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Biomass Pelletization Process

Biomass pellets are a popular type of biomass fuel, generally made from wood wastes, agricultural biomass, commercial grasses and forestry residues. In addition to savings in transportation and storage, pelletization of biomass facilitates easy and cost effective handling. Dense cubes pellets have the flowability characteristics similar to those of cereal grains. The regular geometry and small size of biomass pellets allow automatic feeding with very fine calibration. High density of pellets also permits compact storage and rational transport over long distance. Pellets are extremely dense and can be produced with a low moisture content that allows them to be burned with very high combustion efficiency.


Biomass pelletization is a standard method for the production of high density, solid energy carriers from biomass. Pellets are manufactured in several types and grades as fuels for electric power plants, homes, and other applications. Pellet-making equipment is available at a variety of sizes and scales, which allows manufacture at domestic as well industrial-scale production. Pellets have a cylindrical shape and are about 6-25 mm in diameter and 3-50 mm in length. There are European standards for biomass pellets and raw material classification (EN 14961-1, EN 14961-2 and EN 14961-6) and international ISO standards under development (ISO/DIS 17225-1, ISO/DIS 17225-2 and ISO/DIS 17225-6).

Process Description

The biomass pelletization process consists of multiple steps including raw material pre-treatment, pelletization and post-treatment. The first step in the pelletization process is the preparation of feedstock which includes selecting a feedstock suitable for this process, its filtration, storage and protection. Raw materials used are sawdust, wood shavings, wood wastes, agricultural residues like straw, switchgrass etc. Filtration is done to remove unwanted materials like stone, metal, etc. The feedstock should be stored in such a manner that it is away from impurities and moisture. In cases where there are different types of feedstock, a blending process is used to achieve consistency.

The moisture content in biomass can be considerably high and are usually up to 50% – 60% which should be reduced to 10 to 15%. Rotary drum dryer is the most common equipment used for this purpose. Superheated steam dryers, flash dryers, spouted bed dryers and belt dryers can also be used. Drying increases the efficiency of biomass and it produces almost no smoke on combustion. It should be noted that the feedstock should not be over dried, as a small amount of moisture helps in binding the biomass particles. The drying process is the most energy intensive process and accounts for about 70% of the total energy used in the pelletization process.

Schematic of Pelletization of Woody Biomass

Before feeding biomass to pellet mills, the biomass should be reduced to small particles of the order of not more than 3mm.  If the pellet size is too large or too small, it affects the quality of pellet and in turn increases the energy consumption. Therefore the particles should have proper size and should be consistent. Size reduction is done by grinding using a hammer mill equipped with a screen of size 3.2 to 6.4 mm. If the feedstock is quite large, it goes through a chipper before grinding.

The next and the most important step is pelletization where biomass is compressed against a heated metal plate (known as die) using a roller. The die consists of holes of fixed diameter through which the biomass passes under high pressure. Due to the high pressure, frictional forces increase, leading to a considerable rise in temperature. High temperature causes the lignin and resins present in biomass to soften which acts as a binding agent between the biomass fibers. This way the biomass particles fuse to form pellets.

The rate of production and electrical energy used in the pelletization of biomass  are strongly correlated to the raw material type and processing conditions such as moisture content and feed size. The The average energy required to pelletize biomass is roughly between 16 kWh/t and 49kWh/t. During pelletization, a large fraction of the process energy is used to make the biomass flow into the inlets of the press channels.

Binders or lubricants may be added in some cases to produce higher quality pellets. Binders increase the pellet density and durability. Wood contains natural resins which act as a binder. Similarly, sawdust contains lignin which holds the pellet together. However, agricultural residues do not contain much resins or lignin, and so a stabilizing agent needs to be added in this case. Distillers dry grains or potato starch is some commonly used binders. The use of natural additives depends on biomass composition and the mass proportion between cellulose, hemicelluloses, lignin and inorganics.

Due to the friction generated in the die, excess heat is developed. Thus, the pellets are very soft and hot (about 70 to 90oC). It needs to be cooled and dried before its storage or packaging. The pellets may then be passed through a vibrating screen to remove fine materials. This ensures that the fuel source is clean and dust free.

The pellets are packed into bags using an overhead hopper and a conveyor belt. Pellets are stored in elevated storage bins or ground level silos. The packaging should be such that the pellets are protected from moisture and pollutants. Commercial pellet mills and other pelletizing equipment are widely available across the globe.

