Overcoming Barriers with Integrated Support Frameworks

Transcription

1 Advancing the Irish Bio-Economy Overcoming Barriers with Integrated Support Frameworks

2 Objectives Enhanced Bio Economic Development Improved Economic Sustainability Resource Efficiency - reduce demand on finite raw materials supplies Economic Growth - investment, employment, tax base, balance of trade, competitiveness Improved Environmental Sustainability maintain the planet for future generations Mitigate Drivers of Climate Change Improve Human/Animal Health and Wellbeing address air/water/soil quality Habitat maintenance to maintain biodiversity Comply w/ Binding Obligations (RES, GHG, ETS, Waste, Water/Soil) - avoid Non Compliance Penalties Improved Societal Cohesion - wealth creation to maintain quality of life, social infrastructure Secure supplies of staple commodities, stable prices Urban/Rural Divide market mechanisms to replace taxation re wealth redistribution

3 EU & State Taxation Raw materials. Energy Food & Beverage Industrial & Consumer Products.. Processors. Products... Domestic.. Fossil Fuels Chemicals & Fertilisers Plastic & Fibre Materials Export. Imports Consumers.. Farming Forestry Fishing Adapt Public Supports to: Improve Productivity Reduce Imports Primary Producers Increase Exports Distribute Proceeds Across Supply Chain

4 Sectoral Development Strategies Leverage existing sectoral plans & build on strengths of traditional AMFM sector stakeholders - Primary Producers, Processing Co s, Marketing Co s, Gov t, Support Services Agri - Dairy & Dairy Processing Beef, Poultry, Sheep, Equine & Meat Processing Tillage/Orchard/Horticulture & Food, Beverage Processing Marine - Fisheries & Shellfish Algal Forestry, Energy Crops & Forestry Processing Municipal Waste - MSW Processing Municipal Wastewater Align frameworks & support structures to add value in each sector - integrate interests of non-traditional stakeholders to generate new market outlets, processing technologies & support Services Energy Co s Pharma Chem & Biomedical Materials Companies Technology Companies Finance, Skills training & Support

5 Integrated Sectoral Development Strategies Sectoral Strategies - Targeted Deliverables, Resourced Implementation Measures to incorporate non-traditional outputs Build on Strengths, Align Frameworks & Support Structures in Each Sector to: Facilitate Market Entry - Demo Products / Access Distribution Routes & Facilitate Growth Optimise Efficient Supply Chains growing traditional outputs & facilitating non traditional value add Improve Technology Development leverage existing RD & D resource Ease Infrastructure Deployment optimise use of available facilities Adapt Business Models Strategies to Address Structural Deficits, Fragmentation Balance Impact on State Exchequer..where possible Use existing resources - progressively re-structure & re-align existing frameworks Leverage State resource to increase access to (extensive) EU resources Emphasize recoverable / recyclable supports (example: low cost risk financing)

6 Facilitate Market Entry & Routes to Market Domestic vs Export Markets: Import displacement offers large indigenous market opportunity (CSO Import Statistics 2015) o Energy - Fossil Fuel 6,500 M Export Opportunities? (CERTS??) o Organic Chemicals 3,778 M Export Opportunities Arise in Parallel o Paper & packaging 918 M Export Opportunities Arise in Parallel o Primary Plastics 850 M Export Opportunities Arise in Parallel o Sugar Products 374 M Export Opportunities Arise in Parallel o Animal Feed 779 M o Fertiliser 448 M Prioritise domestic demand as means to stimulate supply chain, leverage stakeholder distribution resources Mobilisation Measures to Overcome Market Inertia, Stimulate Demand, Transition to Market-Based Structures - requirements determined by relative value & commercial vs societal Imperative Green Public Procurement (Underutilised) for both bio-products and bio energy Bio Product Pull supports - Deploy targeted incentives to stimulate demand / market for bio-products o Transition to push supports (sustainability obligations) after development of market, supply chain Product Certification Sustainability, Quality Assurance / Product Functionality

7 Facilitate Market Entry & Routes to Market Bioenergy structural / supply chain deficit precludes effective move to market structures Sustainability Certification RES E & Biogas, Biofuel standards can provide guidance, LCA tools complicated o Frameworks to promote domestic supply chain w/in boundaries of state aid / open market limitations o Adopt simpler protocols (default values) & develop Irish certification resources o Adapt RES certification programme to assist with market development Pull Supports o REFIT (REISS): Limited extension to support bio (waste-to-) energy baseload? o RHI: Sustainability measures to differentiate support levels? Biomass drying - residual heat vs primary heat, waste-to-energy vs energy crops to dry energy feedstock? Coupled w/ bioenergy boiler finance to facilitate cash strapped end users? Apply to biogas? consider producer subvention for biogas o Carbon taxation vs excise taxation on biofuels Push supports o BBO: Sustainability certification/redemption value/ excise tax derogation / carbon tax to support local producers o Develop RES E and biogas push measures to transition away from pull supports o ETS: Adapt RES certification schemes (RHI?) criteria to promote use of domestic RES Corresponding Supply Chain & Distribution Must Be Developed With Market Outlets

8 Facilitate Market Entry & Routes to Market RES Routes to market timely / cost effective access to grid infrastructure is barrier to RES market development Power Grid o Capacity constraints, upgrade timing, method of cost recovery preclude supply chain development o Heat Distribution infrastructure deficit precludes valorisation Enablers to deploy microgrids aggregate localised demand for energy efficient CHP? Gas Grid need published injection protocols to equalise national access o Current proposal for 30/70 capital cost recovery precludes smaller operator access o State sponsored mechanism to spread incr. capital cost across multiple potential users Virtual grid protocols (health & safety regulation rather than gas grid regulation) State financed programme for community based access infrastructure?

