Energy from Biomass
Biomass Group is implementing a nationwide supply chain to deliver Gliricidia fuel-wood from plantations and smallholders to industrial customers and power stations including the Group’s own power plants.
Industrial manufacturers in Sri Lanka typically run boilers, ovens and kilns using furnace oil or coal. While the environmental awareness of industrialists in emerging economies is raising these industrialists also face higher fossil fuel prices as subsidies are gradually removed. This situation makes biomass a viable and affordable alternative fuel source for the industrial sector today.
In the energy sector, Biomass Group will develop a series of 10MW biomass-fuelled power plants that will deliver renewable energy to the national grid on long-term contracts. These contracts are indexed power purchase agreements with the state-owned Ceylon Electricity Board, typically 20 years long and supported by a Feed-in-Tariff system set up by theSri Lanka government. The InternationalFinance Corporation is part-funding a feasibility study to locate the first three power plants and negotiations with potential strategic partners are well underway.