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Northern Ireland Forum
for
Political Dialogue
~~~~~~~~~
WILLOW BIOMASS AND
RENEWABLE ENERGY
A REPORT
PREPARED BY STANDING COMMITTEE D
(AGRICULTURE & FISHERIES ISSUES)
~~~~~~~~~
Presented to the Northern Ireland Forum for Political Dialogue
on 24 April 1998
Note
DRAFT REPORTS
This report has been prepared by Standing Committee D for
the consideration of the Northern Ireland Forum for Political
Dialogue. Until adopted by the Forum in accordance with its
Rules, this report may not be reproduced in whole or in part
or used for broadcast purposes.
CONTENTS
Section Page
1. INTRODUCTION 1
2. RENEWABLE ENERGY 4
3. WILLOW BIOMASS 11
4. CONCLUSIONS AND RECOMMENDATIONS 15
Annex A - Membership of Standing Committee D
Annex B - Minutes of Proceedings
Annex C - Oral Evidence - Northern Ireland Agricultural Producers'
Association
Annex D - Oral Evidence - Ulster Farmers' Union
Annex E - Oral and Written Evidence - Mr J Gilliland, Brook Hall
Estate
Annex F - Oral and Written Evidence - Director General of Electricity
Supply for Northern Ireland
Annex G - Oral and Written Evidence - Energy Division, Department
of Economic Development
Annex H - Oral and Written Evidence - Department of Agriculture for
Northern Ireland
Annex J - Oral and Written Evidence - Viridian plc
WILLOW BIOMASS
AND RENEWABLE ENERGY
1. INTRODUCTION
1.1 At the outset, the Committee acknowledges that over the years,
many of the available renewable energy technologies have been
adopted by the agriculture industry. That the Committee has chosen
to address willow biomass - one type of energy crop within one of
many technologies (biofuel) - should not be seen as undervaluing any
of the remaining technologies. The Committee's selection of willow
biomass as the topic for this report is based on its importance as an
alternative land use for farmers.
1.2 The interest of Standing Committee D in the potential for energy
production from willow biomass was sparked in the course of a visit
to the Northern Ireland Horticulture and Plant Breeding Station at
Loughgall in early 1997. As a result of this visit, the Committee
decided to examine this topic in greater detail on its return to
business after the summer recess of the Forum in 1997.
1.3 Because of other pressures, it was not possible to commence this
examination until October 1997, when the Committee made a second
visit to Loughgall. In the course of this visit, the Chief Scientific
Officer of the Department of Agriculture for Northern Ireland,
Dr Cecil McMurray and his staff showed the Committee the
1
advantages of agroforestry (sheep grazing within a specially
prepared and planted ash plantation), poplar plantations and willow
coppice. The Committee was also taken to Castlearchdale to see
standing crops of willow coppice, to hear about the cultivation and
harvesting of willow coppice and to be informed about the diseases
which affect the willow plants.
1.4 Also in late October 1997, the Chairman of the Committee was
invited to the commissioning of a gasifier and combined heat and
power system at the Brook Hall Estate Biomass Project of
Mr John Gilliland in Londonderry. The aim of this project, the first
of its kind in Europe, is to demonstrate small scale combined heat
and power technology through the gasification of biomass, willow
woodchip, sourced from the first commercial willow coppice in
Ireland. Background information on this project is included in
Annex E.
1.5 In the course of a visit to Enniskillen College of Agriculture on
12 November 1997 the Committee was given a demonstration of the
prototype gasifier which uses willow biomass to provide heat and
power to the College.
1.6 The Committee then decided to obtain further evidence from a
number of sources and the following oral evidence sessions were
arranged.
2
13 November 1997 - Northern Ireland Agricultural
Producers' Association
27 November 1997 - Ulster Farmers' Union
9 December 1997 - Mr John Gilliland, Brook Hall Estate
18 December 1997 - Office of Electricity Regulation for
Northern Ireland
2 February 1998 - Department of Economic Development
- Energy Division
5 March 1998 - Viridian plc (ex-Northern Ireland
Electricity)
1.7 In presenting this report, the Committee first examined the evidence
obtained on the wider issue of renewable energy before covering
the development of willow biomass since the early 1970s, and then
proceeding to deal with its conclusions and recommendations.
1.8 The Committee wishes to thank all those who assisted in and
contributed to this report, in particular those who took time to
prepare and present written and oral evidence.
