This small-scale project is the first worldwide that generates emission reduction certificates on the basis of sustainably harvested biomass from FSC-(Forest Stewardship Council) certified forestry. The wood chip power plant with 9 MW of electrical output is located in the sawmill of the Precious Woods company in Itacoatiara, a small town in the Brazilian Amazon.

The project replaces several diesel generators and helps to supply the approximately 80,000 inhabitants of the city with climate-friendlier power. Thanks to the power plant, the local population benefits from lower energy prices and a more stable energy supply (less failures and transport losses).The plant produces annually up to 45,000 mWh of electricity, for which otherwise around 10-15 million litres of diesel would be consumed. The waste heat generated during this process is used for the wood drying plants. For the production of the electricity, around 100,000 tonnes of wood are required annually. These are delivered in the form of wood waste and sawdust from the sawmill. All this wood waste comes from sustainable forestry in accordance with FSC guidelines. Prior to start-up of the plant, this wood waste was rotting in large piles on the property. Through the sustainable use of the waste, a reduction of the greenhouse gas methane was therefore also possible. The total reduction amounts to about 48,000 tonnes of CO2 equivalents annually.