Smart Vendors: Biomass Supply Chain (UK)
Date: 11 November 2009
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11 pages, 5 figures
Executive Summary
Verdantix selected the biomass supply chain in the UK for a Smart Vendors report as resurgent oil prices and national renewable energy targets will see biomass become an increasingly important resource. This paper analyses the role of fourteen companies in the supply of biomass to three different UK market segments. Government activity is currently shaping UK demand through regulations, such as the Renewables Obligation and the Carbon Reduction Commitment (CRC), the development of feed-in tariffs and public sector pressure for renewable energy. The future evolution of the UK biomass supply chain will be significantly impacted by the opening of proposed major biomass power generation plants by firms like Drax Power and Prenergy in the next 3 years. Potential corporate investors in on-site biomass generation can expect to benefit from significant reductions to scope two emissions leading to high CRC league table performance and brand enhancement. Projects will be hindered by the size of required capital expenditure, fragile local supply chains and the size of plots required to build and operate biomass units and fuel storage facilities.
TABLE OF CONTENTS
INTRODUCING THE UK BIOMASS SUPPLY CHAIN
Defining The UK Biomass Supply Chain
Three Domestic Markets Are Fed By Two Supply Chains
STATE OF THE MARKET: UK BIOMASS SUPPLY CHAIN
The Biomass Market Is Shaped By Government Regulations
Biomass Power Generation Faces An Uncertain Future
Developments In Biomass Power Market Will Impact Local Supply Chains
BUSINESS CASE FOR SMALL-SCALE BIOMASS POWER GENERATION
The Business Case For Biomass Remains Uncertain
Capex And Uncertainties Slow Biomass Investments
TABLE OF FIGURES
Figure 1. Biomass Supply Chain Has Players From Numerous Backgrounds
Figure 2. Disaggregated UK Biomass Supply Chain
Figure 3. Map Of Proposed Large Scale Biomass Facilities In The UK
Figure 4. Biomass Plays A Significant Role In DECC’s 2020 Renewables Vision
Figure 5. Biomass Power Facilities Generate Positive Feedback For UK Supply Chain
Companies Mentioned
Aberdeen City Council, Alliance Boots, Alton Towers, AMM, AW Jenkinsons, Ayrshire Power, BAE Systems, Balcas, Biojoule, Birmingham New Hospital, Debenhams, Department of Energy and Climate Chaneg (DECC), Drax Power, Eco2, Eddie Stobart, EDF Trading, Energy Power Resource Limited (EPRL), The Energy Crop Company, E,ON, Euroforest, Forestry Commission, Forever Fuels, GE Real Estate, Goldman Sachs, HMP Swaleside, International Energy Agency (IEA), Land Energy, Lantmannen, MGT Power, NHS, Premier Inn, Prenergy, RWE npower, Sembcorp, Silvigen, Tesco, UPM Tilhill, US BioEnergy, Vital Energi, Welsh Power and Yorkshire Water