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2. RENEWABLE ENERGY
2.1 In its memorandum on renewal energy in Northern Ireland, (see
Annex G) the Department of Economic Development (DED)
explains that renewable energy has an important role to play in
helping to tackle the serious threat of climate change, primarily by
reducing carbon dioxide emissions. By comparison with fossil
fuels, it is pointed out that renewable sources of energy produce
much lower quantities of greenhouse and acid gas emissions - some
renewal technologies producing none.
2.2 Renewable energy sources - those which are renewed and replaced
within a short timescale - have been in use in Northern Ireland for
hundreds of years eg windmills and watermills. Present day
renewable technologies such as those based on wind, waste, solar
power, hydro-electric power, wave energy, geothermal energy, tidal
power and biofuels, are much more sophisticated - and some are
now producing electricity for the grid. On Slievenahanaghan
Mountain, Co Antrim, there is a 40 metre tall wind turbine which
delivers 300 Kw of power into the grid. A wind-diesel scheme has
recently been installed on Rathlin Island. Newmills Hydro
Generation Ltd has installed a 22 Kw hydro electric turbine at Inver
Mill, Larne, Co Antrim. At Templepatrick, along the Clady River,
Portmore Engineering has installed a cross-flow turbine which
provides 25 Kw of power during about 200 days of the year.
Northern Ireland Industry is involved in active and passive solar
devices - Thermomax of Bangor, Co Down, being one of the major
4
manufacturers of solar equipment in Europe. At Bangor and
Newtownards, Co Down, Richmond Reproduction Manufacturers
and W L Doggart and Sons have installed wood burning boilers to
heat their premises, supply hot water and at the same time eliminate
the problem of the disposal of wood waste. Larger schemes
burning wood waste for process purposes are to be found at
J P Corry (for timber curing) and at Spanboard, Coleraine (for
heat-setting chipboard). Larger schemes for power generation from
municipal solid waste are being considered for Belfast. The
Department of Agriculture for Northern Ireland leads Europe in the
research and development of willow and poplar coppice.
Pioneering work on the digestion of farm slurries has been
conducted at Our Lady of Bethlehem Abbey at Portglenone, where
the methane gas produced is used to heat both the monastery and
the digester. A pig slurry digester has been installed at
McGuckian's Farm near Cloughmills, Co Antrim. At Lyttle's Farm,
near Waringstown, electricity is being generated from farm slurry
digester biogas for on-site consumption. It should be noted that the
above projects are only consuming a small proportion of what is
available for exploitation in Northern Ireland.
2.3 To encourage the stimulation of new and renewal forms of energy in
Northern Ireland, the Electricity (Northern Ireland) Order 1992
(which mirrored GB legislation) was enacted, empowering DED to
place a non-fossil fuel obligation on Northern Ireland Electricity
(now Viridian plc), requiring it to contract through non-Fossil Fuel
Orders (NFFOs) with generators for the supply of power from
non-fossil fuel sources. In the same year, a collaborative study was
5
commissioned - "Prospects for Renewable Energy in Northern
Ireland" - a copy of which is attached at Annex G.
2.4 To date, two NFFO Orders have been made, in March 1994 for
16 Mw and in September 1996, also for 16 Mw. NFFO contracts
are awarded after open competition, are subject to necessary
planning and other statutory consents, and last for 15 years. NFFO
developers receive varying premium prices for their electricity,
however it is indicated that bid prices will converge with each
succeeding NFFO competition towards the costs of traditional fossil
fuel power generation.
2.5 DED pointed out that to date, Northern Ireland has secured 32% of
its NFFO target (45 Mw by the year 2005).
2.6 DED also explained that in addition to the NFFO regime, two other
measures have been used to stimulate development of renewable
potential - the Energy Demonstration Scheme and the EU
INTERREG programme - both of which are explained in detail in
the DED memorandum.
2.7 The Committee also noted that DED is participating in an ongoing
wide review of new and renewable energy policy which is being led
by the Department of Trade and Industry - a review which aims to
examine how the United Kingdom might achieve a target of 20%
electricity from renewable sources by 2010.
6
2.8 When representatives of DED met with the Committee to discuss
renewable energy, it was explained that since preparing the
memorandum, significant developments had occurred. A review of
renewable energy is presently being conducted by the Government -
a review which could lead to a new renewable energy strategy or
policy for the United Kingdom and in addition, a Government
review of energy policy in its totality is under way. Further, it was
also indicated that the European Union had produced a White Paper
on renewable energy, the thrust and direction of which will have to
be reflected by Government in any new energy policy for the United
Kingdom.
