Page 12

Verdo Generation

Verdo renewables

Verdo is determined to be the greenest, most efficient energy provider in Denmark, which is why

Richard Smith Divisional Director Verdo Renewables

we now exclusively burn biofuels in our CHP plant at

Difficult

Randers. We do so for the sake of the future, and because it makes financial sense. Concurrent production

UK market

of heat and electricity is green common sense, because it makes maximum use of the fuel burned. And given the location of the plant on the harbour, we ensure the most efficient transport of the 240,000 tons of biomass we use every

Verdo Renewables specialises in the production and distribution of

year – to the benefit of our finances and the environment.

environment-friendly, sustainable biomass-based fuels in the UK, with wood pellet and briquette plants in Scotland and England respectively. Head office is near London, from where energy consultancy and the buying and selling of bio-fuels are coordinated.

Acquisition of decentralised Combined

Heat and Power (CHP) plant The biggest event of the year for Verdo Generation was the acquisition of the Grenaa CHP plant, a supplier of district heating, steam for industrial purposes and electricity to the grid. We have partially converted the plant to biomass fuel and are working on renewal of customer contracts, a process expected to be completed in late 2013. Our plant in Randers celebrated its 30th anniversary in 2012, and began to burn the wood chips imported from Ghana as fuel. We optimised operating processes and the flue gas condensation system, resulting in the highest degree of efficiency ever in 2012. A significant reduction of both CO2 and NOx has been achieved to the benefit of the environment and our finances, thanks to savings in environmental duties! We are

22

Annual Report 2012

Verdo Generation Amounts in TDKK

2012

2011

415,457

311,805

EBITDA

91,957

73,644

Operating profit or loss

34,686

23,516

Investments

23,642

27,064

Equity

38,526

115,602

Turnover

now in the process of establishing whether a nitrogen oxide removal system is feasible to reduce NOx emissions even further, and we continue to optimise the running of both CHP plants.

Henrik Bøgh Nielsen Divisional Director Verdo Generation

2012 was another difficult year, with stagnation in the heat supply sector due to a delay in government subsidies being introduced, causing commissioning of new installations to be postponed until 2013. Bulk exports of wood pellets were hit by currency fluctuations, causing one of our plants to run at reduced capacity for three months before being shut down from September to the spring of 2013. Finally, 2012 was the wettest year in the UK’s history, causing problems with high moisture content in our raw materials. Sales on the increase Q4 2012 saw sales on the increase, which continued into 2013 with record January sales. Focus on expanding the product range has paid off and we now offer wood pellets in sacks and bulk for heating

and animal bedding, plus as an alternative to cat litter. Hard work begins to bear fruit We believe that all the hard work we have put into Verdo Renewables over the last three years is beginning to bear fruit, and that we will see an improvement in results. Production at the Grangemouth plant is due to restart in May 2013 to build up stocks for the winter, which will reduce our production overheads and improve profits.

The British government has now implemented the Renewable Heat Incentive, designed to subsidise the use of wood pellet boilers. This is already attracting a number of different customers and a massive increase in installations is planned over the summer. We expect demand for wood pellets in the UK to rise by several thousand tonnes.

Verdo Renewables Ltd. Certification and revision LEC certification achieved late in 2011 made it possible for us to sell certificates for our green production in the UK in 2012. The planned revision of our two boilers was performed in the summer, when replacement of parts of the superheaters was found to be necessary because of corrosion. Renovation of the superheaters will be completed in 2013.

Amounts in TDKK

2012

2011

81,371

46,361

EBITDA

-36,979

-32,664

Operating profit or loss

-47,487

-36,087

4,006

21,082

-2,914

43,916

Turnover

Investments Equity

Annual Report 2012

23

Profile for Verdo

Verdo annual report 2012  

Verdo annual report 2012  

Profile for verdo-as