 1997.In September 2004, the name was changed to Green Energy Resources. Its forestry products are environmentally certified, Kyoto compliant, and Green Energy has a corporate goal of preserving global forests. They have a very positive outlook on wood energy markets. Their statement regarding wood fired power plants makes that position very clear.

“The emergence of a green energy demand in Europe comes at a time when waste wood is at an all time high in the United States. The European Unions’ Energy Council projects wood fired power plants will consume annually between 50 -110 million tons of wood. The venture is environmentally sound, benefits our trade balance, reduces an overabundance of supply, and is geographically positioned to fill the market demand” and  “Increasing the role of biomass in America’s energy future will help to improve our economy, environment, and energy security”.  Green Energy Resources produce biomass and woodchips for direct energy in order to reduce coal-polluting emissions in co-firing.

In order to meet the requirements for the Indian power plants,  Green Energy will have to make approximately 15 shipments per month, which in itself is quite a logistical challenge.


Extpub | by Dr. Radut