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Biomass Energy Centre

Opportunities for land managers to enter
      the bioenergy supply chain

     West Midlands Bioenergy Conference

               December 2008
Aim of the presentation

• Give an overview of biomass fuel types
• Describe the basics of the biomass
  market
• Brief description of perennial energy
  Crops
• Brief description of anaerobic digestion
• Give details of where to get further
  information
Biomass as a fuel
• Logs and wood chips
  from woodlands
• Miscanthus and SRC
• Sawdust and off cuts
  from wood processing
• Dry agricultural
  residues - straw
• Food wastes, slurries
• Oil seed crops and
  cereals for liquid biofuel
  production
How is biomass being used?
• Most common application is heat production
  using woodchips, logs or pellets
• Typical scale is between 100 - 1000kW
  (around 2000 installations at present)
• Generally a single boiler in a single building
• Growing interest and application of ‘district
  heating’ systems
• Industrial scale co-firing and ‘biomass only’
  power generation (~6 biomass only power
  stations in operation, ~12 planned)
Forestry Commission’s Strategy
• 2 million tonnes of
  woodfuel from
  privately owned,
  undermanged
  woodland
• Equivalent to
  250,000 homes
  worth of energy
How can I supply this market?

•   Use thinnings, poor quality trees
•   Allow to dry ‘in the round’
•   Chip using a woodfuel grade chipper
•   Keep chips dry - make sure they match
    boiler specification and follow industry
    standards
Drying round wood prior to chipping
Producing good quality chips
• Use a woodfuel grade
  chipper - inconsistent
  chip size can block
  augers
• Moisture content is
  critical
• CEN standards
  developed for use
  across Europe
• Chippers are
  expensive - consider
  hiring in unless you
  have large quantities
  to process
Is woodchip competitive with
             other fuels?
• Market price varies considerably £50 - £90 per
  tonne delivered typical
• Price of oil ~4.0p per kWh (@ 40p per litre)
• Gas price currently around ~ 4.0p per kWh
• 1 tonne of 30% MC woodchips contains 3500
  kWh of energy
• Paying anything less than £120 per tonne of
  chips is competitive with oil and gas at today’s
  prices
cost per tonne
 sy
   st




            0
                20
                     40
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                               80
                                    100
     em
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     em
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                                          Variations in the cost of producing woodchips




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                                                                                          Wood chip production costs




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       12
Adding value - selling heat

• ‘Energy Supply Company’
  (ESCo)
• Attractive to end users -
  they do not have to worry
  about sourcing fuel
• User billed according to
  kWh of heat used - recorded
  by a ‘heat meter’
• Watch out for ‘heat
  incentive’ - being developed
  now.
Capital cost
• Biomass systems often much more expensive than
  fossil fuel counterparts
• DECC ‘bioenergy capital grant’
• Aimed at ‘industrial and community sectors that are
  considering investing in biomass-fuelled heat
  and/or combined heat and power projects,
  including anaerobic digestion’
• Covers ‘up to 40% of the difference in the cost of
  installing biomass…..compared to fossil fuel
  alternative’. Max single award £500k
• www.bioenergycapitalgrants.org.uk
Energy Crops
• Generally refers to willow short rotation
  coppice and Miscanthus
• Energy Crop Scheme grant available via
  Natural England - 40% of establishment cost
• Generally associated with larger scale power
  plants (E.ON at Lockerbie, SembCorp in the
  North East, Eccleshall West Mids) or co-firing
• Some examples of small scale heat in the
  region (Lionel Hill)
• Economics investigated by NNFCC
Short Rotation Coppice
• Plant spring year 1
• Cutback winter year
  1-2
• Harvest every 3
  years
• Yields 8 odt per ha
  per year
• Needs specialised
  harvester and
  planter
Miscanthus
• Plant spring year 1
• 1st harvest winter year
  2 -3
• Annual harvest there
  after (usually baled)
• Yields ~ 10 odt ha yr
  from year 3
• Similar to a
  conventional
  agricultural crop
• Eccleshall in W.
  Midlands
Anaerobic digestion

• Uses animal slurries, food waste, sewage
  sludge, maize or grass silage to generate
  ‘Biogas’ (methane and carbon dioxide)
• Gas powers combustion engine, end
  products are power and heat
• Could earn tradeable ‘renewable energy
  certificates’
• Digestate could be used as a soil
  conditioner - properties dependant on
  feedstock
In conclusion

• Biomass is an established fuel and is here
  to stay
• Can be economically viable
• Matching fuel quality to the end market is
  paramount
• Can use existing resources or dedicated
  crops
Sources of information
• Biomass Energy Centre
  www.biomassenergycentre.org.uk
• Forestry Commission
  www.forestry.gov.uk/england-woodfuel
• Heartwoods
  www.heartwoods.co.uk
• Marches wood energy network
  www.mwen.org.uk
• Bioenergy West Midlands
  www.bioenergywm.co.uk
• West midlands woodland & forestry forum
  www.growingourfuture.org
• National Non Food Crop Centre
  www.nnfcc.co.uk

