Biomass Strategy for England s Northwest Summary Report 2010

Transcription

1 Biomass Strategy for England s Northwest Summary Report

2 Introduction The Biomass Strategy aims to increase biomass electricity and heat generation in England s Northwest from the 2009 level of around 1.5 TWh per year to 12.3 TWh per year by The 2020 objective is equivalent to 9.7% of the region s current total gas and electricity demand or 85% of the total for the cities of Manchester and Liverpool combined. This will involve investment in: 20 large scale biomass and energy-from-waste plants; 30 medium/large scale organic waste digestion plants; 2,600 biomass boilers for commercial and public sector buildings; 30,000 domestic biomass boilers. There is potential to utilise 1.76 million tonnes of regional biomass resources for biomass electricity and heat which has an energy content of about 9.7 TWh/year. A key element of the strategy is to develop added-value biomass fuels from waste sources. The resource assessment implies that the biomass energy growth objectives will need to be met partially through imported biomass fuels which currently amount to about 250,000 tonnes per annum (energy content of 1.4 TWh/year). Implementation of the strategy will reduce CO 2 emissions by 2 million tonnes by 2020 (10 to 13% of the regional target) and lead to the creation of 2000 additional jobs in the supply chain. 01 Introduction 02 Background and Objectives 03 Analysis of Current Position 04 Biomass Strategy 08 Biomass Action Plan 09 Key to Abbreviations By 2020 we will need to invest in: Large scale biomass and energy-fromwaste plants 20 Medium/large scale organic waste digestion plants 30 Biomass boilers for commercial and public sector buildings 2,600 Domestic biomass boilers 30,000 The strategy focuses on interventions in the following priority sub-sectors where there is the greatest scope for intervention at regional and sub-regional levels: process industries public sector & community buildings commercial buildings domestic boilers. It involves addressing the key barriers to the deployment of biomass energy through a series of interventions covering information and promotion, finance and funding, business support and public policies and planning. It is proposed to establish a Northwest Biomass Forum which will bring together those involved in both the public and private sectors to take ownership of the strategy, to co-ordinate the implementation and to monitor the results. Biomass pellets A commercial biomass plant Cover image: Heineken UK s biomass plant at Royal Brewery in Manchester 2 1

3 Background and Objectives Biomass energy has been identified in various EU, UK and regional policy documents as one of the key technologies for reducing greenhouse gas emissions and contributing to security of energy supply. Analysis of Current Position The North West has a number of important strengths with respect to the biomass supply chain. Set against these strengths, there are a number of weaknesses. It also offers the prospect of creating large numbers of new jobs and delivering significant social benefits in deprived areas. The use of biomass for heating and electricity generation in the UK has been low in the past due to a range of barriers which include: lack of awareness and experience of biomass; biomass costs and funding; supply chain constraints particularly in terms of fuel supply; planning issues associated with the location of biomass plants and the delivery of fuels. However biomass energy is now poised for a period of sustained growth due to a wide range of policy and economic drivers aimed at stimulating the move to a low carbon economy in the UK. These include a series of incentives which will stimulate both the supply and demand sides of the biomass market (see Box 1). It should be noted that some of these incentives, especially the grants, are being phased out as part of the Government s plans to reduce public expenditure. This Biomass Strategy for England s Northwest sets out how the region can realise the energy, environmental and economic benefits from this growth potential. It builds on a range of initiatives which have been undertaken over the past few years starting with the publication of the Northwest Biomass Woodfuel Strategy in It covers the alternative fuels sector with a focus on the whole range of solid organic combustible and digestible materials including relevant elements of municipal, commercial and industrial wastes but it does not deal with liquid bio-fuels. Strengths Substantial biomass fuel resources especially in the form of wood and organic wastes and the biomass proportion of general waste (see Figure 1). The total is equivalent to an energy content of 11,046 GWh/ year which would be sufficient to supply over three-quarters of the total gas and electricity demand for the cities of Manchester and Liverpool. The largest wood reprocessing sector in the UK with a total processing capacity of around 2 million tonnes per annum. Leading companies in the field of CHP/gas engines, combustion/ gasification technologies, district heating and energy services. Significant biomass R&D capabilities especially at the University of Cumbria. A series of major projects in the pipeline including large scale biomass and energy-from-waste plants with an estimated generation capacity in excess of 400MWe. Large potential heat demand in the process industries, public and private sector buildings and domestic markets which could be converted to biomass. Weaknesses The current penetration of biomass energy is small around 1.5% of gas and electricity demand in the North West (2008/09). Biomass fuel sources are underdeveloped. The main boiler technology suppliers are based outside the region. There is a lack of awareness of, and confidence in, the use of biomass. There is limited co-ordination of resources and activities to promote the use of biomass across the region. Box 1: Examples of Biomass Incentives in England Energy Crops Scheme Bio-energy Infrastructure Scheme Bio-energy Capital Grant Scheme Biomass Heat Accelerator Renewable Obligation Certificates Feed-in-Tariffs Renewable Heat Incentive Construction of a biomass generator A wood reprocessing facility Figure 1: Biomass Fuel Resources in the North West Clean wood and straw 21% Dirty wood 11% General waste 25% Organic waste 19% Sewage sludge 11% Imports 13% Imports Clean wood and straw Sewage sludge Dirty wood Organic waste General waste Energy content (GWh/year) Total (2009) = 11,046 GWh/year 2 3

