Wood for Fuel - The Opportunity for Tipperary
Upcoming SlideShare
Loading in...5
×
 

Wood for Fuel - The Opportunity for Tipperary

on

  • 455 views

Presentation on the Biomass Opportunities in Tipperary including case studies on Nenagh Leisure Centre and Thurles Leisure Centre.

Presentation on the Biomass Opportunities in Tipperary including case studies on Nenagh Leisure Centre and Thurles Leisure Centre.

Statistics

Views

Total Views
455
Views on SlideShare
451
Embed Views
4

Actions

Likes
1
Downloads
1
Comments
0

1 Embed 4

https://twitter.com 4

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Wood for Fuel - The Opportunity for Tipperary Wood for Fuel - The Opportunity for Tipperary Presentation Transcript

  • Wood for Fuel The Opportunity for Tipperary
  • National • Tipperary Imports €85 Million for Coal and Oil for heating (€582 per person). • Tipperary could produce a sizeable share from existing forestry and new forestry on marginal land. • Every €1M decreases imports and creates 20-25 local sustainable jobs. • Wood for fuel currently employs ~ 46 people in Tipperary. • 6.4% of heating supplied currently in Tipperary by wood (mainly medite 75%).
  • Case Studies Nenagh Leisure Centre Biomass • Contract: Design, Supply & Install plant & supply all heat & operate & maintain Heat load in kWh Biomass cost Equivalent oil cost @80c/ litre Saving (biomass only) Capital Cost SERVE EU Grant CO2 Saving in Tonnes 900,000 €42,903 €91,043 €48,140 €203,165 €80,000 207
  • Case Studies Nenagh Leisure Centre Biomass With SERVE EU Grant Aid Simple Payback in Years 10 Yr NPV 10 Yr IRR 2.6 €367,000 69% Without Grant Aid Simple Payback in Years 10 Yr NPV 10 Yr IRR 4.2 €290,035 32% Key Innovation • Contracts • Design Build Operate Contract • Contractor pays for all oil, maintenance, chip etc. • Single heat supply contract fixed at 4.2c/kWh for 3 years • All losses, breakdowns covered by contractor • Chip / pellet supplied locally.
  • Case Studies Thurles Leisure Centre & Source Arts Centre • Contract: Design, Supply & Install plant & supply all heat & operate & maintain Heat load in kWh Biomass cost Equivalent LPG cost @55c/litre Saving Capital Cost DoTTS Grant CO2 Saving in Tonnes 1,500,000 €47,000 €115,000 €68,000 €160,000 €135,000 400
  • Case Studies Thurles Leisure Centre & Source Centre DH With DoTTS Grant Aid Simple Payback in Months 10 Yr NPV 10 Yr IRR 6 €496,000 194% Without Grant Aid Simple Payback in Months 10 Yr NPV 10 Yr IRR 30 €377,035 59%
  • Case Studies Coolbawn Water Treatment Plant (EE & RE) • 7 yr Contract: Design, Supply, Finance & Install plant & supply all heat & operate & maintain (Energy efficiency and Renewable Energy) Net Heat load in kWh Biomass & EE ESCO cost for first 7 years Equivalent Oil Cost Saving over first 7 years of ESCO Capital Cost to client BEW Grant CO2 Saving in Tonnes 140,000 €16,000 €18,000 €20,300 €0 35% 47
  • Case Study Barry Grace Firewood Nenagh • 600+ stoves installed in EU SERVE project • Opportunity for Domestic Wood for Fuel Business • Current Supply 2000 Tons annually (€120 per pallet ~0.75T) • Purchase forestry ~€35/ wet ton (€70/Dry tonne) • Customer 4c/kWh Vs Coal at 6c/kWh (pallet) • 2 direct jobs, +transport, +forestry, +indirect etc.(~4) • Sells via Stakelums and petrol stations. • Displaces 1000T coal; Est~ €250k
  • TEA Projects Annual Heat Supply Cost (Oil vs Biomass) 250,000 Euros per annum (€) 200,000 150,000 100,000 50,000 Annual heating cost – Biomass 63% savings, 3 year payback Annual Heating Cost Oil 0 LIT Tipperary Thurles Leisure Centre Nenagh Leisure Centre Gurteen Agricultural College Coolbawn Water Treatment Plant Roscrea Leisure Centre
  • Current Status* • Annual savings are €1.3M • Was: €2.5M on imported oil, • Now €1.1M on local biomass, • Full time jobs supported: 46 * Excludes Medite
  • Current Status • Clear business case for Wood for Fuel Vs Oil Energy Prices (Commercial) 0.12 Price of Energy per Unit (€/kWh) 0.1 0.08 Heating Oil 0.06 Mains Gas Wood Chip 0.04 0.02 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
  • Where’s the opportunity? • Domestic: Logs • Cheaper than coal for energy • Need to provide high quality product • Commercial scale: • Nursing homes, Hotels, Pools 100kW-500kW • Wood pellets or chip • Industrial Scale: • Medite, Dairies, steam/ heat boilers. • Forestry logs, large scale operation
  • What’s the opportunity? • 50% Norwegian homes heated by wood logs. • 65% Swedish heat supplied by biomass. • 5% in Ireland • <2% in Tipperary excluding Medite (6.7% inc.) If Tipperary increases to : • EU average 15% 191 jobs €7.65M • Top 10: 20% 400 jobs €20M • Top 5: 45% => 827 jobs €33M
  • Where’s the opportunity? • DCENR likely to introduce a subsidy for renewable heat for large installations • Careful design, engineering and contracts needed. • Tipperary LA’s/ LIT have led the way with innovative Contracting models • Industrial/ commercial: • Buy heat not fuel. • Careful where risk/ reward balance is.
  • Fuel Availability • Forestry Sector not optimised for small private forestry • Substantial thinning's not exploited • Fuel/ wood available but not being brought to market • Results in poor supply-chain • Credit required to bolster supply chain inventories for value. • Market needs more demand to stimulate supply
  • Required actions • Sector maturity needed. • Access to finance • Support to district heating infrastructure for high density heat use • Further awareness needed of the savings. • Additional support such as greater feed in tariffs – coming soon. • Training for the sector • Planting of more biomass • Significant establishment grants for forestry but demand requires stimulation
  • Conclusions • Encourage local biomass for Jobs • Big heat use on oil = wasting money • Domestic stoves using wood should be encouraged. • Local wood energy is competitive, sustainable and supports local jobs. • We grow food not import it. Energy should be no different.
  • • • • • • • Tipperary Energy Agency Craft Granary Church St Cahir Co. Tipperary Ireland • • • • • • Paul Kenny CEO T: 052 7443090 F: 052 7443012 E: info@tea.ie W: www.tea.ie