The landscape of the areas that Element Renewables Group is focused on can make development very difficult. It is imperative that we recognize these challenges and mitigate the risk by working to improve and accomplish success.
Industrial & Social Economic Landscapes
In the past 6 years, biomass has become a mainstream source of alternative fuel for renewable energy. Its rapid rise of acceptance has been driven by climate change policies, improved technologies and economically viable feedstock.
In any industry, the rise of a new source of raw materials also comes with its challenges, both industrial and social economic. One can summarize these challenges as the following:
The production of food grade crops is clearly a priority over the cultivation of biomass crops. Therefore, it is essential that land is not displaced that is of a food grade quality.
The supply of water in many parts of the world could be severely endangered by the impact of climate change. It is not acceptable to use water for irrigation purposes for the cultivation of biomass feedstock nor creating major alterations to the water table, where either action could impact the possible supply of water to local communities.
This multi-stake organization was formed in 1993 to promote responsible management of responsible management of the world’s forests. The FSC does this by setting standards on forest products, along with certifying and labelling them as eco-friendly. The majority of companies acquiring biomass products (such as wood chips and/or wood pellets require that the supplier has FSC certification before they accept the product.
In order to evaluate the CO2 offset created by the use of biomass, there needs to be considered how much fossil fuel is consumed during the plantation stage, harvesting, transport logistics and sea logistics prior to being delivered to the client. In some extreme cases the volume of CO2 consumed exceeds the offset value of the biomass feedstock where it is replacing fossil fuel.
The cultivation of biomass crops often occurs on lands currently occupied by squatters in the emerging markets. A human resource plan which provides a sustainable monthly income is essential, combined with a Corporate Social Responsibility (CSR) program that delivers community wide benefits, such as education and clean water.
Investments into the sustainable biomass are long term, which therefore require political stability, regional and local co-operation and stability in the exchange rate of the currency.
Chemical fertilization causes major damage to the quality of soil and destroying its beneficial micro-organisms. It is critical that bio-fertilizers and organic composts be used in the cultivation process.