Support Scheme for Renewable Heat – Opportunities for Sustainable Bioenergy Development in Ireland

Ger Devlin CEO of IrBEA is presenting at the Power Summit on Tuesday 30 January in Croke Park, he will be speaking in the Heat: Policy and Heat Initiative Session at 11.15am. His presentation ‘Support Scheme for Renewable Heat Opportunities for Sustainable Bioenergy Development in Ireland’  will discuss the recent announcement on the SSRH, which is a very welcome development for the bioenergy sector in Ireland, one that has been stagnant for almost 5 years since 2013. There will be new opportunities now to stimulate growth for businesses in the biomass supply side and indeed for the biomass technology provider of which we have many as members of the Irish Bioenergy Association. As well as helping to meet the EU heat targets of 12% (currently 6.8%) by 2020 it will play a role in reducing potential fines come 2020. This session will present how the tiered rates are going to work and what opportunities exist for industry to make the switch to greener heat and power using biomass.

Renewable Heat Incentive – Closer Than Ever Before

Press Release 2017/12

The Irish Bioenergy Association welcomes the introduction of the long awaited Renewable Heat Incentive (RHI) today by the Minister for Communications, Climate Action and Environment, Denis Naughten TD. An RHI scheme was first officially conceived as part of the Bioenergy strategy consultation in May 2013, and formally announced in the October 2014 Draft Bioenergy Plan but was never delivered. After much lobbying activities and design consultations by IrBEA and other players in the bioenergy sector in the interim, the biomass industry will now see an RHI scheme live in 2018.
“This is a very welcome development for the bioenergy sector in Ireland, one that has been stagnant for almost 5 years since 2013 whereby many Irish companies have subsequently gone out of business. There will be new opportunities now to stimulate growth for those businesses in the biomass supply side and indeed the biomass technology provider of which we have many as members of the Irish Bioenergy Association. As well as helping to meet the EU heat targets of 12% (currently 6.8%) by 2020 it will play a role in reducing potential fines come 2020. It is perhaps disappointing not see any support for biomethane gas grid injection from AD in this phase but there are still supports for AD heating technologies and of course biomass heating technologies which is a positive. Certainly the ambition to have a scheme open to applicants in 2018 is welcome, but this Government approval is still subject to EU state aid approval. The tiered rates are generally positive but they do not favour the larger type installations offering a subsidy of only 0.05 c/kWh which is where the biggest opportunity exists to close the gap in the renewable heat target” says Ger Devlin IrBEA CEO.
The scheme will support the adoption of renewable heating systems by commercial, industrial, district heating and other non-domestic heat users at sites not covered by the emissions trading scheme. There are also installation grants available up to 30% for the installation of heat pumps. A separate budget would be favoured for such a grant scheme.

About the Irish Bioenergy Association

Dr Ger Devlin is CEO of the Irish Bioenergy Association. With over 200 members, IrBEA is the national association representing the bioenergy industry on the island of Ireland. The main objectives of the association are to influence policy makers, to promote the development of bioenergy and to promote the interests of its members. Improving public awareness, networking and information sharing and liaising with similar interest groups are other key areas of work in promoting biomass as an environmental, economic and socially-sustainable energy resource. www.irbea.org and www.bioenergyfutureireland.com

Links
DCCAE Press Release on RHI (7 December) here
New €1bn Renewable Heat Scheme Unveiled for Irish firms – Irish Times  (7 December) here

ENDS

An Taoiseach, Leo Varadkar Visits the Clonroche Biomass Processing Hub in Co. Wexford

Photo: IrBEA President Des O’Toole with An Taoiseach, Leo Varadkar, Paul Kehoe TD, Andrew Doyle TD and Michael D’Arcy TD visiting a Biomass Processing Hub in Wexford
An Taoiseach, Leo Varadkar visited the Clonroche biomass processing hub in Co. Wexford on Sunday 5th November. This hub, operated by T&A Byrne Renewables, services a range of commercial and industrial scale biomass energy clients for both Coillte and Clearpower in the South East and uses predominantly Coillte and the gradually emerging private sector log resource for its supply of biomass. Coillte and Clearpower are both longstanding members of IrBEA.
An Taoiseach, along with his colleagues, Paul Kehoe TD, Andrew Doyle TD and Michael D’Arcy TD saw first-hand the contribution a regional processing hub of this scale makes to the local economy as well as hearing the many benefits in terms of displacing imported fossil fuel, reducing greenhouse gas emissions and mobilising Ireland’s forestry resources. The hub comprises of a large secure log storage yard and fuel storage sheds. Coillte logs are sourced and delivered on a pre-planned basis several months in advance. The logs are systematically stacked for open air drying down to the target moisture content. The processing hub, established by T&A Byrne is one of the largest supply hubs of its kind in the country.
One of the processing hub’s major Coillte clients is Glaxosmithkline (GSK) and their use of woody biomass displaces millions of litres of oil annually. GSK is a science-led global healthcare company that develops a range of medicines, vaccines and consumer healthcare products. For GSK, investing in a biomass plant supports their global carbon reduction objectives and a long term commitment to the Dungarvan site and the local employment it underpins. With Coillte as an exemplar energy supply partner for this project, GSK are further committed to protecting resources and safeguarding the environment.

Biogas and Anaerobic Digestion Trade Mission at the German Irish Chamber

Ger Devlin (IrBEA CEO) gave the opening address at the Biogas and Anaerobic Digestion Trade Mission at the German Irish Chamber of Commerce and Industry 2 weeks ago. There were over 100 participants, many Irish companies took the opportunity to organise formal meeting with visiting German companies working in the Biogas sector. The presentations can be accessed here

RHI in #Budget2018 – How Does it Look?