4 Biomass Strategy The key objective is to increase the biomass energy generated from the current level of around 1.6 TWh per year to 12.3 TWh per year by This is equivalent to an increase from 1.5% of current gas and electricity demand to 9.7% by Figure 2: Overview of the Biomass Strategy An overview of the Biomass Strategy is shown in Figure 2. Figure 3 shows the breakdown in terms of electricity and heat which illustrates the challenge particularly in terms of growth in biomass heat supply. As well as making a major contribution to regional renewable energy targets, the strategy is also aimed at delivering: a reduction of at least 2 million tonnes of CO 2 emissions by 2020 i.e. 10 to 13% of the regional target identified in the Climate Change Action Plan; 2,000 additional jobs in the construction, operation and maintenance of the biomass plants; additional Gross Value Added of 98.6 million. The strategy addresses the key barriers to the deployment of biomass energy through a series of interventions which take account of the lessons learnt from the review of other regions i.e. information and promotion, finance and funding, business support and public policies and planning. Objectives Energy generation CO 2 reduction Jobs and GVA Barriers Awareness and experience Costs and funding Supply chain Planning Intervention Information and promotion Finance and funding Business support Policies and planning guidance Supply chain Biomass resources Processing and distribution Conversion Education and skills Priority sectors Process industries Public and community buildings Commercial buildings Domestic boilers The strategy also addresses the development of the biomass supply chain to: Ensure that the North West biomass resources identified in this report are available to the meet the demand as it grows and to maximise the most cost effective use of these resources in terms of the environmental and economic benefits to the region. Maximise the economic benefits to the region of developing the downstream supply chain covering processing, distribution and energy conversion equipment/services as well as the associated skills. EU, national and regional policies and regulations Northwest Biomass Forum Key figures CO 2 reduction by million tonnes Number of additional jobs 2,000 Additional Gross Value Added 98.6 million Figure 3: North West Biomass Strategy Objectives Heat Electricity % of current North West gas and electricity demand 8000 Large scale biomass plant Waste wood ready for reprocessing GWh/year % of North West gas and electricity demand Current Biomass Generation (2009) Biomass Generation in

