BioEnErgy Action PlAn for irElAnd

rEPort of thE MinistEriAl tAsk forcE on BioEnErgy

�

Table of Contents

Foreword 2

ExecutiveSummary 3

Chapter� EnergyTrendsinIreland�990to2005 8

Chapter2 LandUseinIreland �3

Chapter3 BioenergyfortheTransportSector-Biofuels �6

Chapter4 BioenergyfortheHeatSector-Biomass 2�

Chapter5 BioenergyfortheElectricitySector 26

Chapter6 PublicSectorLeadership-DrivingBioenergyDemand 32

2

Foreword

Irelandhasasignificantbioenergypotentialintheformofagriculturalland,forestryandrecycledwastefrommunicipal,agricultureandindustrialsources.Allofthesesourcescanbeusedtogenerateelectricity,refinedintofuelforthetransportsector,provideheating/coolingforthebuildingsectororasasourceforbiochemicalrawmaterialsforIrishindustry.

Thedevelopmentofourbioenergyresourceswillcontributetoouroverallsecurityofenergysupplyandfueldiversityobjectives.Increaseduseoftheseresourceswillalsocontributetoourrenewableenergytargets,ourclimatechange

mitigationpolicies,ourwastepoliciesand,atatimeofgreatchangeinouragriculturalsector,assistinruraldevelopmentbyprovidingnewmarketsandemploymentdevelopmentopportunitiesforourfarmingandforestrysectorsaswellascommunityenterprise.

Thesustainabledevelopmentofourbioenergypotentialanditsdeploymentintheelectricity,transport,heatingandchemicalsectorsrequiresafullycoordinatedapproachacrossanumberofDepartmentsandStateAgencies,workingtogetheracrossthesectorsandwithallstakeholders.Inlightofthischallenge,theGovernmentestablishedaMinisterialBioenergyTaskForcewhichoversawthedeliveryoftheActionPlan.

ThisActionPlansetsoutanintegratedstrategyforcollectivedeliveryofthepotentialbenefitsofbioenergyresourcesacrosstheagriculture,enterprise,transport,environmentandenergysectors.Itwillrequiresustainedmulti-agencycollaboration,atnational,regionalandlocallevel,workinginstrategicalliancestoensurethatwerealisethispotential.ItisakeycomponentoftheGovernment’sobjectivesundertheEnergyPolicyFramework2007-2020.

ThisActionPlanisunderpinnedbytheadditionalsupportsprovidedinBudget2007andtheSustainableEnergyProgrammeoftheNationalDevelopmentPlan2007-20�3.TheplanwillbekeptunderreviewinlightofanydecisionstakenundertheEUStrategicEnergyReview.

Noel Dempsey, T.D., Minister for Communications Marine and Natural Resources, Chairperson, Ministerial Bioenergy Task Force.

3

Executive Summary

Irelandhassignificantpotentialtodevelopitsbioenergyresourcestogenerateelectricity,foruseastransportfuels,foruseinheatingandcoolingourbuildingsandforconversiontobiochemicalsasindustrialrawmaterials.

Thesustainabledeploymentofourbioenergyresourceswillcontributetopolicyobjectivesintheenergy,environmental,climatechangemitigation,ruralandregionaldevelopmentpoliciesandforindigenousenterprisedevelopment.

ThisvaluablepotentialwillnotberealisedwithoutsustainedDepartmentalandAgencycollaborationatnational,regionalandlocallevel.TheGovernmentwillmandatetheHighLevelBioenergyWorkingGroupcomprisingallrelevantDepartmentsandAgenciestooverseeprogressonstrategiesandtargetsandensuregoodcollectiveworkingtoacceleratedeploymentofourbioenergyresources.

InordertoimplementtheActionPlaninaco-ordinatedandcohesivemanner,DepartmentsandAgencieshaveundertakentodeliverthefollowingseriesofmeasures.

4

Department of Communications, Marine and Natural Resources

Electricity sector

n Seta33%targetforrenewableelectricityfor2020;

n ExpandtheREFITfeed-in-tariffsupportschemetofacilitatedeliveryofco-firinginpeatstationsof30%by20�5;

n ExpandtheREFITfeed-in-tariffsupportschemetoencouragewastetoenergyprojectsbysupportinghybridprojects.

Transport fuel sector

n Setabiofueltargetof5.75%forroadtransportfuelfor20�0;

n Setabiofueltargetof�0%forroadtransportfuelfor2020;

n IntroduceaBiofuelObligationSchemeby2009toensuredeliveryofthe20�0and2020targets;

n SupportresearchintosecondgenerationbiofuelsincludingcollaborativeprojectswithothercountriesthroughSEIandtheenergyRTDIprogrammesundertheauspicesoftheIrishEnergyResearchCouncil.

Heat sector

n Setatargetof5%renewableshareintheheatingsectorfor20�0;

n Setatargetof�2%renewableshareintheheatingsectorfor2020(takingintoaccountthetargetof30%co-firinginthePeatStationsby20�5);

n ExpandtheGreenerHomesSchemetoprovidesupportforresidentialconsumerstoadoptrenewabletechnologiesforheating.Thisisbeingdeliveredthroughanadditional€20mprovidedinBudget2007;

n ExpandthecommercialBioheatSchemetoincludeacombinationofrenewabletechnologiese.g.solarandwoodchip.Thisisbeingdeliveredthroughanadditional€4mprovidedinBudget2007;

n ExpandtheeligibilityofthecommercialBioheatSchemetoincludethevoluntaryandcommunitysectors.

Research and development

n ThroughtheEnergyRTDIStrategyundertheauspicesoftheResearchCouncilaswellasSEI’sR&Dprogrammestoincreasesupportforresearchprojectsacrossthebioenergysector;

n ThroughtheCharlesParsonsAwardsprogrammebuildincreasedresearchcapacityacrossthebioenergysector.

5

Department of Agriculture and Food

n Introduceanadditional€6menergycrop‘topup’paymentof€80perhectareontopoftheexistingEUEnergyCropsPremiumof€45perhectarepayment;

n Introducean€8mBioenergySchemetoprovideestablishmentgrantstoencouragefarmerstoplantnewenergycropssuchasmiscanthusandwillow;

n Introducea€�.2mdedicatedWoodBiomassharvestingmachinerygrantprogrammeforwoodchippersandforestresiduebundlers;

n Encouragearateofafforestationthatissuitableforandsufficienttomeetincreasedmarketdemandforwoodinthemediumtolongterm;

n IntroduceaFEPSschemetofacilitateincreasedlevelsofafforestation;

n Developandsupporttheforestwoodenergychaintodeliverqualitywoodfuelatacompetitiveprice;

n FundresearchincollaborationwithDCMNR&SEItoidentifyandselectplantvarietiesandcropproductionandmanagementsystemsthataremostsuitedtobiofuelproductionintheIrishcontext.

Department of Environment, Heritage and Local Government

n Amendplanningguidelinestofacilitatedevelopmentofmicrorenewabletechnologiesatdomesticlevel;

n Initiateresearchintotheextensionofexempteddevelopmentprovisionsformicro-renewablesatindustrialandretail/commercialsites;

n ExaminetherebalancingofannualmotortaxtoincentivisethemotoringpublictodrivecleanercarsandtoimposepenaltiesforcarswithhigherC02emissionlevels.Apublicconsultationhasbeenlaunchedonthisissue;

n Providefortheenergylabellingofvehiclestoempowerconsumerdecisionmaking;

n Promotetheuseofbiofuelsatupto5%blendsinLocalAuthorityfleetsandwhenpurchasingnewfossilfuelvehiclesensurethattheyarecapableoftakingmuchhigherbiofuelblends,intherangeof30%andhigher;

n Reviewwithin�2monthsthePartLBuildingRegulationstoincentivisetheuseofrenewabletechnologiesforheatinginbuildingsandsignificantlyraisetheenergyefficiencyrequirementsinnewbuildingsbyatleast40%;

n Requireallstreetlightingandtrafficlightingsystemstobeenergyefficient.

6

Department of Finance

n FiveyearexcisereliefschemeintroducedinBudget2006atacostofover€200m.

n RenewingtheBusinessExpansionSchemewitheffectfrom�January2007forasevenyearperiodto3�December20�3.TheBEScompanylimitisbeingincreasedfromitscurrentlevelof€�millionto€2million,subjecttoamaximumof€�.5milliontoberaisedinatwelvemonthperiod.Theannualinvestorlimitisalsobeingincreasedfromitscurrentlevelof€3�,750to€�50,000;

n RenewingtheSeedCapitalSchemefrom�January2007forasevenyearperiodto3�December20�3.TheSCSpermitsemployeeswholeaveemploymenttoinvestincertainnewbusinessesandtakeupajobintherelevantbusinesstoclaimarefundoftaxforuptotheprevioussixyears.Theinvestorlimitisbeingincreasedto€�00,000peryear;

n The50%VRTreliefforHybridVehicleshasbeenextendedtoflexiblefuelvehiclesinBudget2006andtoelectriccarsinBudget2007;

n LaunchapublicconsultationontherevisionofthecurrentVRTsystemtotakegreateraccountofenvironmentalissues,inparticularCO2emissions;

Office of Public Works

n Developthenewbuildingprogrammetoincludebioenergyheatingsystems.BioenergyheatingsystemswillbecomethestandardnorminnewOPWbuildings;

n Convertwithin�2months,20oftheState’slargeexistingbuildingstobioenergyheatingsystems;

n Increasetheuseofpassivedesignmeasurestoensureallnewbuildingsaremoreenergyefficient;

n Establishaninitialtargetof�0%energysavingsin20oftheOPW’slargestbuildings,throughthepilotinganewweb-basedenergymonitoringsystem,andexpandthisprogrammetoafurther230buildingsoncompletionofthepilotprogramme;

n Usebiomasscombinedheatandpower(CHP)technologiesinfuturemajorsitedevelopments;

n Givemorefavourableconsiderationtobuildingswhichusebioenergyandotherrenewabletechnologieswhenconsideringnewbuildingsforlease;

n Requirethepublicsectortoleadthewayonenergyefficiencywithamandatoryprogrammeofefficiencymeasuresincludingthesoleuseofenergyefficientlightinginoffices,hospitalsandotherpublicbuildings.

7

Department of Transport

n CIEtransportcompaniestoensurethatalloftheirnewfossilfleetpurchasesarecapableofusingbiofuelsatblendsofatleast30%byincludingtherequirementforsuchtechnicalcapabilitytobespecifiedinprocurementtenders;

n CIEtransportcompaniesmandatedtomoveassoonaspossibletowardsa5%blendinalltheirexistingdieselfleet;

n PublicationofaSustainableTransportActionPlanbeforetheendof2007whichwillidentifyfurthermeasuresthatwillhelpaswitchtobiofuelsandmoreenergyefficientformsoffuelfortransport.