2.9 The Director General of Electricity Supply for Northern Ireland,
Mr Douglas McIldoon, indicated that his role as regulator has
permitted him to act as a catalyst and as an energy policy instigator
in relation to the renewable energy market, taking action such as
- highlighting the opportunity which exists for Viridian plc to
develop a 'green' tariff;
- pushing for regulations which will allow the transmission of
electricity across the Viridian transmission and distribution
system, and in particular, will permit renewable generators to
sell electricity to third parties using the Viridian system - a
situation which will uniquely advantage renewable generators
whereas fossil fuel generators will be restricted to transmitting
their surplus electricity to remote sites of the same company or
organisation.
7
2.10 Mr McIldoon supported the development and expansion of
renewable energy sources in Northern Ireland and the extension to
customers of the right to choose electricity from a renewable source
should that be their preference. He also pointed to the substantial
benefits to be gained from agriculture based renewable energy - eg
increased income and jobs in the rural areas, reduction in carbon
dioxide emissions, environmental sustainability (the ability always
to grow willows or to turn manure into energy), fuel diversity and
the improvement of social structures in rural areas. However he
also listed the problems - eg a demand is needed before a supply
can be provided, the high cost of renewable energy installation and
the lack of market enablement mechanisms. In examining the
opportunities which exist for renewable energy, he indicated that a
niche market existed for self-generation, that customers who wish to
purchase 'green' electricity should be able to do so and that trading
at peak demand - ie selling electricity at peak times at a high price -
should be introduced.
2.11 Mr McIldoon called for a comprehensive cost benefit study to
examine the benefits to be gained from renewable energy -
particularly those which have little or nothing to do with the price
factor - eg rural development and social factors. He also explained
that Viridian is permitted to own 5 megawatts of renewable
generation (they own the renewable energy production on Rathlin
Island). However, he pointed out that he would be happy to
increase the present limit of 5 megawatts of owned renewable
generation should Viridian show any interest. In addition, he said
8
"......But they (Viridian) will not get involved in
supporting these kind of village schemes. If they came to
me and said 'We would like to develop renewables.
Some of this is a bit risky, but we believe that it is in the
long-term interests of the community. Will you make an
allowance for us in the price control? Perhaps 30p to 40p
per customer could be added into a fund to develop
renewables.' I would have to look at that seriously. It is
certainly not a proposal that I could reject out of hand."
Mr McIldoon went on to say that if Viridian is to be persuaded to
move in the direction of the development of community projects,
then the Board must be persuaded.
2.12 The Committee noted that Viridian in examining renewable energy,
applies four main criteria:
- environmental impact;
- customer demand;
- community input;
- cost effectiveness.
The Committee was interested to learn that an environmental tariff
will be launched shortly which will for the first time give customers
the opportunity of indicating that they want renewable 'green'
energy.
9
2.13 With regard to biomass, the Committee also noted that Viridian has
concluded that willow is worthy of further examination and support
through the development phase. Mr McCrea, in his evidence to the
Committee stated:
"We are looking at the willow now and it looks as though it
is a technology which is very appropriate for Northern
Ireland. It is getting over its teething problems and we might
invest some capital in its development. So far we have made
no R&D investments in such projects."
2.14 The Committee welcomes the commitment shown by Viridian to
renewable energy generation in the future. Mr Gaston of Viridian
indicated that while Government and European bodies play a major
role in providing assistance to develop research and development
capacity, Viridian
"intend to increase our profile and take more of a leading role
in that regard ......."
10
3. WILLOW BIOMASS
3.1 As explained by the Chief Scientific Officer of the Department of
Agriculture for Northern Ireland (DANI), interest in growing short
rotation willow coppice in Northern Ireland began in the 1970s as a
response to a projected world shortage of cellulose for paper
manufacture. Subsequently the Middle East oil crisis of the
middle-1970s led to a change of emphasis. Willow biomass was
then seen as a potential energy source both in terms of
diversification of supply and as a response to escalating prices.
This oil crisis was however, resolved and the foreseen problems did
not materialise.
3.2 Since then, DANI has continued the research and development of
willow and is now leading the United Kingdom and Europe (with
the possible exception of Sweden) in this field.
3.3 The detailed research and development activities of DANI, past
present and future are set out in the paper prepared by the Chief
Scientific Officer which is attached at Annex H.
