Energy and CO2- biomass

An integral part of Precious Woods’ approach to sustainable forestry is the use of waste wood (biomass) to produce electricity and the registration and sale of carbon emission rights.

Precious Woods owns a minority share (40%) of a biomass power plant operating on site of Precious Woods Amazon. The power plant is in operation since 2002 and taken over by Precious Woods Amazon in 2005. It provides the town of Itacoatiara (170,000 inhabitants) with climate-friendly electricity and is fully integrated with the sawmill. Sawdust and recovery wood are automatically transported by conveyor belts and via shredders to the woodchip warehouse. This facility is unique in Northern Brazil and is recognized widely as a role model.

Carbon credits from energy production: Precious Woods’ wood-chip fired power plant replaces 20 diesel generators. This represents an annual saving of both 44,000 tons carbon emissions and methane emissions equivalent to 113,000 tons of CO2. The carbon emission rights (Certified Emission Reductions = CER) generated by this project are traded within the European emissions trading system and purchased by companies and governments to achieve their reduction targets. Beginning 2011, Precious Woods was able to gain the renowned Swiss foundation “myclimate” as a strategic partner for the CER management.

Carbon credits from sustainable forestry in existing forests: Sustainable forestry in natural tropical forests in the Amazon protects these from deforestation. Assuming an annual deforestation rate of 1 percent Precious Woods prevents the release of emissions of around 1 million tons CO2 each year in the state Amazon alone. While these efforts towards combating climate change are currently non-Kyoto compliant, it may be possible to sell associated credits in Voluntary Markets.
REDD : New opportunities arise for Precious Woods through the REDD compensation system (REDD= Reducing Emissions from Deforestation and Forest Degradation). The aim of REDD is to stop tropical deforestation and forest degradation through a mechanism to compensate financially developing countries for the protection of their forests.