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Silva Tree Paulownia Biomass Investment

Biomass is a biological material derived from living organisms, commonly trees or woody material. It is produced in 3 different forms; briquettes, pellets and chips. The demand for green alternatives to fossil fuels is growing in line with global concern for pollution levels and pressure on natural resources, and biomass presents itself as a highly viable solution. Biomass is a renewable, low-Carbon bio-fuel that can be used across the energy spectrum for electricity, heat and transport as well as the production of industrial material.

Although biomass can be produced from any organic material, Paulownia has proved to be a fast-growing and robust tree species which produces a great deal of plant biomass in a short time, using land which is unsuitable for food production and requiring low maintenance. Silva Tree has been researching the potential of Paulownia for biomass production for many months and is now setting up a unique investment fund and entering this exciting and lucrative market.

A Growing Market for Biomass

The agreement reached at the European Council in March 2007 sets a European biofuels target of 10% of energy content by the year 2020* and, according to the European Commission for Agricultural and Rural Development, it is reasonable to assume that biomass could account for two thirds of this renewable energy target. Moreover, it is becoming clear that European and North American markets cannot produce sufficient biomass on a domestic level to meet their targets. For example, it is estimated that in 2005 (before the 2007 target was set) Great Britain imported a minimum of 54% of the total 1.4 million tons of biomass used for electricity production **

Biomass from Paulownia

The Silva Tree Paulownia for Biomass Project is a large-scale biomass production facility: A total of 5000 hectares will be planted with a strain of Paulownia Elongata specially developed to produce large quantities of biomass. The trees will be harvested in year 3 and subsequently every year, thus creating a regular, consistent supply of biomass for sale in the highly buoyant bio-fuels market.

The first phase of the Silva Tree biomass investment consists of 1000 hectares and is being developed as a Fund, operated by FSA regulated Citadel Trustees. The Fact Sheet is currently in the final stages of development, with the assistance of Katten Muchin Rosenman Cornish LLP. It is expected to become available to existing investors and agents only on a prelaunch basis from July/August 2010.

* UK Department for Environment, Food and Rural Affairs "UK Biomass strategy 2007"

** Evaluating the Sustainability of Co-firing in the UK, report to DTI from Themba Technology Ltd, September 2006.