3.4 In addition to the research and development efforts on the
horticulture and plant breeding aspects of willow biomass, the
Department has devoted considerable time and resources since the
early 1990s to the use of the willow biomass crop for gasification
and combined heat and power. A prototype unit was built and
installed at Enniskillen Agricultural College to generate electricity
11
which can be fed into the grid, using the waste heat to heat the
intake water for the College. This was the first ever integrated
facility of its kind in the world.
3.5 Having proved the concept DANI has now transferred all the
technology of generation to Rural Generation Limited who are
taking the system forward as a commercial enterprise and who are
hoping to market it in the future on a world-wide basis.
3.6 The Committee was most interested in the evidence given by the
Chief Scientific Officer about the detailed research and
development which has been devoted to willow biomass over a long
period, and the future activities in this area which will be required.
The Committee noted that DANI sees rural renewable energy
generation being applied in future to small, integrated projects -
although larger projects could be considered. With regard to the
economics of short rotation coppice, it was explained that farmers
should not enter coppice production on a short-term basis - a
long-term commitment is required to obtain a positive response.
Dr McMurray stated
"Short rotation is only viable on a significant scale if planted
on grassland in Northern Ireland. You are probably aware
that there is a very limited amount of set aside with respect to
cereal crops, so if we have to put it only on to arable ground,
it is not going to make a very big impact. We really have to
be thinking that if it is going to make a significant impact
here, it is going to have to go on to grassland. The
12
establishment costs are likely to drop significantly as the
scale increases. Benefits are expected in terms of
maintaining rural employment with an integrated
production/utilization chain ......."
Dr McMurray also pointed out that if the national carbon dioxide
target reduction of 20% by 2010 is to be reached, short rotation
coppice will be required as the target cannot be met solely by other
means. It is for this reason that Dr McMurray stressed the
importance of a national strategy for biomass which is capable of
being adapted for Northern Ireland use.
3.7 The Committee was also very impressed with the vision,
enthusiasm, expertise and persistence of Mr John Gilliland of Brook
Hall Estate. Mr Gilliland has been a trail-blazer with regard to the
development of renewable energy generation using willow biomass,
being the first person to produce willow biomass as a commercial
crop and the first person to generate electricity using willow wood
chip and sell it on the grid. Rural Generation Ltd, of which
Mr Gilliland is Chairman, won the contract from the Department of
Agriculture to commercialise the biomass generation technology.
Indeed, Mr Gilliland indicated that a multi-national oil company has
approached Rural Generation Ltd, wishing to sell 100 power plants
per year, as from mid-1999, to developing countries such as
Ethiopia, Morocco, Guatemala and Uruguay.
3.8 In the course of his evidence to the Committee, Mr Gilliland stated
that he was lobbying very hard for energy crops to be recognised as
13
a bona fide land use so that when the Agenda 2000 package is
eventually agreed, such crops will be on the same level playing field
as other agricultural commodities. He also pointed to the
advantages for borough or district councils using willow biomass,
indicating that there is room for partnerships between councils and
farmers, and explaining that his local council is to commence a
project in the near future.
3.9 The Committee, being aware of the benefits to the rural community
of projects such as willow biomass, was disappointed to hear of the
lack of co-operation extended to Mr Gilliland by the Rural
Development Branch of DANI. The Committee was, however,
pleased to note that the Chief Scientific Officer of DANI and the
head of the relevant DANI policy division did show interest - and
was particularly pleased to hear that the Permanent Secretary of
DANI made a personal visit to see the Brook Hall Estate project.
3.10 The Committee was also interested to hear from Mr Gilliland that
the Energy Directorate of the European Commission has supported
the need for energy crops and industrial crops and alternative land
use to be included in the Agenda 2000 proposals.
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4. CONCLUSIONS AND RECOMMENDATIONS
4.1 When the Committee commenced this examination of willow
biomass, it did not anticipate that its interest in the research and
development aspects being undertaken by DANI would lead to such
a wide-ranging report.
4.2 The Committee was very impressed with the detailed research and
development pioneered by Malcolm Dawson of DANI into willow
biomass since the early 1970s and having seen and discussed it with
the Chief Scientific Officer of DANI, Dr Cecil McMurray and with
Mr Dawson, can understand why the Department is leading the way
nationally and internationally in this area. The enthusiasm and
expertise generated by the DANI staff is most commendable. The
Committee acknowledges that while some 25 years have been
devoted to the research and development of willow biomass, more
effort is needed and therefore recommends that DANI should
continue to devote resources to this particular topic to ensure that
the prime position enjoyed by Northern Ireland with regard to
willow biomass research and development is maintained in the
future.
