1.
Life after the Energy Crops
Scheme
David Turley, NNFCC Lead Consultant
Biomass Feedstocks
Energy Now, Feb 2014, Telford

2.
What have we achieved in the UK
Renewable Power
(GWhe)
16000
14000
12000
10000
8000
6000
4000
2000
0
Renewable Heat (1,000
toe)
1400
other
biomass
AD
co firing
1200
other
biomass
1000
800
wood
600
400
plant
biomass
2010 2011 2012
Copyright © NNFCC 2012.
plant
biomass
200
0
2010
2011
2012

3.
Energy crop areas supported by planting grants
Natural England data on area supported (ha) to November 2011
9496 ha in total
8000
7000
6000
5000
ECS2 2007-2013
4000
ECS1 2000-2006
3000
2000
1000
0
SRC
Copyright © NNFCC 2012.
Miscanthus

4.
Energy crop planting
ETI and E4Tech, based on Natural England data
Copyright © NNFCC 2012.
ECS1
Closure

5.
Energy Crop Planting Locations - England
ETI and E4Tech, based on Natural England data

6.
Factors affecting uptake
• Technical/infrastructure
• Economic
– High establishment cost
– Impacts on cash-flow
– Competition with
arable returns
Copyright © NNFCC 2012.

7.
Factors affecting uptake – Policy Uncertainty
Renewables Obligation (RO) (renewable power support)
• Capping of grandfathered (protected) support for new
dedicated biomass capacity at 400MW
• Loss of energy crop uplift (worth 0.5 RO Certificates /MWh)
from 2013 for new plants
New Contract For Difference support mechanism
• No strike price for dedicated biomass
Rural Development Policy
• No replacement for Energy Crop Scheme
Copyright © NNFCC 2012.

8.
UK Biomass feedstock requirement for existing and power plants in
planning or development by developer/generator (NNFCC Data)
Million tonnes of pellets per annum
18
16
1.57
14
0.51
0.51
12
10
8
6
6.78
1.57
0.51
-
0.00
Drax
4.52
Eon
6.96
Eggborough Power
1.74
1.74
Feedstock
demand - 2015
Copyright © NNFCC 2012.
Helius Energy
RES
0.51
4
2
RWE Lynemouth
Feedstock
demand - 2020

9.
Renewable Heat Incentive
• Non Domestic Scheme was launched Nov 2011 by DECC,
supporting biomass as an eligible technology (excludes direct air
heating)
• Domestic RHI Scheme to launch in Spring 2014 , which will also
cover biomass-only boilers and biomass pellet stoves with
back-boilers
– Targeted at off-gas grid applications
Copyright © NNFCC 2012.

10.
RHI Tariffs
Non domestic RHI Plants Commissioned from April 2014 (p/kWh)
Tier 1 (up to
first 15% of
annual rated
output)
Tier 2
(annual
output above
Tier 1)
Small biomass
<199kWth
8.6
2.2
7.2 (typical
average)
Medium biomass
200kWth to
1MWth
5.0
2.1
4.4 (typical
average)
Large biomass
>1MWth
2
Biomass CHP
4.1
Domestic RHI biomass boilers
12.2

11.
RHI – Non Domestic Scheme
Applications for
Non-domestic RHI
(DECC Data)
574MW of installed
capacity by Oct 2013
Copyright © NNFCC 2012.

12.
Development Potential
4%
Total UK heat
use by
application
(70 mtoe)
16%
Space heating
Water heating
4%
12%
Copyright © NNFCC 2012.
Cooking/catering
Process use
64%
Drying/separation

13.
UK heating installations by fuel feedstock
20,000
1,500
15,000
1,000
10,000
500
5,000
0
1968
1973
1979
Solid fuel
DECC Data
Copyright © NNFCC 2012.
1984
Electric storage
1990
1995
Other electric
2001
Oil
2006
Gas
0
2012
Count 000's (gas only)
25,000
2,000
Count, 000's (not incl. gas)
2,500

14.
Boiler replacement opportunities
NNFCC data, based on conservative replacement rates for
conversion to biomass
Domestic
• 1700-1900 oil fired boilers per year
• 500-1000 solid fuelled boilers per
year
Copyright © NNFCC 2012.
Pelletstar
Wessex Biomass

15.
Supporting policies – direct rural support
• The Rural Community Energy Fund (RCEF) (details from WRAP)
– launched June 2013, £15 million to support rural
communities in England to develop renewable energy
projects providing economic and social benefits to the
rural community
• Stage 1 - provides a grant (up to £20,000 ) to assess feasibility
of renewable heat or power projects
• Stage 2 - provides an unsecured loan of up to £130K to
support planning applications and develop a business case
for investment
Copyright © NNFCC 2012.

16.
Supporting Policies – other rural support
• CAP Reform Framework (2014-2020)– Rural development
proposals
– encourage supply of non-food/feed resources to support
the developing bioeconomy
– encourage renewable energy investment
– support for cooperative developments and
demonstrations
– BUT - Defra needs to give energy crops the appropriate
priority, which is not guaranteed, we await more detail!
Copyright © NNFCC 2012.

17.
Concluding Comments
• There is no specific policy measure that currently recognises
the value of domestic biomass
• Stop/start nature of direct support has not been helpful
• A supportive industry has developed and is poised to exploit
the opportunities available
• RHI appears to offer a significant opportunity for local energy
crop development less reliant on direct support
– Own heat supply
– Involvement in local heat supply chains
Copyright © NNFCC 2012.

18.
IEE – Forest Partnerships for Success

19.
Celebrating 10 years of Bioeconomy
development
NNFCC is a UK based consultancy with
expertise on the conversion of biomass
to bioenergy, biofuels and biobased
products.
We help industry solve complex
business challenges and provide vital
evidence for policy makers.
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