In 2006, the Portuguese government opened an international public competition for the building of 15 forest biomass hydropower plants to supply of energy to the public network, with the goal of creating a net of biomass plants, with a total power of 250 megawatts, an investment of 500 million Euros and creating between 500 and 1000 jobs. Regions were selected according to the forest biomass availability and the inherent fire risk.
In 2007, Palser´s application to the competition for the Castelo Branco and Coimbra districts, capable of up to 3MVA, was the winner. As a consequence Palser has changed its name to Palser – Bioenergy e Paletes, Lda and its goal is now the building and operation of a forest biomass thermoelectrical plant, in the Castelo Branco and Coimbra districts, capable of up to 3MVA in addition to pallet manufacture.
This idea originated as a way of completing its involvement in the forest industry. Palser intends to use forest biomass in a way that uses the by-products resulting from its operations. Also with the goal of cleaning forests as a way to reduce fires and use forest biomass to produce electricity from renewable sources, thus reducing CO2 emissions.
The plant, built next to Sertã's facilities, began production in early 2010 and directly employs 12 people, but the bulk of the manpower is indirect through forestry cleaning. It feeds 3000 KVA into the public electricity distribution system and it represents an investment worth 11 million euros, fully paid by Palser.