THERMAL¦
Current and Proposed Nondomestic RHI Tariff Levels
Those producers are finding it more lucrative to grow and use REVIEWED TARIFFS CURRENT TARIFFS TECHNOLOGY (penance per kilowatt hour) (proposed for 2014/15) their own fuel rather than to store, process and transport the biomass to an end customer. In southern England, there are farmers Small Tier 1:8.6, Tier 2: 2.2 (up to 200kW) who are digging up their short-rotation willow crops due to the NO CHANGE lack of proper facilities and low market prices, Lindegaard says. Biomass Medium Boilers Tier 1:5.3, Tier 2: 2.2 (200 to 1MV) “With willow in particular, you have one shot every three years to get rid of it. If you decide that next time is going to be better and Large 1.0 2.0 it’s not, then you have a problem of harvesting it again and still (1MV and above) not getting a suitable return. So people are tending toward cutting Technology breakdown for central view of deployment in 2020 their losses at the moment,” he adds. Central Range for 2020 Although the current situation might seem challenging, Lin(Terawatt hours) Onshore Wind 24-32 degaard is helping develop policy initiatives to improve the ecoOffshore Wind 22-58 nomics, infrastructure and feasibility of growing energy crops Biomass Electricity 32-50 for heat. In order to reach the bioenergy goals of the European Marine 1 Biomass Heat (nondomestic) 36-50 Union, locally-grown energy crops will have to play a role, LinAir-Source and Ground-Source Heat Pumps (nondomestic) 16-22 degaard says. “We can’t import the whole lot from the U.S. or Renewable Transport Up to 48TWh 14 Finland. We need to start thinking about growing some of it on Others (Including Hydro, Geothermal, Solar and Domestic Heat) Estimated 15% Target 234 our own doorstep because otherwise we’ll be going from the fossil fuel frying pan into the biomass fryer, and just going import to ‘we’re not going to do that,’ ” Lindegaard explains. “You kind of import,” he adds. need that middle company in order to allow people to sell their A few reports suggest that by 2050, the U.K. will need roughfuel, get a good price, have it processed and go to the end user.” ly 2 million hectares (5 million acres) of energy crops, but the lack “What we kind of need is for people to start asking the same of strategy or policy mechanisms prevent greater development questions about fuel as they do food,” Lindegaard says. In the of the market, Lindegaard says. During the 1990s, a large demand past few years, people have been paying premium prices at restaufor energy crops was negatively affected by business blunders that rants and farmers markets for locally grown produce, he explains. left farmers searching for markets for their energy crops. “The “I think that similarly we need to ask the same sort of questions RHI has been a godsend in a way because it does enable some about where our fuel comes from and start thinking about workfarmers to use their own [energy crops] and make money,” Lining with the local community.” degaard says. “In certain circumstances, it can be a really good When it comes to developing the energy crop market, policy money spinner and turn short-rotation coppice and miscanthus mechanisms are going be some of the most influential drivers, into a bonafide cash crop.” Lindegaard says. “Unfortunately, the majority of farmers aren’t The RHI hasn't packed a big enough punch for energy crops, likely to go out and create the market themselves. It needs to be however, as evidenced by a grower questionnaire completed by done through policy mechanisms, and there needs to be a pull Crops for Energy as part of a project for the Energy Technolofrom the market, not a push from the farmers. That's what, ungies Institute. So far, 45 out of 57 growers believe the RHI is fortunately, is missing at the moment.” having little to no effect on increasing uptake of energy crops, according to questionnaire results. Although the RHI helps assure imported biomass is from sustainable, international sources, the Author: Chris Hanson Staff Writer, Biomass Magazine incentive makes local accreditation a hassle for individual growers. chanson@bbiinternational.com 701-738-4970 Having a more robust, local infrastructure would allow growers to collectively have their energy crops processed and stored at centralized locations, Lindegaard says. Additionally, collaborating farmers might have more incentive to become qualified under the RHI to sell their fuel to local markets by demonstrating sustainable practices. “In order to be able to sell your fuel, you have to show it is sustainable and go through a bureaucratic process in order to get accredited, and most farmers are going to think,
FEBRUARY 2014 | BIOMASS MAGAZINE 27