Budget2018 has seen the launch of €17M for the Renewable Heat Incentive Scheme. €7M is to go towards the first phase of the RHI with the remainder seemingly marked for further uptake of electric vehicles. While at this stage exact details or specifics are not clear this does not send out a very positive signal to the bioenergy industry in Ireland and is perhaps a nudge in the wrong direction. Is this the same €7M that was allocated for the RHI in #Budget2017? It certainly looks like it as that €7M was never spent on any RHI.

An RHI scheme was first officially conceived as part of the Bioenergy strategy consultation in May 2013, and formally announced in the October 2014 Draft Bioenergy Plan. There has been a significant impact of carrying on with business as usual over recent years. Approximately 550 toe (tonnes of oil equivalent) of additional fossil fuels are burnt each day as the policy is being developed. Since 2014 c. 800,000 toe have been avoidably consumed. There is also a negative social and economic impact associated with business as usual. There are many bioenergy businesses that have ceased to exist due to industry stagnation since 2008. Many skilled people have applied themselves to other technologies or other jurisdictions to make ends meet.

At a time when the Government is in a big race against time to avoid a potential fine of at least €610m from the EU for failing to hit renewables targets. 2017 looked set to be a defining year for the country’s energy sector and the clock is ticking faster than perhaps the Government would like. At this stage 2017 has come and gone. If Ireland fails to meet an overall binding target of generating 16% of renewables composed of electricity (40%), heat (12%) and transport (10%) within three years, a penalty of up to €120m will be imposed by the European Commission for every 1% the State falls below this target. It is currently set at 8.6% so quite a path to travel. By 2030 the target is set at 27% renewables with even greater fines being proposed.

Minister Naughten is under pressure to implement policies to help avoid or reduce the potential bill facing Irish taxpayers and he has failed to listen to the advice of the bioenergy industry in Ireland. Instead of paying €610M in fines to EC, surely these potential fines would be better spent implementing and approving budgets for new policies such as the Renewable Heat Incentive (RHI). Minister Naughten thinks that the bioenergy industry in Ireland is sound and secure. The disasater that was REFIT 3 is testament of this with a low uptake, wrong strike price and burdensome administration. The RHI needed to be launched with more conviction to enstill confidence back into bioenergy.

The European Commission has highlighted the country’s unimpressive status by ranking Ireland 23rd out of 28 member states for renewable energy. Critics of the Government’s strategy on renewable electricity blame Ireland for having relied too heavily on onshore wind to reach its targets. This is testified by how many days Ireland can run on bioenergy which is currently only 13 while Sweden can last 132 days and Finland 121 days.

Socio Economic Impacts of an RHI Scheme that may be lost due to delays include New investment in biomass heating of over €220M. Annual spend of over €77m on operation and maintenance. €1.5 billion of direct investment into the Irish economy. Reducing Ireland’s energy import bill by 7.5%. Matching locally grown biomass with local energy demand will support 3600 new jobs. RHI will displace €120M/year of imported fossil fuel and encourage indigenous security of supply.

With over 200 members, IrBEA is the national association representing the bioenergy industry on the island of Ireland. The main objectives of the association are to influence policy makers, to promote the development of bioenergy and to promote the interests of its members. Improving public awareness, networking and information sharing and liaising with similar interest groups are other key areas of work in promoting biomass as an environmental, economic and socially-sustainable energy resource. www.irbea.org and www.bioenergyfutureireland.com

Wood Fuel Association Conference UK – IRBEA CEO Presents on RHI

Ger Devlin was presenting at the Wood Heat Association Conference in the UK on the 21 & 22 November in Dorking. He will be talking about the Irish RHI schemes and the industry’s expectations going forward.

WHA are the UK trade association for the modern biomass heating industry. They bring together wood fuel suppliers, biomass boiler and stove installers and distributors, energy companies and developers.  See the agenda lineup here

Press Release – IrBEA Response To Energy White Paper Launch

The Irish Bioenergy Association welcomes the publication of the Energy White Paper by Minister Alex White

As a strategy it is an ambitious plan to achieve important targets for renewable energy.
The weakness in the plan is the ability to convert this ambition into action. For example, a renewable heat incentive was promised since May 2014, and at the earliest this will commence at end of 2016. This long roll-out has resulted in market stagnation.
The report accurately points out that Bioenergy has the potential to create 5000 jobs as well as reducing our carbon emissions, however these benefits can not be fully realised unless the proposed policy measures are promptly implemented.
The transition to sustainable energy sources is a massive undertaking. We are calling on the Minister to follow today’s launch by:

1. Bolstering his department with the necessary resources to undertake this challenge.
2. Fastracking proposed support schemes for renewable heat and electricity.
For further information contact
Michael Hegarty 087-0556630
IrBEA General Manager

European BioGas Association Press Release on Biogas for Grid

Biomethane is a mature technology that can significantly reduce Europe’s dependency on natural gas” was the main message of the 2nd Conference of the European Biogas Association in the Netherlands. DGs for Energy, Transport and Agriculture confirm that in the next decades there is no way to achieve renewable energy targets without biogas. Read more

Biogas Manifesto launch: Jobs, cheap heating/electricity and achieving renewables targets

Thousands of jobs, cheap heating/electricity, and achieving renewables targets – politicians hear how to create the conditions to achieve these goals at IrBEA-Cré ‘Biogas Manifesto’ launch Read more

Energy Efficiency Grants

Energy Efficiency Grants

In response to Minister for Energy Alex White’s announcement today 10 March “Major Increase in Grants to Householders for Energy Efficiency”

The Irish BioEnergy Association (IrBEA) notes the Minister has announced increases to energy efficiency grants for householders, effective immediately. IrBEA broadly welcomes this measure, but we do not support the decision to continue to grant aid oil and gas boilers while not grant aiding boilers that run on renewable biomass fuels. Read more