Your SlideShare is downloading. ×
0
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 sizea...
Case Studies
Nenagh Leisure Centre Biomass
•

Contract: Design, Supply & Install plant & supply all heat & operate & maint...
Case Studies
Nenagh Leisure Centre Biomass
With SERVE EU Grant Aid
Simple Payback in Years
10 Yr NPV
10 Yr IRR

2.6
€367,0...
Case Studies
Thurles Leisure Centre & Source Arts Centre
•

Contract: Design, Supply & Install plant & supply all heat & o...
Case Studies
Thurles Leisure Centre & Source Centre DH

With DoTTS Grant Aid
Simple Payback in Months
10 Yr NPV
10 Yr IRR
...
Case Studies
Coolbawn Water Treatment Plant (EE & RE)
•

7 yr Contract: Design, Supply, Finance & Install plant & supply a...
Case Study
Barry Grace Firewood Nenagh
• 600+ stoves installed in EU SERVE project
• Opportunity for Domestic Wood for Fue...
TEA Projects
Annual Heat Supply Cost (Oil vs Biomass)
250,000

Euros per annum (€)

200,000

150,000

100,000

50,000

Ann...
Current Status*
• Annual savings are €1.3M
• Was: €2.5M on imported oil,
• Now €1.1M on local biomass,

• Full time jobs s...
Current Status
• Clear business case for Wood for Fuel Vs Oil
Energy Prices (Commercial)
0.12

Price of Energy per Unit (€...
Where’s the opportunity?
• Domestic: Logs

• Cheaper than coal for energy
• Need to provide high quality product
• Commerc...
What’s the opportunity?
• 50% Norwegian homes heated by wood logs.
• 65% Swedish heat supplied by biomass.
• 5% in Ireland...
Where’s the opportunity?
• DCENR likely to introduce a subsidy for renewable heat
for large installations
• Careful design...
Fuel Availability
• Forestry Sector not optimised for small private forestry

• Substantial thinning's not exploited
• Fue...
Required actions
• Sector maturity needed.

• Access to finance
• Support to district heating infrastructure for high dens...
Conclusions
• Encourage local biomass for Jobs

• Big heat use on oil = wasting money
• Domestic stoves using wood should ...
•
•
•
•
•
•

Tipperary Energy Agency
Craft Granary
Church St
Cahir
Co. Tipperary
Ireland

•
•
•
•
•
•

Paul Kenny
CEO
T: 0...
Upcoming SlideShare
Loading in...5
×

Wood for Fuel - The Opportunity for Tipperary

412

Published on

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

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
412
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
5
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "Wood for Fuel - The Opportunity for Tipperary"

  1. 1. Wood for Fuel The Opportunity for Tipperary
  2. 2. 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%).
  3. 3. 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
  4. 4. 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.
  5. 5. 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
  6. 6. 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%
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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.
  15. 15. 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
  16. 16. 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
  17. 17. 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.
  18. 18. • • • • • • 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
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×