Department of Education and Science

n Expandexistingprogrammeofbiomassheatinginschools,startingwith8additionalschoolsinSummer2007withaviewtobroadeningthisonasignificantlywiderscaleonanationalbasis;

n TheDepartmenthasalreadydevelopedanumberofgenericschooldesignswithSEIwhichminimiseenergyuseandcostsinnewschools.Thisdesignwillbeimplementedin40newschoolswhichwillbecapableofbeing2.3timesmoreefficientinenergytermsthanbestinternationalnormalstandards.

All Departments and Agencies

n Developafullycoordinatedcross-agencyinformationandeducationprogrammetoprovidehighqualitybioenergytechnologyinformationtothepublictoraiseawarenessandacceptanceofbioenergytechnologies;

n SEIandEnterpriseIrelandwilltogetherdevelopasetofindustryandproductstandardsinthebiomassareatoensurehighefficiencystandardsinthedevelopingpelletandwoodchipmarkets;

n SEIandFÁStoensurethatrenewableenergyinstallertrainingismainstreamedintobuildingindustrytrainingprogrammes;

n WorktogetherthroughtheHighLevelWorkingGrouptoensuredeliveryofindividualandjointDepartmentalandAgencyresponsibilitiesaswellasofferingaforumtoengagewithrelevantstakeholderstokeeptrackofprogress;

n CoordinatethroughtheHighLevelWorkingGroup,workinginconjunctionwiththeIrishEnergyResearchCouncil,thefundingprioritiesfortheresearch,developmentanddeploymentofinnovativeprojectsinthebioenergysectors;

n Develop,workingwithNorthernIreland,anall-islandapproachtodevelopingthebioenergysectoroverthenextthreeyears.

8

Chapter 1 Energy Trends in Ireland 1990 to 2005

ThetotalamountofenergyusedwithinIrelandinanygivenyearisreferredtoasthetotalprimaryenergyrequirement(TPER).ThefollowinggraphhighlightsthegrowthofoverallenergyrequirementinIrelandovertheperiod�990to2005andbreaksitdownonasector-by-sectorbasis.

Figure 1: Total Primary Energy Requirement by Sector

In�990,Irelandhadaprimaryenergyrequirementofalmost9.5milliontonnesofoilequivalent(Mtoe).By2005thishadincreasedto�5.6Mtoe,a64.3%growthoverthe�990figure.Thiscomparestoa�53.7%increaseinGDPoverthesameperiodandagrowthinenergyrelatedCO2emissionsof49.6%.Whilethisisamajorincreaseinenergyrequirement,thisalsorepresentsasignificantandprolongedimprovementinIreland’senergyintensity,whichistheratioofenergyusetogrosseconomicgrowthovertheperiod.

Thisdramaticimprovementresultsfromacombinationofhighereconomicgrowthinlessenergyintensivesectors,structuralreformoftheeconomywhichsawtheclosureof‘heavyindustry’highenergyusingcompanies,moreefficientgenerationstationsreplacingolderstationsandinlatteryearstheincreaseduseofrenewablesinelectricitygeneration.

Theprimaryenergyintensityoftheeconomyfellby35%between�990and2005(2.9%perannum).In�990itrequired0.�6kilogramsofoilequivalent(kgoe)toproduceoneeuroofGDP(inconstant2003values)whereasin2005only0.�kgoewasrequired.

ThetablebelowshowstherelativechangesinGDP,EnergyRequirementandEnergyrelatedCO2overtheperiod�990to2005inoveralltermsaswellasin5yearlysegments.

9

Table 1: GDP, TPER and CO2 Growth Rates

Growth % Average annual growth rates %

1990 – ‘05 1990 – ‘05 1990 – ‘95 1995 – ‘00 2000 – ‘05 2005

GDP �53.7 6.4 4.6 9.4 5.3 5.5

TPER 64.3 3.4 2.2 5.5 2.5 3.0

EnergyCO2(incl.aviation) 49.6 2.7 �.6 4.6 2.0 3.2

Themainreasonthe2005increaseinenergyrelatedCO2washigherthantheTPERgrowthwastheopeningoftwonewpeatelectricitygeneratingstations.

ThetablebelowshowstheprimaryenergyrequirementfiguresbrokendownbysectorandclearlyshowshowthehighestlevelofgrowthtookplaceintheTransportsector,whichby2005,withanoverallshareof32.6%,hadasignificantlyhigherprimaryenergyrequirementthananyothersectorintheeconomy.

Table 2: Growth Rates and Shares of TPER by Sector

Growth % Average annual growth rates% Shares %

1990 – ‘05 1990 – ‘05 1990 – ‘95 1995 – ‘00 2000 – ‘05 2005 1990 2005

Industry 37.6 2.2 3.4 4.8 -�.6 5.� 27.0 22.4

Transport �50.9 6.3 3.4 ��.3 4.4 8.2 2�.6 32.6

Residential 28.� �.7 0.7 2.8 �.5 -0.8 3�.9 24.5

Commercial/Public 86.3 4.2 2.7 5.5 4.5 4.6 �6.0 �7.9

Agriculture 23.6 �.4 5.4 -0.9 -0.� 3.0 3.5 2.6

Total 64.3 3.4 2.2 5.5 2.5 3.0

Inabsoluteterms,sectoralprimaryenergyconsumptiongrewasfollows:

n Transportenergyusegrewby�5�%overtheperiod�990–2005(6.3%perannum)andnowconsumesonethirdofallenergyinIreland.Growthin2005was8.2%,almost3%pointsaboveeconomicgrowth.Therewasa5.�%increaseinpetrolconsumptionin2005andan8.2%increaseindieselconsumption.Transportwasthefastestgrowingsectorin2005intermsofprimaryenergyconsumption;

n Industryenergyusegrewby5.�%in2005followingthreeyearsoffallingconsumption.Industry’sshareofprimaryenergystoodat22%in2005;

n Commercialandpublicservices(alsoknownastertiary)useofprimaryenergygrewby86%overtheperiod�990–2005(4.25%perannum).Consumptionincreasedin2005by4.6%;

n Residentialprimaryenergyusedecreasedslightlyin2005by0.8%.Overtheperiod�990to2004residentialconsumptionofprimaryenergyincreasedby28%(�.7%perannum).In2005theresidentialsectorwastheonlysectortorecordareductioninprimaryenergyusage;

�0

n Agricultureenergyusegrewby24%(�.4%perannum)overtheperiod.Therewasa3%increaseinconsumptionin2005.

n Thegrowthinenergyacrossallsectorsoftheeconomyshowstheopportunityandalsothenecessitythatexiststosignificantlydevelopourindigenousbioenergyresources.Throughincreasinguseofourbioenergyresources,wewillalsocontributeto

• ourrenewableenergytargets;

• ourclimatechangemitigationpolicies;

• ourwastepolicies;

• ruraldevelopmentbyprovidingnewmarketsandemploymentdevelopmentopportunitiesforourfarmingandforestrysectorsaswellascommunityenterprise.

Renewable Energy Definition

IrelandutilisestheEUDirective200�/77/ECdefinitionofrenewableenergy,whichdefinesrenewableenergyas‘non-fossilenergysources(wind,solar,geothermal,wave,tidal,hydroandbio-energy)’.

Bioenergyincludesbiomass,landfillgas,biogasesandbiofuels.Biomassisdefinedasthebiodegradablefractionofproducts,wasteandresiduesfromagriculture(includingvegetalandanimalsubstances),forestryandrelatedindustries,aswellasthebiodegradablefractionofindustrialandmunicipalwaste.Energycanbedividedintothreeseparatemarketsectors,namelyelectricity,heatandtransport.Bioenergytechnologiescanbeusedasafuelsourceineachofthethreemarketsectors.

Figure 2: Renewable Energy Contribution to TPER

��

Renewableenergyhasbeencontributingnearly2%ofIreland’sprimaryenergysupplysince�990.In2004thecontributionstoodat2.2%andthishasrisento2.5%in2005,agrowthrateof26%,wellabovetheoverallprimaryenergygrowthof3%.Mostofthishasbeendeliveredbytraditionalbiomass,wastewoodusedbythetimberprocessingindustryfordryingandwoodburntbytheresidentialsectorforhomeheating.Thesecondmostsignificantcontributionovertheperiodhasbeenfromthelarge-scalehydropowerplants,theoutputofwhichhasvariedfromyeartoyeardependingonrainfallpatterns.Thereweremajorincreasesinthecontributionfromwindin2004and2005resultinginwindovertakinghydrotobecomethesecondmostsignificantrenewableenergysource.

ThesignificantincreaseinoverallTPERmasksthefactthatrenewableenergyhasgrownconsiderablyinabsolutetermssincethemid�990s.ThecontributionfromrenewableenergytoTPERwas�68ktoe(thousandsoftonnesofoilequivalent)in�990risingbyover�07%(5%perannum)to39�ktoein2005.Reflectingtherapidgrowthofrenewableenergysources,mostparticularlywindinthelastfewyears,theincreasein2005was26%.

TotalFinalConsumptionisthemeasurementofenergythatisdeliveredtoenergyendusersintheeconomy.Thisistotalprimaryenergy,lessanyconversionlossesthatareincurredindistributingortransformingenergye.g.refiningcrudeoiltofinalenduseproducts.Table3belowshowsthechangesinfinalfueluseovertheperiod�990-2005.Thenotablegrowthrateofrenewableenergy,ashighlightedinthetable,inthelateryearsisveryapparentandthisisforecastedtobeacontinuingtrendwiththehighlevelsofdevelopmentandincreasedinvestmentinthisareaoverthelastfewyears.

Table 3: Growth Rates and Shares of TFC Fuels

Growth % Average annual growth rates% Shares %

1990 – ‘05 1990 – ‘05 1990 – ‘95 1995 – ‘00 2000 – ‘05 2005 1990 2005

FossilFuels(Total) 66.� 3.4 �.6 6.2 2.6 4.8 84.5 8�.6

Coal -48.3 -4.3 -�7.7 4.6 �.8 7.5 ��.6 3.5

Peat -63.9 -6.6 -4.2 -�3.� -2.0 2.5 �0.4 2.2

Oil �05.2 4.9 4.4 7.5 2.9 5.4 54.6 65.2

NaturalGas �35.3 5.9 7.0 8.6 2.2 0.9 7.8 �0.7

Renewables 96.� 4.6 -�.� 6.6 8.5 2�.0 �.5 �.7

CombustibleFuels(Total) 66.6 3.5 �.6 6.2 2.7 5.� 86.0 83.2

Electricity �05.2 4.9 4.6 6.4 3.7 5.6 �4.0 �6.8

Total 72.0 3.7 2.0 6.2 2.9 5.2

Figure3(over)showsthetrendinavoidedCO2emissionsfromrenewableenergyfortheperiod�990to2005.Itisassumedtheelectricityfromrenewables(wind,hydro,landfillgasandtheelectricityportionofwastewaterbiogas)avoidstheamountofCO2producedbytheweightedaverageelectricityproductionfrommarginaloilandsinglecyclegasplant.

�2

Itisalsoassumedthatthethermalenergyfromrenewableenergy(solidbiomass,biogas,geothermalandsolarandthethermalportionofwastewaterbiogas)displacesthermalenergyfromoil-firedboilers.TheCO2avoidedfromthermalrenewableenergyisequatedwiththeCO2emissionsthatwouldhavearisenfromthisoilconsumption.

