Manures use for energy and disposal regulations

Transcription

1 Manures use for energy and disposal regulations Julian Bell - Senior Business Consultant SAC Consulting SRUC Julian.Bell@sac.co.uk /

2 Animal manures energy potential and agricultural regulations Energy use AD Disposal regulations 2

3 Biogas anaerobic digestion of waste or crops to produce methane Source: 3 3

4 Anaerobic Digestion The conversion of non-woody material by micro-organisms in the absence of oxygen Feedstock 1. Agricultural Slurry, Silage, Vegetable waste, Grain, Waste milk, Waste meal etc. 2. Imported Green waste ABPR/Food waste 4 4

5 Products 1. Soil Conditioner Inert and sterile, Can be separated into liquor and fibre 2. Biogas 60% methane, 40% carbon dioxide, Traces of other contaminants Uses for biogas Electricity production using generator Heat production by combustion Combined heat and power (CHP) Road fuel Selling to mains gas operators 5 5

6 Revenue Offset energy purchase Electricity 12.0 p/kwh Mains Gas 3.5 p/kwh Oil 6.2 p/kwh Wholesale energy prices; Electricity p/kwh Gas p/kwh Financial incentive Renewable Obligation Feed in tariffs electricity Renewable Heat Incentive heat / gas injection 6 6

7 Energy yield and biogas value Energy value of 1 m 3 of Biogas Value under FIT and RHI scheme (pence) Electricity only 2.1 kwh Heat only / gas injection 6.4 kwh kwh CHP electricity kwh of heat 7 7

8 Feedstock energy and subsidy value Feedstock Dry Matter % Biogas Yield m 3 /tonne Value of Biogas /tonne feedstock - ELECTRIC only Value of Biogas /tonne feedstock - HEAT only Cattle Slurry Pig Slurry Poultry manure Maize Silage Grass Silage Maize Grain Whole Crop Wheat Wheat Grain Prices based on FIT and RHI tariffs > 1 April 2014, for AD plants < 500kw capacity, wholesale gas at 2.5p/kwhr, electricity at 5.5p/kwhr 8 8

9 Support for AD cut in electric Feed in Tariffs, emphasis shifting to electric + heat Table A: Listing of all Generation Tariff levels for the c Energy Type / Scale Tariff (p/kwh) Source Rate < 31/3/14 > 1/4/14 Anaerobic digestion 250kW Anaerobic digestion >250kW - 500kW Anaerobic digestion >500kW

10 Likely bio-gas crops 1 Cereals Root crops Forages 10 10

11 CAP reform relevance to bio-fuels and farm diversification Lower subsidy payments cut of 20-40% possible Crop Diversification Farmers with 10-30ha will be required to grow at least two different crops and over 30ha three. Ecological Focus Areas (EFAs) Above 15ha, 5% (possibly increasing to 7% in 2017) of arable land or land immediately around the arable land will have to be managed for ecological benefit e.g. buffer strips, catch crops and landscape features Potential to offset through equivalence? Energy crops could help with compliance and income generation 11 11

12 Biogas crop suitability for Scotland Source: SAC Consulting 12

13 Farm based biogas plants costs and returns Input; 8000t slurry (30% energy), 3000t maize silage* (70% energy) Output; 340kW electricity, farm heating Income: 455,000 pa Capital cost 1,100,000 Payback 6 years NOTE * - Maize is not a viable crop in Scotland. SRUC are conducting trials to investigate more suitable crops for Scotland, particularly those which are compatible with food production (i.e benefit crop rotation, utilise marginal land, help re-cycle nutrients) Source: SAC Consulting 13 13

14 Arable farm bio-energy option 1 crop based AD plant? Source: SAC Consulting 14

15 Biogas on farm potential High capital costs mean plant not viable on slurry Minimum viable scale kw Energy crops and/or food waste greatly increase gas output and hence returns Food waste represents a growing opportunity but costs of compliance high Costs of connection to grid is a key issue Economics enhanced where market for heat and direct sale of electricity available Biomethane injection or using gas for heat most profitable but higher capital costs / site specific Economic case is highly dependent on the cost of the feedstock and markets available 15 15

16 Animal manures on farm disposal regulations Guidance from Scottish Government as part of its Pollution Prevention Advisory Activity Most relevant manure issues; Diffuse pollution Steading drainage Slurry and manures 16

17 Know the Rules - Quick Check Guides PDF Available for download, 1 page A4 double sided Page 1 rules only Page 2 good practice how can it benefit the farm? further information Currently 9 in series Available at 17

18 Know the Rules Guides No. Topic 1 Introduction to diffuse pollution What is it and why is it a problem? 2 Steading drainage 3 Slurry and manures 4 Inorganic fertiliser 5 Poaching and erosion by livestock 6 Soils and cultivation 7 Using pesticides 8 Purchase and storage of pesticides 9 Sheep dip 18

19 Slurry and manure know the rules 19

20 Tractor sticker Simple reminder of the legal minimum working distances around watercourse Stick in tractor cab, office etc 20

21 Farming for a Better Climate Five Key Action Areas: 4 Nutrients 21

22 Summary and further information Making best use of nutrients can: Improve farm profitability Reduce diffuse pollution risks Help to lower the farm carbon footprint More information? www,planet4farmers.co.uk SRUC contact 22