Palm Kernel Shells: An Attractive Biomass Fuel for Europe

Europe is targeting an ambitious renewable energy program aimed at 20% renewable energy in the energy mix by 2020 with biomass energy being key renewable energy resource across the continent. However, the lack of locally-available biomass resources has hampered the progress of biomass energy industry in Europe as compared with solar and wind energy industries. The European biomass industry is largely dependent on wood pellets and crop residues.


Europe is the largest producer of wood pellets, which is currently estimated at 13.5 million tons per year while its consumption is 18.8 million tons per year. The biggest wood pellet producing countries in Europe are Germany and Sweden. Europe relies on America and Canada to meet its wood pellet requirements and there is an urgent need to explore alternative biomass resources. In recent years, palm kernel shells (popularly known as PKS) from Southeast Asia and Africa has emerged as an attractive biomass resources which can replace wood pellets in biomass power plants across Europe.

What are Palm Kernel Shells

Palm kernel shells are the shell fractions left after the nut has been removed after crushing in the Palm Oil Mill. Kernel shells are a fibrous material and can be easily handled in bulk directly from the product line to the end use. Large and small shell fractions are mixed with dust-like fractions and small fibres.

Moisture content in kernel shells is low compared to other biomass residues with different sources suggesting values between 11% and 13%. Palm kernel shells contain residues of Palm Oil, which accounts for its slightly higher heating value than average lignocellulosic biomass. Compared to other residues from the industry, it is a good quality biomass fuel with uniform size distribution, easy handling, easy crushing, and limited biological activity due to low moisture content.

Press fibre and shell generated by the palm oil mills are traditionally used as solid fuels for steam boilers. The steam generated is used to run turbines for electricity production. These two solid fuels alone are able to generate more than enough energy to meet the energy demands of a palm oil mill.

Advantages of Palm Kernel Shells

PKS has almost the same combustion characteristics as wood pellets, abundantly available are and are cheap. Indonesia and Malaysia are the two main producers of PKS. Indonesian oil palm plantations cover 12 million hectares in Indonesia and 5 million hectares in Malaysia, the number of PKS produced from both countries has exceeded 15 million tons per year. Infact, the quantity of PKS generated in both countries exceeds the production of wood pellets from the United States and Canada, or the two largest producers of wood pellets today.

Interestingly, United States and Canada cannot produce PKS, because they do not have oil palm plantations, but Indonesia and Malaysia can also produce wood pellets because they have large forests. The production of wood pellets in Indonesia and Malaysia is still small today, which is less than 1 million tons per year, but the production of PKS is much higher which can power biomass power plants across Europe and protect forests which are being cut down to produce wood pellets in North America and other parts of the world.

PKS as a Boiler Fuel

Although most power plants currently use pulverized coal boiler technology which reaches around 50% of the world’s electricity generation, the use of grate combustion boiler technology and fluidized bed boilers is also increasing. Pulverized coal boiler is mainly used for very large capacity plants (> 100 MW), while for ordinary medium capacity uses fluidized bed technology (between 20-100 MW) and for smaller capacity with combustor grate (<20 MW). The advantage of boiler combustion and fluidized bed technology is fuel flexibility including tolerance to particle size.

When the pulverized coal boiler requires a small particle size (1-2 cm) like sawdust so that it can be atomized on the pulverizer nozzle, the combustor grate and fluidized bed the particle size of gravel (max. 8 cm) can be accepted. Based on these conditions, palm kernel shells has a great opportunity to be used as a boiler fuel in large-scale power plants.

Use of PKS in pulverized coal boiler

There are several things that need to be considered for the use of PKS in pulverized coal boilers. The first thing that can be done is to reduce PKS particle size to a maximum of 2 cm so that it can be atomized in a pulverized system. The second thing to note is the percentage of PKS in coal, or the term cofiring. Unlike a grate and a fluidized bed combustion that can be flexible with various types of fuel, pulverized coal boilers use coal only. There are specific things that distinguish biomass and coal fuels, namely ash content and ash chemistry, both of which greatly influence the combustion characteristics in the pulverized system.


PKS has emerged as an attractive biomass commodity in Japan

Coal ash content is generally greater than biomass, and coal ash chemistry is very different from biomass ash chemistry. Biomass ash has lower inorganic content than coal, but the alkali content in biomass can change the properties of coal ash, especially aluminosilicate ash.