Figure 3: Avoided CO2 from Renewable Energy 1990 to 2005

Thereareanumberoflimitationsandcaveatsassociatedwiththismethodology.Itignoresanyplantusedtomeettheassociatedreserverequirements.ThesesinglecycleplantswilltypicallygenerateincreasedCO2andNOxemissionscomparedwithCCGTandtheseemissionsshouldbeincorporatedintotheanalysis.Thepurposeofpresentingananalysishereistoprovideinitialinsightsintotheamountoffossilfuelsthatarepotentiallydisplacedbyrenewablesandtheamountofemissionstherebyavoided.

Increasingtheuseofourbioenergyresourcesacrosstheelectricity,transportandheatsectorswillhaveclearanddemonstrablebenefitsforIreland’senvironmentalandeconomicperformance.

�3

Chapter 2 Land Use in Ireland

ThelandareaofIrelandissome7millionhectares(ha),ofwhich4.3millionhectaresisusedforagricultureandapproximately7�0,000haforforestryorabout�0%oftotalland.79%ofagriculturalareaisdevotedtograss(3.4millionha),��%toroughgrazing(0.5millionha)and�0%tocropproduction(0.4millionha).Table4belowsummarisestheareaundercropsandpasture.

FourarablecropsaretraditionallygrowninIreland;cereals(325,000ha),sugarbeet(formerly3�,000ha),potatoes(�4,000ha)andforagemaize(20,000ha).

Table 4: Land Use in Ireland

Land Use (hectares) End Use

Wheat 95,000 Primarilyanimalfeed

Oats �7,000 Primarilyanimalfeed

Barley �65,000 Primarilyanimalfeed

OilseedRape 4,000 BreakCrop/energycrop

SugarBeet 3�,000 SugarBeet

Potatoes �2,000 Foodproduction

Othercrops/fruit/horticulture ��3,000 Foodproduction

Areaunderpermanentpasture 3,850,000 Beef/dairyproduction

AreaunderAfforestation 7�0,000 Forestry/woodenergy

Reference:CSOStatistics2005

UnderreformoftheCommonAgriculturePolicy,farmersnowhavethefreedomtofocusmoreclearlyonexploitingnewfarmingopportunities,includingagriculturalproductionfornon-fooduse.ThemainenergycropsthatcanbegrowninIrelandincludeoilseedrape,cereals,hemp(annualcrops)andwillow,miscanthus,reedcanarygrass(perennialcrops).ProductionofenergycropsinIrelandisrelativelyundevelopedmainlyduetopoorprofitabilityatfarmlevel.Oilseedrapeisthemaincropgrown,however,productiondeclinedfromapeakof6,000hectaresintheearly�990s,toapproximately4,000hectaresin2005.

Developinganindigenousbiofuelindustryfromnativerawmaterialsdependsonanumberoffactorsincludingtheavailabilityandsuitabilityoflandforthevariouscrops,takingaccountofrotationrestrictionsandcurrentareaintillage.Therearefewagronomicfactorslimitingtheexpansionofthecerealareaandsomeofthelandcurrentlyusedasgrassland,mainlyintheSouthEast,couldbeconvertedtoarableuse,subjecttosomeoverallEUrestrictionsonlanduse.

Alarge-scaletransferoflandtoenergycropswouldbedependentonadaptationsatfarmlevelandcouldgiverisetootherconcerns,includinganadverseimpactonfeedpricesandadditionalanimalfeedimports.Itisenvisagedtheincreaseddemandforgrainandothercropsforbiofuelwilleventuallyresultincompetitionbetweenthefood/animalfeedandenergysectors.AtpresentIrelandisselfsufficientinbarleyandoatsandjustover70%selfsufficientinwheat.In2005,Irelandimported766,000tonnesofcerealsofwhich72�,000tonnesconsistedofwheatimports.Thereisademandforapprox.�.5milliontonnesoffeedgrainsforanimalfeeding.However,thisfiguremaydeclineduetoanexpectedfallincattlenumberspostdecoupling.

�4

FAPRI-Irelandestimatesthateven,withoutaWorldTradeOrganisation(WTO)agreement,therewillbeareductionby20�5incattleandsheepnumberspostdecoupling.UnderthescenariosoutlinedbyFAPRIfarmerswillde-stockirrespectiveofaWTOagreementwithconsequentimplicationsonbothanimalfeedrequirementsandlandavailability.Thiswillhaveaknockoneffectonlandavailabilityforenergycropsifinducementsareright.

Itisestimatedthatsome�50,000hectaresofarablelandhavebeenconvertedtograsslandsince�985.Whileitisdifficulttoaccuratelyforecast,estimatessuggestthatitshouldbepossibletoreturnsome�00,000hectaresofthisgrasslandbackintotillage,dependingonprofitability.Irelandalsohassome30,000hectaresinset-asideland,whichcouldbeusedtogrowenergycrops.Giventhatset-asidelandisbyitsnaturemarginallandandinsmallparcels,itisanticipatedthatapproximately�0,000hectareswillbecomeavailableforenergycrops.Theendingofsugarbeetproductionin2006hasfreedupsome3�,000haoftillage,whichcouldbeavailableforgrowingenergycrops.

By-products of farming and food processing

Severalby-productsoffarmingandfoodprocessingindustriescanberecoveredandusedinvariouswaysasbioenergyfeedstock.Thesearemainlyanimalby-products(ABPs)suchasmeatandbonemeal(MBM),tallow,animalmanuresandfoodby-products.

In2005,annualproductionofmeatindustryby-productsamountedtosome546,000tonnes,whichwererenderedinto�43,500tonnesofMBMand88,000tonnesoftallow.Anestimated37milliontonnesofanimalmanuresarestoredonfarmsannuallypriortodisposal.Inaddition,some676,000tonnesofmunicipalfood(catering)andgardenwaste(nobreakdownavailable)areproducedannuallyfrombothhouseholdandcommercialsources.

Ofthe676,000tonnesofmunicipalfoodwaste,anestimated20,000tonnesofrecoveredvegetableoil(RVO)isproducedannually,primarilyfromthecateringsector.

Tallow

EURegulation(92/2005)providesfortheconversionoftallowtobiodiesel.Tworenderingplantshaveexpressedinterestinbuildingbiodieselplantsforthispurpose.Ofthetotalamountoftallowproduced,42,300tonnesisCategory�tallow(fromspecifiedriskmaterial)and46,000tonnesisCategory3tallow(fromanimalsfitforhumanconsumption).TheCategory�tallowisused,atpresent,asabiofuelinthermalboilersinrenderingplantsandlargermeatexportplantstoprovideenergy.Oneoftheplantsintendsusingamixtureoftallow,recoveredvegetableoil(RVO)andrapeseedoil.TheotherintendsusingtallowonlywithpossiblysmallamountsofRVOandrapeseedoil.Category3tallowcanbeusedasafuelbutcanalsobeusedbytheoilorchemicalindustryorforincorporationinfeed.Theultimateusewillclearlybedeterminedbycommercialconsiderations.

Anaerobic Digestion

Animalmanurescanbeusedinanumberofwaysasbioenergy.Theserangefromrelativelylargepowerplantstosmallfacilitiesfordealingwithmanurefromasinglepoultryfarm.

�5

Theproductionofbiogasthroughanaerobicdigestion(AD)fromanimalby-productsotherthananimalmanuresmustcomplywiththeEUAnimalBy-productsRegulation�774/2002.ADisaproventechnologythatextractsenergyintheformofbiogasfromorganicwaste.Thebiogasistypicallycomposedofapproximately65%methaneplusarangeofothergases.Itcanbeusedtogenerateheatand/orelectricity.Theprocessleavesaresiduecalleddigestate,whichisacombinationoffibreandliquid.ManybiogasplantsarenowinoperationacrossNorthernEurope.

ThereareanumberofcircumstancesmilitatingagainstthewidespreaduptakeofADplantsinIreland.Inparticular,onthevastmajorityofcattlefarmsinIreland,manurenutrientsarerecycledon-farmbylandspreadinginasustainableandcosteffectivemanner.Ingeneralitwouldnotbeeconomicforfarmerstotransportmanuresanygreatdistancetoananaerobicdigestionplantfortreatmentandsubsequentlandspreading.Highcapitalcostsareanotherinhibitingfactor.Itmaybepossibleforlargerfarmsorfarmerco-opswithsignificantoutputsofanimalmanuresandwhicharelocatednearcities/townstooperateADonaviablebasis,especiallyifnon-agriculturalfeedstockcanbeused.CompliancewiththeEUNitratesDirective(9�/676/EEC)mayultimatelychangetheeconomicsofADdevelopment.

Fluidised Bed Combustion (FBC) System

Thissystemusespoultrylitterandisdesignedtoreducethelittervolumeto�0%ofitsoriginalmassandtoproduceenergytoheatchickensheds.Thisremainingvolumeissuitableasafertiliser.AnFBCoperatesbyprovidingapre-heatedhotbubblingbedofsandforthelittertofallinto.Thefuelthencombustsinaboilerburnerandproducesheat.Ifthecalorificvalueandmoisturecontentareappropriate,combustioncanbeself-sustainingandthepre-heatingburnercanbeswitchedoff.�00%poultrylitterfuellingwasfoundtobesuccessfulsoitisnotnecessarytosupplementwithotherfuel.FBCcouldbeveryeffectiveasasmallon-farmpoultrylitterdisposalsystemthatalsohasbioenergycapabilitiesforthefarme.g.poultryhouses,farmdwellingetc.ItiscurrentlybeingpilotedonafarminCo.Limerick.

Straw

Ireland’sagriculturalsectorcreatessignificantquantitiesofdryresidues,principallystraw,whichcanbecombustedtoproduceelectricity,heatorboth.TotalstrawproductioninIrelandisoftheorderof�.�mto�.4mtonnes.Currentusesareanimalbeddingandploughingback.

Withatypicalenergyvalueof�3.5MJ/kg(atamoisturecontentof20%),thetheoreticalstrawenergyresourceiscalculatedtobeabout�6-20PJ(4500-5500GWh).AnSEIstudyexaminingtheresource,estimatedthatinrealityabout�0%ofthiswouldbeavailableforutilisationonapracticalandeconomicbasis,i.e.�.8PJor500GWh.Teagascisexaminingtheeconomicsofusingdryresiduessuchasstrawforheatingpurposesinvariousforms.

TheDepartmentofAgricultureandFoodhaverecentlylaunchedaninvestmentaidschemeforonfarmwasteprocessingfacilities,whichincludesthepossibilityofgrantaidingAnaerobicDigestionandFluidisedBedCombustiontreatmentfacilities.

