The North Lanarkshire Biomass Project and Review of Scottish Councils on wood energy

Transcription

1 The North Lanarkshire Biomass Project and Review of Scottish Councils on wood energy The case for wood energy deployment in public sector buildings June steveluker@me.com

2 The overall market share of wood energy Biomass constitutes the largest source of renewable energies in the EU (66%), and In mostly 89% wood 11% plant and animal biomass, Waste, landfill gas etc Wood is the major source for biomass (89%). Thus, wood is the major source for all renewable energy generation in the EU = 59% Source: UN Economic Commission for Europe 2008 Out mostly heat

3 Market share of wood energy in the UK 59% share of renewable heat and 5.7% of renewable electricity 20% share of all UK renewable energy

4 Existing wood fired heat installations in England and Scotland (2010 figures) Of which 47 are in Councils 1000 Number of Installations North West North East Yorkshire and the Humber East Midlands East of England South East London South West West Midlands Scotland

5 Installed Capacity KW North West North East Yorkshire and the Humber East Midlands East of England South East London South West West Midlands Scotland Total Scottish Councils

6 Scottish Council wood energy survey (Autumn 2009) There are 32 Scottish Councils all were issued a survey questionnaire 18 Councils provided replies and in total 20 questionnaires were completed 5 interviews were also conducted with Council staff in 5 Councils FCS/other published data on Council biomass systems added to survey results Aberdeen City Council x 2 Edinburgh City Council East Ayrshire Inverclyde Council Dundee City Council Perth and Kinross Council Stirling Council Scottish Borders Council Comhairle nan Eilean Sair Glasgow City Council x 2 Angus Council East Lothian Council South Ayrshire Council Highland Council South Lanarkshire Council North Ayrshire Council Clackmannanshire Council North Lanarkshire Council

7 Some key findings of the survey c12mw installed, c47 systems in total, average size 256KW

8 Summary of key barriers to further development in Scottish Councils No access to investment funds No standard investment appraisal tools Disconnect between capital and revenue budgets Concerns over continuity of supply and price of fuel Lack of internal expertise and capacity Unclear/no procurement options Stop/start grants (pre RHI!)

9 Central Scotland Green Network Planning investment in wood energy support programme September 2010 to May Councils in process Desk and site audit Cost and implementation plan Desk based audit: Large energy bill Secure long term future 100+ sites/council Short-listing and site visits: sites/council Enough space and access Single or double plant rooms

10 Outcomes of CSGN support Council Number of sites Installed capacity - KW Total capital cost - Tonnes CO2 Saved Total annual energy savings (before capex) CRC savings Jobs GVA Stirling 8 3,770KW 2,651,600 2,448/t CO2 311,046 29, ,098 Glasgow 8 4,745KW 3,292,250 3,295/t CO2 410,025 39, ,520 South Ayshire 8 3,745KW 2,626,750 2,542/t CO2 316,600 30, ,704 East Ayrshire 7 4,201KW 2,970,000 2,888/t CO2 345,573 34, ,664 Planning Investment in Wood Energy Fife 11 8,230KW 7,476,000 1,467/t CO2 792,612 77, ,000 North Lanarkshire 12 9,355KW 6,159,250 6,203/t CO2 682,352 74, ,352 West Lothian 8 6,395KW 4,637,500 4,250t CO2 487,671 51, ,886 Renfrewshire 4 765KW 698, /t CO2 152,613 8,509 na na South Lanarkshire 11 5,100KW 4,124,000 3,652/t CO2 461,688 42, ,592 Inverclyde (estimated) 5 3,000KW 2,000,000 2,200/t CO2 400,000 30, ,000 TOTALS 82 46,306KW 36,635,350 32,101/t CO2 4,360, , ,816

11 RHI- Tariffs and fuel costs in /MWh Forecast 2012: Public sector Wood Oil Gas Small Biomass Tier 1 Small Biomass Tier 2 Medium Biomass Tier 1 Meduim Biomass Tier 2 Large Biomass

12 The financial case-bottom 4 are gas Sites (fossil bill) Oil Primary school ( 31,130) Primary School ( 18,694) Secondary school ( 44,148) Capacity KW Total capital Tonnes CO 2 Saved Annual fuel savings inc RHI (2012) Simple payback CRC savings 180KW 176, /t CO 2 37,383 3yrs 11mths 2, KW 185, /t CO 2 23,996 6yrs 2mths 1, KW 386, /t CO 2 43,780 7years 4,529 Leisure Centre ( 62,660) 780KW 563, /t CO 2 62,137 7 years 6,429 District heating to c300 flats ( 97,968) 975KW 809, /t CO 2 84,334 7yrs 5ths 8,935

13 Retrofitting wood boiler systems

14 What can go wrong?

15 No integration of fuel supply with system design

16 Poor planning and design

17 No plan for operation and maintenance Commissioning and handover Training for the site staff Cost effective maintenance and back up services Local service engineers and rapid call outs

18 Energy Services Contracts (ESCOs) ESCOs address these problems being developed by Scottish Procurement The (wood energy) supplier finances, plans designs and installs the wood energy system The supplier owns/operates it and provides metered heat over a number of years Features of an ESCO to be decided by each Council Contract duration Number of schemes Indexation of costs Capital contributions are desirable (increase savings or reduce duration) Minimum energy take Operation of gas boilers Failures and penalties

19 An Example of an ESCO (say large school with pool) - costs

20 ESCO/RHI example income - remember annual costs are 112,588

21 Simple payback - on our school with pool 7 years and 5 months 942 tonnes of wood fuel per annum (at 35% moisture content),

22 Forecast costs for a 20 year ESCO for school with pool Full capital costs are met by the ESCO provider. No operational responsibilities for the Council. No implementation responsibilities for the Council. Greater security of heat supply as there would be 2 complete systems Summary The net monthly ESCO cost would be 8,417 (ex profit). The monthly gas bill would have been 14,580. The forecast difference would therefore be 6,163 a month. = 43% cost reduction over the gas bill (ex profit to ESCO). After profit a 20-30% saving appears possible

23 Is there enough wood? Demand The RHI suggests a third to a half of the RES heat is wood by 2020 Target is 68TWhs of RES a year Current RES is 10TWhs So an extra 58TWs needed by 2020 Based on this we can INFER RHI needs 7.72 to 11.6 million tonnes by 2020 Supply UK wood supply will be around 20 million tonnes UK wood use in all existing non energy markets will be 15 million tonnes UK wood for renewable electricity million tonnes if UK RES policies are achieved Assuming that s imported we have 5 million tonnes to play with

24 North Lanarkshire depot operated under an open book lease by a contractor

25 NLC wood fuel demand Drumpellier Glasshouse 220KW 87 tonnes Palacerigg Country Park 50KW 25 tonnes Taylor High School 500KW 255 tonnes Calderhead High School 500KW 336 tonnes About 700 tonnes current demand In 2011/12-3 new schemes should a 1000 tonnes Meduim term ESCO plans add 7,000 tonnes

26 Depot operation Sources round wood feedstock Store chips Deliver chips 1. NLC woodlands 2. NLC Arbor 3. Commercial roundwood Costs add to price of heat per MWh Store logs at depot till dry Chip logs Income = woodland grants and the RHI

27 Cost and supply model forecast Annual Supply and Demand tonnes conditioned Woodchip tonnes chips Available Year and Harvest Year NLC Own Resources XX MC% t Annual XXMC% t Surplus or XXMC% t Supply From 210ha (27%) = 1,300 tonnes pa ongoing 100% = maybe 4,000 tonnes? Plus some of 20,000 tonnes pa green waste

28 and finally - Carbon Emissions