Biomass cofiring with coal in small portions for example 3-5% does not require modification of the pulverized coal power plant. For example, Shinci in Japan with a capacity of 2 x 1,000 MW of supercritical pulverized fuel with 3% cofiring requires 16,000 tons per year of biomass and no modification. Similarly, Korea Southeast Power (KOSEP) 5,000 MW with 5% cofiring requires 600,000 tons per year of biomass without modification.

PKS cofiring in coal-based power plants

Pulverized coal-based power plants are the predominant method of large-scale electricity production worldwide including Europe. If pulverised fuel power plants make a switch to co-firing of biomass fuels, it will make a huge impact on reducing coal usage, reducing carbon emissions and making a transition to renewable energy. Additionally, the cheapest and most effective way for big coal-based power plants to enter renewable energy sector is biomass cofiring. Palm kernel shells can be pyrolyzed to produce charcoal while coal will produce coke if it is pyrolyzed. Charcoal can be used for fuel, briquette production and activated charcoal.

Torrified PKS: An Attractive Biomass Commodity in West Africa

Even though palm kernel shell has many similarities with wood pellets, it is not easy to reduce its size which makes it difficult for its optimum cofiring with coal in power plants and industries. Few years ago, Indonesia had exported PKS to Poland for cofiring purposes but because PKS was difficult to make powder (low grindability) it made cofiring performance poor, so the use of PKS for cofiring is currently discontinued.



To improve the quality of PKS, especially for the use of cofiring, PKS must be processed with torrefaction (mild pyrolysis). With the torrefaction process, it becomes easier to make powder from PKS, so that the desired particle size for cofiring is easier to obtain. Another advantage of the torrefaction process is that the caloric value of PKS will also increase by about 20%, Torrified biomass is hygroscopic which means ease in indoor as well as outdoor storage.

During the torrefaction process, PKS is heated at a temperature of around 230 to 300 °C in the absence of oxygen. With continuous pyrolysis technology, torrified PKS production can be carried out at large capacities. The need for biomass fuel for electricity generation is also large, usually requiring 10 thousand tons for each shipment. PKS torrified producers must be able to reach this capacity. The production of 10 thousand tons of PKS that are burned can be done per month or several months, for example, to reach 10 thousand tons it takes 2 months because the factory capacity is 5000 tons per month.


In general, the advantages of the PKS torrefaction process are as follows:

  • It increases the O/C ratio of the biomass, which improves its thermal process
  • It reduces power requirements for size reduction, and improves handling.
  • It offers cleaner-burning fuel with little acid in the smoke.
  • Torrefied PKS absorbs less moisture when stored.
  • One can produce superior-quality PKS pellets with higher volumetric energy density.

Pelletizing of torrefied PKS can be an option to increase the energy density in volume basis. The pelletizing process resolves some typical problems of biomass fuels: transport and storing costs are minimized, handling is improved, and the volumetric calorific value is increased. Pelletization may not increase the energy density on a mass basis, but it can increase the energy content of the fuel on a volume basis.

Africa, especially West Africa, which has many palm oil plantations and also the location where the palm oil trees originate, can supply torrified PKS to Europe to meet its rapidly-increasing biomass fuel demand.

In Africa, palm kernel shell is generally produced from PKO mills. CPO production is generally carried out on a small scale and only processes the fiber portion of the palm oil fruit. This palm oil mesocarp fibre is processed to produce CPO, while the nut that consist kernels and shells are processed elsewhere to produce the main product of PKO (palm kernel oil). PKO mills are usually quite large by collecting nuts from these small scale CPO producers. PKS is produced from this PKO mills.


The nut cracker machine separates kernel and shell

The distance between Africa and Europe is also closer than Europe to Malaysia and Indonesia. Currently, even though Europe has produced wood pellets for their renewable energy program to mitigate climate change and the environment, the numbers are still insufficient and they are importing wood pellets from the United States and Canada in large quantities. European wood pellet imports are estimated to reach more than 1.5 million tons per year. Torrified PKS from West Africa can help in meeting the biomass fuel demands for power plants across Europe.

