A Draft Response By IrBEA To The Biofuels Obligation Scheme Consultation

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The Biofuels Obligation Scheme was introduced in 2010 and requires suppliers of motor fuel to ensure that biofuels make up a certain percentage of national annual fuel sales.  This is known as the biofuel obligation rate and is currently set at 8%. DCCAE want the public to know that the biofuel obligation rate has an important role to play in helping Ireland meet its 2020 renewable energy targets.   Ireland is committed to ensuring that by 2020, 10% of the energy consumed in the transport sector will come from renewable energy sources.  In order to meet this target, it will be necessary to increase the biofuels obligation rate to approximately 12%.

The Department of Communications, Climate Action and Environment is seeking views in relation to implementing a phased increase in the biofuel obligation rate and on how the scheme could be developed in the future. View the consultation document from DCCAE on future increases in the biofuels obligation rate here and details regarding public submissions on the website.

IrBEA have drafted a response to the recent Biofuels Obligation Scheme Consultation pdf here (download here)

Some key issues within the document include:

  • Increasing the blend rate to 10% from 2019 to 12% from 2020?
  • Incentivising the inclusion of more advanced biofuels – such as biomethane (cap on first generation biofuels)
  • Introducing the BOS into the heating sector?

IrBEA Submission on Enduring Connection Policy Stage 1 (ECP-1) Can be Viewed

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IRBEA has spent some time drafting a response to the Commission for Regulation of Utilities (CRU) on pending Enduring Connection Policy Stage 1 (ECP-1) which has far-reaching consequences for connectivity of renewables. The submission can now be viewed IrBEA Response to CRU17309 Consultation_Final We would like to thank everybody who contributed to the final submission.

Renewable Heat Support Scheme Calculator

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IrBEA has already reported on the recently announced national Support Scheme for Renewable Heat having secured government approval. The scheme is designed to financially support the replacement of fossil fuel heating systems with renewable energy for large heat demand non-domestic users.  This covers commercial, industrial, agricultural, district heating, public sector and other non-domestic businesses and sectors. Filtrex who commission renewable energy projects have a calculator which estimates the potential savings you could see when you switch to biomass systems under the new scheme. Link to calculator here

SEAI Report – Potential Biomass Prices in Ireland

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The price that solid biomass will be available at in Ireland is a key assumption underpinning the formulation of heat incentive tariffs. As part of efforts to ensure that the RHI in Ireland is designed to meet the target for renewable heat at least cost, SEAI have sought advice from Ricardo Energy and Environment on the price and availability of biomass resources for use in the heat sector in Ireland. The report highlights key information gathered, and important considerations around biomass supply chains, energy security, infrastructure, and sustainability which need to be taken into account when setting a price to use in analysis of the tariff. It is important that the price reflects as accurately as possible the price that biomass developers will see in the marketplace as schemes become operational, if the assumed price in the tariff analysis is lower than is actually seen in the marketplace then uptake is likely to be lower than forecast as switching to biomass will not be an attractive option. Conversely, if the assumed price is higher than is seen in the marketplace, then operators will potentially be over subsidised. The proposed SSRH is unlikely to be operational for several months, and potential applicants to the scheme will be considering the biomass price which they will face in the initial years of operation. Potential applicants may find this report useful in assessing viability, view here (Published 26 Oct 2017

Renewable Heat Incentive – Closer Than Ever Before

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Press Release 2017/12

The Irish Bioenergy Association welcomes the introduction of the long awaited Renewable Heat Incentive (RHI) today (7 Dec 2017) 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

Renewable Heat Incentive – Closer Than Ever Before

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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

Report on ‘Growing the Irish Bioeconomy’ – COFORD Report September 2017

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The gross output of the Irish forest sector is set to double by 2035 against a backdrop of increasing carbon constraint, this creates many opportunities for the Irish Bioeconomy. COFORD have produced a report on Growing the Irish Forest Bioeconomy which provides a vision of a healthy forest bioeconomy, creating sustainable jobs in rural Ireland and supporting national land-use carbon reduction and climate adaption objectives. It is an accessible document with plenty of infographics, key points and statistics. It includes an interesting piece on ‘12 Proposals for Growing a Vibrant Forest Bioeconomy in Ireland’, view the report here

Western Development Commission & SEAI Undertakes Biomass Survey in Ireland

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The Western Development Commission (WDC) along with the Sustainable Energy Authority of Ireland (SEAI) are tasked to complete a regional renewable energy analysis on the use of biomass as a local contribution to the national renewable heat target. They wish to develop a range of actions to support the development of renewable energy in the region under the Action Plan for Jobs. This will inform how we support and develop biomass use in this region. They are keen to understand more about how businesses operate their own heating systems and if they have any plans for further biomass investment or use.  They would also like to know your general views on the biomass sector.

All information provided will be treated in strict confidence, you are encouraged to participation in this on-line questionnaire and contribute to the report. Start the questionnaire here

Bord na Móna Bioenergy Plan to Invest in Wood Pellet plant in US to Secure Biomass Supply

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Mark Paul reported in the Irish Times (19 September)  that Bord na Móna intend  to invest up to €60 million in a proposed new wood pellet plant in the US state of Georgia that could be operational within two years. The company wants to construct the facility to turn willow trees into pellets, which will then be shipped back to Ireland to fire power stations. It is part of Bord na Móna’s strategy to shift away from its core peat business towards more renewable energy sources, especially biomass. Bord na Móna say they are forced to invest abroad while the Irish biomass-supply industry is ramped up to meet demand. The proposed investment is currently with the government’s New Era division for approval. View the Irish Times Article here

Ger Devlin interviewed by Irish Farmers Journal – Key Issues for the RHI Scheme

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Irish Bioenergy Association executives were at the Ploughing, Ger Devlin (IRBEA CEO) took part in the panel talks at the Bord na Móna stand that included Matt Cooper of TodayFM as host, as well as Patrick Madigan (Head of Biomass BNM), Mike Quinn (BNM CEO), Cormac O’ Carroll (Poyry Consulting) and Minister Naughten.The Minister commented that the Renewable Heat Incentive (RHI) scheme was expected to unlock the indigenous biomass industry and will be finalised as part of Budget 2018, adding “The RHI is part of the whole budget discussion at the moment. I’m meeting with [Finance Minister] Paschal Donohoe next week”

Ger Devlin in addition to the panel talked to Thomas Hubert of the Farmers Journal and commented that the key message for the Minister when delivering the RHI is the correct price point for the tariff so that there is a positive uptake and timing to stimulate confidence back into the bioenergy industry in Ireland.

Listen to the full interview with Ger Devlin and Thomas Hubert, at the podcast link below (5 mins): Podcast link