Social enterprise: To Burn or Not to Burn (Wood)

Energy Exchange APX-ENDEX launched the world's first social enterprise exchange for biomass renewable energy last November, 2011 in Amsterdam. (Biomass is the term used for organic plant material including wood cuttings and pellets and agricultural waste, processed to produce energy considered to be "carbon neutral" in emissions.)  Wood pellets are used to generate natural-sourced electricity for the overall European goal for renewable energy (20-20-20) along with other renewable energy sources such as wind, solar, tidal and hydro. It was the next step for APX-ENDEX to develop an international trade in wood pellets. However, some critics argue that burning wood to generate electricity causes as many problems as it solves.

Dutch minister Verhagen, Ministry of Economic Affairs, Agriculture and Innovation says, "The Dutch government recognises the dual need for green and grey energy... APX-ENDEX supports shaping the future energy system of this country and beyond. An effective exchange will contribute to the development of a healthy market for biomass and other renewables".  APX's social enterprise trading initiative has developed contracts in co-operation with the Port of Rotterdam, which has seen a big increase in the amount of wood being brought into the docks to feed biomass plants across Europe. The port is the biggest in Europe and expects to be handling 2-3m tonnes annually by 2025 as imports from places such as Canada and Russia increase.

The APX commodity exchange has been publishing data on industrial wood pellet prices since 2008 and argues a traded contract will help biomass users find supplies in a more cost-efficient and transparent way. Bert den Ouden, CEO of the social enterprise energy exchange APX-ENDEX says, "We are excited to take a leading role in the trading of green energy products, bringing transparency to the global biomass market based on certified sources guaranteeing sustainable sourcing. This will enhance the position of renewable energy and bring us closer to reaching the 2020 climate targets...strengthening the position of the Netherlands and Rotterdam as an energy hub in Europe".

There is a growing controversy over subsidies being given to further the development of biomass plants in Britain. Traditional power stations such as Drax in North Yorkshire in the U.K. are now switching to burning more wood instead of coal to reduce carbon emissions.  There are also fears that the U.K. is becoming dependent on foreign imports.  The oil and gas prices have shown countries the importance of a secure local supply, and if the U.K. starts to rely on imported timber, it creates a risk of energy security problems for the future.

Greenpeace, the environmental group states the export of wooden pellets from Canada to Europe increased 700 percent in less than eight years and warns that burning forest biomass on a large scale was actually more polluting than petrol or coal. In the U.S. there is a growing movement against this industrial-scale biomass (often called BIOMESS!) as a social enterprise industry, which attempts to paint the technology as "green" and "renewable".

Photo Credit: Artnow314