¦PELLETS
W
ood pellet producers and biomass providers searching for a North America-to-Europe export supply contract will eventually find Henry Pease. As the senior biofuel portfolio manager for RWE’s Supply & Trading division, Pease leads a biomass trading and procurement group for the giant German utility provider. “We source between 2 to 3 million tons of wood pellets (annually) from all over the world,” he says, and because of his place in the global biomass market and his continual search for biomass, Pease says his team is familiar with all of the established producers and most of the companies close to startup, whether they operate in Finland or Florida. When Pease and his European counterparts talk about biomass trading and procurement, and generally comprehending the wood pellet export/import market, two things become clear: experience is favored, yet change is inevitable. They explained the FINAL DESTINATION: Several of Copenhagen Merchant’s partnering ports in Denmark bag pellets basics of wood pellet supply contracts, the onsite after receiving shipment. truths of long-term agreements, and why, even though firms like Pease’s prefer to work with established bio- Pease explains, “the boat doesn’t always finish where it said it was mass suppliers, the wood pellet supply contracts of the future will be going to finish.” The final destination of a cargo ship loaded with formed with companies that don’t yet exist in the marketplace today. biomass however, should be of little concern to those who produced the biomass. From Pease’s perspective, a pellet producer or biomass Pellet Contract Basics supplier should be concerned with two things only: producing, and To start, all biomass and pellet suppliers based in North Amer- continuing to drop the price of production. “Our role as a trader is ica need to know that as the biomass fuel heads towards Europe, as to optimize the supply chain,” Pease says, “to have a portfolio of sup-
FACTORY SALES & ENGINEERING, Inc. BIOMASS BOILER & ENERGY SPECIALISTS INDUSTRIAL AND UTILITY APPLICATIONS Turnkey Boiler & Cogeneration Projects Direct Fired Hot Gas Energy Systems for Rotary Dryers Biomass Fired Thermal Oil Heaters for Process Heat or ORC Power Generation
Combustion Options include Fluidized Bed, Reciprocating & Vibrating Grate Technologies, & etc. Heat Recovery Steam Generators (HSRG) After Sales Parts & Support, Maintenance & Repair
Flexible Solid Fuel Combustion Capabilities
www.fsela.com 26 BIOMASS MAGAZINE | JULY 2012
PH: 985.867.9150 FAX: 985.867.9155 E: salesinq@fsela.com