Geminor increases export of German waste wood
With the German EEG subsidy coming to an end, Germany will produce excess quantities of waste wood by 2022. Geminor now opens two new HUBs to increase waste wood export from the German market.
The Renewable Energy Sources Act, or EEG (Erneuerbare-Energien-Gesetz), is a taxation scheme that came into force in April 2000 to subsidize and encourage the production of renewable electricity in Germany. When EEG soon comes to an end (when?), this will in practice lead to a stop in electricity production fueled by waste wood. Hence, Geminor is predicting a waste wood surplus by 2022 which will change the German market considerably.
– There is a shift going on in the German waste wood market, and when EEG no longer exists, the wood needs to find new offtakers. This opens for export streams both to Scandinavia and Eastern Europe. The exported waste wood will go to both material recycling and energy recovery depending on market fluctuations, says German Country Manager at Geminor, Andreas Hefler.
There are also other factors that lead to the coming market changes in Germany, Hefler argues.
– The incineration industry in Sweden is switching from fresh wood to waste wood in order to conserve resources. Another market impact are the current efforts to increase the biogenic share in waste fuels and to minimize the burning of plastic. In addition, the furniture and building industries need panel boards, helping the circular economy of waste wood to grow in Europe. Hence, the market development in Germany is beneficial in many respects.
To prepare for the changing waste wood market, Geminor has developed HUBs both in Brunsbüttel and Wismar seaports. The first, larger volumes of waste wood A1-A3 was shipped to Sweden by bulk this month, marking the beginning of a new German export focus by Geminor. The waste management company is expecting to export 60 000 tonnes of waste wood from Germany in 2020.
– Our involvement in BAV, the German Waste Wood Association, expresses our dedication to the German waste wood sector in the time to come. In addition, waste wood projects are planned through our Italian and French offices, and the first notifications from the Benelux countries have been applied for. Waste wood will be of high importance for us in the years to come, says German Country Manager at Geminor, Andreas Hefler.
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