1.
NNFCC Market Review, October 2013, Page 1 of 8
Feedstocks
Highlights
Page 2 Land use
Page 2 Wood
Page 4 Crops
Page 6 Waste
Page 7 Events
Page 8 Feedstock Prices
NNFCC Market Review
Issue Nineteen, October 2013
ach month we review the latest
announcements and news from
across the global crops, wood and
wastes industries that supply bio-based
markets. This service is exclusively for our
members.
Foreword
Welcome to the October 2013 issue of our
market review for biomass feedstocks. This
month, a working group of the
Intergovernmental Panel on Climate Change
(IPCC) published its contribution towards the 5th
Assessment Report on Climate Change, due to
be published in October 2014.
The report, Climate Change 2013: the Physical
Science Basis, highlights the gravity of climate
change and concludes that we can be 95%
certain that the "human influence on climate
caused more than half the observed increase in
global average surface temperatures from
1951-2010." It therefore remains imperative that
any renewable form of energy demonstrates
significant emission savings on fossil fuel
comparators.
There has been much discussion in the UK over
the true carbon benefits of bioenergy this last
year following the release of a damning report
by the RSPB, FOE and Greenpeace entitled
Dirtier than coal? The report highlighted that
using biomass in place of coal could increase
carbon emissions by at least 49% over a 40 year
period.
However, a report published this month by a
collaboration of North American pellet and
European bioenergy associations has clarified
that such studies (which conclude that
bioenergy offers little value in reducing carbon
emissions) often use unrealistic assumptions over
forest management practices (e.g. use of whole
trees for bioenergy) which would correspond to
the delivery of poor economic returns. When
assuming that forests are managed efficiently,
the report concludes that large carbon savings
can be achieved following a short carbon
payback period of just 3 years.
The findings indicate that bioenergy can still
play an important role in decarbonising the
energy industry and mitigating the worst
impacts of climate change.
Read on for all the latest sector news.
E

2.
NNFCC Market Review, October 2013, Page 2 of 8
Land use
One billion acres of abandoned
cropland estimated to be available
for bioenergy production
Source: FWI
One billion acres of abandoned cropland
around the world could provide sustainable
energy storage, according to a new study
that promotes biomass as a key player in
sustainable energy development. Using these
lands for energy crops, instead of converting
existing croplands or clearing new land,
avoids competition with food production and
preserves carbon-storing forests needed to
mitigate climate change.
The study, published by the Department of
Global Ecology, Carnegie Institution,
estimates the global extent of abandoned
crop and pastureland and calculated their
potential for sustainable bioenergy
production from historical land-use data,
satellite imaging and ecosystem models.
The study lists three broad categories of crops
that have potential for bioenergy: food crops,
local native plants and special bioenergy
crops such as switchgrass or elephant grass.
Using a wide range of biomass yields and
conversion efficiencies, potential bioenergy
production has an upper-limit of 5%-30% of
the current US primary energy demand,
according to the study.
The largest potential for production is in the
US, followed by Brazil and Australia—all of
which have extensive areas of abandoned
crop and pasture lands. Within the US, the
east and mid-west have the greatest
potential.
Click here for more information.
Wood
Electricity from wood pellets yields
quick carbon savings according to
new report
A new report prepared by the European
Biomass Association, BC Bioenergy Network,
U.S. Industrial Wood Pellet Association and
Wood Pellet Association of Canada says
wood pellets imported to Europe from the
Southeast U.S. and British Columbia, Canada,
for electricity production have immediate or
very rapid contribution to climate change
mitigation.
The report, “Forest Sustainability and Carbon
Balance of EU Importation of North American
Forest Biomass for Bioenergy Production”,
states that there are fundamental flaws in
prominent studies that have found forest-
based bioenergy to be associated with long-
term carbon deficits and long carbon
repayment periods. Specifically, those studies
are generally based on modeling
assumptions that do not correspond with
current and expected production and are
therefore not representative of actual industry
practices.
