Large timber and paper companies have led the way when it comes to generating their own power using steam turbines. Today, the timber sector can not only generate its own power using internally-generated byproducts, but can also create a whole new income stream from this biomass.
The timber industry contributes up to 5% of national gross domestic product, and has an extremely complex value chain. Associated Energy Services (AES) has worked closely with sawmills and related downstream businesses for many years. “Somewhere in the value chain, thermal energy is required to condition or soften wood chips, or even dry them,” says commercial director, Dennis Williams. “The timber sector needs to ensure that its energy plants are efficient, reliable and resilient in the face of growing input costs and broader economic pressures.”
AES has helped improve boiler efficiency, steam quality and boiler reliability for several tissue manufacturers, a kraft paper producer, and a large board manufacturer. This was through cleaning up and reducing emissions, and including energy plant upgrades and project management.
Safety and asset care are priorities. Many plants within the timber sector are old, and Williams emphasises that pressure vessel safety is crucial. AES’s ISO 45001 certification, including the management and legal compliance of boilers, is therefore particularly important. Similarly, the company’s ISO 9001, ISO 14001 and ISO 45001 certification in energy plant operations and maintenance set AES apart from its competitors, who either have no ISO compliance or who have manufacturing compliance only. This is important in the timber sector, as AES is often responsible for the operation and maintenance of energy plants on sites in remote locations.
Branching out
Over the past decade, AES has witnessed extensive realignment within the timber value chain. “We are now engaging with companies looking to invest in new plant and equipment, providing them with more efficient energy and water utilisation throughputs and economies of scale – key operational and economic considerations,” Williams explains. He also points out that AES considers what clients plan to do with the biomass generated, and how to manage the quantities. “We try to find a solution using as little of this vital resource as possible, enabling our clients to sell the rest. Getting the right balance is imperative,” he adds.
However, there are challenges. High fuel costs mean transport of biomass from rural sawmills is expensive. “As timber biomass has a low calorific value, the actual content per mass is low, and bulk-loaded onto a 30-ton vehicle it might only yield 11 tons of fuel. If loaded with coal, there would be 25 to 26 tons of material with a far higher calorific value – potentially double – depending on how much moisture is in the wood biomass,” he explains.
Another challenge is the cost of biomass, a key deciding factor for new plant investment. “It all comes down to economics. The originator wants to sell it for the best possible price. So, while the burning of biomass rather than the burning of coal is preferable, our client may not be able to pay the price that the timber mill wants.”
Future growth
For AES, the timber sector is currently very fluid. “Many timber residue producers with spare biomass are trying to figure out what this new marketplace means for them. If they are not using the material themselves, they want to maximise what they can do with it. If AES wants to purchase it to convert into a fuel source for thermal energy, we need a 10-year agreement to secure the funding for a new biomass steam plant,” he notes. “The coal, gas and liquid fuels market is very established. We know the parameters and how the economics work. However, in the biomass space it is a bit of a ‘Wild West’ scenario, because companies are deciding what works best in this volatile, dynamic marketplace.
“In summary, whether AES is optimising operations and maintenance, or innovating around the use of biomass as a greener fuel source, we are confident that the timber sector provides a real ‘plantation’ of opportunity to assist plant owners in ‘seeing the wood for the trees’, and processing this as optimally as possible,” Williams concludes.
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