Wood Fuel Quality. Opportunities for the Wood fuel Sector. Presented by: John O Brien, Tel:
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1 Wood Fuel Quality Opportunities for the Wood fuel Sector Presented by: John O Brien, john.obrien@ecowood.ie Tel:
2 Presentation Format Introduction Woodfuel Industry overview Challenges to growth Addressing the challenges Woodfuel Quality
3 Introduction Ecowood Energy Systems Established in 2005 Manufacture of High Quality Woodchip Fuel Supply and Delivery of Woodchip Fuel Support Services including; Management of Operations & Maintenance Activities Management of Ash Removal and Disposal Current Manufacturing Capability in excess of 36,000 tonnes per annum. Bespoke delivery solutions including blown and tipped capabilities.
4 Focus Wood Fuel formed from clean wood Defined as Woody Biomass under CEN/TS 14961: Forest and plantation Wood 1.2 Wood Processing Industry, by products and residues.
5 Woodfuel Industry Overview The wood fuel industry has grown significantly in the past five years Market penetration includes domestic households, commercial premises, government organisations and industrial operations including co-firing. Current annual output is estimated to be 40,000 tonnes of wood pellets. 75,000 tonnes of wood chips Quantities associated with the sale of fire wood logs varies greatly (figures are estimated and include co-firing but exclude the wood processing industry, figures also exclude used or post consumer timber). A largely indigenous industry, with some imported products The sector is becoming a significant employer especially in rural areas.
6 Woodfuel & Biomass Industry Overview Political sentiment both Nationally and Internationally are becoming more focussed on renewables and carbon neutral energy sources; Global agreements regards climate change Kyoto (Looking towards Copenhagen 209) Ambitious Europe wide targets seeking to reduce greenhouse gases by at least 20% and increases to 20% the share of renewable energies in the energy consumption by 2020 (Ireland 16%). The publication of the Building Ireland s Smart Economy: A Framework for Sustainable Economic Renewal framework document in December 08 More recently, the bringing together by government of leading energy experts and business chiefs to advise how best to nurture Ireland s green economy.
7 Woodfuel & Biomass Industry Overview The reductions in oil price since the last quarter of 2008 has resulted in a slowdown in new business opportunities in the biomass heating sector. All expert opinion outline this as a short term price reduction. The price of oil has increased by near 20% in the past three months 25 th May 09 - FT Article: Saudi Arabia warned oil prices could spike towards the near $150 record high of The current economic crisis (and finance availability) has had a very negative impact on new project starts. European ETS has created a fiscal incentive for carbon reduction across the EU, the potential of a Carbon Tax here in Ireland, whilst having a potentially negative effect on the broader business environment, will likely drive the renewables agenda forward
8 Woodfuel Sector Overview From a technological view point, Ireland is well placed to not only implement best practice in use in other areas of Europe and the Globe, but to develop expertise right across the wood fuel sector. We are seeing this expertise developing in other areas of renewables and energy: the manufacture of wind turbines on the island recently reported export of tidal power expertise Irelands first carbon neutral building in Dublin s Docklands Focus towards developing and nurturing local expertise and knowledge.
9 Wood fuel sector Employment Potential Areas of potential employment: Research & Development Plant & Equipment Design and Manufacture of Plant & Equipment System Design & Management Supply, Installation & Commissioning Systems Operation, Management & Maintenance Fuel Establishment, Management and Extraction (Both Forestry & SRC) Raw Materials Logistics Depot Establishment and Management Woodchip Manufacture & Logistics Fuel Supply Chain Management & Operation Ash Removal & Disposal Support Services, Financial, Etc
10 Challenges The current economic crisis. Fossil fuel prices. More fundamental issues exist, all of which can be addressed at a local (National) level; Feedback from customers at all levels have highlighted common themes: Boilers and systems more time-consuming and costly to operate Is the technology proven Does the expertise exist to design, install and operate the plant and equipment Long term availability of supply Quality and consistency of wood fuel
11 Addressing the Challenges Current economic crisis. Wood fuel should be recognised as a positive. Potential to generate employment Wood fuel has the potential to assist clients in reducing fuel expenditure Addressing the availability of finance to support viable, financially sound projects is an area which needs to be addressed. Fossil fuel prices. By moving to indigenous renewables energy sources, we reduce our dependency and therefore mitigate the impact of price fluctuations.