A central finding of this study is that when
realistic assumptions are applied, production
of energy from woody biomass results in
carbon debt and foregone sequestration that
are very small compared to the substantial
carbon savings that are achieved over time.
The report further concludes that there is a
critical difference between a small and
temporary “carbon debt,” when one might
exist, and the permanent fossil carbon
emissions savings achieved by use of
bioenergy rather than fossil fuels.
Click here for more information.

3.
NNFCC Market Review, October 2013, Page 3 of 8
Impact of climate change on forests
requires early action
Forest managers are encouraged to take early
action in response to climate change, Source: FAO
Early action and more investments are
needed to respond to the threats of climate
change on the world's forests. It will probably
cost less to adjust forest management
strategies immediately to the impacts of
climate change than to react to the
aftermath of climate-inflicted damage, FAO
said in its new Climate change guidelines for
forest managers.
Early action will also help to improve the
livelihoods and food security of local
communities. Decreased forest ecosystem
services, especially water-cycle regulation,
soil protection and the conservation of
biodiversity, may affect millions of people in
rural areas, who use forests for food, fuel,
timber, medicines and income.
The document provides guidance on how to
identify, assess and prioritize options for
adjusting forest management practices in
response to climate change.
Click here for more information.
Canadian pellet production,
consumption grows rapidly
An annual Canadian bioenergy report filed
with the USDA Foreign Agricultural Service’s
Global Information Network provides an
overview of the rapidly expanding Canadian
pellet industry. Citing data provided by the
Canadian Wood Pellet Association, the report
notes that Canada was home to 42 pellet
plants in 2012, with a combined capacity of 3
million metric tons. Approximately 65 percent
of that capacity is located in British Columbia.
In 2010, the country had only 33 plants with a
combined production capacity of 2 million
tons. Capacity is expected to reach 46 plants
and 3.7 million tons this year.
Canadian pellet producers have utilized
approximately 66 percent of capacity in
recent years, producing 2 million tons of
pellets in 2012. Production is expected to
reach 2.5 million tons this year, and increase
to 3.2 million metric tons in 2014.
Last year, Canadian producers exported 1.4
million metric tons of pellets. Exports are
expected to increase to 1.7 million tons this
year, and 2.2 million metric tons next year.
Domestic consumption of pellets in Canada
has also increased in recent years, rising from
65,000 metric tons in 2011 to 233,000 metric
tons last year. Consumption is expected to
reach 690,000 metric tons by next year.
Click here for more information.
Stobart wins new biomass contract
The Western Bioenergy biomass plant in Port Talbot,
Source: Lets Recycle
Stobart Biomass has signed a 15-year
feedstock contract for the 14.7MW Western
Bioenergy Limited biomass facility in South
Wales, which will see a ‘significant’ increase in
the amount of waste wood processed at the
plant.
According to Stobart,around 150,000 tonnes
of virgin and waste wood will be provided by

4.
NNFCC Market Review, October 2013, Page 4 of 8
Stobart under the contract the contract.
Initially, a mix of 80% virgin wood and 20%
grade A recycled wood will be supplied,
moving to 57% and 43% respectively following
planned upgrades to the plant, which are
due to begin in summer 2014.
The biomass fuel company, a subsidiary of
Stobart Group, will supply around 50% of the
feedstock itself and manage and process the
remainder, which will be supplied by an
unnamed third party. At present, Western
Bionergy gives the Forestry Commission as the
largest single supplier to the plant.
Furthermore, Stobart Group’s estates division
has invested £800,000 to take a ‘small’ stake
in the Port Talbot plant, which has just been
acquired by Green Investment Bank (GIB)’s
fund, Greensphere Capital LLP.
Click here for more information.
Pellet facility at North Carolina port
approved
Port of Morehead City, Source: Port Strategy
North Carolina's Council of State has
approved a 20-year agreement between the
North Carolina State Ports Authority and
WoodFuels L.L.C. concerning the construction
of a wood pellet export facility at the Port of
Morehead City.
