A recent report conducted by Vedantix found that biomass investors are in risk of failing to meet operational goals because the country's biomass sector could only meet five to ten per cent of the forecasted 2014 demand.
The Department for Energy and Climate Change (DECC) had earlier set a target to generate 15 per cent of the UK's renewable energy needs from biomass by 2020. However, the research found that supply chain cost concerns could block planned investments. Analyst James Pinney said that plans to expand the use of biomass in the UK for power generation will not be materialized unless vital supply chain challenges are resolved.
Author of the 'Smart Vendors: Biomass Supply Chain' report, Pinney informed that the UK's low volume supply means that power generators will annually import millions of tonnes of elephant grass, olive pellets, palm kernels and wood chips to fuel biomass facilities. However, worries still surround the cost and reliability of importing biomass from nations like Canada, Malaysia, Russia and Sweden.
Meanwhile, the paper also analysed the role of 14 firms in the supply of biomass . Verdantix identified the following companies as active in the UK's biomass supply chain: AW Jenkinsons, Balcas, Biojoule, Eddie Stobart, EDF Trading, Energy Power Resource Limited (EPRL), The Energy Crop Company, Euroforest, Forestry Commission, Forever Fuels, Land Energy, Lantmannen, Silvigen and UPM Tilhill
Moreover, the research stated that energy companies, such as Drax Group and MGT Power, are planning to build seven more biomass plants by 2014 to generate a total capacity of 2.1 GW, enough to power 600,000 homes in the UK.
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