�6

Chapter 3 Bioenergy for the Transport Sector - Biofuels

Biofuelsarerenewablefuels,whichhavesignificantlylessemissionsthantheirfossilfuelequivalents.Whilearangeofbiofuelsexist,theyareprincipallyavailableinthreeforms-(�)biodieselmadefrompureplantoil,recoveredvegetableoilortallowandtypicallyblendedwithdieselina5%mix,(2)bioethanolmadefromsugarbeet,wheat,wheyorothercropsandblendedwithpetrolina5%mixorinan85%mixforuseinflexiblefuelvehicles,and(3)pureplantoil,whichisnotblendedandrequiresmodificationofmostvehicleenginesbeforeuse.

Biofuelsofferatangibleandpracticalmeanstoeffectimmediateandquantifiableemissionsreductionsinthetransportsector,whichiscurrentlytrailingbehindindustry,energyandagricultureinachievingthetargetedemissionsreductionsestablishedintheNationalClimateChangeStrategy.Becausebiofuelscanbemadefromwastevegetableoilsandtallow,whicharenolongerpermittedasanimalfeed,theycanalsocontributetowastemanagementpolicies.Inadditiontotheseenvironmentalbenefits,biofuelsoffersignificantopportunitiesforruralcommunitiestodiversifyintothegrowingofenergycrops.AsIrelandreliesonimportsforallofitstransportfuelrequirements,thedevelopmentofabiofuelssectorwillcontributetosecurityofsupplybyprovidingnewfuelsources.Table5below,fromSEI,showsabreakdownoftheshareofthedifferentfuelsusedinthetransportsectorandtheirrelativegrowthratessince�990.

Table 5: Growth Rates and Shares of Energy-Related CO2 Emissions in Transport

Growth % Average annual growth rates % Shares %

1990 – ‘05 1990 – ‘05 1990 – ‘95 1995 – ‘00 2000 – ‘05 2005 1990 2005

TotalOilProducts �52.� 6.4 3.4 ��.4 4.4 8.2 99.8 99.8

Petrol 93.2 4.5 3.3 7.5 2.7 5.� 45.6 34.9

Diesel 249.� 8.7 4.6 �6.6 5.3 8.2 34.4 47.6

Kerosene �29.3 5.7 �.4 9.5 6.4 �5.5 �8.5 �6.8

LPG -33.3 -2.7 3.� -6.5 -4.4 0.0 0.3 0.�

FuelOil -�5.0 -�.� �.9 2.6 -7.4 -5.6 �.0 0.3

Electricity �6�.5 6.6 �.6 5.3 �3.3 �7.4 0.2 0.2

Total 152.1 6.4 3.4 11.4 4.5 8.2

Figure4showsthegrowthintransportenergybymarketsegment.Themaingrowthoverthe�990to2005periodwasclearlyintheprivatecarmarketsegment.

�7

Figure 4: Transport Energy Demand by Mode 1990 - 2005

Biofuels Directive

TheEUBiofuelsDirective(2003/30/EC)setsindicativetargetsof2%marketpenetrationby2005and5.75%marketpenetrationby20�0.ThesetargetsarenotmandatoryandIreland,incommonwithalotofotherEUMemberStates,isdevelopingabiofuelindustryfromaverylowthreshold.Irelandiscommittedtoachievinga5.75%targetby20�0andhasendorsedthe�0%targetby2020recentlyagreedbytheEUunderthenewEnergyPolicyforEurope.Irelandiscommittedtoachieving,andifpossibleexceeding,the�0%target.

Biofuels Market in Ireland

In2005,DCMNRlaunchedapilotbiofuelsMineralOilTax(MOT)Reliefschemewhichresultedin8projectsreceivingexciserelieffortheproductionof�6mlitresofbiofuelsovertwoyears.Thereare4pureplantoil,3biodieseland�bioethanolprojectsarisingfromthescheme.Theschemewillresultin�6mlitresofbiofuelsbeingplacedontheIrishmarketbythisyear.In2005,�.3millionlitresofbiofuelswereplacedonthemarketcomparedwithpetrolconsumptionof8.074billionlitresanddieselconsumptionof6.588billionlitres(SEIEnergyinTransport2006Report).

Underthe2006MineralOilTaxReliefschemesixteenbiofuelsprojectshavebeengrantedexciserelief.Fourdistincttypesofbiofuelsarebeingsupportedunderthescheme.Theseinclude:

n BiofuelorbiodieselcomplyingwithdieselstandardEN590andsoldatregulardieselpumps.Thisbiofuelistypicallymadefrompureplantoil,usedcookingoilandtallowandblendedwithfossildiesel;

n Biodieselinhigherblendsofupto�00%inspecificfleetsofvehicleswhoseenginewarrantiescovertheseblends;

n Bioethanolmadefromwheat,barley,wheyandotherfeedstock,blendedwithpetrolandsoldatregularpetrolpumps.Bioethanolinblendsofupto85%inpetrol,whichcanbeusedinflexiblefuelvehiclesarealsobeingplacedonthemarketasaresultofthisinitiative.The2006FinanceActallowedfora50%VRTreductioninsuchvehicles.AnumberofcompanieshavenowlaunchedflexiblefuelvehiclesontheIrishmarketand200ofthesevehicleshavebeenintroducedtodate;

�8

n Pureplantoilmadefromtheoilseedrapecropandusedinspeciallymodifieddieselengines.

UndertheSchemewhich will cost in excess of €200 million over five years,�63mlitresofbiofuelswillbeplacedonthemarketby2008,representing2.2%ofthepredictedfuelmarketforthatyear.

Therearerecognisedchallengesforindigenousbiofuelsinachievingourbiofuelstargetsupto20�0andbeyond.

2008: 2.2% Biofuels Target

Teagascestimatesthatthe2%substitutiontargetwouldrequire75,000haoftillageland,about20%ofourtotaltilledarea.Possibilitiesincludeupto25,000haofwheatforethanoland50,000haofrapeseedforbiodieselorpureplantoil.Thelattercouldbereducedto30,000haorlessbyusingrecoveredvegetableoil(�0,000t)andsomebeeftallow.The2%target,althoughsignificant,isachievablewithoutundulydisruptingexistingfoodorfeedmarkets.UnderEUStateAidsrules,IrelandcannotdiscriminateinfavourofindigenousproductioninitsBiofuelsprogrammesandsomeimportsoffeedstockorfinishedproductwillalsocontributetomeetingthistarget.

2010: 5.75% Target

ItwillbeanacknowledgedchallengeforIrelandtoachievethe5.75%targetpurelyfromindigenousfeedstockinthemedium-termfutureasliquidbiofuelscanonlybeproducedfromannualarablecropsusingcurrent(firstgenerationbiofuel)technologies.Intheshort-term,Teagascconsidersthatthebestprospectsareethanolfromcerealsandvegetableoilandbiodieselfromrapeseed,withasmallamountoftallowandwastevegetableoil.Inthemediumtolongterm,thepossibilitiesinclude�80,000haofrapeseedforbiodieselandpureplantoiland75,000haofcerealsforethanol.

Anotherfactoristhatrapeseedisgrowninaone-in-fouryearrotationandthereforetheknock-oneffectwouldrequire720,000haoflandintillage,almosttwicethetotalpresentamount.Thisareaoftillagewouldproduceover�mtonnesofadditionalcerealsforwhichnewmarketswouldberequired.Thereisalsothelikelihoodthatwewouldexceedthe�0%reductioninpermanentpastureprescribedintherecentreformoftheCAP.

Significantlongertermpotentialliesinproducingligno-cellulosic(mainlyperennial)cropsratherthansugar,starchoroil(mainlyannual)crops.TheIrishclimateisbettersuitedtoligno-cellulosiccropsandtheemergenceofnewsecond-generationbiofueltechnologieswilleventuallyallowthesecropsbeconvertedtoliquidbiofuels.Whilethereiscurrentlyexpectedtobeasignificantlead-intimebeforethesesecondgenerationtechnologiesreachfullcommercialpotential,wewillsupportaccelerateddevelopmentofsecondgenerationbiofuelsincludingcollaborativeprojectswithothercountries.

Inordertodeliveronbiofuelconsumptiontargetsweneedtoprovidemarketcertaintyorallowdevelopers/marketplayerstodevelopeconomicallyviablescaleintotheirprojectsgoingforward.TheMinisterialBioenergyTaskforcehasendorsedamovebyIrelandtodevelopanobligationschemethatwillobligefueldistributorstoachieveanaverageof5.75%biofuels(onanenergybasis)oftheirtotalannualfuelbusinessby2009.Thiswillalsofacilitatetheindustryindevelopingappropriaterefining,storage,distributionandsupplychainlogistics.

�9

Undercurrentstandardsupto5%blendsofbiofuelinbothdieselandpetrolcanbeusedinengineswithoutanymodifications.Thebalanceofthe5.75%and�0%targetscanbeachievedbyuseofhigherbiofuelblendsinmodifiedenginesandsuitablecaptivefleets.TheEuropeanCommissionhasrecentlypublishedadraftamendmentoftheFuelQualityDirective(Directive98/70asamendedbyDirective2003/�7)whichproposesincreasesinthevolumeofbiofuelsthatcouldbepermissibleinregularfossilfuels.Thisinitiative,ifsuccessful,willassistMemberStates,includingIreland,tomeetthehighertargets.

TheGovernmentwillthereforeintroduceanobligationonfuelsupplycompaniestohaveanaverageof5.75%oftheirannualfuelsalesasbiofuels,andincreasingto�0%(onanenergybasis)oftheiroverallsalesby2020.TakingfullaccountofdevelopmentsintheEU,wewillpublishthedetailedproposalsontheobligationforconsultationlaterthisyearpriortotheintroductionoflegislation.

Thebasicdesignofobligationschemesisthatsupplycompanieshavetoaccountfortheirfuelmixonanannualbasisandthatiftheydonotreachtheobligatedlimit,topayafixedamountpenaltyperlitreoftargetnotachieved.

2020: 10% target

Atargetofatleast�0%by2020willalmostcertainlyinvolveimportingbiofuelfeedstockorreadyblendedbiofuelasthelandimplicationofachievingthistargetfromindigenoussourceswouldbeintheregionof400,000to500,000hectares.

Akeydeterminantinreachingthistargetwillbethedevelopmentofsecond-generationbiofuelswhichwillmainlyuseligno-cellulosicbiomassfeedstock.Whilesuchtechnologiesexisttoday,theyarenotfullymarketcompetitiveandthereisarecognisedneedatEUlevelforfurtherRD&Dinthisarea.Themainadvantageofthischangeinfeedstockwillbethatbioenergyandfoodoranimalfeedstockwillnolongerbecompetingagainsteachothertothesameextent.

Sustainable Development

TherearealsoconcernsoverthesustainabilityofimportsfromcountriesoutsidetheEU,asthereislittlepointintheEUsubstitutingtransportfuelbyimportingfeedstockoralreadyrefinedfuelfromcountriesthatdonotapplysustainableagriculturalpractices.ThisisanareatheEuropeanCommissionisparticularlyinterestedinaddressingandanareawhichwewillbefollowingveryclosely.IrelandwouldbeinfavourofthedevelopmentofoverallEUsustainabilitystandardsforbioenergyingeneralandbiofuelsinparticular,toensurethehighestsustainabilitystandardsaremet.

