Newfoundland's Peat Bogs to Produce Fuel Pellets for Power Plants in China

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Researched by Industrial Info Resources (Sugar Land, Texas)--Peat Resources Limited (TSV:PET) (Toronto, Ontario) is developing plans to process Newfoundland's abundance of peat into fuel pellets destined for markets in China and Europe. The province holds more than 40 million tons on about 9,000 hectares of land that has been permitted for peat mining. The potential for commercial-scale mining exists near the inland and the head of the Bay of Exploits; about 40 kilometers from the open sea on the north shore of the Exploits River; and the Hudson Bay lowlands.

Peat Resources has been operating a 5,000-ton-per-year pilot plant in Stephenville, Newfoundland, for about a year. As the operation proves itself successful, the company plans to attract enough interest to scale up the pilot plant into a commercial-scale facility in about a year and a half.

The company is proposing setting up a slurry pipeline from the bogs to the plant, reduce the moisture in the material to about 25%, and process more than 1 million tons of peat per year into 200,000 tons per year of fuel pellets.

Late last year, Peat Resources shipped out 20 tons of peat pellets to groups in China to test the pellets as a fuel source and reduce the use of coal in the country.

Engineering and feasibility studies will be performed over the coming year, and construction of the estimated $30 million plant could start in the late third quarter of 2013 and be fully operational by late 2014.

Industrial Info's databases provide a comprehensive outline of all current development activities in the emerging alternative fuels market. Our North American Biodiesel Database covers 150 operational plants and 93 plants in development. Our North American Ethanol Database covers 214 plants in operation and 102 plants in various phases of development. Our North American Wood Fuel Pellet Database includes 70 operational plants producing more than 25,000 tons annually, and 35 projects in progress.

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