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Ian Tubby Bioenergy Supply Chain

  • 1. Biomass Energy Centre Opportunities for land managers to enter the bioenergy supply chain West Midlands Bioenergy Conference December 2008
  • 2. Aim of the presentation • Give an overview of biomass fuel types • Describe the basics of the biomass market • Brief description of perennial energy Crops • Brief description of anaerobic digestion • Give details of where to get further information
  • 3. Biomass as a fuel • Logs and wood chips from woodlands • Miscanthus and SRC • Sawdust and off cuts from wood processing • Dry agricultural residues - straw • Food wastes, slurries • Oil seed crops and cereals for liquid biofuel production
  • 4. How is biomass being used? • Most common application is heat production using woodchips, logs or pellets • Typical scale is between 100 - 1000kW (around 2000 installations at present) • Generally a single boiler in a single building • Growing interest and application of ‘district heating’ systems • Industrial scale co-firing and ‘biomass only’ power generation (~6 biomass only power stations in operation, ~12 planned)
  • 5. Forestry Commission’s Strategy • 2 million tonnes of woodfuel from privately owned, undermanged woodland • Equivalent to 250,000 homes worth of energy
  • 6. How can I supply this market? • Use thinnings, poor quality trees • Allow to dry ‘in the round’ • Chip using a woodfuel grade chipper • Keep chips dry - make sure they match boiler specification and follow industry standards
  • 7. Drying round wood prior to chipping
  • 8. Producing good quality chips • Use a woodfuel grade chipper - inconsistent chip size can block augers • Moisture content is critical • CEN standards developed for use across Europe • Chippers are expensive - consider hiring in unless you have large quantities to process
  • 9. Is woodchip competitive with other fuels? • Market price varies considerably £50 - £90 per tonne delivered typical • Price of oil ~4.0p per kWh (@ 40p per litre) • Gas price currently around ~ 4.0p per kWh • 1 tonne of 30% MC woodchips contains 3500 kWh of energy • Paying anything less than £120 per tonne of chips is competitive with oil and gas at today’s prices
  • 10. cost per tonne sy st 0 20 40 60 80 100 em 1 sy st em 2 sy st em 3 sy st em 4 sy st em 5 sy st em 6 sy st em 7 sy st em 8 sy st em 9 sy st em 10 sy Variations in the cost of producing woodchips st em 11 sy st Wood chip production costs em 12
  • 11. Adding value - selling heat • ‘Energy Supply Company’ (ESCo) • Attractive to end users - they do not have to worry about sourcing fuel • User billed according to kWh of heat used - recorded by a ‘heat meter’ • Watch out for ‘heat incentive’ - being developed now.
  • 12. Capital cost • Biomass systems often much more expensive than fossil fuel counterparts • DECC ‘bioenergy capital grant’ • Aimed at ‘industrial and community sectors that are considering investing in biomass-fuelled heat and/or combined heat and power projects, including anaerobic digestion’ • Covers ‘up to 40% of the difference in the cost of installing biomass…..compared to fossil fuel alternative’. Max single award £500k • www.bioenergycapitalgrants.org.uk
  • 13. Energy Crops • Generally refers to willow short rotation coppice and Miscanthus • Energy Crop Scheme grant available via Natural England - 40% of establishment cost • Generally associated with larger scale power plants (E.ON at Lockerbie, SembCorp in the North East, Eccleshall West Mids) or co-firing • Some examples of small scale heat in the region (Lionel Hill) • Economics investigated by NNFCC
  • 14. Short Rotation Coppice • Plant spring year 1 • Cutback winter year 1-2 • Harvest every 3 years • Yields 8 odt per ha per year • Needs specialised harvester and planter
  • 15. Miscanthus • Plant spring year 1 • 1st harvest winter year 2 -3 • Annual harvest there after (usually baled) • Yields ~ 10 odt ha yr from year 3 • Similar to a conventional agricultural crop • Eccleshall in W. Midlands
  • 16. Anaerobic digestion • Uses animal slurries, food waste, sewage sludge, maize or grass silage to generate ‘Biogas’ (methane and carbon dioxide) • Gas powers combustion engine, end products are power and heat • Could earn tradeable ‘renewable energy certificates’ • Digestate could be used as a soil conditioner - properties dependant on feedstock
  • 17. In conclusion • Biomass is an established fuel and is here to stay • Can be economically viable • Matching fuel quality to the end market is paramount • Can use existing resources or dedicated crops
  • 18. Sources of information • Biomass Energy Centre www.biomassenergycentre.org.uk • Forestry Commission www.forestry.gov.uk/england-woodfuel • Heartwoods www.heartwoods.co.uk • Marches wood energy network www.mwen.org.uk • Bioenergy West Midlands www.bioenergywm.co.uk • West midlands woodland & forestry forum www.growingourfuture.org • National Non Food Crop Centre www.nnfcc.co.uk