TheDepartmentofTransporthascommittedtointegratingsustainabilityconsiderationsintothedevelopmentanddeliveryofoveralltransportpolicyandtheGovernmenthascommittedtodeliveringaSustainableTransportActionPlaninthisregard.

Promotingtheincreaseduseofbiofuelsasatransportfuelincaptivefleetssuchaspublictransportbusoperatorswillplayacrucialroleinoureffortstoreducethelevelofgreenhousegasemissionsandenergyintensityofthetransportsector.

DublinBusiscurrentlypilotingtheuseof5%biodieselblendinvehiclesinDublin.Thistrial,whichusesover�,000litresofbiodieselblendperweek,isproceedingwithoutanymajortechnicaldifficulties.TheCIÉgroupconsumesapproximately2millionlitresofdieselperannumandtheMinisterforTransporthasasked

20

thegrouptomovealltheexistingfleetto5%biodieselblendandtoplantoachievea30%biodieselblendinallnewbuses.

ThisinitiativeholdsthepotentialtosignificantlypromotetheuptakeofbiofuelsinIrelandanditisintendedthatthismeasurewillprogresswellinadvanceoftheimplementationofthenational2009obligationtarget.

Inaddition,theDepartmentofTransportisalsoworkingtosupporttheoperationofprivatetransporton�00%pureplantoilbyprovidingfundingtotheGerman-IrishChamberofIndustryandCommerceforapilotschemetooperate50vehiclesonthisfuelin2007.

UnderTransport2�theinvestmentinpublictransportovertheperiod2006-20�5willencouragemoreenergyefficientformsoftransport.Reducedjourneytimesfromthenationalroadnetworkupgradingwillalsoplayanimportantroleinimprovingenergyefficiencyinthetransportsector.

Demandmanagementisafundamentalwayofreducingtheenergyintensityofthetransportsector,andadetailedstrategy,initiallyintheGreaterDublinArea,willbedevelopedforGovernmentconsiderationastheinvestmentprogrammeoutlinedunderTransport2�proceeds.Apublicawarenesscampaigncentredaroundeco-drivingholdsthepotentialtodeliverreductionsingreenhousegas.

Taxincentives,inconjunctionwithothermeasures,holdthepotentialtoencouragethepurchaseofcleanermoreenergyefficientvehicles.The50%VRTreliefforHybridVehicleshasbeenextendedtoflexiblefuelvehiclesandfundingforpilotprojectsforbiofuelandhybrid-electrictechnologiesisprovidedunderTransport2�tocomplementthebiofuelsexcisereliefscheme.TheDepartmentofFinanceandtheDepartmentofEnvironment,HeritageandLocalGovernmenthavesimultaneouslylaunchedreviewsofVehicleRegistrationTaxandMotorTax,withaviewtorebalancingthesetaxsystemstoprovidegreaterencouragementforconsumerstooptforvehicleswhichproducelowerCO2emissions.

TheDepartmentofEnvironment,HeritageandLocalGovernmentwillalsointroduceanewandimprovedCO2emissionsrelatedvehiclelabellingscheme.Globaltechnologicaladvancesbyvehiclemanufacturerswillalsobecriticallyimportantinbringingmorefuelefficient,novelandcleantechnologiestomarket.ThenewEuropeancleanervehicleinitiativeswillalsoserveasacatalysttomanufacturerstomakeswiftprogressintheseareas.

2�

Chapter 4 Bioenergy for the Heat Sector - Biomass

WoodbiomasshasthepotentialtoplayamajorroleinIreland’snationalbioenergystrategy.Woodenergycanbegeneratedfrom:

n Firstthinningofplantations;

n Forestresidueslefton-sitefollowingfinalfelling;

n Shortrotationforestenergycrops(e.g.willow);

n Co-productssuchassawdust,barkandoffcutsarisingfromsawmillingandboardmanufacture;

n Untreatedrecycledwood.

Woodbiomassisarguablythemostversatileofrenewableenergysources.Itcanbeusedforavarietyofenergyusessuchasgeneratingelectricity,heatorascombinedheatandpower(CHP).Energyfromwoodbiomassisrenewable,consideredcarbonneutralandsustainable.GreenhousegasemissionsfromthesustainablecombustionofwoodarenotcountedundertheKyotoProtocol,astreesthatareusedforfuelarereplacedintheforest.Thereisthereforeadirectnationalreductionincarbonusagewhenoilandgasandotherfossilfuelsaredisplacedbywood.Forexample,abiomassuseof450,000tonnesperannumby20�0wouldreducecarbondioxidegreenhousegasemissionsbyupto400,000tonnes,potentiallysavingsome€4millionperannumdependingonthecostofatonneofcarbon.Therewouldhoweverbeareductionintheoveralllevelofexcisedutyreceiptsarisingfromthedisplacementoffossilfuels.

Solidbiomass,mainlyintheformofsolidwood,isalreadythelargestsourceofrenewableenergyinIreland,accountingfor57%ofIreland’stotalfinalrenewableenergyconsumptionin2004.Thiscompareswithwindenergy,thesecondlargestsourceofrenewableenergy,whichaccountedfor�7%oftotalfinalrenewableenergyconsumption.Thebulkofthissolidwoodfuelisusedintheformofheatenergyinthewoodprocessingindustry,andtoprovideheatindomesticdwellings.However,thisrepresentsonlyaverysmallfractionofthepotentialcontributionwoodenergycanmaketothenationalenergyrequirement.

Wood Biomass Supply

Themainsourceofwoodbiomasspotentialisfromthenationalforestestate(whichcurrentlystandsat7�0,000ha)intheformofsmalldiametertimberfromforestthinnings,aswellasforestresiduesfromclearfellsites.Mostofthematerialfromthesesourceswouldbechippedbeforecombustion.Thegrowingofshortrotationforestenergycropsalsohasthecapacitytocontributetotheoveralldevelopmentofwoodbiomassasanenergysource,butprobablyatasignificantlysmallerscalethanfrommainstreamforestry.

Potential Contribution

Anumberofstudieshaveassessedthepotentialcontributionofwood-biomass.TheEnvironmentalProtectionAgency(EPA)hasidentifiedapotential0.5milliontonnesofwoodresiduesavailableeachyearforenergyrecovery.Thisquantitywouldhaveanequivalentenergyvalueofapproximately256millionlitres

22

ofhomeheatingoil(kerosene)orsome200,000tonnesofoilequivalent(toe).ThisrepresentsonequarteroftotalkeroseneconsumptioninIrelandin2004.Transportationandprocessingcostswoulddiminishthisdisplacementpotentialandthisiswhyproximityofsupplyanddemandisimportantwhenassessingtheoverallpotentialforwoodenergy.

RecentCOFORDanalysisidentifiedtheprivatesectorasthemostrealisticsourceforwood-energy(giventhatmuchofCoillte’ssupplyisalreadydestinedforprocessing)anddemonstratesthatthepotentialsupplyfromthatsectorisincreasing.Lookingforward,ifannualafforestationof�0,000haperannumormoreisachievedovertheperiod2008to2035,thenwoodfuelbecomesasustainablealternative,yieldingpotentialenergyofatleast4.5Petajoules(c.�07,000toe)perannumfrom2030onwards.Ifhigherlevelsofafforestation(i.e.20,000haperannum)areachievedoverthisperioditcouldprovidesustainableenergywoodsuppliesof7.0Petajoules(c.�67,000toe)perannum.

Critically,however,iftheafforestationprogrammefallsbelowcurrentlevels,thenthesupplyofsmalldimensionmaterialsuitableforwoodenergywillalsofall-offinthecomingdecades,makingwoodenergyunsustainable.ThereisacommitmenttomaintainahighlevelofafforestationinlinewiththeStrategicPlanforForestryDevelopmenttoengenderasustainablesupplyoffuel.

SEIhascarriedoutthefollowinganalysisofthe5%renewableheattargetfor20�0frombiomassheat.Table6showsthe2004positionforbiomassintheheatingsector.

Renewable Energy Supply – Heat (RES-H)

Table 6: Total Final Consumption as Heat in 2004

TFC-H 2004 ktoe RES-H 2004 ktoe RES-H 2004 %

Residential 2,265 44 �.9%

Commercial 979 0 0.0%

Industrial �,595 �50 9.4%

Total 4,839 194 4.0%

Table7forecaststhegrowthinheatdemandupto20�0.

Table 7: Estimated Total Final Consumption as Heat in 2010

TFC-H 2004 ktoe Growth 2000-2004 %

Est. TFC-H 2010 ktoe

Residential 2,265 2.9% 2,689

Commercial 979 2.�% �,�09

Industrial �,595 -�.�% �,493

Total 4,839 5,291

23

Table8looksatthisgrowthintermsofwoodusetoachievethe5%heatingtarget.Thefiguresshowthepotentialforfuelswitchingineachsector,particularlyintheresidentialsector.Asthesectorwiththebiggestheatdemandandthelowestrenewableheatdevelopment,thiswillbeapriorityareatotargetforfurtherrenewabletechnologygrowth.

Table 8: Wood requirement for 5% Total Final Consumption as Heat in 2010

Est. TFC-H 2010 ktoe

RES-H 2010 ktoe

Est. use 2010 ktoe

Wood chip supply @ 50% m.c. tonnes/yr

Residential 2,689 52 �.9%

Commercial �,�09 49 4.4%

Industrial �,493 �50 �0.0%

Total 5,29� 25� 4.7%

Target20�0 265 5%

Additionalwoodfor5%in20�0vs

7� 328,�02

Expanding the wood energy sector

OneoftheissuesidentifiedasinhibitingthedevelopmentofawoodenergysectorinIrelandistheslowpaceofprogressindevelopingareliablesupplychainfromtheprivatesectorforestresource.Asaresultofthesesupplychallenges,potentialusersofwoodbiomasshavetraditionallybeenreluctanttoinvestinwoodboilers.Consequently,therearecurrentlynomediumorlargescaleproducersofwoodchiporwoodpelletsintheRepublicofIreland.ArecentlyinstalledwoodpelletproductionfacilityatBalcasLimitedinNorthernIrelandhasexperienceditsstrongestdemandfromtheRepublic.Itiscurrentlyproducingatarateof50,000tonnesannuallyandhascapacitytoexpand.

TheDepartmentofAgricultureandFood,andCOFORDareactivelyencouragingthedevelopmentoftheBioenergysectorinIrelandthroughanumberofsupportschemes,primarilyaimedatthedevelopmentofaneffectiveandefficientsupplychainfromforestgrowertoenduser.ThenewRuralDevelopmentRegulationprovidesabasisforcontinuedsupportoftheemergingwoodenergysector.Underpinnedbythe€�.2mfundingmadeavailableinBudget2007,schemesarebeingdesignedforthenewProgramme(2007-20�3)tosupportinvestmentindedicatedprocessingequipment.

