From Proven Technology to Bankable Projects: Michael Wild on the Future of Torrefied Biomass
What does it take to move torrefied biomass from proven technology to a scalable global industry? In a recent episode of the Argus Biomass Beat podcast, IBTC President Michael Wild joined Deputy Editor Hannah Adler to discuss the realities facing project developers today, the lessons the sector can learn from the early pellet industry and what is needed to make the next generation of projects successful.
For Michael Wild, the fact that the discussion has moved towards the realities of industrial projects is itself an important sign of progress.
After technological development in the early 2000s and the first demonstration plants around 2012 and 2013, the torrefaction industry entered a period in which market and policy conditions slowed further development. Today, that picture has changed. Industrial torrefaction and carbonisation projects have been implemented, with several plants now having multiple years of operational experience.
That progress also means the industry is moving into a new phase: one in which the key questions are increasingly about successful project execution rather than whether the underlying technology works.
Learning from the pellet industry
In the podcast, Wild draws parallels between today's torrefaction sector and the development of the white wood pellet industry several decades ago.
Not every early pellet project succeeded. First-of-a-kind industrial projects inevitably involve a learning curve, and Wild sees some of the same patterns emerging today.
One recurring challenge is an excessive focus on the core technology while underestimating the importance of the entire production chain. A successful torrefaction plant depends not only on the reactor itself, but also on preprocessing, drying, storage, conveying, feedstock handling and logistics.
For project developers, this also means building the right team and ensuring that responsibilities across different parts of a project are clearly defined.
Wild's recommendation is clear: developers should avoid taking responsibility for technical interfaces they do not have the experience to manage themselves and should work closely with experienced technology and equipment suppliers.
Feedstock security comes first
Among all the factors determining project viability, one stands out.
"Feedstock security is the foundation of everything. No feedstock, the best plant will not perform."
Feedstock security, however, means more than simply having access to biomass. Developers need sustainable feedstock in sufficient quantities and at costs compatible with their business plan.
That makes feedstock one of the major external risks of any project.
Different sourcing models bring different challenges. Agricultural and industrial by-products depend on the performance of the primary producer. Forestry and plantation biomass can provide renewable long-term resources but introduce questions around harvesting, labour, transportation and political conditions.
For greenfield projects, Wild therefore recommends considering a diversified feedstock strategy with several potential sources rather than relying entirely on a single supply chain.
Investors are looking closely at the same issues. According to Wild, feedstock security and logistics are among the first aspects assessed when financing new projects. Biomass is inherently a logistics business, and developers need to demonstrate not only that biomass is available but also that it can reliably reach the processing plant and that the finished product can reach its customers.
New opportunities for existing pellet producers
Changes in European industrial pellet demand could simultaneously create new opportunities for torrefaction and carbonisation.
Established pellet producers already have much of what new projects need: industrial infrastructure, biomass sourcing expertise, logistics networks and experience operating large-scale plants.
Wild therefore expects existing producers to increasingly investigate torrefaction and carbonisation as opportunities for new and alternative business models.
The transition may also be technically more straightforward than often assumed. Much of the infrastructure and operational structure of a pellet plant can also be relevant to torrefaction, with the thermal treatment stage representing the principal additional process.
From projects to a commodity market
Technology and feedstock alone, however, will not create a scalable market.
For Wild, policy certainty remains one of the most important prerequisites. Industrial consumers need sufficient regulatory certainty to commit to long-term offtake agreements. Those agreements, in turn, are essential for project financing.
Unlike established commodities with highly liquid global markets, new biocarbon projects still depend heavily on secured offtake to demonstrate bankability.
At the same time, producers need clearer signals from consumers about the qualities and specifications they require, particularly for higher-carbon products and specialised industrial applications.
And the industry needs more operating plants with positive track records.
"What is always needed is track records, more plants that are implemented, that will be operative, that will have a positive track record."
This is also where the wider work of the industry becomes increasingly important. International product standards, clearer specifications and progress on shipping requirements can help create the conditions needed for biocarbon products to develop towards globally traded commodities.
For Wild, these developments are signs of an industry entering an important new stage.
"This is a very vibrant industry at the moment. [...] Now, we're really seeing that it is taking off."
🎧 Listen to the full episode HERE of the Argus Biomass Beat podcast with Michael Wild and Hannah Adler.
