Helius Energy: generating power from biomass

Monday, January 05, 2009

John Seed, chief executive, Helius Energy plc

Helius Energy was established to develop, install and operate biomass fired renewable electricity generation plants to address the need created by the increasing importance that has been given to climate change internationally. Helius’ projects are designed to mitigate climate change by helping to cut greenhouse gas emissions quickly. Biomass is sometimes overlooked as a renewable fuel, lacking the perceived novelty value of anaerobic digestion and being a more established technology than other forms of bioenergy. However the market for biomass, whether from recycled wood, processing co-products (such as distillers grains), agricultural wastes or energy crops is growing rapidly.Biomass is a low carbon energy source. Biomass fuels absorb carbon dioxide from the atmosphere as they grow, and this is then released when they are processed to create power. Therefore they are sometimes referred to as being carbon neutral. However, while the growing and processing of biomass fuel generates some carbon, the overall amounts of CO2 produced by the whole cycle are much less than for generating energy from fossil fuels such as coal.In the last year, plans for the development of more than 1,500 megawatts of electricity generation from biomass have been announced in the UK, around the capacity of a typical nuclear power station. Add to this the increasing quantities of biomass being co-fired in large coal plants and there is a huge, and growing, market for solid biomass fuels in industrial sized operations.However, already a number of project developers are finding that there are practical issues which must be overcome in order to realise their ambitions, and the market is beginning to recognise differences between speculative announcements and serious project proposals from dedicated biomass energy specialists like Helius Energy.Since Helius Energy was admitted to AIM some two years ago, the company has delivered on the milestones set at its admission and laid a solid foundation for growth. During a very busy last 12 months Helius was able to secure Governmental planning approval (under Section 36 of the Electricity Act) for its first 65MWe project at Stallingborough in North East Lincolnshire, while it raised £2m for short term working capital and successfully negotiating long term feedstock and construction contracts for the plant. This was followed by the successful sale of Stallingborough to RWE, for £30m. Furthermore, the deal provides Helius with sufficient cash resources to continue to develop, and ultimately own and operate, a portfolio of bio-mass power plants which it plans to run on environmentally sustainable bio-mass feed-stocks.Since closing that deal the management, led by CEO John Seed, has agreed terms to secure an 18 acre site at Bristol Avonmouth for a new 100MWe power plant, the next in its intended pipeline of projects. Avonmouth fits with Helius Energy’s strategy to develop plants that are close to quayside sites, with good logistics and suitable connections to the electricity network.Biomass fuel feedstocks will comprise wood fuel in the form of virgin and recycled wood, energy crops and other biomass material such as residues from processing cereals and oilseeds that qualify as renewable fuels under the provisions of the Renewables Obligation 2006.These achievements build on the company’s plans in Scotland for a scheme to transform distillery by-products into renewable electricity, usable heat and organic soil conditioners. These modular biomass power stations are capable of utilising wet biomass, located alongside existing industries which produce suitable co-products. Helius and The Combination of Rothes Distillers Limited (CoRD) plan to develop a GreenSwitchTM small scale biomass Combined Heat and Power (CHP) generation plant. This will generate 7.2 megawatts of electricity, to be used within the site and exported to the national grid. This represents enough electricity to power 9,000 homes.The GreenSwitchTM project will use a combination of co-products, draff and pot ale from distillery operations, as well as wood chip from sustainable sources, to generate electricity, as well as heat for the Rothes site. In addition any surplus power will be exported to the national grid. Use of Helius Energy’s novel GreenFields™ technology also allows the production of valuable inputs such as organic soil conditioner or animal feed. The CHP plant will replace CoRD’s current dependence on fossil fuels, saving an estimated 46,642 tonnes CO2 a year compared with an equivalent level of generating capacity from a coal fired station. The company is looking to encourage take up of heat from their plant through a community heating scheme.Helius Energy’s contribution to reducing the carbon footprint of other agricultural and industrial processes using novel and integrated technologies such as GreenFields™ and GreenSwitch™, in Scotland was recognised last month at the Scottish Green Energy Awards, where Helius were awarded the Best Environmental Initiative award.