Expand the Renewable Heat Sector

Inordertounderpinthegrowthoftherenewableheatsector,theGovernmentintroducedacapitalprogrammein2006of€65mover5years.ThegrantschemeshavebeendevelopedinconjunctionwithSEI,whichadministerstheschemesonbehalfoftheDepartment.Followingahighlevelofdemandinsomeoftheschemes,afurther€24mwasallocatedfortheseschemesinBudget2007andthetotalfundingpackageoverthefiveyearperiodnowstandsat€89m.

Thegrantsupportschemesaresupportingthedevelopmentofscaleintheemergingrenewableheattechnologymarketbydirectlyaddressingthehighstartupcostsforindividualsandsmallbusinessesthatoptforgreenerfuels.

24

Greener Homes Scheme

TheGreenerHomesgrantaidschemefordomesticrenewableheattechnologiesestablishedin2006allowsindividualhouseholderstoobtaingrantsfortheinstallationofrenewableheattechnologiesincludingwoodpelletstovesandboilers,solarpanelsandgeothermalheatpumps.Grantaidof€�,�00to€6,500isprovideddependingontheindividualtechnologyused.Thegrantisintendedtocoverapproximately30to40%oftheinstalledcostoftherenewabletechnology.Theschemeisbeingrolledoutoverafive-yearperiodandwasfurtherresourcedinBudget2007inlightofexponentialdemand.

Table 9: Greener Homes Grant Levels

Technology Grany Amount

WoodChiporWoodPelletBoilers _4,200

WoodChiporWoodPelletStoves €�,�00

WoodChiporWoodPelletStoveswithBackBoiler €�,800

HeatPump–HorizontalGroundCollector €4,300

HeatPump–VerticalCollector €6,500

HeatPump–Water(well)toWater €4,300

HeatPump–AirSource €4,000

Solar(perm2toamaximumof�2m2) €300

Bioheat Programme

Thegrantsupportschemeforcommercialrenewableheattechnologiesenablescompaniesandsmallbusinessestoobtaingrantsfortheinstallationofwoodchipandwoodpelletboilersinlargebuildingsandcommercialpremises.Grantaidisupto30%ofoverallcostdependingontheoverallsizeoftheproject.Forexample,anindustrialscale�Megawattboilercostingintheregionof€250,000couldreceiveagrantof€75,000underthescheme.Theschemeisbeingrolled-outoverafive-yearperiodandwillsupporttheconversionofrenewableenergyinupto600installationsdependingonoverallprojectsizes.InBudget2007,anadditional€4mwasallocatedtothisschemeandtheschemeisnowbeingextendedtoenablecommunityandvoluntarygroupstoapplyforfundingandtoincludeotherrenewabletechnologies.

Combined Heat and Power (CHP) Grant Scheme

TheCombinedHeatandPower(CHP)programmeprovidesgrantsfortheinstallationofCHPunits.Theseunitsgenerateelectricityatthesitewheretheelectricityisused,andcansimultaneouslyusetheheatfromtheelectricitygeneratingprocess.

Theschemeisaimedatsmall-scaleunits(upto�MW),whichcanbedeployedinhotels,leisurecentres,smallhospitals,officesorcommercialbuildings,whichhaveasubstantialheatrequirement.Suchunitscanbefuelledbyfossilfuelssuchasgas,aswellasbiomass(woodandwaste)products.Theprogrammeisrunningoverafive-yearperiod.

TheCHPprogrammeaimstodeliver�0–�5MWeBiomassCHP,and�00–200small-scalefossilfuelCHPinstallations,generating�0–20MWeofhighefficiencyCHP.PotentialapplicationsofbiomassCHPincludeboardmillsandthefoodindustry.Thereisnolimitonthesizeofinstallationsthatcanbegrant-aidediffuelledbybiomass.

25

Outcomes to date

Thegrantschemeshavebeenheavilysubscribed,inparticulartheGreenerHomesprogrammewhichhasattractedover�3,000applicationstodate.Biomassboilersareprovingtobethepreferredtechnologywithapplicationsinthiscategoryat45%ofoveralldemandfollowedbyheatpumps(28%)andsolartechnologies(27%).

Inheatingtermsalone,theBiomasselementoftheseprogrammeswilldisplacetheequivalentof36millionlitresofheatingoilperannum.TheCHPprogramme,togetherwiththeBioheatprogramme,whenfullydeployed,willdisplacealmost�00millionlitresofheatingoilperannum,whichrepresents�3%oftheheatingoilconsumedinthecommercialsectorin2004.

Thislevelofmarketgrowthalsorepresentsaverysignificantdevelopmentopportunityforrenewabletechnologysuppliers,renewabletechnologyinstallersandrenewablefuelsupplycompanies.Alreadythereisconsiderablemarketdevelopmentwithnewproducers,suppliersandinstallersenteringtheindustry.Qualityassuranceisakeypriorityinthiscontext.

Training

Akeypartofdevelopingtherenewableheatmarketisensuringthedevelopmentandup-skillingofsufficientinstallerstoensurethatmarketdemandcanbemetonanationalscale.BuildingonthesuccessfulEUInterregprogrammefunded,installertrainingacademies,SEIisdevelopingacomprehensivetrainingprogrammeroll-outwithFÁS,thenationaltrainingagency.Thisprogrammewillensurethatthereisanationwidenetworkoffullytrainedinstallersavailabletomeetgrowingmarketdemands.Theobjectistoensurethatrenewabletechnologiesbecomeakeycomponentofthemainstreamheatingindustry,qualityassuredtohighstandards.

Biomass Resource

Solidbiomass(solidwood)isalreadythemainsourceofrenewableenergyinIreland.Themainsourceofwoodbiomassisfromthenationalforestestate,currently7�0,000ha.Apotential0.5milliontonnesofwoodresiduesisavailableannuallyforenergyrecovery.Currently,therearesufficientsuppliesofrawmaterialstosupplythewoodenergyandwoodprocessingsectors.Theplantingof�0,000haperannumfrom2008to2035wouldmakewoodfuelasustainablealternativeandyield4.5Petajoules(c.�07,000toe)from2030onwards.20,000hawouldpotentiallyyield7.0Petajoules(c.�67,000toe)perannum.Accordingly,theavailabilityofindigenouswoodfuelisdependentonincreasingafforestationlevelsgoingforward.

Toencouragethisdevelopmentandaspartofthe2007Budgetpackage,theDepartmentofAgricultureandFoodhaveputinplaceanew‘BioenergyScheme’onapilotbasistograntaidtheplantingofwillowandmiscanthus.Theschemeinvolvesthepaymentofestablishmentgrantstofarmerstopartlyoffsetthehighestablishmentcostsandimproveprofitabilityatfarmlevel.Establishmentcostsareestimatedat€2,900perhectareandtheproposedgrantrateisupto50%ofthecostsassociatedwithestablishingthecrop.

TheDepartmentofAgricultureisalsoputtinginplacea€�.2mBiomassHarvestingSchemetoencouragegrowingofspecificenergycropsbyprovidinggrantstowardsthepurchaseofwoodbiomassprocessingmachinery,suchaswoodchippersandforestresiduebundlers.

26

Chapter 5 Bioenergy for the Electricity Sector

TheEUDirective200�/77/EConthepromotionofRenewableEnergySourcedElectricity(RES-E)intheinternalelectricitymarket(“theRenewablesDirective”)waspublishedin200�.ThisDirectiveaddressedindividualtargetsfortheincreasedconsumptionofRES-EtoeachMemberState.InthecaseofIrelandtheDirectivetargetis�3.2%by20�0.

WorkcarriedoutbytheRenewableEnergyDevelopmentGroup(REDG)in2004equatesthis�3.2%targetto�450Megawatts(MW)ofinstalledrenewablegenerationcapacitytobeoperationaltotheelectricitynetworkby20�0.

In2004,5.2%ofelectricityconsumedcamefromrenewablesources.In2005thisincreasedto6.8%andourexpectationsfor2006isthatthisfigurewillbeinexcessof8%.CurrentlyIrelandhasjustover�,000MWofrenewablecapacityconnectedtothenationalgrid.Thisconsistsof740MWofwindgenerationplant,236MWofhydropoweredplant,withthebalance(c.35MWs)madeupofdifferentbiomasstechnologies,mainlylandfillgas.AsaresultofprogressmadeinachievingtheDirectivetargettheGovernmentsubsequentlyincreasedthe20�0targetto�5%.

Renewable Energy Feed In Tariff (REFIT)

TherenewableenergysupportmechanismknownastheRenewableEnergyFeedInTariff(REFIT)marksamovetoafixedfeedintariffmechanisminsteadofcompetitivetendering.ApplicantsinREFITmusthavefullplanningpermission,allnecessaryoperatinglicencesandasignedgridconnectionofferfortheirprojects.TheywillbeabletocontractwithanyelectricitysupplierlicensedintheStateforsupportuptothenotifiedfixedprices.

Thefixedpricetariffsare(in2006prices):

n Largewindenergy(over5Megawatts)5.7centperKilowatthour;

n Smallwindenergy(under5Megawatts)5.9centperKilowatthour;

n Hydro7.2centperKilowatthour;

n Biomass(landfillgas)7.0centperKilowatthour;

n Otherbiomass7.2centperKilowatthour.

Thefirsttrancheofprojectsundertheschemeinvolves55developerswithprojectstotallingover600MWofcapacity.Thevastmajorityofthesenewdevelopmentswillbewindgeneration.

Whilewindgenerationisexpectedtodeliverthevastmajorityofour20�0renewableelectricitytargetsandcontributesignificantlytowardsthe2020targetof33%,itisanintermittentsourceofenergy.Inlinewiththecommitmenttodevelopabroadrangeofrenewabletechnologiesgoingforwardbiomasselectricityisbeingactivelysupported.Biomasselectricityhastheadvantageofbeingdispatchable,i.e.itisavailableondemand.

27

ToencouragedevelopmentofBiomasselectricitytheREFITprogrammeprovidesasignificantlyhigherfeedintariffpriceforbiomasselectricityat7.2cperkWhcomparedto5.7cperkWhforlargewind.Thisincentivewilloperateinconjunctionwithothersupportsavailableduringthedifferentstagesofthebiomassdevelopmentcycle.Somebiomassfeedstockhastheabilitytoattractagatepriceasbeingawasteproduct,whileotherbiomassfeedstockwillhavethebenefitofestablishmentgrantsand/orhectoragepaymentsandequipmentsupportgrantsinthecaseofdedicatedenergycrops.

Co-Firing in peat burning stations

Wehavesetatargetof30%co-firinginpeatstationswithbiomassby20�5.Thistargetwillofitselfstimulateaverysignificantdemandboostforbiomassfeedstock.

Thethreepeat-burningstationsburnatotalof3milliontonnesofpeatperannum.Itisestimatedthat30,000haofindigenousenergycropscouldreplaceevery�0%ofthispeatwhichisco-fired.Thepossibilitiesincludemiscanthus,willow,hempandreedcanarygrass.

Potentialbarrierstothisdevelopmentincludetheneedforayear-roundsupplyofsuitablerawmaterialandenvironmentalconcerns(biodiversityetc)fromgrowinglargeamountsofenergycropsclosetothepowerstations.Withtherightcropmix,siteselectionandhusbandrypracticestheseissuescanbeovercome.

