Who Bets On Biomass?

They will probably not be as big as the windmill projects nor rated at the same potential as the solar power projects, but so far national grid company Transelectrica’s data show that there are 7 power plants running on biomass, worth more than EUR70 million and the list of investors attracted by this field continues to increase.

Biomass is the biodegradable part of the agricultural, forestry, industrial and municipal waste. For instance, a wood processing plant produces enough ‘fuel’, that is wood waste that can be used to generate electricity.

Transelectrica data show that 7 power plants using biomass to generate power were in operation at the end of the first half in Romania, and their capacity stood at 37 MW. Experts on the market say that each megawatt of the capacity of the biomass power plant required about EUR2 million investments, therefore the seven operational projects entailed more than EUR70 million in investments, according to ZF’s calculations.

The largest investor in the field is Holzindustrie Schweighofer, a group that owns a EUR400 million wood processing business in Romania, controlled by Austrian businessman Gerald Schweighofer. Holzindustrie has four plants in Sebes, Radauti, Siret and Comanesti (central and northern Romania), and two biomass power generation facilities with a capacity of 11.2 MW each in Sebes.

Another company in the same field is Bio Electrica Transilvania, with a 4.9 MW facility in Radauti. According to Trade Registry data, Bio Electrica Transilvania has Cascade Empire Imobilien behind it, a company controlled by the same Gerald Schweighofer. Holzindustrie officials could not be reached for comment by the time the story was ready for posting.

Another company operating a biomass power plant is Iridex Group Import Export, controlled by businessman Corneliu Pascu. Iridex, a group with operations in the construction and waste management industries, built a 2.4 MW power plant in Chiajna, Ilfov County (near Bucharest). The company plans to increase the capacity by 1.2 MW this year and go to 6.8 MW over the coming years, its officials said.

There are also biomass power plants in the works now. Transelectrica data show ten biomass power plants worth about EUR60 million had contracts signed to transfer power to the grid at the end of last month, which is an important step the approval securing process.

One such projects is being developed by KDF Energy, a company controlled by businessman George Brailoiu and specializing in CO2 emissions trading, which posted some EUR69 million revenue. He could not be reached for comment in time.

Another company controlled by Romanian businessmen who have plans to build a biomass power plant is Adrem Invest, established by brothers Adrian and Corneliu Bodea in the early nineties. The two intend to build a EUR60 million power plant in Suceava in a consortium with Termica Suceava and the City Council.

The authorities will contribute the land and some equipment, and Adrem Invest will come up with the money and own the plant. The new power station will generate thermal power for the city and electricity, which Adrem Invest will sell on the free market.

“We are on schedule with the building of the cogeneration plant in Suceava (…),” Adrem Invest officials said. The company posted about EUR30 million in revenue last year.

Besides local entrepreneurs, international companies have announced they are looking into this field.

Biomass energy, too, is covered by the support scheme the government put in place to reward investors in renewable energy with green certificates.

(English version by Loredana Fratila-Cristescu)