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Denis Neary
Programme Executive SSRH
Example Case Studies: Hotel and a Distillery
Introduction to the SSRH
2 www.seai.ie
Will SSRH work for my business?
First Steps: What can you do today?
Business Case: Financial and non-financial benefits
Expectations: How long will it take what are the snags?
SSRH
What is the SSRH
Financial incentive to replace fossil fuel heating systems with heat
pumps or biomass or biogas heating systems.
Targeting to support up to 1,300 GWh of renewable heat per year.
Phase 1 launched in September 2018 (Investment aid under GBER)
Phase 2 launched in June 2019 (Operational aid with State aid approval)
Now fully open for applications via SEAI website.
Eligible Applicants – who can apply?
- Commercial, industrial, agricultural, public sector, district heating
- Not ‘emissions trading scheme’ (ETS) sites
- Not single domestic
Who can apply and what can you heat?
Eligible heat – what can you heat?
- Space, Water & Process Heating
- Produced from an eligible installation and metered at point of use
- Some exclusions e.g., open spaces, wood fuel drying, electricity generation
- Not renewable heat mandated by regulation
- Not heat produced for the purpose of receiving SSRH
Who can apply and what can you heat?
What is the SSRH
A hybrid scheme of;
Investment aid - a grant of up to 30% for
- air source heat pumps
- ground source heat pumps
- water source heat pumps
Operational aid based on eligible heat use
- a tariff which is tiered (reduces as heat output increases)
- ongoing quarterly payments for 15 years
- for biomass heating systems & anaerobic digestion heating
systems
Tariff Based on Useable &
Eligible Heat Output
1,200 MWh/Year = €40,000
2,000 MWh/Year = €43,120
10,000 MWh/Year = €83,120
50,000 MWh/Year = €231,120
Fertiliser production plant 29.058 GWh = €144,718 /year
Typical 150 bedroom Hotel & Leisure Centre
Industrial Site = €65,000 per year
8 www.seai.ie
Scoping
Application
Letter of Offer
Installation
Inspection
Payment
Ongoing Obligations
Design
report
Completion
report
www.seai.ie
First Steps
- Today
Step 1. Look at your Business
Scoping- Eligibility to the SSRH
Very few businesses will be ineligible SSRH
Understand your current fuel consumption, Bill Analysis.
Some element of your business could be ineligible
(No Problem –leave it out)
Step 1. Look at your Business
Scoping- Heat Pump or Biomass Boiler, right solution for you? Get Advice.
Approach a heat system design professional
“Our heat requirement needs to react quickly, Biomass unsuitable for our needs ”
Can a biomass boiler/HP do the heavy lifting with another method used for final delivery.
“Biomass boilers are too big and our site does not have the spare space”
Some biomass systems are marginally larger then oil systems.
Step 2. The Holistic Design
The Design Engineer is Critical to the Application
- The Heat Service
- All of it (including old components e.g., heat emitters)
- Does it deliver the heat needs?
- Size/scale of the business
- Historical evidence of fossil fuel use (receipts)
- Planning Permission
- The business itself
- The new heating system including the boiler house
Step 2. The Holistic Design
The Design Engineer is Critical to the Application
- Building Regulations
- Be clear on what regulations apply
- Safety Systems
- Building regulations
- Supplier guidelines
- Fuel storage
- Environmental licencing
- Impact of the heating system/fuel/emissions
Step 3. Choose a Fuel Type
Scoping- Depending on which fuel type you choose your benefits vary.
• Heat requirement
• Site suitability
• Space available
Step 3. Choose a Fuel Type
Scoping- Wood Chip
Pros - Wood chips are cheaper (41% cheaper - Jan 2022 prices)
Easier to produce if you were to go down the route of self-supply.
Cons - Wood chips come with a higher maintenance costs, more handling
and equipment required.
Compared to Pellets - The fuel is inconsistent, size and moisture content
More area is required for fuel storage, if you have the space, use it.