For more information about PKS trading opportunities and our technical consulting services, please email on or

PKS From Africa Can Fuel Biomass Power Plants in Japan

Japan’s biomass fuel requirement is estimated to be tens of millions of tons each year on account of its projected biomass energy capacity of 6,000MW by the year 2030. To achieve this capacity, more than 20 million tons of biomass fuel will be needed every year which will be mainly met by wood pellets and palm kernel shell (PKS). The similarity of the properties of wood pellets with PKS makes PKS the main competitor of wood pellets in the international biomass fuel market.


PKS has emerged as an attractive biomass commodity in Japan

Canada and USA are the biggest suppliers of wood pellets to the Japanese biomass market while PKS mainly comes from Indonesia and Malaysia. With the size of the material almost the same as wood pellets, but at a cheaper price (almost half the wood pellets) and also available in abundance, PKS is the preferred biomass fuel for the Japanese market. PKS can be used 100% in power plants that use fluidized bed combustion technology, while wood pellets are used in pulverized combustion.

Although there is abundant PKS in CPO (crude palm oil) producing countries, but fluctuations in CPO production and increase in domestic demand has led to reduction in PKS exports in Southeast Asia. In palm oil plantations, it is known as the low crop season and peak crop season. When the low crop season usually occurs in the summer or dry season, the supply of fruit to the palm oil mills decreases so that the CPO production decreases and also the supply of PKS automatically reduces, and vice versa in the peak crop season. When demand is high or even stable but supply decreases, the price of PKS tends to rise.

In addition, a wide range of industries in Indonesia and Malaysia have also began to use PKS as an alternative fuel triggering increased domestic demand. In recent years, PKS is also being processed into solid biomass commodities such as torrified PKS, PKS charcoal and PKS activated carbon. Thus, there is very limited scope of increasing PKS supply from Southeast Asia to large-scale biomass consumers like Japan and South Korea.

Palm oil mills process palm oil fruit from palm oil plantations, so the more fruit is processed the greater the PKS produced and also more processors or mills are needed. At present it is estimated that there are more than 1500 palm oil mills in Indonesia and Malaysia. Palm kernel shells from Indonesia and Malaysia is either being exported or used domestically by various industries. On the other hand, in other parts of the world PKS is still considered a waste which tends to pollute the environment and has no economic value.

Palm Oil Producers

Top palm oil producers around the world

West African countries, such Nigeria, Ghana and Togo, are still struggling to find a sustainable business model for utilization of PKS. Keeping in view the tremendous PKS requirements in the Asia-Pacific region, major PKS producers in Africa have an attractive business opportunity to export this much-sought after biomass commodity to the Japan, South Korea and even Europe.

Simply speaking, PKS collected from palm oil mills is dried, cleaned and shipped to the destination country. PKS users have special specifications related to the quality of the biomass fuel used, so PKS needs to be processed before exporting.


PKS exports from Indonesia and Malaysia to Japan are usually  with volume 10 thousand tons / shipment by bulk ship. The greater the volume of the ship or the more cargo the PKS are exported, the transportation costs will generally be cheaper. African countries are located quite far from the Asia-Pacific region may use larger vessels such as the Panamax vessel to export their PKS.

Biomass Market in Japan: Perspectives

Biomass is being increasingly used in power plants in Japan as a source of fuel, particularly after the tragic accident at Fukushima nuclear power plant in 2011.  Palm kernel shell (PKS) has emerged as a favorite choice of biomass-based power plants in the country. Most of these biomass power plants use PKS as their energy source, and only a few operate with wood pellets. Interestingly, most of the biomass power plants in Japan have been built after 2015.


Palm Kernel Shells

Palm Kernel Shell is generating very good traction as a renewable energy resource and biomass commodity in Japan. This is because PKS is the cheapest biomass fuel and is available in large quantities across Southeast Asia. PKS, a biomass waste generated by palm oil mills, can be found in plentiful quantities in Indonesia, Malaysia and Thailand.

PKS must meet the specifications before being exported to Japan. Some key specifications for PKS exports are: moisture content, calorific value and impurities or contaminants (foreign materials). All three variables must meet a certain level to achieve export quality. Japanese markets or their consumers generally require contaminants from 0.5 to 2%, while European consumers of PKS need 2% – 3%.

Japan usually buys with a volume of 10,000 tonnes per shipment, so PKS suppliers must prepare a sufficient stockpile of the PKS. The location of PKS stockpile that is closest to the seaport is the ideal condition to facilitate transportation of shipment.

