Biomass power station announced with PPA 120 U$D/MWh. Government explains support and next steps.

Already in March 2014, a press release from Pomera Forestry announced a 40MW power station based on forestry residues in the North-eastern province of Corrientes. This week, new provincial Minister Enrique Vaz Torres, confirmed governmental support for the project.

Local authority, Minister in the province of Corrientes where a new 40MW power station using forestry biomass is planned.

Biomass in Argentina would be able to supply all the power generated from fossil energy imports that costed billions during recent decade. Argentina use to import natural gas, while decades ago was able to export it. Lack of investments in fossil energy is expected to continue as new renewable energy projects become more real and cost effective.

In particular biomass is considered as one of the most interesting alternatives in a large country with huge agricultural and forest area. A more resilient system from bushes, shrublands, new reforestation and forestry residues would be expected in upcoming years. In a single year, we may soon see that 12 years of revolutionary technology with commercial mature solutions for biomass, heat and power production for domestic and industry sectors, may create rural jobs, extra income and social benefits for a country only oriented to provide subsidies to industrial sectors with imported fossil energy.

Mr.Vaz Torres mentioned: “Today we have around 80MW from company Enarsa and burning fossil oil which is expensive because of the transportation cost. When we will start with the forestry based power station we will use local raw materials includng chips, sawdust and other forestry products that are readly available and environmental friendly“.

He also mentioned that the power purchase agreement (PPA) is expected to be 120 U$D/Mwh which is by far a great saving compared to current scenarios.

In his words Mr.Vaz Torres valued the iniciatves from government to promote renewable energy and the new potential benefits from collaboration within neighbouring province of Misiones  “Fortnately this new government has a different vision and supports reasonable plans for the province. We have talked about this with Misiones Governor Hugo Passalacqua and other official members of the Ministry. The “mate” herb and forestry sectors in this province should be analyzed in a different way compared to former government Cristian Kirchner’s perspectives; which had favours and unncessary conflicts in society” .

While 12 years of Kirchner left a high debt with the provinces, a collapse in energy and agricultural sectors and billions spent as yearly fossil energy inputs, a new greener perspective opens the door to renewable energy in a giant that may become one day a second biomass country in Latin America after Brazil.

New biomass projects are mentioned by government to start soon in different locations with focus in North and central Eastern regions of Argentina.

Source (in Spanish): Energia Estrategica