Bio-coal boom may be in future

Stocks in the bio-coal industry are on the rise. This could be on one of the future's fuel sources, and advocates believe that bio-coal is also carbon neutral, making it an attractive alternative to fossil fuel.

Material for bio-coal is derived from biomass wastes-typically wood scraps or nutshells. The key is the torrefaction process that proceeds. Biomass materials are heated around 200-300° C in the absence of oxygen. This purifies the organic waste and gives it an energy density close to conventional coal. Because the organic waste would have otherwise been burnt or decomposed in a landfill which releases CO2 back into the atmosphere, bio-coal is considered carbon neutral.

In the last year, bio-coal manufacturers have been building new plants throughout Europe, the US, India, and China. One company is beginning development stages in South America, a location seemingly well-suited to the bio-coal industry

Bio-coal is also capable of being combined with fossil fuel coal in power plants. That means coal companies can combine both energy sources to partially reduce emissions. Coal-fuelled electricity is one of the leading sources of the United States carbon emissions and the Environmental Protection Agency (EPA) has just announced that it will begin to crack down on coal power plant smokestacks

President Obama has repeatedly stated that if a climate bill fails in Congress, he will use the EPA to regulate greenhouse emissions, although the EPA will be a last resort and Congressional legislation is preferred. Just last week, EPA just passed the US's first transport emissions regulation in over thirty years, requiring all US vehicles to obtain 35.5 mpg.

The coal industry figures to face some of the most stringent regulation in the US-EPA and statements from the committee of Senators writing the climate bill have stated that the US cap-and-trade will focus on utility companies-bio-coal may prove an effective alternative and see an increased demand in upcoming years.

Author: Michael Good | Climate Action