Electrabel loses green power certificates for biomass plant in Ghent - report

Mar 21, 2014 - Belgian Electrabel has no more right to green certificates for the energy it produces at biomass plant Max Green in Ghent due to the expiry of an agreement with the paper industry, news agency Belga reported Thursday.

Therefore the company temporarily closed the plant, which according to a spokesperson, would not be profitable without the green certificates.

Electrabel had received annually EUR 100 million (USD 138m) in green certificates, but, according to local environmental organisation Bond Beter Leefmilieu (BBL), there is currently no legal basis for the issue.

The main problem, according to BBL, is that Max Green burns wood pallets, which are made of full trees, while under Flemish law biomass power plants may receive financial aid only if they burn bark, fine dust or stumps, for example.

There is, however, a loophole in the law which would allow the issue of green certificates to Electrabel if the wood and paper sector declares that it does not need the wood as a raw material. This declaration expired at the end of 2013 and sector federations seem to be reluctant to renew it in view of the current market shortage.

Electrabel invested several years ago EUR 125 million to convert an obsolete coal plant in Ghent into a biomass installation, whose capacity is sufficient to supply more than 300,000 households.

(EUR 1.0 = USD 1.379)

Choose your newsletter by Renewables Now. Join for free!