Quarter 1 2013 Pellet Mill Magazine

Page 17

Pellet News Âť Georgia to get pellet export terminal

SOURCE: EIA, INNOVATIVE NATURAL RESOURCE SOLUTIONS, ANALYSIS BY FUTUREMETRICS

Low-cost natural gas to benefit bioenergy A white paper released by FutureMetrics Inc. finds that wood-to-energy projects will significantly benefit from low-cost natural gas. This includes European wood pellet export operations, as well as the domestic wood pellet boiler sector. FutureMetrics based its assertion on the prediction that the U.S. will see a rapid transition from gasoline and diesel to compressed natural gas (CNG) transportation fuel, resulting in lower operation and transportation costs. This could potentially reduce woody feedstock costs, making them cost-competitive with pipeline natural gas and CNG. The paper suggests that because natural gas equates to roughly 40 percent of the price of diesel when used as a diesel replacement, the impact on wood prices could be significant. The paper also assumes that the price of CNG will be less volatile than diesel, as it is not exposed to geopolitical risk.

An export terminal once used for kaolin clay is being repurposed to provide Enova Wood Pellet Group LLC with 1.35 million metric tons of annual wood pellet export capacity at a single location. The group, a subsidiary of Enova Energy Group LLC, formed a long-term agreement with the port’s ownership group, Georgia Kaolin Terminals Inc., which is a subsidiary of Colonia Group Inc. Enova will use the port location for storage and shipment of wood pellets sourced from its production plants located in Georgia and South Carolina. The pellets will arrive at the port via rail. The Savannah terminal features 26 concrete silos, a railcar storage yard capable of handling 125 cars, a modern material handling system, and a 600 ton-per-hour railcar receiving system. The export portion of the facility also features duel ship loaders to minimize vessel shifting, an 800 ton-perhour continuous vessel loading rate, and a dust control system.

Q1 2013 | PELLET MILL MAGAZINE 17


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