Emission trading together with myclimate
This small-scale project was the first worldwide that generated emission certificates on the basis of sustainably harvested biomass from FSC-certified forestry activities. The woodchip power plant with 9 MW of electric output is located on the site of the sawmill of Precious Woods in Itacoatiara. Precious Woods owned 40 % until the end of May 2021 and has since owned 100 % of the shares.
The plant produced up to 45 000 MWh of electricity each year, for which otherwise about 10 –15 million litres of diesel would be consumed. This could replace several diesel generators and theoretically provides the neighbouring city’s approximately 100 000 inhabitants with climate-friendly power. Thanks to the power plant, we benefit from low energy prices, a stable energy supply, and low-emission production. The waste heat generated during electricity production is used for the sawmill’s kiln drying plant.
At full capacity, about 100 000 tons of wood are required each year for the production of the plant’s electrical and thermal power. This residual wood is delivered in the form of wood cuttings from forestry and industrial operations and sawdust from the sawmill. All this biomass comes from sustainable forestry in accordance with FSC guidelines. Prior to start-up of the plant, this residual wood was rotting in large piles on the property or in the forests. The sustainable use of the residual wood primarily substitutes fossil energy sources.
Precious Woods Carbon & Energy
The Precious Woods Carbon & Energy business segment comprises the trading of CERs and the operation of the biomass power plant MIL Energia Renovável in Itacoatiara, Brazil. After a partial ownership since 2012, Precious Woods took over 100 % of the shares in May 2021. PW Amazon’s sawmill is the sole biomass supplier of the power plant. The plant is listed as a climate-relevant project also because diesel was replaced by biomass and thus renewable energy. The project complies with the Clean Development Mechanism (CDM) of the Kyoto Protocol. The resulting emission certificates have been traded since 2011 by the myclimate1 foundation on behalf of Precious Woods. The project ended in October 2023 after a maximum term of 21 years and cannot be renewed.
1 myclimate is a Switzerland-based organization set up in 2002 to provide environmentally responsible solutions to individuals and companies. www.myclimate.org