Step 3. Choose a Fuel Type
Scoping- Wood Pellet
Pros – Lower Maintenance costs, less fuel jams, smaller fuel feed
mechanism less area for storage required.
If you can get a delivery of oil you can get pellets.
Cons – fuel costs are higher due to embedded energy from the
production process.
17 www.seai.ie
Annual Payment Cap
The SSRH payment is capped annually and this cap is derived from the
information we receive during the application process and is fixed and stated
in your Letter Of Offer (LOO).
• There are three legs to the SSRH stool:
1. Industry key performance indicators KPI’s and annual heat cap (Supported
by historic fuel consumption and historic production figures)
2. Fuel consumption (Supported by fuel invoices)
3. Metered heat (Supported by tamper proof heat meters and photo graphic
readings)
Overview
1. Pre-application Stage
3. Receipt of Offer
2. Application and Evaluation
Scoping
Application
Letter of Offer
4. Installation Stage
5. Completion & inspection Stage
6. Payment
Installation
Inspection
Payment
Design Phase Completion Phase
One Year
One Quarter
Once you receive a Letter Of Offer (LOO) from the SEAI
you will have 12 months to complete the installation
Take your time and Scope it out.
Realistically allow for at least 3 months.
Allow 4 months lead times
Allow for at least 2 months
www.seai.ie
On Going
Obligations
20
www.seai.ie
SSRH Support Scheme for Renewable Heat
• Why So Much Paperwork?
21 www.seai.ie
Sense Check - Fuel Invoices to Output
WFQA Fuel Purchased
(Invoices)
% Efficiency of the Boiler
& Distribution System
80% of
4,800kWh is
3,840 kWh
Number of Units
Produced, Compared
to Industry
Benchmarks
1 Tonne of Wood Pellets
is approximately
4,800kWh of Primary
Energy
A Typical System is
Approximately 80%
Efficient
An Example KPI is 9 kWh (Large site) to 12 kWh (small site) per Litre Alcohol,
1 tonne of pellets (4,800kWh) should produce about 400 to 533 Litres
Thermal Units
Through the Heat
Meters
Output
www.seai.ie
Example
Case Studies
Case Studies
A Hotel (120 bedrooms & Leisure Centre)
1,200,000 kWh of metered energy per year.
Converts from Mains Gas to Wood Pellet Fuel.
SSRH Support Payment = €39,120 per year.
Additional Fuel Cost = €19,800 per year.
Additional maintenance cost etc = €2,000 per year
Estimated Installation cost = €120,000
ROI = 6.9 years
Case Studies
A Large Distillery
On the large site producing 1.33 million LA per year, they install a 2.5
MW woodchip steam generation system at a cost of €800,000 operating
at a KPI of 9kWh per litre of alcohol absolute
Operating costs - Mains Gas 4.41c/kWh – Wood chip 4.05c/kWh
€0.397 or 39.7 c/LA, mains gas fuel cost.
€0.365 or 36.5 c/LA, wood chip fuel cost.
SSRH Payment for 12,000 MWh is €90,520 per year OR 6.8c /LA
Case Studies
SSRH payment of to the combined operating cost of €0.293 cent per LA for a
woodchip system.
Additional maintenance cost associated with the biomass plant €5k.
29.3 c/LA Woodchip VS 39.7 c/LA Mains gas,
9.62c per LA better off with woodchip
Capital expenditure of €800,000
Production rate of 1.333 million LA per year = €128,266 per year, ROI is 6.2
years.
Example Case Studies: Hotel and a Distillery
Introduction to the SSRH
26 www.seai.ie
Will SSRH work for my business?
First Steps: What can you do today?
Business Case: Financial and non-financial benefits
Expectations: How long will it take what are the snags?