According to the pact's terms, WoodFuels
would finance and build a $25 million export
facility at the port to receive, store and load
wood pellets for export to Europe, where the
material would be used as a renewable
energy source. The facility would receive the
first shipment of pellets in late 2014.
The development is expected to generate
annual revenue from $1.2 million to $2 million,
and provide $840,000 that could be
reinvested into the Port of Morehead City
each year.
Earlier this year, the authority completed a
deal with Enviva Holdings L.P. to construct
and operate a similar facility at the Port of
Wilmington by early 2015.
Click here for more information.
Crops
US corn sales fall most since ’75 as
farmers harvest crop
The biggest fall in demand for US corn since
1975 in the past year has left a bigger-than-
forecast surplus stacked in silos just as farmers
begin reaping what the government says will
be the world’s largest-ever crop.
Domestic consumption and exports fell a
combined 10 percent in the year ending
August 31, government data show. Total
supply after the harvest starts this month will
rise 24 percent to 14.5 billion bushels (369
million metric tons) as fields recover from last
year’s drought, according to the average of
28 analyst estimates compiled by Bloomberg.
Goldman Sachs Group Inc. analysts say corn
will drop to $4.25 a bushel in three months, or
6.1 percent below current price.
The U.S. will reap 28 percent more corn this
season, doubling inventories before next
year’s harvest after losing market share to
shippers in Brazil, Argentina and Ukraine.
Global supply is surging after prices reached
a record $8.29 in 2012 and futures are
heading for the biggest annual drop in at
least five decades. Cheaper grain is boosting
profit for bioethanol producers such as
Archer- Daniels-Midland Co.
Click here for more information.

5.
NNFCC Market Review, October 2013, Page 5 of 8
Global hunger down, but millions still
chronically hungry
Some 842 million people, or roughly one in
eight, suffered from chronic hunger in 2011-
13, not getting enough food to lead active
and healthy lives according to a report
released by the UN food agencies.
The number is down from 868 million reported
for the 2010-12 period, according to the State
of Food Insecurity in the World (SOFI 2013),
published every year by the Food and
Agriculture Organization (FAO), the
International Fund for Agricultural
Development (IFAD) and the World Food
Programme (WFP).
The vast majority of hungry people live in
developing regions, while 15.7 million live in
developed countries.
Continued economic growth in developing
countries has improved incomes and access
to food. Recent pick-up in agricultural
productivity growth, supported by increased
public investment and renewed interest of
private investors in agriculture, has improved
food availability.
In addition, in some countries, remittances
from migrants are playing a role in reducing
poverty, leading to better diets and progress
in food security. They can also contribute to
boosting productive investments by
smallholder farmers.
The report underlines that economic growth is
key for progress in hunger reduction. But
growth may not lead to more and better jobs
and incomes for all, unless policies specifically
target the poor, especially those in rural
areas.
Click here for more information.
IFAD and FAO target small-scale
agricultural projects facing
challenges
The UN Food and Agriculture Organization
(FAO) and the International Fund for
Agricultural Development (IFAD) have
launched a new joint project to help
developing countries, particularly fragile
states, manage public investments in small-
scale agriculture more effectively.
The UN food agencies will co-finance the $2.6
million initiative focusing on countries where a
lack of strong national governance means
development projects can face serious
challenges in delivering results.
IFAD's Executive Board approved a $2 million
grant for the project in September 2013, while
FAO and participating countries will each
add another $300, 000 to the initiative.
Up to 15 projects in ten countries will be
targeted over a two-year period, with priority
given to projects that are already under way
but that are encountering difficulties.
FAO regularly works with its sister agency
through the FAO-IFAD Cooperative
Programme, which has seen over 300 joint
operations worth almost $9 billion between
1977 and 2012.
Click here for more information.