PKS has emerged as an attractive biomass commodity in Japan

PKS has emerged as an attractive biomass commodity in Japan

Wood Pellets

Wood pellets are mostly produced in from wood waste such as sawdust, wood shaving, plywood waste, forestry residues, and related materials while using tools like track saws, table saws, circular saws, miter saws, etc. The development potential for quantity enlargement is also possible with energy plantations. Technically the properties of wood pellets are not much different from the PKS.

Wood pellet price is more expensive than PKS. Wood pellet production process is more complex than PKS, so wood pellet is categorized as finished product. The quality of wood pellet is generally viewed from its density, calorific value and ash content. Indonesia wood pellet export is not as big as PKS, it is also because of the limited producers of wood pellet itself.

Japan buys wood pellets from Indonesia mostly for testing on their biomass power plants. Shipping or export by container is still common in wood pellet sector because the volume is still small. Currently, the world’s leading producer of wood pellets come from North America and Scandinavia. Even for Indonesia itself wood pellet is a new thing, so its production capacity is also not big.

Future Perspectives

For a short-term solution, exporting PKS is a profitable business.  Wood pellets with raw materials from energy plantations by planting the legume types such as calliandra are medium-term solutions to meet biomass fuel needs in Japan.  Torrefaction followed by densification can be a long-term orientation. Torrified pellet is superior to wood pellet because it can save transportation and facilitate handling, are hydrophobic and has higher calorific value.


Generating Electricity from Municipal Solid Waste

We live in a throwaway society that accumulates vast quantities of waste every day. While this comes with pressing challenges, there are also opportunities for professionals including electrical engineers to process at least some of the waste to produce much-needed renewable energy.

According to the U.S. Energy Information Administration (EIA), in 2018 a total of 68 U.S. power plants generated around 14 billion kilowatt-hours of electricity from 29.5 million tons of combustible municipal solid waste (MSW). Biomass, which comes from plants and animals and is a source of renewable energy, was responsible for more than half (about 51%) of the electricity generated from waste. It also accounted for about 64% of the weight of the MSW used. The rest of the waste used was from other combustible materials including synthetic materials made from petroleum and plastics. Glass and metal are generally not noncombustible.


Waste-to-Energy is now widely accepted as a part of sustainable waste management strategy.

Municipal Solid Waste in the U.S.

Burning MSW is not only a sustainable way to produce electricity, it also reduces the volume of waste that would inevitably end up in landfills. Instead, the EIA estimates that burning MSW effectively reduces waste volumes by about 87%.

But, while more than 268 million tons of MSW are generated in the United States every year, in 2017, only 12.7% of it was burned to recover energy. More than half (52.1%) went to landfill, about a quarter (25.1%) was recycled, and the rest (10.1%) was used to generate compost.

According to a U.S. Environmental Protection Agency (EPA) fact sheet on sustainable materials management published in November 2019, the total MSW generated in 2017 by material, comprised:

  • Paper and paperboard, primarily containers and packaging 25%
  • Food 15.2% (see below)
  • Plastics 13.2% (19.2% of the total materials that ended up in landfill were plastics)
  • Yard trimmings 13.1% (most of this type of waste is composted)
  • Rubber, leather and textiles 9.7%
  • Metals 9.4%
  • Wood 6.7%
  • Glass 4.2%
  • Other 3.5%

Indicating tremendous human waste in its worst form, 22% of the material that ended up in landfill was classified as food. Trashed food was also the product category with the highest landfill rate, at an alarming 75.3%. Nearly a quarter (22%) of materials that were combusted with energy recovery were food, and overall, food was also the highest product category to recover energy, with a rate of 18.4%.

The total MSW combusted to generate energy was made up of the following materials:

  • Food 22%
  • Plastics 16.4%
  • Rubber, leather, and textiles 16.1%
  • Paper and paperboard 13.2%
  • Wood 8.4%
  • Metals 8.6%
  • Yard trimmings 6.2%
  • Glass 4.3%
  • Other 4.3%

Generating Electricity from MSW

There are a variety of MSW-to-energy technologies, but in the U.S. the most common system involves mass burning of unprocessed MSW in a large incinerator that has a boiler that produces steam, and a generator that produces electricity. Another entails processing MSW into fuel pellets for use in smaller power plants.

