In 2002 Dutch power company ,Essent, built a biomass power plant in which biomass was converted to produce bio- energy to 60000 households. Unfortunately, Essent was forced to shut down this power plant in 2012 as it was no longer financially  viable due to prevailing conditions.

 

(a) Can you think  of the reason why the power station was forced to shut down under these circumstances?

 

(b) Would a long term sales agreement have avoided the closure?. Explain  

 

(c) Identify one important measure that the project could have taken to avoid this situation? 

 

(d) Why  would lenders , investors in a  bio energy plant insist on a long  term input - supply contract for the biomass feedstock needed to fuel  the power plant ?

Answer rating: 100% (QA)

a The reason why the power station was forced to shut down could be due to several factors One possi... View the full answer