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Company Report: Balcas Timber

 

Balcas Timber is a wholly owned subsidiary of Balcas, the Fermanagh based parent company. In 2015, the then largest Balcas shareholder, The Dutch Clean Energy Company B.V. converted a shareholder loan into equity and, as a result, the ultimate control of the group passed to a Dutch company, SHV Holdings N.V.

Balcas is a timber and renewable energy business, annually processing a million tonnes of output from forests in Ireland and Scotland sold as timber, renewable electricity and wood pellets. Some of the timber produced is used to generate electricity which powers the factory or is exported to the grid. Some of the available heat is also used to dry the timber used for construction or to manufacture renewable wood pellet fuel.

Additionally, the group operates a second factory at Invergordon in Scotland.

The energy generated by the company displaces the equivalent of 250,000 tonnes of CO2 from fossil fuels and the timber products are estimated to sequester a further 300,000 tonnes. Since 2006, Balcas has built up an expanding market for primary wood pellets which are thought to have displaced the equivalent of 6 million barrels of crude oil. In 2018, Balcas acquired Forever Fuels, the largest wood pellet distributor in GB and is expected to supply about a third of the UK market. The company reports that it has invested more than £100m in the last 20 years with leading world class technologies. In 2018 capital investment of over £6m was undertaken. The expectation is that Balcas has a fast growing opportunity to further increase the use of timber in the construction sector. Employment in the company, in both Northern Ireland and other locations, increased in 2018 to 367 people.

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