4.3 The Committee regards research and development is a most
important sector of work in the Department. However, the
Committee recognises that when times are hard and resources are
needed elsewhere, it is easy to stop research and development
projects, using the money saved in what are seen as more important
15
areas of work. The Committee regards such action, if taken, as
short-sighted and recommends that DANI should sustain the
research and development budget as an important contributor to its
overall operations.
4.4 The Committee notes that at present, the Government is not only
conducting a review of renewable energy, but also a review of
energy policy in its totality, and that the European Union White
Paper on renewable energy will influence the content of both
reviews. The Committee awaits both reviews with interest. The
Committee recommends that in finalising these reviews,
Government should ensure that the development and expansion of
renewable energy sources is given top priority and that, in
particular, a national strategy for biomass is developed - otherwise
there will be no chance of meeting the stated national carbon
dioxide target reduction of 20% by 2010.
4.5 The Committee was most interested in the evidence of the Director
General of Electricity Supply for Northern Ireland, in particular his
conviction that a niche market exists for self-generation of
electricity, his belief that customers who wish to purchase 'green'
energy should be able to do so, and his suggestion that renewable
energy generators should be permitted to trade at peak demand
times. The Committee also noted the Director General's call for a
comprehensive cost benefit study to be conducted to examine the
benefits to be gained from renewable energy - particularly those to
be gained from rural development and social factors. The
16
Committee therefore recommends that the Energy Division of the
Department of Economic Development should ensure that these
matters are given attention in the reviews of energy being conducted
by Government, and that the Department should conduct the
comprehensive cost benefit study without delay.
4.6 In his evidence to the Committee, the Director General also
explained that Viridian are presently permitted to own 5 megawatts
of renewable generation (they are the renewable energy production
on Rathlin Island) and that he would be happy to increase this limit
should Viridian show any interest. He went on to indicate that
Viridian had shown no inclination to become involved in supporting
and developing small renewable energy schemes. However, when
Viridian representatives gave evidence to the Committee, it was
stated that they were now convinced that willow was worthy of
further examination and support through the development phase,
being a technology which is very appropriate for Northern Ireland.
The Committee was also pleased to hear that Viridian "intend to
increase our profile and take more of a leading role ......" with
regard to the development of research and development capacity.
The Committee therefore recommends that Viridian should without
any further delay put its stated plans for involvement in the
development of willow biomass into effect. The Committee wishes
in particular to see the Board of Viridian endorsing and aiding the
development of community based renewable energy projects,
particularly those using willow biomass. The Committee further
recommends that Viridian should without any further delay
17
introduce a voluntary environmental tariff to give customers the
opportunity of indicating that they want renewable 'green' energy.
4.7 In its report 'Northern Ireland Agriculture - Preparing for the
Future', the Committee addressed the proposals contained in the
European Commission's Agenda 2000 document. With regard to
rural development, the Committee identified the need to address
renewable energy generation in the rural community. The
Community endorses the view expressed by Mr Gilliland that
energy crops should be recognised as a bona fide land use. The
Committee therefore recommends that in putting forward its
proposals to the European Union on Agenda 2000, the Government
should stress the need for financial incentives such as subsidies and
capital grants to be given to encourage the provision of
environmentally sensitive systems, including the growing of energy
crops.
4.8 Having earlier in this report expressed its disappointment at the lack
of co-operation extended to Mr Gilliland of Brook Hall Estate by
the Rural Development Branch of DANI, the Committee
acknowledging the fact that rural renewable energy projects could
play in maintaining the social and other structures of the rural
community, recommends that DANI should ensure that projects
such as those involving willow biomass are given priority within its
rural development policy.
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4.9 The Committee, recognising the benefits to be gained by local
government authorities, statutory Boards, industrial companies and
other large firms from the use of the willow biomass technology,
recommends that they should give serious consideration to the
feasibility of installation of gasifiers at their sites, contracting local
farmers to grow the willow biomass fuel. Further, the Committee
recommends that local government authorities should examine the
benefits of growing willow biomass on Council owned land as fuel
for gasifiers which could be installed at facilities such as swimming
pools and leisure centres. In addition the Committee, recommends
that local government authorities should investigate the advantages
of using the willow plant's ability to absorb materials which are not
regarded as environmentally friendly - eg toxic materials and
leachate at landfill sites and sewage sludge. The Committee also
recommends that local authorities and others involved in waste
management should investigate the advantages of segmenting and
stockpiling burnable waste which could be used for generation
purposes.
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