Document summary
Energy group RWE recently hosted a trip to Essent’s Amer biomass co-firing plant in the Netherlands. Essent is the market leader in the Netherlands in this sector. Daiwa estimates the current cost premium (adjusted for carbon) of Essent’s existing bio-mass co-firing plants to be around €30/MWh, although new, more efficient plants to be commissioned in 2013 could reduce this premium to around €25MWh. With a far smaller cost premium than onshore (~€40/MWh) and offshore wind (~€80/MWh, Daiwa expects a new subsidy scheme to support further biomass co-firing.