Waste materials destined to be processed to generate electricity

Generating electricity in mass-burn WTE plants is remarkably straightforward and follows seven basic steps:

  1. The MSW is dumped out of garbage trucks into a large pit.
  2. A crane with a giant claw attachment is used to grab the waste and dump it into a combustion chamber.
  3. The waste, which now becomes the fuel, starts to burn, releasing heat.
  4. The heat that is released turns water in the boiler into high-pressure steam.
  5. The steam turns the turbine generator’s blades and produces electricity.
  6. The mass-burn plant incorporates an control system to prevent air pollution by removing pollutants from the combustion gas before it is released through a smoke-stack.
  7. Ash is inevitably produced in the boiler and the air pollution control system, and this has to be removed before another load of waste can be burned.

While the volumes burned as fuel in different plants vary, for every 100 pounds of MSW produced in the U.S., potentially, more than 85 pounds could be burned to generate electricity.

Of course, the U.S. isn’t the only country that uses waste-to-energy plants to generate electricity from MSW. And in fact, when compared to a lot of other countries, the percentage of MSW burned with energy recovery in the U.S. is minimal. At least nine countries are named by the EIA as bigger producers of electricity from municipal waste. In Japan and some European countries, for instance, there are fewer energy resources and not much open space available for landfills. So generating electricity from MSW is an obvious opportunity.

The four leading nations identified by the EIA as burning the most MSW with energy recovery are:

  • Japan 68%
  • Norway 54%
  • Switzerland 48%
  • France 35%
  • The United Kingdom 34%

One thing’s for certain, the percentages are all set to continue increases globally as the move towards sustainability gains momentum. And U.S. percentages are going to increase too.

Energy Potential of Empty Fruit Bunches

A palm oil plantation yields huge amount of biomass wastes in the form of empty fruit bunches (EFB), palm oil mill effluent (POME) and palm kernel shell (PKS). In a typical palm oil mill, empty fruit bunches are available in abundance as fibrous material of purely biological origin. Energy potential of empty fruit bunches is attractive as it contains neither chemical nor mineral additives, and depending on proper handling operations at the mill, it is free from foreign elements such as gravel, nails, wood residues, waste etc.


However, EFB is saturated with water due to the biological growth combined with the steam sterilization at the mill. Since the moisture content in EFB is around 67%, pre-processing is necessary before EFB can be considered as a good fuel.

Unprocessed EFB is available as very wet whole empty fruit bunches each weighing several kilograms while processed EFB is a fibrous material with fiber length of 10-20 cm and reduced moisture content of 30-50%. Additional processing steps can reduce fiber length to around 5 cm and the material can also be processed into bales, pellets or pulverized form after drying.

There is a large potential of transforming EFB into renewable energy resource that could meet the existing energy demand of palm oil mills or other industries as well as to promote sustainability in the palm oil industry. Pre-treatment steps such as shredding/chipping and dewatering (screw pressing or drying) are necessary in order to improve the fuel property of EFB.

Pre-processing of EFB will greatly improve its handling properties and reduce the transportation cost to the end user i.e. power plant. Under such scenario, kernel shells and mesocarp fibres which are currently utilized for providing heat for mills can be relieved for other uses off-site with higher economic returns for palm oil millers.

The fuel could either be prepared by the mills before sell to the power plants, or handled by the end users based on their own requirements.  Besides, centralized EFB collection and pre-processing system could be considered as a component in EFB supply chain. It is evident that the mapping of available EFB resources would be useful for EFB resource supply chain improvement. This is particular important as there are many different competitive usages. With proper mapping, assessment of better logistics and EFB resource planning can lead to better cost effectiveness for both supplier and user of the EFB.

A covered yard is necessary to store and supply a constant amount of this biomass resource to the energy sector. Storage time should however be short, e.g. 5 days, as the product; even with 45% moisture is vulnerable to natural decay through fungi or bacterial processes. This gives handling and health problems due to fungi spores, but it also contributes through a loss of dry matter trough biological degradation. Transportation of EFB is recommended in open trucks with high sides which can be capable of carrying an acceptable tonnage of this low-density biomass waste.

For EFB utilization in power stations, the supply chain is characterized by size reduction, drying and pressing into bales. This may result in significantly higher processing costs but transport costs are reduced. For use in co-firing in power plants this would be the best solution, as equipment for fuel handling in the power plant could operate with very high reliability having eliminated all problems associated with the handling of a moist, fibrous fuel in bulk.