5 The strategy focuses on the priority sub-sectors where there is the greatest potential for intervention at regional and sub-regional levels. These are summarised in Box 2. It should be stressed that this does not cover any actions associated with the planned energy-from-waste plants since they are already going through various stages of planning and approval and hence the scope for any additional intervention is very limited. In terms of implementation of the strategy, a co-ordinated approach is needed at regional and sub-regional levels to ensure that: the opportunities for the region arising from EU and national policies, regulations and grants are maximised; regional/sub-regional policies and planning issues are aligned to facilitate the deployment of biomass energy; business and environmental support programmes are engaged to support those involved in both the supply and demand sides of the biomass market. Figure 4: Proposed Structure of the North West Biomass Forum Management Strategy and Intervention Sector Delivery Note: for abbreviations see page 09. In this context, it is proposed to establish a Northwest Biomass Forum (see Figure 4) which will bring together those involved in both the public and private sectors to take ownership of the strategy, to co-ordinate the implementation and to monitor the results. It will be important to ensure that there is strong representation from the private sector in the Management Group including those from the wood reprocessing sector, technology/equipment suppliers, contractors, energy service suppliers and installers. Box 2: Priority sub-sectors Sub-sector Target sites Type and size of plant Fuel sources Process industries Circa 600 sites in the food and drink, chemicals, paper and board and textile sectors Process heating: 0.5MWth to over 20MWth. CHP: 5 to 10MWe Wood chip (dirty for large WID plants and clean for smaller plants) and process waste Public and third sector buildings Large buildings town halls, hospitals and leisure centres Heating: 0.5MWth to 2MWth; CHP: 0.5 to 2MWe Clean wood chip Small/medium sized buildings schools, care homes, offices, visitor centres, community centres and halls Heating: 100kW to 500kW Clean wood chip and pellets Commercial buildings Large buildings office blocks, leisure complexes Heating: 0.5MWth to 2MWth; CHP: 0.5 to 2MWe Clean wood chip Small/medium sized buildings hotels and tourism Heating: 110kW to 500kW Clean wood chip and pellets Distinct heating (DH) Large mixed use sites social and private housing, commercial and public sector buildings CHP and DH: 500kWe to 2MWe; 850kWh to 3MWh plus additional boiler and heat storage capacity Clean wood chip Small/medium sites mainly housing and apartment blocks CHP and DH: 100 to 500kWe; 170 to 850kWh Clean wood chip and pellets Anaerobic digestion Large plants mainly linked to PFI contracts CHP: 500kWe to 1MWe or biogas injection Domestic food waste Small/medium scale plants CHP: 100 to 500kWe or heat only: 200kWth+ Local domestic and commercial food and farm waste Domestic Boilers Central heating: 12 to 20kW Wood pellets and logs Stoves Ambiant heating: 6 to 15kW Wood pellets and logs 6 7

6 Biomass Action Plan The following box summarises the key action areas and the broad activities in each area. Key to Abbreviations Box 3: Outline Biomass Action Plan Action area Policy and planning A detailed action plan with timescales, responsibilities and budgets will be compiled when the overall strategy has been finalised. It is estimated that the costs of delivery of the action plan at a regional level will be about 250,000 in 2010/11. The ongoing costs in the following 2 years will be lower than this at around 200,000 per annum. Summery of actions Establish the North West Biomass Forum. Review the draft Biomass Strategy and approve the final strategy. Provide inputs on biomass energy to the Climate Change Action Plan and the Single Regional Strategy. Provide inputs into planning guidance for local authorities. CFNW CHP CO 2 ESTAC EU FC FIT GONW GWh kw kwh LA LCCN LSP MWe MWh MWth NFU NHS NSF NWDA NWDEA PFI RHI SRC TWh Community Forests Northwest Combined Heat and Power Carbon Dioxide Energy Savings Trust Advice Centre European Union Forestry Commission Feed-in Tariff Government Office for the North West Gigawatt Hours Kilowatt Kilowatt Hours Local Authority Low Carbon Community Network Local Strategic Partnership Megawatt Electricity Megawatt Hours Megawatt Thermal (Heat) National Farmers Union National Health Service National School of Forestry Northwest Regional Development Agency North West Domestic Energy Alliance Public Finance Initiative Renewable Heat Incentive Short Rotation Coppice Terawatt Hours Information and promotion Develop and implement a campaign targeted at the priority sub-sectors to raise awareness and provide information on biomass. Provide information and advice on the financing of biomass projects particularly in the light of the introduction of the FITs and RHI. Project support Provide technical/commercial support at the feasibility study and detailed project planning stages. Integrate specialist support for biomass projects with existing business and public sector support programmes in the North West. Biomass resources Ensure that the identified biomass resources in the North West are made available at the right quality, cost and time to meet the projected growth in demand. Address the supply and demand issues associated with the large scale biomass and energy-from-waste plants which are at various stages of development. Carry out a feasibility study into the establishment of an alternative fuels development centre. Investigate the potential for a significant increase in growing energy crops such as SRC. Other supply chain activities Identify supply chain gaps and opportunities for new business development and inward investment. This will involve comprehensive mapping of the supply chains for each of the priority sub-sectors. Assess the human resources and skills needed to implement the strategy and achieve the targets especially for the installation and maintenance of biomass plants. Address any resource and skills gaps identified by working with colleges and training centres in the region. Develop links between universities, and private sector R&D establishments, and companies involved in the biomass supply chain to undertake collaborative R&D and technology demonstration projects. 8 9

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