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U.S. Port Pellet Projects Peaking
So far in this week’s wood pellet industry news, the North Carolina State Ports Authority is trying to work out deals with a couple of pellet companies to build sizeable facilities at two of the state’s ports. By Anna Simet | May 07, 2013 So far in this week’s wood pellet industry news, the North Carolina State Ports Authority is trying to work out deals with a couple of pellet companies to build sizeable facilities at two of the state’s ports. Though nothing is set in stone, details continue to be worked out with Enviva Holdings for a facility at the Port of Wilmington and International Wood Fuels for one in Morehead City, according to local reports. This reminded me of a story I wrote in early April, about a Mississippi bond bill that earmarked $10 million toward wood pellet export infrastructure that will be built at the Port of Pascagoula. Which reminded me of another story I wrote just a month or so ago, about Point Bio Energy LLC selecting the Port of Greater Baton Rouge, La., as the future location of a proposed $100 million wood pellet plant. And well, that story reminds me of yet another story I wrote a few months before that, about Drax Biomass’ plans to build three projects in the Gulf region, including a port storage and loading facility at the Port of Greater Baton Rouge. Those plants will annually produce around 900,000 metric tons of wood pellets annually, with full operations beginning in 2014. Anyone else seeing a trend here? Anyway, back to North Carolina, the N.C. State Ports Authority Board Chairman Danny McComas is quoted in the Sun Journal saying he really wants to get the wood pellet facilities to get off the ground so the ports can begin to focus on internal infrastructure, begin making money to start investing in the ports, repairs and capital improvements. That same attitude was expressed by Louisiana Economic Development regarding the Port of Greater Baton Rouge facility—it estimated that the project will generate $12.9 million in new state tax revenue and $9.6 million in local tax revenue over the next 10 years, bringing the port an estimated total of $825,400 per year. While it’s a very exciting time for the U.S. wood pellet export industry, it’s also an exciting time for the ports, communities and states that are set to hugely benefit from these projects. I have no doubt that more projects will continue to be added to the list. Continue reading
Cleaner Energy, Warmer Climate?
Tue, 05/07/2013 – 12:00am Massachusetts Institute of Technology The growing global demand for energy, combined with a need to reduce emissions and lessen the effects of climate change, has increased focus on cleaner energy sources. But what unintended consequences could these cleaner sources have on the changing climate? Researchers at MIT now have some answers to that question, using biofuels as a test case. Their study, recently released in Geophysical Research Letters , found that land-use changes caused by a major ramp-up in biofuel crops — enough to meet about 10 percent of the world’s energy needs — could make some regions even warmer. “Because all actions have consequences, it’s important to consider that even well-intentioned actions can have unintended negative consequences,” says Willow Hallgren, the lead author of the study and a research associate at MIT’s Joint Program on the Science and Policy of Global Change. “It’s easy to look at a new, cleaner energy source, see how it will directly improve the climate, and stop there without ever considering all the ramifications. But when attempting to mitigate climate change, there’s more to consider than simply substituting out fossil fuels for a cleaner source of energy.” Hallgren and her colleagues explored some of those consequences in considering two scenarios: one where more forests are cleared to grow biofuel crops, and one where forests are maintained and cropland productivity is intensified through the use of fertilizers and irrigation. In both cases, the researchers found that at a global scale, greenhouse-gas emissions increase — in the form of more carbon dioxide when CO2-absorbing forests are cut, and in the form of more nitrous oxide from fertilizers when land use is intensified. But this global warming is counterbalanced when the additional cropland reflects more sunlight, causing some cooling. Additionally, an increase in biofuels would replace some fossil fuel-based energy sources, further countering the warming. While the effects of large-scale expansion of biofuels seem to cancel each other out globally, the study does point to significant regional impacts — in some cases, far from where the biofuel crops are grown. In the tropics, for example, clearing of rainforests would likely dry the climate and cause warming, with the Amazon Basin and central Africa potentially warming by 1.5 degrees Celsius. This tropical warming is made worse with more deforestation, which also causes a release of carbon