Fiscal incentives boost Danish biomass plans

Shell claims big future for "innovative" modular boiler burning waste sawdust pellets

A new type of biomass boiler unveiled in a Danish industrial park this week has "great potential in other markets," its developer, Shell Renewables, has claimed. The unit, burning waste sawdust pellets, has been installed at the Herning Ikast industrial park on the Jutland mainland. Shell says that bioenergy use in the Nordic region, currently running at about 180 TWh, could be doubled.

The boiler's design marks an advance for biomass technology, Shell claims, because it is modular and easy to install. The company is wooing customers by organising start-up, maintenance and finance for purchasers, which are expected to include industrial plants, schools, offices and hospitals.

Denmark was chosen to launch the boiler because its high fossil fuel taxes make biomass attractive. Heat produced would otherwise cost about twice the amount of conventional power. The firm believes, however, that economies of scale will reduce this considerably as use of biomass grows.

Follow Up:
Shell Renewables, tel: +44 20 7934 1234.

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