9 Efficient Primary Producer Supply Chain Primary Producer Challenge: Coexist vs Cannibalise - Maintain fodder & grain supply while increasing forestry, energy crops, non food cereals/ tillage o Residue Valorisation obvious means to increase productivity is to valorise existing residues o Dual output systems - crops or processing methods that generate both feedstock & feed o Intensive production systems variation of hydroponics or other intensive systems that improve fodder production on restricted land area o Nutrient recycling recycled nutrients to increase intensity mitigating cost & environmental impact o Land Mobilisation structure opportunities / incentives to mobilise Hidden Hectares Prioritise applications w/ sufficient market opportunity / margin to support productivity measures o Structures req d to ensure sufficient value flows to primary producer o Financing structures required to support capital costs Fragmentation & Land Allocation - devise spatial plans and adapt incremental support structures to minimise fragmentation & promote conformity to spatial plans (forestry) Marine Mobilisation - Would development of fish farming system generate effluents for hydroponics / algae suitable as fodder??

10 Environmental Issues GHG Emissions Ireland will miss binding 2020 Obligation to reduce GHG emissions by 20% Ireland Emissions 27% Other 10% Domestic 11% Agriculture 32% Non ETS Emissions 73% 20% Transport Emissions trading scheme (ETS) governed by cap and trade process will achieve 2020 targets, new targets challenging Non ETS sectors - state to manage compliance, will not achieve these targets (Only 2% reduction) Other Obligations: Waste Management - reduce routing of biodegradable waste to landfill will achieve by exporting waste Water Quality surface & ocean water quality standards likely to be achieved Air Quality likely to be achieved Recognise Value of Environmental Compliance

11 Efficient Waste Management Municipal Solid Waste Management treat MSW waste as resource Multi operator system inefficient fragmentation precludes scale, exacerbates margin pressure Precludes investment in infrastructure, technology development, poses barrier to valorisation.. drives export of waste materials Precludes effective pay-by-weight / 3 X bin system for food waste incentive/enforcement/education Precludes community based system for grass green waste collection local authority and domestic Precludes security of feedstock supply for 3 rd party RES operators o If sector cannot be re structured, consider public investment in shared infrastructure WWT Valorisation consider organic load as resource, WWT plants as bio-economic facilities Anaerobic technology converts organic load in WWT to biogas Reduces sludge generation, reduces energy cost possible route to low cost capacity enhancement Sludge disposal generates biohazard concerns dry & use as thermal feedstock WWT facilities as processing sites - ideally located, appropriate planning, available infrastructure

12 Conversion Technology Development & De Risking Non Traditional Technologies Advance Technology Readiness Levels By Sector RES technologies relatively mature (AD, biomass combustion) - ATP optimisation req d Biorefining technologies require development & de risking ( 1 st Gen mature relative to 2 nd Gen) RD & D Programme Fragmentation distribution of funding & facilities increases collaboration but is detrimental to impact Orientation of RD&D Programme Along Technology Development Curve Current RD&D prog s oriented toward scientific investigations & knowledge generation.. (papers) Lack facilities / orientation to support production process emulation, mass / energy balance validation, process optimisation, conversion economics validation, process demo s... (not products) Advance along development curve to fully engage commercial community - risk /reward paradigm Develop / Adapt Centres of Excellence w/in each sector move up Techn. Development Curve Develop small commercial demo to produce near to mkt product - revenue for ongoing funding Integrate sectoral centre of excellence & pilot demo location focus on product development Target academic RD &D prog to support product development.. emulate EU models Improve leverage of state resources to attract EU funding

13 Infrastructure Deployment Site Availability consider brownfield site re-development vs greenfield Multiple brownfield sites available Multiple de activated landfills, amenity recycling facilities are in public ownership ERDF funding programme available for re-development, subject to Regional Assembly Operational Prog s. Planning / Licensing IPPC Framework: to become enabler vs barrier IPPC framework to be made more efficient single point of implementation (ABP), limit grounds for appeal o An Bord Plaenala appeal process to enforce timelines IPPC framework to support facilitation of new waste processing protocols o National Centre of Excellence facility to test, evaluate and certify emissions (ongoing enforcement role) o Cross functional body to facilitate reviews of local derogation powers under EU waste framework? Public Info programme to include demonstrators open to public??

14 Business Models Business Structures: Mature Markets: Traditional Horizontal Structure creates price tensions between producer & processor Immature Markets: price tension creates risk that is difficult to overcome precludes supply chain develop t Primary Producer Goods Goods Processor Customer Primary Producer Processor May need to initially promote vertical structure to align interests of producer & processor, raise capital & secure efficient supply chain Consider Co op model, Corporate model or PPP can be unwound as market matures Goods Customer Access to Finance PPP model to mobilise EU financing, overcome market deficits Leverage EU monies as source of finance, private operator as source of expertise & route to market Public Body as finance partner can stimulate supply chain development Incorporate some of the desired societal measures o Public bodies in position to introduce mobilisation measures As market / value chain develops exit and recycle funds

15 Overcoming Barriers with Integrated Support Frameworks