Verdo Trading A/S, a subsidiary of Danish energy utility Verdo A/S specializes in identifying residual products from around the world that can be used as an alternative biofuel. The most recent addition to the portfolio is "black pellets" made from lignin, a residual from industrial wood-alcohol production."I'm very proud of them. They are a great option as alternative biomass fuels because they have so many good properties and benefits," said Thomas Bornerup, Director Trading at Verdo.
Lignin is an organic substance found in trees and plants, among other things. In the production of, for example, methanol – also known as wood spirit – lignin and wood fiber are residual products from the process. The lignin black pellets, have high calorific value, are easy to store, and have the advantage of being found in almost inexhaustible reserves.
The black pellets originate from Russia. Numerous industrial alcohol plants were established all over the country, and several of them produced wood spirit, generating enormous quantities of lignin, which for many years has been dumped in huge piles without being used for anything, explained Thomas Bornerup.
Thorough analysis and testing
Verdo has tested and recently introduced the lignin black pellets into the trade as an alternative biofuel for heat and power plants. A few years ago, the company became aware of the large stocks of lignin and wood fiber residues in Russia, and after analyzing the residual product, the company had no doubt that the raw material could be a viable option as an alternative biofuel for major energy plants.
We did what we always do when we discover a residual product that has the potential to become a biofuel. We get it analyzed in an independent laboratory and based on the results, we evaluate whether it has the properties of being a biofuel or not. We then test the material ourselves to find the best possible form in terms of handling, transport, storage, and combustion. In this case, the result was black pellets, said Thomas Bornerup.
According to Verdo, its lignin black pellets have a high calorific value, good storage properties, and they have the advantage of being derived from almost inexhaustible stocks in Russia. This keeps the price down and ensures a stable supply.
Furthermore, Verdo Trading has the pellets certified under FSC Recycled ensuring the traceability of the product as coming exclusively from recycled wood materials, in this case the lignin.
Residuals turned into biofuel revenues
Black pellets are just one of many products that Verdo has identified as an alternative to fossil fuels and traditional biofuels. For the past 15 years, Verdo has specialized in finding residual products from all over the world and offering them to third parties as alternative biofuels.
Besides the alternative fuels helping to stabilize the energy supply, the transformation of residual products into usable biofuels also creates growth and prosperity in countries where they were otherwise written off as waste.
If we do not utilize these residual products, they will in principle just be thrown out in nature or in landfills. But when we utilize them for biofuels, they suddenly gain value. This creates jobs and growth in the local area, said Thomas Bornerup, adding that he has personally witnessed how the transformation from residual product to biofuel has led to new schools and companies in places like Africa.
Verdo also sells biofuels based on olive stone, sunflower husks, and nutshells, as well as alternative biofuels being used at Verdo’s own combined heat and power (CHP) plant in Randers, Denmark.
