Showcase South Africa: biomass boiler solutions

Sustainable Biomass Publications

Nollen Group provides an end-to-end solution for renewable energy projects, being able to source, develop, structure and invest in biomass projects in South Africa. The company supplies Biomass Boiler Solutions in combination with steam or fuel contacts.

The company has already signed two contracts and has several similarly structured projects in the final stages of contract negotiation.

Market forces and South African energy policy have driven up price of energy at a rate far higher than the rate of inflation. This regional energy crisis has led industrial facilities to seek sustainable energy solutions in order to reduce costs and diversify fuel sources. Nollen Group’s biomass pricing is competitive and cost-saving compared to fossil fuel prices.

Financial performance: 25% Equity IRR

Success factors        

  • Cost savings: Biomass heating offers measurable, long-term energy- and cost-savings
  • Sustainability: Biomass is a low-carbon alternative to fossil fuel heating
  • Reliable Off-takers: All of the off-takers are large, credit worthy companies
  • Secured Feedstock: Nollen Group has developed a diversified secured biomass supply chain

Risks and Mitigation

  • Construction delays are possible and we select comprehensive insurance to cover this
  • Off-take risk is covered by incorporation of minimum take-or-pay clauses
  • Fuel Supply risk is offset by secured access to large quantities of biomass across South Africa

Enterprise Development

Nollen Group prioritizes awarding contracts to subcontractors from previously disadvantaged backgrounds. The subcontractors do not currently have the resources required to effectively fulfil their contracts, so the Nollen Group assists them with the necessary finance and getting them properly established. By doing so, promoting SMME development.              

Environmental Benefits

The biomass is from the invasive alien plants (IAP) that are growing in the area surrounding the project sites. IAPs are considered to be the single greatest threat to South African biodiversity, and are a primary culprit in the South Africa’s water crisis as they consume hundreds of thousands more liters of water than indigenous vegetation.              

The generation of energy from the combustion of biomass is inherently carbon neutral.

More information?

  • Read more about Dutch companies active in international biomass opportunities abroad.

 

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