Transcript No Slide Title

Wood Fuel Opportunity
Swindon, 22 January 2009
•Angela Duignan
•Head of Wood Fuel Implementation
•Forestry Commission England
Energy
•Heat
•Renewables
Wood Fuel Strategy
Utilise extra 2 M green t p.a.
Market PULL Boilers
Support local heat clusters
Business Robustness
Address Fuel Poverty
Increased biodiversity
Green Jobs (20/MW installed)
3
Best and Worst Case Scenarios
4
Government's Strategy for Trees, Woods and
Forests in England
• Aim 1: A Sustainable Resource.
To provide, a resource of trees, woods and forests in places where they can contribute
most in terms of environmental,economic and social benefits now and for future
generations.
• Aim 2: Climate Change.
To ensure that existing and newly planted trees, woods and forests are resilient to the
impacts of climate change and also contribute to the way in which biodiversity and
natural resources adjust to a changing climate.
• Aim 3: Natural Environment.
To protect and enhance the environmental resources of water, soil, air, biodiversity and
landscapes (both woodland and non woodland) and the cultural and amenity values of
trees and woodland.
• Aim 4: Quality of Life.
To increase the contribution that trees, woods and forests make to the quality of life for
those living in, working in or visiting England.
• Aim 5: Business and Markets.
To improve the competitiveness of woodland businesses and promote the development
of new or improved markets for sustainable woodland products and ecosystem services
where this will deliver identifiable public benefits, nationally or locally,including the
reduction of carbon emissions.
• www.forestry.gov.uk/etwf
5
Annual increment
(Million cubic metres)
Woodfuel Strategy:
A target of 2 million tonnes pa by 2020
8
7
6
5
4
3
2
1
0
Unutilised
Annual harvest
Conifer
Broadleaf
Total
= 400 ktC saved
= 478,000 tonnes of crude oil
= 250,000 homes supplied with energy
=Woodland Management
6
Delivery Plan Aim 5 Wood Fuel
• Develop an implementation plan for the England
Woodfuel Strategy and facilitate access to relevant
funding streams.
• Support and conduct research aimed at addressing
supply chain issues.
• Gather and publish better information on the
potential of the under-managed woodland resource,
especially as a source of woodfuel and other
products.
• Work with partners on the development and
implementation of regulations and guidance
associated with the production and use of woodfuel.
7
Support
Government intervention
• Capital investment and support
• Outreach and facilitation
• Awareness raising local heat
Round 5 Grants
OPEN April 09
www.bioenergycapitalgrants.org.uk
8
9
Renewable Heat (RHI)
• Renewable Energy Strategy Consultation 2008
• RE Heat Target 14% (0.6% at present)
• Biomass and in particular wood fuel, corner stone
• Renewable Heat Incentive
• The Energy, Climate Change and Planning Bills all
received Royal Assent on 26 November 2008
• Renewable Heat and Energy Efficiency Consultation due
Spring 2009 (RHI details)
• Renewable Heat Incentive could provide a fixed annual payment
per MWh to users
• Paid from a levy on suppliers of fossil fuel heat
• For small installations the payment may be deemed - a one off up
front payment.
1
Renewable Power ROC
• Government Response to consultation on banding of the
Renewables Obligation Dec 08.
• The electricity Renewable Obligation Scheme supporting
generation of electricity from biomass will be extended to
2037 www.berr.gov.uk/files/file49342.pdf
Technology band
Co-firing of Biomass
Co-firing of Energy Crops
Co-firing of Biomass with CHP
Co-firing of Energy Crop with CHP
Dedicated Biomass
Dedicated Energy Crops
Dedicated Biomass with CHP
Dedicated Energy Crops with CHP
1
ROC value
0.5
1.0
1.0
1.5
1.5
2.0
2.0
2.0
Potential Biomass Resource UK
Potential Biomass Resource UK (100TWh)
17%
13%
Wood fuel
14%
10%
Straw
Wood waste
Waste
Agri waste
15%
Energy crops
31%
RES Con Doc 2008 BERR Table 7.1
1
Over view of Wood Fuel Industry
• Demand rising but stop start before recession
• Local Authority (green commitment)
• Private Estates (off gas and wood owners)
• Commercial Developments (planning stick)
• Small fragmented industry
• Few main boiler installers (struggling)
• regional wood fuel suppliers small (<5 FTE)
• Whole industry driven by economics
• heavily grant dependent
• high capital outlay required
• cost benefit cf fossil fuels (oil price fluctuations)
• Increase in regulation
• CPET Timber Procurement
• Fuel Sustainability standards
• Air quality and fuel quality measures
1
Confidence, Confidence, Confidence
1
Approx Costs and Guides
• Carbon Trust Jan 09
• www.carbontrust.co.uk
• Biomass Heating - A Practical Guide for Potential
Users
• Profit, Profit, Profit
• The next few years are crucial
• Oil price, grants, Euro, New build etc
• 1 MW boiler uses approx. 1,000t per annum
• Fuel costs £80/t at 30% moisture content
• Costs for extraction, transport and processing
• Woodland owner receives between zero to £5/t
• 80 % costs for the life time of a project = fuel.
1
Strengthening Supply Chain
1
1
Outcomes
•
•
•
•
•
Secure fuel supply
Climate change mitigation
Installed thermal capacity
More businesses and jobs
Fuel poverty and
competitiveness
• Woodland management
(only 30% managed 2008)
• Biodiversity and access
improvements
1
Contractor base
Skills & Training
Biomass Energy Centre
www.biomassenergycentre.org.uk
•What is biomass…?
•Where is the wood…?
•Are grants available?
•What equipment works?
•Advice on ‘what not to do’
1
FC GB Woodfuel Contacts
2
Region and Country Contacts
Engla nd
Ma rke ting FEE
Name
Phone
email
Angela Duignan 01179066029 [email protected]
Alan Corson
01904696305 [email protected]
W a le s
Mark Lewis
01970 821219 [email protected]
Scotla nd
Rebecca Carr
01313146398
Bioma ss Ene rgy Ce ntre
Ian Tubby
Geoff Hogan
01420 526197 [email protected]
01420 526197 [email protected]
South East England
Gillian Alker
01420 23337
South West England
Mark Prior
01626 890666 [email protected]
East of England
Edwin van Ek
01842 815544 [email protected]
East Midlands
William Rolls
01623 821471 [email protected]
West Midlands
Simon West
01905 532200 [email protected]
Yorkshire and Humberside
Rudie Humphrey 01904 448778 [email protected]
North East England
Richard Pow
01669 621591 [email protected]
North West England
Peter Fox
01768 776616 [email protected]
London
Ron Melville
020 7217 3215 [email protected]
[email protected]
[email protected]
Partners: strategic and delivery
•
•
•
•
•
•
•
•
•
•
2
DECC
NFU
CLA
defra
berr
wrap
RDA
C Trust
CPET
Business Link
•
•
•
•
•
•
•
•
•
Confor
Utilities
Wood processing
Woodland Initiatives
EFIP
REA
E NGOs
Construction Industry
Local Authority
Summary
• Magic figures are
• 2mt of green wood pa
• 14% renewable heat by 2020
•
•
•
•
•
•
2
Wood heat industry small
FC facilitate framework for market
Wider Support is key
Involve Efforts of all stakeholders
Multiple benefits of implementation
Golden Opportunity
Implementing the Wood Fuel Strategy