480,000 t of Ukrainian wood chips will be exported to Italy
In August, 2013 Ukrainian company Active Energy, which produces biomass from high quality wood chips and associated timber products, has conducted a two-year contract with Biomasse Italia - the largest virgin biomass energy producer in Europe. According to the contract Biomasse Italia will be supplied at least 240,000 t of wood chips during next 2 years.
The first 150,000 t supply will be in January, which will be loaded from Active Energy's the Black Sea port. Biomasse Italia launches 2 modified power stations in southern part of Italy, which produces 500 GWh per year from burning 700,000 t of wood chip per year.
During June and July Active Energy has committed test supplies to Biomasse Italia, which were successfully done. Now Active Energy is orienting to other region with the lack of wood chips for the generation of power. Due to the higher calorific value of Ukrainian wood chips they are competitive within the European market. Because of the absence of good suppliers the interest for the product is very high in the region.
Bad supplies of wood chips and timber products caused great pressure all over the Europe. Active Energy has very profitable position due to the suitable geographic location for quick and efficient purchase and supply.
Because of significant resources of timber Ukraine can become a major supplier to such main markets of wood chips as Turkey and Italy because of good port and railway infrastructure.
Let us remind that Active Energy invested 3.75 mn pounds ($5.86 mn) to Nikofeso Holdings trading company and its subsidiary company, Nikwood, which deals with MDF manufacturing and exports wood chips of high quality to use in power generating sphere in Ukraine.