12 Addressing the Challenges Consumer perception, concerns regards technology, and availability of expertise can be addressed through continued focus on knowledge sharing, training and management: Investment in training and development to ensure the skills and expertise exist to meet the market demands. Providing objective advice and guidance to clients during the outline design / design phases of any project, irrespective of size Inspection of projects during and post installation, with effective feedback loops to ensure problems and issues are highlighted and addressed. Promotion of adequate maintenance of systems post installations; Supporting the continued efficient operation of the plant Promote the benefits of maintenance in relation to the operational life of equipment. Legislative requirement to maintain Required to protect warranties
13 m3 4,000 3,500 3,000 2,500 2,000 1,500 1, Year Addressing the Challenges Total Pulpwood & Co-Products Supply ('000) Year Long term availability of supply There is currently an oversupply of processing capability within the majority of wood fuel elements Current availability of raw material exceeds market requirements To address client concerns longer term, a number of other factors need addressed, Pulpwood Chips Sawdust Bark Total The ongoing availability of biomass for energy with due regard to other demands. A greater understand and development of strategies for fast growing woody biomass resources such as SCR, Eucalyptus, etc Accurate information, regularly updated detailing resource availability and market demands Strong leadership, both politically and within the sector to develop and implement policies to optimise the resources available in a sustainable manner
14 Addressing the Challenges to Growth Quality and consistency of supply Whilst vast quantities of information, standards, etc exist in relation to wood fuel quality, methods of determining quality, etc, confusion still exists within the marketplace.. 21 st Jan 09 SEI and COFORD facilitated a Wood Fuel Quality Assurance and Standards Workshop, attended by the majority of Industry Stakeholders
15 Wood Fuel Quality Outputs from the initial workshop included: Setting up of a peer-nominated working group of wood fuel suppliers to develop a wood fuel quality assurance scheme for Ireland. The scheme will apply to logs, chips, pellets and briquettes formed from clean wood. Mission The QA scheme will provide customers with confidence that they are purchasing a quality wood fuel from a sustainable source relevant to their needs.
16 Wood Fuel Quality The peer nominated working group includes representatives from the following: Two organisations involved in Forestry Woodchip sector One organisations involved in Willow SRC Woodchip sector Two organisations involved in Wood Pellet / Briquette sector Two organisations involved in Fire Wood sector Tier two supplier / End user representatives SEI COFORD NSAI IRBEA (Providing interim management and administrative support) Waterford Institute of Technology (Providing guidance regards current standards, testing, etc on an as required basis).
17 Wood Fuel Quality Objectives of the scheme (as set out in the recent press release) Dissemination of best practice operations throughout the wood fuel supply community. Promoting suppliers who delivery quality, not only in the end product, but in all aspects of their business Instilling confidence in the marketplace.
18 Wood Fuel Quality Draft Workshop Agreement Scope Normative References Terms and Conditions Requirements Policy Sourcing Quality Control General Testing Handling, Storage & Transportation Management Review Record Keeping Customer Interface General Packaging Delivery Complaints and Feedback
19 Wood Fuel Quality Draft Workshop Agreement Specific testing regimes relative to each fuel type are detailed as follows: Frequency of testing Test criteria Test methods Additional information to be included on packaging, data sheet or delivery note. Additional operational control
20 Wood Fuel Quality Going Forward Planned activities The working group will continue to meet during June to finetune the workshop agreement, cost model and draft scheme rules The wider wood fuel community will be asked to review the standard in July (provisional meeting date 7 th July) Following the review process, a final agreement and scheme rules will be produced in August. Launch September 2009
21 Guaranteed supply is key For more information, please contact: John O Brien Mobile Office: (0) (0) johnobrien@ecowood.ie
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