SSRH: Recap
www.seai.ie
Contact SSRH at:
Phone: 01 808 2006
SSRH@SEAI.ie
Visit the SEAI Website for more information at:
https://www.seai.ie/business-and-public-
sector/business-grants-and-supports/support-scheme-
renewable-heat/
Thank You
From the SSRH Team

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Energy Show 2022 - Support Scheme for Renewable Heat

  • 2. Example Case Studies: Hotel and a Distillery Introduction to the SSRH 2 www.seai.ie Will SSRH work for my business? First Steps: What can you do today? Business Case: Financial and non-financial benefits Expectations: How long will it take what are the snags? SSRH
  • 3. What is the SSRH Financial incentive to replace fossil fuel heating systems with heat pumps or biomass or biogas heating systems. Targeting to support up to 1,300 GWh of renewable heat per year. Phase 1 launched in September 2018 (Investment aid under GBER) Phase 2 launched in June 2019 (Operational aid with State aid approval) Now fully open for applications via SEAI website.
  • 4. Eligible Applicants – who can apply? - Commercial, industrial, agricultural, public sector, district heating - Not ‘emissions trading scheme’ (ETS) sites - Not single domestic Who can apply and what can you heat?
  • 5. Eligible heat – what can you heat? - Space, Water & Process Heating - Produced from an eligible installation and metered at point of use - Some exclusions e.g., open spaces, wood fuel drying, electricity generation - Not renewable heat mandated by regulation - Not heat produced for the purpose of receiving SSRH Who can apply and what can you heat?
  • 6. What is the SSRH A hybrid scheme of; Investment aid - a grant of up to 30% for - air source heat pumps - ground source heat pumps - water source heat pumps Operational aid based on eligible heat use - a tariff which is tiered (reduces as heat output increases) - ongoing quarterly payments for 15 years - for biomass heating systems & anaerobic digestion heating systems
  • 7. Tariff Based on Useable & Eligible Heat Output 1,200 MWh/Year = €40,000 2,000 MWh/Year = €43,120 10,000 MWh/Year = €83,120 50,000 MWh/Year = €231,120 Fertiliser production plant 29.058 GWh = €144,718 /year Typical 150 bedroom Hotel & Leisure Centre Industrial Site = €65,000 per year
  • 8. 8 www.seai.ie Scoping Application Letter of Offer Installation Inspection Payment Ongoing Obligations Design report Completion report
  • 10. Step 1. Look at your Business Scoping- Eligibility to the SSRH Very few businesses will be ineligible SSRH Understand your current fuel consumption, Bill Analysis. Some element of your business could be ineligible (No Problem –leave it out)
  • 11. Step 1. Look at your Business Scoping- Heat Pump or Biomass Boiler, right solution for you? Get Advice. Approach a heat system design professional “Our heat requirement needs to react quickly, Biomass unsuitable for our needs ” Can a biomass boiler/HP do the heavy lifting with another method used for final delivery. “Biomass boilers are too big and our site does not have the spare space” Some biomass systems are marginally larger then oil systems.
  • 12. Step 2. The Holistic Design The Design Engineer is Critical to the Application - The Heat Service - All of it (including old components e.g., heat emitters) - Does it deliver the heat needs? - Size/scale of the business - Historical evidence of fossil fuel use (receipts) - Planning Permission - The business itself - The new heating system including the boiler house
  • 13. Step 2. The Holistic Design The Design Engineer is Critical to the Application - Building Regulations - Be clear on what regulations apply - Safety Systems - Building regulations - Supplier guidelines - Fuel storage - Environmental licencing - Impact of the heating system/fuel/emissions
  • 14. Step 3. Choose a Fuel Type Scoping- Depending on which fuel type you choose your benefits vary. • Heat requirement • Site suitability • Space available
  • 15. Step 3. Choose a Fuel Type Scoping- Wood Chip Pros - Wood chips are cheaper (41% cheaper - Jan 2022 prices) Easier to produce if you were to go down the route of self-supply. Cons - Wood chips come with a higher maintenance costs, more handling and equipment required. Compared to Pellets - The fuel is inconsistent, size and moisture content More area is required for fuel storage, if you have the space, use it.