Tofurtherencouragethemovetowardsbiomasselectricitygeneration,REFITsupportwillbeprovidedforco-firingrenewablefeedstockinexistingaswellasinnewthermalplants.ThissignificantchangeinREFITconditions,whichtodatesupportedonlynewlybuiltgenerationcapacityisdesignedtoencouragecofiringatconventionallyfuelledpowergenerationstations.

Meat and Bone Meal

Subjecttoaddressingenvironmentalandlicensingissues,MeatandBoneMealofferspotentialasabiomasssourceforcofiringinpowergeneration.CurrentcostsofstorageandtransportcostsoftheMBMabroadareconsiderableandestimatessuggestanoverallcostof€50mperannum.

DepartmentofEnvironment,HeritageandLocalGovernment(DEHLG)assessmentsshowacalorificvaluecomparison:

MilledPeat 7.87Mjpertonne

MBM �8.0Mjpertonne

Thereforethenetcalorificvalueof�tonneofMBMis2.3tonnesofpeat.

CO2emissionscomparison:

�tonnemilledpeat 0.85tonnesCO2�tonneMBM 0.00tonnesCO2

DEHLGestimatesthatbasedonitscalorificvaluethisMBMcouldannuallyreplace322,000tonnesofmilledpeatusedinpowerstations(�40,000x2.3)ifsuchamountswereavailableforco-firingwithpeat.Thiscouldgiveanannualreductionof273,000tonnesinCO2emissions.

28

ThemajorissueremainingtoberesolvedwouldbechangestoEPAlicencestofacilitateusingMBM,i.e.whetherMBMwouldbecoveredbythecontrolsenvisagedundertheEUWasteIncinerationDirective(WID)(2000/76/EC).

Waste Management and Licensing

Nationalwastemanagementpolicyiscommittedtothediversionofbiodegradablemunicipalwasteawayfromlandfill.IrelandisobligedundertheEULandfillDirective(�999/3�/EC)toensurethatnomorethan35%of�995levelsofbiodegradablemunicipalwasteislandfilledby20�6.

TheNationalStrategyonBiodegradableWaste,2006,setsouttheplanforprogressivelyreducingtheamountofbiodegradablemunicipalwaste(BMW)goingtolandfillandtoencouragetheprevention,recyclingandrecoveryofbiodegradablemunicipalwaste.TheStrategyestimatesthatitwillbenecessarytodivert80%ofprojectedoutputsofbiodegradablemunicipalwasteawayfromlandfillby20�6.TheStrategyputsforwardanumberofintegratedoptionstominimisetheenvironmentalimpactsoflandfillingbiodegradablemunicipalwasteandtoachievethetargetsundertheLandfillDirective.Theseoptions,inaccordancewiththeinternationallyrecognisedwastehierarchyare:

n Preventionandminimisation–avoidinggeneratingthewaste;

n Recycling–mainlyofpaperandcardboardbutalsooftextiles;

n Biologicaltreatment–mainlyofkitchenandgardenwasteincludingcomposting;

n Residualtreatment–thermaltreatmentwithenergyrecovery;

n Mechanical-biologicaltreatment.

WastelicencesissuedforlandfillsitesbytheEnvironmentalProtectionAgency(EPA)requireevaluationreportsbythelicenseeontheviabilityoflandfillgascollection,flaringand/orenergyproduction.Gascollectionandenergygenerationisundertakenathighgas-yieldsitesandmodernenclosedgroundflaresareinstalledatlandfillfacilitiespossessingsufficientgaspotentialtosupportcombustion.Inaddition,thewastelicensingsystemrequiresthemodernisationofolderfacilitiesviatheimplementationofconditioningplansthataredesignedtoincreasetheoperationalstandardsoflandfillsitesthroughaprocessofcontinuousimprovement.

Mixedwasteproducedbyhouseholdsorbusinessesafterallmaterialssuitableforrecyclingandbiologicaltreatmenthavebeenseparatedout,residuesfromrecyclingandbiologicaltreatmentoperationsandotherwastethatisunsuitableforrecycling,iscollectivelydefinedas‘residual’waste.Notwithstandingthefactthatsubstantialvolumesofbiodegradablemunicipalwastewillbedivertedfromlandfillasaresultofhighlevelsofrecyclingandbiologicaltreatment,theStrategyacknowledgesthatsignificantquantitiesofresidualwastewillcontinuetobegeneratedandthatalargeproportionofthismaterialwillbebiodegradable.Itisestimatedthatalmost309,000tonnesofbiodegradablemunicipalwastewillrequireresidualtreatmentin20�0risingto499,762tonnesby20�6.TheStrategyseekstomaximisetherecoveryofusefulmaterialsandenergyfromresidualwasteandaccordinglysuggeststhermaltreatmentwithenergyrecoveryasthepreferredoptionfollowedbymechanicalbiologicaltreatmentwithenergyrecoveryandwithmechanicalbiologicaltreatmentoffullystabilisedresiduetolandfillasalastresort.

29

Toassistinthedevelopmentofwastetoenergyprojects,REFITwillbeextendedtoallowsupportfortherenewableportionofmixedrenewableandnon-renewablegeneration.Thiswouldallow,forexample,awastetoenergyprojecttoobtainsupportfortherenewableportionoftheoutput.ThistypeofhybridsupportmechanismiscommoninotherEUMemberStatesandisfullyconsistentwiththeoverall‘hierarchyofwaste’treatmentapproach.

Biorefinery Potential

Biorefiningistheindustrialapplicationofoilrefiningtechnologytobiomassforthepurposeofextractingenergycarriers,highvaluebiochemicalsandfibres.Theenergycomesintheformofbioethanolandbiogasforthegenerationofgreenelectricity.Greenbiomassincludesgrasscultivatedfrommeadowlandandpermanentpastureandgreencropsrefertocloverandimmaturecereals.

Biorefiningisanemergingtechnologyarea.TherehasalreadybeensomecommercialinterestinexaminingthepossibilityofconstructingagreenbiorefineryinIrelandusingprimarilygrassasfeedstock.Thistypeofplantwouldpotentiallyproduceenergy,biofuelsandhighvaluebiochemicals.

TheEnvironmentalProtectionAgency(EPA)hashighlightedIreland’scomparativeadvantageingrasslandproductionoverotherEuropeancountries,includinggrowthrates,thehighknowledgebaserelatingtograssproductionandthegeographicaldistributionofgrasslandcomparedtoarableland.ThePaperstatesthat“theenergypotentialbasedonagrassfeedstockcouldbeverysubstantialandfarexceedtheenergypotentialofotherenergycrops.”

ThepotentialofextractinghighvaluebiochemicalscouldultimatelybeasignificantbenefittoIrelandforuseinthechemicalandpharmaindustriesthatplaysuchasignificantroleinIreland’seconomicwellbeing.

EU Biomass Action Plan

InDecember2005,theEUpublishedaBiomassActionPlan�whichannouncedmorethan20actions.Fortransportbiofuels,theyincludepromotionof“biofuelsobligations”,throughwhichsuppliersincludeaminimumproportionofbiofuelsintheconventionalfueltheyplaceonthemarket.

Theplanincludesreviewsofhowfuelstandardscouldbeimprovedtoencouragetheuseofbiomassfortransport,heatingandelectricitygeneration;investmentinresearch,inparticularinmakingliquidfuelsoutofwoodandwastematerials;andacampaigntoinformfarmersandforestownersaboutenergycrops.TheCommissionwillalsoworkonfutureEUlegislationtoencouragetheuseofrenewableenergyinheating.

TheCommission’sRenewableEnergyRoadmap2007reiteratesthecontributionwhichthebiomasssectorcanmaketoEurope’srenewableenergytargetsforelectricity,heatingandtransportthroughfullimplementationoftheBiomassActionPlan.

Technology Deployment Roadmap

Ina2006reportfortheEuropeanCommission’sDirectorate-GeneralforResearch2,theBiofuelsResearchAdvisoryCounciloutlinedthefollowinglikelytimescalesforbiofuelandbiorefinerydevelopmentintheEU:

�COM(2005)628final

2BiofuelsintheEuropeanUnion.Avisionfor2020andbeyond.(2006).EUR22066.

30

Phase 1: Short Term (until 2010)

n Improvingexistingtechnologies;

n R&Dintosecondgenerationbiofuelsfromligno-cellulosicbiomass;

n Firstsecondgenerationbiofuelsdemonstrationplants;

n R&Dintothebiorefineryconcept.

Phase 2: Medium Term (2010 - 2020)

n Deploymentofsecondgenerationbiofuels;

n Demonstrationofbiorefineryconcept;

n ContinuedR&Dtoimproveligno-cellulosicbiofuel;

n DevelopmentofIntegratedbiorefineryprocesses;

n DevelopmentofEnergyCropsandsustainableagriculture.

Phase 3: Long Term (beyond 2020)

n Largescaleproductionofsecondgenerationbiofuels;

n Deploymentofintegratedbiorefiningcomplexes.

Thereportemphasisedtheneedforincreasedandcontinuedexpenditureonresearch,demonstrationanddeployment,bothintheareaofimprovingyieldsandefficienciesfromcurrenttechnologiesaswellasinthedevelopmentofsecondgenerationbiofuelsandinbiorefineryresearch.

Whiletheprimaryinterestinthispaperistodeveloptheenergyuseofbioenergyfortheelectricity,heatandtransportmarkets,wedorecognisethatthereisalsoastrongopportunitytodeveloppetrochemicalsasrawmaterialsforindustrialprocesses,Second-generationbiomassconversiontechnologiescould,overtime,provideasuitablefuelandproductforbothsectors.

DCMNRisgivingmajorprioritytotheaccelerateddevelopmentofEnergyResearch,TechnologyDevelopmentandInnovationtounderpinenergypolicygoalsincludingbioenergydevelopmentanddeployment.ThedevelopmentthisyearofacomprehensiveEnergyResearchStrategy2008-20�3overseenbytheIrishEnergyResearchCouncilwillsetouttheoverallpriorities.

TherecentlyannouncedCharlesParsonsAwardsincludedfundingforbiomass-relatedresearchatfourUniversitiesontheisland.Underthisprogrammefundingofalmost€20misbeingprovidedtosevenUniversitiesontheislandofIrelandforthepurposesofacceleratingresearchinanumberofenergyrelatedareas._�2mofthisfundinghasbeenallocatedtofourUniversitieswhoseenergyresearchprogrammesincludebiomassresearch(detailsoverleaf).ThisresearchwillgiveusvaluableinformationunderIrishclimaticconditionswhichwillinformpolicyinrelationtotheoptimisationoflanduseforbiomasspurposes.

SustainableEnergyIreland(SEI)isalsosupportingresearchworkinsecondgenerationtechnologiesthrough,forexample,grantaidtoanIrishUniversitythatisinvolvedinanEUFP6projectinvestigatingBiomass-to-Liquid(BTL).InBTL,biomassisconvertedtosynthesisgasthroughgasificationandthesynthesisgascanbesubsequentlytransformedtoliquidfuel.

