Biomass is derived from five distinct energy sources: garbage, wood, waste, landfill gases, and alcohol fuels. As an energy source, biomass can either be used directly, or converted into other energy products such as biofuel and electricity.
Biomass is plant matter used to generate electricity with steam turbines & gasifiers or produce heat, usually by direct combustion. Examples include forest residues, yard clippings, wood chips and even municipal solid waste. It also includes plant or animal matter that can be converted into fibers or other industrial chemicals, including biofuels. Industrial biomass can be grown from numerous types of plants. Biochemical conversion processes from biomass can be harnessed and converted to other usable forms of energy like methane gas or transportation fuels like ethanol and biodiesel.
A great feature in funding biomass energy projects is the fact that:
1) traditional funding instruments can be used, and
2) no special accommodations or arrangements need to be added on to a funding arrangement involving biomass.
Under the best of circumstances, as with most other energy projects, someone who wants to develop a biomass project will have an off-take agreement. An off-take agreement is an agreement where a third party (government/ private power company) will guarantee by signature that they will buy your output for a certain amount of time in the future.
Why is that such a good thing? Because for the investor(s) it’s a guarantee of return on their investment. It’s also a guaranteed steady payment on your loan debt because the energy the solar farm produces is sold over the long term. Guaranteed income is a nice magic word that investors like to hear.
The rest isn’t that hard. You’ve got to get your documents (i.e. Business Plan, Feasibility Study) and figure out your biomass technology manufacturer and where you’re going to put it.
But as always…
Always make sure that you make an informed decision in all cases,
All the Best,