John Seed, Managing Director, Helius Energy, UK

What do you and your company do in the bio power generation sector?
Helius Energy plc is developing both large (over 60MWe) and small modular (5 - 8MWe) biomass-powered electricity generation plants. These plants will be operated by the Group and located at carefully selected sites to serve markets with immediate and growing demands for energy and where sustainable feedstock, and the associated infrastructure, is readily available.

As originally set out in our AIM Admission document we have pre-sold our first 65MWe project at Stallingborough, in North East Lincolnshire, with a continued interest in the project for the next 24 years. Helius Energy has also signed an option to lease an 18 acre site located within Avonmouth Dock, on the Bristol Channel, for the proposed construction of a 100MWe biomass power plant.

We also have modular GreenSwitch™ 5-8 MWe biomass plants. These are designed to be located where sustainable and renewable feedstocks are readily available, such as breweries and distilleries, avoiding the costs of transporting wet feedstocks. Using our novel GreenFields™ technology, we can transform distillery co-products into biomass fuel,  and other added value products such as organic soil conditioner or animal feed.

How do you see the market for bio power generation developing in the next 3 years?
The market for biomass generation is set to grow significantly over the next 3 years. Our own data suggests that the UK could produce enough biomass feedstock to produce over 100,000 GWh of electricity.

There have been a number of biomass projects announced over the last 12 months, including our own, although the current economic outlook suggests that some of these may not be developed – at least according to their original plans. If everything that has been announced is built, it would give the UK a dedicated biomass generating capacity in excess of 2,500 MWe. Once you add the demand for co-firing biomass with fossil fuels, you can see how great the potential is, and why imported fuel will play an important role in the development of many projects.

What are the biggest short term challenges to market growth?
The biggest issue that the industry has to face up to is the need for robust sustainability and carbon reporting standards. There is a huge opportunity for the industry to learn from other sectors and to be proactive on this. There is already work going on to develop common standards, and there is a huge opportunity for the biomass industry to lead the way on this agenda.

Long term policy indicators are always important to investors, and the recent extension of the Renewables Obligation in the UK, together with the Energy Bill and the Renewable Energy Strategy show a welcome level of commitment by government.

What do you think are the most exiting innovations or developments in this area at the moment?
Maximizing the use of every potential feedstock, while avoiding conflicts with food and feed production is not just vital for the development of the industry, but is also leading to some of the most exciting technological developments. This is exactly what our GreenFields™ and GreenSwitch™ technologies deliver. GreenSwitch™ produces sustainable, renewable heat and power from biomass, while GreenFields™ can produce a range of value-added products and has the potential to deliver CO2 savings to a number of industries, such as agriculture and distillery operations.