Solar, wind, bio-mass, hydropower and anaerobic digestion are all contributing increasing fractions of energy to the country’s needs. Whether they supply the National Grid, power local heat applications or supplement liquid fuel requirements, one, or a combination of the above, could add a valuable revenue stream to land managers’ businesses.
Choosing the right technology and understanding the market dynamics is crucial for reaping a profit, making the most of a given location’s natural potential and remaining compliant within a tight regulatory framework.
Biofuel demand keeps growing
Setting aside the complex food versus fuel land-use debate, demand for animal-feed grade wheat and oilseed rape for bio-ethanol and biodiesel continues to grow – driven primarily by the Renewable Transport Fuels Obligation (RTFO). Ensus has commenced processing 1.2m tonnes of wheat annually from spring 2010 and Vivergo plans to increase its wheat demand to more than one million tonnes in 2011. In ADAS’ view, these developments reflect the market, which is primarily driven by the RTFO. According to National Non-Food Crops Centre data about 870,000ha of oilseed rape and 500,000ha of wheat will need to be grown for bio-fuels in 2012.
Energy Crops
The requirement for permanent crops grown specifically for their energy yields like miscanthus, switch grass and reed canary grass, along with short rotation coppice and forestry is in the ascendency. They offer landowners and farmers an opportunity to cultivate resilient crops often suited to marginal land.
The market from Drax, already at nearly two million tonnes a year, will continue growing as it aims to generate 12.5 per cent of the company’s total output from co-firing biomass products. Plans for up to three 300MW dedicated biomass plants will sharpen demand further.
Additionally, the arrival of the Renewable Heat Incentive (RHI) in April 2011 will undoubtedly increase the demand for renewable fuel pellets for domestic and other small scale biomass boilers.
The outlook therefore for bio-crops is strong and ADAS consultants have been at the forefront of developing agronomy solutions for land managers looking to tap into this market.
Becoming energy FiT
Although only live for a short time, in ADAS’ experience the Feed in Tariffs have, as expected, provided major stimulation to the market. Interest has tended to focus on solar photovoltaics (PV) and wind but it is worth reiterating that anaerobic digestion and hydropower – as long as output does not exceed five megawatts - are also permitted. Additionally domestic-scale micro combined heat and power systems up to two megawatts are also eligible.
Anaerobic Digestion, however, faces serious challenges, in spite of its undoubted suitability for agricultural applications. It is frequently ruled out for three main reasons: small scale AD technology is prohibitively expensive, the infrastructure to put electricity on the National Grid is and current planning restrictions disallow the infrastructure or feedstock
These barriers are being addressed. The Centre for Process Innovation (CPI) is currently developing a new generation of small to medium scale AD facilities and in March, Defra outlined its plan to accelerate the uptake of AD in its Implementation Plan, aimed to overcome infrastructural, economic and planning obstacles.
For some landowners though, wind and PV technology can offer a sound return on investment – however the scale of return is dictated largely by geographic location. Despite advancements in solar PV technology generating power at low light levels, the quickest returns will still be made in the south of the British Isles.
Towards the north, conditions are on the whole better suited to wind power. Since the launch of FiTs, ADAS has noted a marked increase in demand for MetMast services, a mapping tool designed to calculate energy yield based on the mean wind speeds and direction at any location across the country.
The FiTs programme may have stimulated the market, but it has also produced a glut of service providers aligned to a single technology, which is neither good for the end-user nor the scheme.
Businesses need to find an independent solution that will optimise the relationship between outlay and return. ADAS is well-placed to undertake the feasibility studies necessary as we are involved with most of these renewable feedstock areas.
Some of the services ADAS provides in relation to feedstocks:
• Independent feasibility studies on economic returns from different technologies
• Planning advice and assistance or chosen option
• Met-mast service determining energy yield from wind turbines
• Energy crop yield predictions based on location
• Biomass supply chain consultancy
• Miscanthus multiplication and planting
• Research studies on crop agronomy and utilisation
For more information, please contact Neil Pickard on 01765 689772 or e-mail Neil.Pickard@adas.co.uk.