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Arbaflame signs LOI with Romania to supply pellets

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Arbaflame has signed a letter of intent (LOI) with the Romanian state to phase out the country’s coal consumption.

The transition will reduce the power plants’ CO2 emissions by more than 90% and the company plans to build a ‘high number’ of factories in Romania.

Romania’s Energy Minister Virgil Popescu and Bjørn Knappskog, CEO of Arbaflame, signed an LOI on 4 November intending to cut Paroșeni Power Plant’s CO2 emissions, then doing the same at the rest of the country’s coal plants. Testing of the first facility will begin in the first half of 2022.

The partnership will involve replacing the coal that underlies the operation of the power plant with patented Arbacore pellets produced by Arbaflame and, in the long-term, includes the construction of a factory to produce these pellets in Romania. The plants will use sustainable biomass resources, which will help reduce CO2 emissions by more than 90%.

“We are very pleased to confirm our common intention to convert the coal power plants in Romania to use clean energy,” said Knappskog.

“Romania has a long-term plan to replace all coal consumption, and this is completely in line with Arbaflame’s vision: to accelerate coal phasing-out in Europe.”

Popescu commented: “This is a historic agreement for the Romanian Energy System and the Jiu Valley. This partnership implies a massive decarbonisation, because we will replace the burnt coal in Paroșeni Power Plant with sustainably produced pellets with a low rate of CO2 emissions.

“I stated that Romania needs to reach ambitious targets in order to reduce greenhouse gas emissions and we will achieve them.

“In addition, not only do we provide heat and electricity in a sustainable way, but we also bring a mouthful of economical oxygen to the Jiu Valley, because in Paroșeni, the factory where these pellets will be produced will be built. The surplus will be exported, so Romania will have a double benefit.”