3�

Charles Parson’s Awards Summary of funded projects relating to Biomass

Bioresources Research Centre (BRC), University College Dublin

Award: €2,956,856

ThisawardtoUniversityCollegeDublininvolvesresearchonbioresourceassessment,biomassconversiontechnologiesandenvironmentalimpactassessment.Thesustainableutilisationofbioresourceswillfocusontheproductionofbiofuelfromcropsandagri-foodindustrywastestreams.

Centre for Sustainable Technologies, University of Ulster

Award €3,657,008

Thisawardsupportsabroadrangeofcomplementarytechnologiesrangingfromenergyefficiencyinbuildings,renewableenergiesconcentratingonbiomassandsolaractivitiesandcleanercombustionsystems.Specificallyrelatingtobiomassistheanalysisoftheproductionofseveraltypesofbiomassandinvestigatingtheirbehaviourinthermalconversionprocesses.Alsoresearchinvestigatingtheeffectsofbiomassderivedgasesontheperformanceoffuelcellsisunderway.

Microbial Bioenergy Group, National University of Ireland Galway

Award: €2,046,704

Theresearchrelatingtothisawardincludesanerobicdigestionmicrobiology,bioreactortechnology,biologicalhydrogenproduction,bioelectricchemistryandelectrochemicaltechnology.Thekeyfocusoftheworkrelatestobiologically-mediatedrenewableenergyresearchanddevelopmentincludinganerobicbioreactortechnologyandbiocatalyticandmicrobialfuelcell.

Charles Parsons Research Initiative & Graduate School University of Limerick

Award €3,126,656

TheawardtotheUniversityofLimerickcoversarangeoftechnologiesincludingbiofuelsandadvancedconversionprocesses,energyefficiencyandenergyconservationandwindandoceangenerationsolutionsandstorage.Relatingtobiomasstheutilisationoflocalbioresourcesofchemicalenergy(biofuels)inthecontextofamoreindependentenergysupplyinIrelandwillbeinvestigated.Advancedcatalyticprocessesinvolvedinbiomassutilisationwillalsobeinvestigated.

32

Chapter 6 Public Sector Leadership - Driving Bioenergy Demand

ThewiderpublicsectorinIrelandisthebiggestlandownerandpropertyownerintheState.AtthesametimeitisthelargesttenantintheState,particularlyintheofficemarketrentalsectorinourcitiesandtowns.Onacumulativebasis,thewiderpublicsectoralsoownsthelargestfleetoftransportvehiclesintheState.

Asaresultitisuniquelyplacedtodrivedemandforrenewableenergytechnologies,particularlybioenergytechnologies.Thiscanbeaverypowerfultoolindrivingthemarketsectors,particularlyifitiscombinedwithintegratedandhighenergyefficiencystandards.

AlreadywehaveseensomeLocalAuthoritiestakeaproactiveleadinthisarea,includingCorkCityCouncilandDublinCityCouncilwhoaredemonstratingbiofuelusageinsomeoftheirvehicles.OtherLocalAuthoritiessuchasFingalandDunLaoghaire-Rathdownleadingthewayinadoptingsignificantlyenhancedenergyefficiencystandardsandrenewableenergyconditionsintheirplanningguidelines.

Initiativessuchasthesehaveshownthewayforthepublicsectorasawholeanditisimperativethatthegoodexampleshowninthesedemonstrationsisnowmainstreamedinpractice,andinregulationwherepracticable,toensureamoresustainableenergyfutureforIreland.

AtthelaunchoftheInterimReviewoftheNationalBiodiversityPlan,theMinisterfortheEnvironment,HeritageandLocalGovernmentannouncedaseriesof�3supportingmeasurestosupporttheongoingimplementationofthePlan,oneofwhichwastheconversionoftheNationalParksandWildlifeServicefleetof�60vehiclestobiofuels,withinatwo-yearperiod.

AtcentralGovernmentleveltheOfficeofPublicWorks(OPW)isdirectlyresponsibleforoneofthelargestpropertyportfoliosintheState.ThevastmajorityofthebuildingsprovideofficeaccommodationforvariouscivilserviceDepartments.TheOPWisthusinakeypositiontoeffectsignificantenergysavingsandconsequentlyreductionsingreenhousegasemissionsinitsexistingbuildingstockandtoencouragethemarkettowardstheconstructionofmoresustainablebuildings.

TheOPWrecentlytooktheopportunityprovidedbytheprocurementprocessfordecentralisationtooverhaulitsofficeaccommodationspecificationinordertoincludehigherstandardsofenergysavingandsustainableconstruction.Thespecificationwasalsocastinsuchawayastoencouragegreateruseofbioenergytofulfiltheheatingandenergyrequirementsofbuildings.

ThisspecificationisnowinuseintheprocurementbyOPWofthevastmajorityofaccommodationinthepermanentdecentralisationlocations.OPWiscurrentlyexaminingwaysofadaptingthisspecificationtotheDublinleasedaccommodationsectorwithaviewtoencouragingandpromotingenergyefficiencyandsustainabilityinaccommodationbeingofferedtousinthecity.

TheOPWhaveincludedasarequirementinmostnewbuildingsfortheinstallationofwoodburningboilers-eitherpelletorwoodchipasthemainheatgenerationsource.

33

TheOPWiscurrentlyactivelyengagedinathree-prongedstrategytoreduceCO2emissions.

�. Heating Fuel Conversion Programme:theOPWiscurrentlyembarkingonaprogrammetoconverttheheatingsystemsinapproximately20largestatebuildingsfromtheirexistingfossilfuelburners(oil/naturalgas)tobiomassburners.Thebiomassfuelwillbeintheformofwoodpellets.Itisestimatedthatthiswillresultinanequivalentreductionofhalfamillionlitresofoilbeingconsumedperannum.Thiswillequatetoasavingofover�500tonnesofCO2perannum.

2. Energy Awareness Campaign:ThenationalEnergyEfficiencyCampaign“PowerofOne”andtheforthcomingNationalEnergyEfficiencyActionPlanareprovidingthefocusfordrivingenergyefficiencyawarenessanddeliveringenergysavingsinthepublicsectoraswellasbyconsumersandtheeconomyingeneral.Highlymotivatedandenergyconscientiousstaffofferthesinglelargestopportunityforzerocostenergysavingsacrossthewholebuildingstock.Theethosof“SwitchingOff”equipmentwhennotinusewhenappliedacrossalargenumberofpeoplewillleadtosubstantialenergysavings.Publishedresearchshowsthatupto20%energysavingscanbeachievedfromgoodenergyhousekeeping.Atthecentralcoreofanyenergyconservationcampaignistheabilitytobenchmarkperformance.Itisthennecessarytosetatargetforenergysaving,e.g.a�0%reductioninoverallenergyconsumptionorCO2emissionsandfinally,tomonitorperformanceagainstthetarget.Overthelast3yearstheOPWhasbeeninstallingweb-basedenergymonitoringunitsinallthelargestatebuildingswhichmonitorandrecordelectricalandheatingfuelconsumptionevery�5minutes.Thedatacanbeaccessedviaadedicatedwebsite.TheOPWiscurrentlyrollingoutapilotstaffenergyawarenesscampaignin20buildings.Thetargetistoreduceenergyconsumptionineachbuildingby�0%throughlocalenergyconservationcampaigns,energyworkshopsandclosemonitoringoftheperformanceofheating/airconditioningequipment.StaffwillbeabletomonitortheenergyreductionsintheirbuildingviatheInternetsite.Followingonfromthepilot,itisproposedtorolltheenergyawarenesscampaignouttostaffinalllargeOPWbuildings(circa250).DCMNR’s“PowerofOne”campaignwillalsofocusonthepublicsectorgenerallyduring2007.

3. Energy Efficient Design of New Buildings:Thescopeforimprovingenergyefficiencyinnewbuildingsisverysignificant.Atdesignstagetherearekeyfactors,whichcanconsiderablyimprovetheenergyefficiencyofthebuildingoveritsentirelifetimewithlittleornoadditionalconstructioncosts.Withtheadvancesincomputersimulationofbuildingsoverthepast�0years,itisnowpossibletoaccuratelymodeltheenergyandenvironmentalperformanceofabuildingatthedesignstage.Thisisachievedbymodellingtheeffectsofusingdifferentconstructionmaterials,orientations,theamountofglazing,theinsulationlevels,thetypeoffuelusedforheating,etc.Properlydesignednaturallyventilatedbuildingscanuseupto66%lessenergythanequivalentfullyair-conditionedtypes.Theuseofcomputermodellingalsofacilitatestheproperdesignofnaturallyventilatedbuildingsbyaccuratelypredictingairflows,internaltemperaturesandinternalcomfortconditions.ThistechnologyisbeingusedbytheOPWtooptimiseenergyperformanceinallnewlargebuildingprojects.

TheOPWisalsobringingforwardplansforthedevelopmentoftwolargesitesatHeustonStationinWestDublinandontheMountjoysiteinNorthDublinwhenthesitebecomesavailablefollowingtheconstructionofthenewprisonatThorntonhall.Thesesiteswouldbelargeenoughtosupportsignificantstand-aloneCombinedHeatandPower(CHP)installationstoprovidethevastmajorityofthesedevelopments’heatandelectricityrequirements.

34

TheDepartmentofEducationandScience,inpartnershipwithSEI,hasalreadydevelopedanumberofgenericschooldesignswhichminimiseenergyuseandcostsinnewschools.Theseenergyefficientschoolsprovidefeaturessuchashotwatertemperaturecontrols,naturalventilation,airtightness,individualroomtemperaturecontrol,passivesolardesign,maximisationofnaturallight,andlightingcontrolsthatrespondtonaturallight.40newschoolsarebeingdesignedunderthisprogrammeandthedesignsarebeingbuiltincompliancewiththeDepartmentofEducation’sTechnicalGuidanceDocuments.Thedesignswillensurethattheschoolsarecapableofbeing2.3timesmoreefficient,inenergyterms,thanbestinternationalpractice.

Inadditiontothisprogramme,theDepartmentofEducationandScienceinconjunctionwithSEIwillbeinstallingbiomassboilersin8schoolsoverthesummerof2007withaviewtoprovidinggenericguidelinesforconsultantsandschoolmanagersfortheinstallationofsuchsystemsinschools.TheschoolsinquestionwillvaryinsizeandlocationsothattheDepartmentcanidentifyanyissuesoropportunitiesthatariseinparticularschoolsituations.TheresultsofthedemonstrationprojectwillprovidevitalinformationandguidelinestoencourageschoolstoapplyforgrantsunderDCMNR’srenewableenergygrantprogrammesandwithaviewtoexpandingdeploymentofrenewableenergyinschoolsonasignificantlywidernationalscale.

Wehavehighlightedsomeoftheinitiativesthatthesectoriscurrentlydevelopingandrollingout.Therewillbemanymoreactionsdevelopedandthereisadeterminationrightacrossthepublicsector,thatasustainableenergyfutureisnowapriorityandthatthepublicsectormustleadbyexample.