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Norwegian pellet plant plans revealed

In Norway, start-up company BioGren AS has recently revealed details about plans to build a 150 000 tonnes-per-annum wood pellet plant in Skjerøya, southern Norway.

According to the Olso-based company, it has secured a 25-acre industrial development site in Skjerøya, at the inlet of Frierfjorden close to the cities of Telemark, Skien, and Porsgrunn in southern Norway.

The site is located in a well-developed industrial area with “favourable” power prices and it is connected to the industrial hubs of Herøya and Rafsnes which brings local access to repair and other support functions. In addition, the company is exploring possible synergies and partnerships with existing industries.

A harbour is being built at the site making it “favourable both with regards to raw material supply and sea access to the most important wood pellet markets” as it will be ice-free and be able to accommodate vessels of up to 20 000 dwt.

Thinnings, unmerchantable roundwood and sawmill residuals are planned to be used as feedstock sourced in and around the Grenland region although the geographical area can be expanded. The company says that it has secured long-term agreements on raw material supplies from forest owners organizations.

While the production is set up to produce wood pellets for use by industry and for heating, BioGren says that it may at a later stage also be “relevant to develop” a broader product portfolio of “green” products based on the same raw material, including animal feed supplement and biocoal.

Details surrounding the capital investment needed or timeline have not been disclosed.

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