dioxide, further contributing to the warming of the planet. Meanwhile, Arctic regions might generally experience cooling caused by an increase in reflectivity from deforestation. “Emphasizing changes not only globally, but also regionally, is vitally important when considering the impacts of future energy sources,” Hallgren says. “We’ve found the greatest impacts occur at a regional level.” From these results, the researchers found that land-use policies that permit more extensive deforestation would have a larger impact on regional emissions and temperatures. Policies that protect forests would likely provide more tolerable future environmental conditions, especially in the tropics. David McGuire, a professor of ecology at the University of Alaska at Fairbanks, says these findings are important for those trying to implement mitigation policies. “Hallgren et al. caution that society needs to further consider how biofuels policies influence ecosystem services to society, as understanding the full dimension of these effects should be taken into consideration before deciding on policies that lead to the implementation of biofuels programs,” McGuire says. He adds that he finds Hallgren’s incorporation of reflectivity and energy feedbacks unique among studies on the climate impacts of biofuels. Beyond the climate While Hallgren focuses specifically on the climate implications of expanded use of biofuels, she admits there are many other possible consequences — such as impacts on food supplies and prices. A group of her colleagues explored the economic side of biofuel expansion as part of a study released last year in Environmental Science & Technology — a paper that was recognized as that journal’s Best Policy Analysis Paper of 2012. The team, led by Joint Program on Global Change co-director John Reilly, modeled feedbacks among the atmosphere, ecosystems and the global economy. They found that the combination of a carbon tax, incentives for reforestation and the addition of biofuels could nearly stabilize the climate by the end of the century; increased biofuels production alone could cut fossil-fuel use in half by 2100. But just as Hallgren found trade-offs when she dug deeper, so did Reilly and his team of researchers. “The environmental change avoided by reducing greenhouse-gas emissions is substantial and actually means less land used for crops,” Reilly says. This leads to substantial rises in food and forestry prices, he says, with food prices possibly rising by more than 80 percent. Hallgren says, “There is clearly no one simple cause and effect when it comes to our climate. The impacts we see — both to the environment and the economy — from adding a large supply of biofuels to our energy system illustrate why it is so important to consider all factors so that we’ll know what we’re heading into before making a change.” Continue reading
Demand for incense pushes up prices for Agarwood
The surging demand for incense has seen the price of Agarwood, its main ingredient, hit an all time high. Farmers near Hong Kong are being encouraged to plant more trees, but so far, only a few seem to be in it for the long haul. Across Asia, people prefer the natural scent of incense than more modern items like air fresheners or sprays. Seen burning in temples all across the continent, the unique aroma is created when a fungus infects aqularia trees, resulting in a darkening of the wood, which is called agarwood. Joey Yuen runs an incense store in Hong Kong. Her supplies were harvested a number of decades ago. “As agarwood became popular, a lot of people in China’s mainland would come over and log the trees and sell them. ” Agarwood is measured using the traditional Chinese unit of weight, the catty, which equals 600 grams. A pack of incense sticks can range anywhere from US$260 to even US$10000 per catty. But there’s a reason behind the high prices. “Only about 10% of the trees can have this fungal invasion, therefore development of the highly priced agarwood. So with such a surge in demand while the supply is declining all the time, it is natural to see the price going up and up all the time. That is why you now have a lot of people investing into incense tree farms because they see an opportunity for making a quick profit,” said Prof. Chi Yung Jim, University of Hong Kong. Chan Koon Wing has been growing and harvesting incense trees with his grandfather since childhood. Four years ago, Chan opened an incense tree farm, home to nearly 10,000 incense trees. But harvesting the cash crop is a slow process. “It’s like planting a normal tree, after eight years, you have to hurt the tree to force it to produce oil. Then you have to wait another five years for the oil to reach a high quality. Only then can it be harvested.” Despite the growth in tree farms, they are unlikely to satisfy the growing demand for agarwood. With natural supplies diminishing and farmed products requiring many years before they can hit the market, demand will continue to outstrip supply. Continue reading