Egypt says biofuel use should be
evaluated amid food shortages
The use of grain and oilseed crops to make
biofuels should be “looked at in great depth,”
as countries face food shortages and high
prices, Egypt’s minister for agriculture and
land reclamation, Aymane Farid Abu Hadid

6.
NNFCC Market Review, October 2013, Page 6 of 8
said through a translator during a webcast of
a United Nations’ Food & Agriculture
Organization meeting earlier this month.
Aymane Farid Abu Hadid continued:
“The problem of the increase of food prices
has been very difficult in Egypt….We have
large numbers of people suffering from
malnutrition, which is why those foodstuffs
should be used for food and not fuel.”
Egypt is historically the world’s largest wheat
importer. The minister warned that
government is providing its poorest consumers
with food ration cards. The country is working
to improve storage and production facilities
to reduce the amount of food lost after
harvest.
Click here for more information.
Waste
The World Market for Waste
Incineration Plants 2013/2014
Research and Markets has announced the
addition of the "Waste to Energy (Analyst
version) - The World Market for Waste
Incineration Plants 2013/2014" report.
The annually published study is the world's
largest data collection and market analysis
for thermal waste utilisation.
The report states that throughout the world,
there are almost 2,200 energy-from-waste
plants. They have a capacity of around 255
million tons of waste per year. By 2017, a
further 180 plants, with a capacity of around
52 million tons, is expected to be additionally
constructed.
The report further includes:
 A detailed analysis of pros and cons,
technology and costs of waste
incineration, including all the important
political, economic, managerial and
technical trends.
 A description of the current and future
market volumes by countries, up to and
including 2017.
 A project list with new construction,
extension and renewal projects.
Click here for more information.
Multi-billion pound savings available
to the grocery sector
UK supply chain waste arisings, Source: WRAP
New innovative research launched by WRAP,
identifies how much food, drink and
packaging waste arises in the grocery retail
supply chain. It also looks at where in the
sector it arises, what the waste is, and how it is
managed.
The new data examines waste across the
supply chain and shows how waste is
managed, where food is being redistributed
to and where it is used as an ingredient in
animal feed. The report also assesses other
materials arising from the production of food.
WRAP estimates that there is 6.5 Mt of waste
arising in the grocery retail supply chain. From
this figure, 3.9 Mt arises from food and drink
manufacturers, and the majority of this is
food. Retailer’s main waste comes from
packaging which, in total, accounts for
around 1.2 Mt.

7.
NNFCC Market Review, October 2013, Page 7 of 8
It is estimated that food and packaging
waste in this area has a value of £6.9 billion.
This represents some 7% of the value of food
and drink sales to households, money which
could be used to increase exports or
investment to help individual businesses and
the economy to grow. By focusing on the
opportunities for improving waste prevention,
businesses can add the savings benefit
straight to their bottom line.
Click here for more information.
Cool Planet, Acritaz to turn palm
waste into biofuel in Malaysia
Palm plantation waste, Source: EcoSeed
Biorefinery developer Cool Planet Energy
Systems and Acritaz Greentech will be
building commercial facilities in Malaysia to
transform palm plantation waste products –
empty husks, wood, and bark waste – into
biofuel and biochar.
Acritaz Greentech, a group of companies
that bring biomass processing and bio-
technology innovations to plantations, has
signed an agreement with Cool Planet to
explore the building of multiple commercial
biomass processing facilities using Cool Planet
technology in Malaysia.
Acritaz and Cool Planet will use biomass raw
materials that are abundant in Malaysia –
such as palm plantation waste – to create
renewable cellulosic fuels for the Asian
market. They will develop a plant design that
satisfies the specific needs of Malaysia with
the first such plant to begin construction in
2014.
Acritaz will work to commit $60 million for this
first facility before the end of 2013. They plan
to locate this facility in the Malaysian state of
Johor.
The two companies will then work to build
multiple such facilities across Malaysia, with
Acritaz purchasing proprietary equipment
and consumables from Cool Planet.