  • 16. Step 3. Choose a Fuel Type Scoping- Wood Pellet Pros – Lower Maintenance costs, less fuel jams, smaller fuel feed mechanism less area for storage required. If you can get a delivery of oil you can get pellets. Cons – fuel costs are higher due to embedded energy from the production process.
  • 17. 17 www.seai.ie Annual Payment Cap The SSRH payment is capped annually and this cap is derived from the information we receive during the application process and is fixed and stated in your Letter Of Offer (LOO). • There are three legs to the SSRH stool: 1. Industry key performance indicators KPI’s and annual heat cap (Supported by historic fuel consumption and historic production figures) 2. Fuel consumption (Supported by fuel invoices) 3. Metered heat (Supported by tamper proof heat meters and photo graphic readings)
  • 18. Overview 1. Pre-application Stage 3. Receipt of Offer 2. Application and Evaluation Scoping Application Letter of Offer 4. Installation Stage 5. Completion & inspection Stage 6. Payment Installation Inspection Payment Design Phase Completion Phase One Year One Quarter Once you receive a Letter Of Offer (LOO) from the SEAI you will have 12 months to complete the installation Take your time and Scope it out. Realistically allow for at least 3 months. Allow 4 months lead times Allow for at least 2 months
  • 20. 20 www.seai.ie SSRH Support Scheme for Renewable Heat • Why So Much Paperwork?
  • 21. 21 www.seai.ie Sense Check - Fuel Invoices to Output WFQA Fuel Purchased (Invoices) % Efficiency of the Boiler & Distribution System 80% of 4,800kWh is 3,840 kWh Number of Units Produced, Compared to Industry Benchmarks 1 Tonne of Wood Pellets is approximately 4,800kWh of Primary Energy A Typical System is Approximately 80% Efficient An Example KPI is 9 kWh (Large site) to 12 kWh (small site) per Litre Alcohol, 1 tonne of pellets (4,800kWh) should produce about 400 to 533 Litres Thermal Units Through the Heat Meters Output
  • 23. Case Studies A Hotel (120 bedrooms & Leisure Centre) 1,200,000 kWh of metered energy per year. Converts from Mains Gas to Wood Pellet Fuel. SSRH Support Payment = €39,120 per year. Additional Fuel Cost = €19,800 per year. Additional maintenance cost etc = €2,000 per year Estimated Installation cost = €120,000 ROI = 6.9 years
  • 24. Case Studies A Large Distillery On the large site producing 1.33 million LA per year, they install a 2.5 MW woodchip steam generation system at a cost of €800,000 operating at a KPI of 9kWh per litre of alcohol absolute Operating costs - Mains Gas 4.41c/kWh – Wood chip 4.05c/kWh €0.397 or 39.7 c/LA, mains gas fuel cost. €0.365 or 36.5 c/LA, wood chip fuel cost. SSRH Payment for 12,000 MWh is €90,520 per year OR 6.8c /LA
  • 25. Case Studies SSRH payment of to the combined operating cost of €0.293 cent per LA for a woodchip system. Additional maintenance cost associated with the biomass plant €5k. 29.3 c/LA Woodchip VS 39.7 c/LA Mains gas, 9.62c per LA better off with woodchip Capital expenditure of €800,000 Production rate of 1.333 million LA per year = €128,266 per year, ROI is 6.2 years.
  • 26. Example Case Studies: Hotel and a Distillery Introduction to the SSRH 26 www.seai.ie Will SSRH work for my business? First Steps: What can you do today? Business Case: Financial and non-financial benefits Expectations: How long will it take what are the snags? SSRH: Recap
  • 27. www.seai.ie Contact SSRH at: Phone: 01 808 2006 SSRH@SEAI.ie Visit the SEAI Website for more information at: https://www.seai.ie/business-and-public- sector/business-grants-and-supports/support-scheme- renewable-heat/ Thank You From the SSRH Team

Editor's Notes

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