Click here for more information.
Events
Health, Safety & Environmental
Management in Anaerobic Digestion,
22 October in Wiltshire UK
www.ciwm.co.uk/web/FILES/Education/RWW
_HSAnaerobic_Oct_2013.pdf
Health, Safety and Environmental
Management in Anaerobic Digestion
provides real information and practical
advice for all those in, or embarking on
anaerobic digestion. Invaluable for all AD
developers, this conference will prove
unmissable for all those looking to run
efficient, safe and well managed plants.
Increasing Methane Yields Course -
Newark, 12 November in Newark, UK
www.nnfcc.co.uk/events/increasing-
methane-yields-course-4
Following the success of the inaugural
training course at the Innovation Centre,
Exeter, The National Skills Academy course
'Increasing Methane Yields' is now being
offered at a range of venues across the
country. It is designed to provide AD operator
staff essential knowledge of the science
behind AD.

8.
NNFCC Market Review, October 2013, Page 8 of 8
Feedstock Prices
Arrows indicate rise (↑), unchanged (–) or fall (↓) from previous month.
ENDEX Wood
Pellets Futures
Wood Pellets Delivered
(5% VAT), UK
Ex-Farm Barley
Straw (D1000), UK
Ex-Farm Wheat
Straw (D1000), UK
Date €/tonne £/tonne £/tonne £/tonne
Oct 13 - 215.25-270.00 (– -↑) 40.00-55.00 (– - –) 35.00-50.00 (– - –)
Nov 13 126.35 (–) - - -
Dec 13 126.95 (–) - - -
Q4 13 128.39 (–) - - -
Q1 14 130.00 (–) - - -
Q2 14 130.00 (–) - - -
Q3 14 - - - -
For details on European wood pellet futures prices see www.iceendex.com
For details on UK wood pellet spot prices contact enquiries@nnfcc.co.uk
For details on straw spot prices see www.fwi.co.uk
LIFFE
Wheat
MATIF
Wheat
MATIF
Rape-seed
CBOT
Wheat
CBOT
Maize
CBOT
Soybean
Date £/tonne €/tonne €/tonne cnts/bsh cnts/bsh cnts/bsh
Nov 13 160.00 (↑) 195.75 (↑) 367.25 (↓) - - 1292.00 (↓)
Dec 13 - - - 692.75 (↑) 446.00 (↓) -
Jan 14 161.00 (↑) 195.50 (↑) - - - 1292.25 (↓)
Feb 14 - - 368.50 (↓) - - -
Mar 14 162.75 (↑) 195.50 (↑) - 702.25 (↑) 458.25 (↓) 1277.25 (↓)
May 14 166.00 (↑) 196.00 (↑) 368.25 (↓) 707.75 (↑) 466.75 (↓) 1256.25 (↓)
Jul 14 166.15 (↑) - - 699.00 (↑) 473.50 (↓) 1250.75 (↓)
Aug 14 - - 364.00 (↓) - - 1239.00
Sep 14 - - - 703.50 (↑) 478.50 (↓) -
Nov 14 155.00 (↑) 191.50 (↑) 369.50 (↓) - - -
Dec 14 - - - 713.25 (↑) 486.50 (↓) -
For details on futures prices see www.hgca.com
Other biomass feedstock prices are available upon request, simply contact enquiries@nnfcc.co.uk
Credits and Disclaimer
NNFCC Market Review is edited by Dr Michael Goldsworthy for NNFCC members. Feedback is
welcome. The Review has been compiled in good faith and NNFCC does not accept responsibility
for any inaccuracies or the products or services shown.
NNFCC
The Bioeconomy Consultants
NNFCC, Biocentre, Phone: +44 (0)1904 435182
York Science Park, Fax: +44 (0)1904 435345
Innovation Way, E: enquiries@nnfcc.co.uk
Heslington, York, Web: www.nnfcc.co.uk
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