Potential Impacts of the Solid Bio-fuel Industry in Westmeath -

Potential Impacts of the

Solid Bio-fuel Industry in

Westmeath

Research into Regional Opportunities for the BiomassIndustry

This research dissertation is submitted in partial fulfilment

of the Degree of Masters in Business Administration at the

Athlone Institute of Technology

Submitted to: Athlone Institute of Technology

Submitted by: Michael Ward

Research Supervisor: Edward Whyte

Date Submitted: 3rd September, 2007

Statement Of Declaration

I have read the institutes code of practice on plagiarism. I

herby certify this material, which I now submit for

assessment on the programme of study leading to the award of

Masters of Business Administration, is entirely my own work

and has not been taken from the work of others, save and to

the extent that such work is cited within the text of my

work.

Student ID Number: A00118826

Name of Candidate: Michael Ward

Signature of Candidate:

Date: 3rd September, 2007

Table Of Contents

SECTION 1 - EXECUTIVE SUMMARY..............................5

SECTION 2 - INTRODUCTION...................................9

2.1 CHAPTER OVERVIEW.......................................92.2 BACKGROUND TO THE SECTOR.................................92.3 DRIVERS OF THE INDUSTRY – PEAK OIL......................102.4 DRIVERS OF THE INDUSTRY – CLIMATE CHANGE..................122.5 CURRENT SITUATION......................................132.6 BARRIERS TO THE INDUSTRY................................142.7 COMMENTARY & CONCLUSIONS................................14

SECTION 3 - METHODOLOGY...................................16

3.1 INTRODUCTION..........................................163.2 THE RESEARCH QUESTION..................................163.3 THE RESEARCH OBJECTIVES................................163.3.1 Policy Analysis......................................173.3.2 Resource Assessment..................................173.3.3 Market Analysis......................................173.3.4 Operations and Supply Chain Development..............183.3.5 Economic Impact......................................18

3.4 ACCESS AND LIMITATIONS.................................193.5 SECONDARY DATA........................................193.6 THE INTERVIEW PROCESS..................................203.7 QUESTIONNAIRES........................................233.7.1 Selecting the sample size............................24

SECTION 4 - POLICY ANALYSIS...............................25

4.1 INTRODUCTION..........................................254.2 POLICY OVERVIEW.......................................254.3 BIO-ENERGY STRATEGY....................................274.4 EXPANDING THE RENEWABLE HEAT SECTOR......................294.4.1 Incentives on the Supply Side........................304.4.1.1 Bio-energy Scheme for Willow and Miscanthus 2007

304.4.1.2......Relief for Investment in Renewable Energy Generation...........................................31

4.4.1.3. .Wood Biomass Harvesting Machinery Grant Scheme31

4.4.1.4.......................Afforestation Grant Rates32

4.4.2 Incentives on the Demand Side........................344.4.2.1............................Greener Homes Scheme

344.4.2.2.............................Warmer Homes Scheme

354.4.2.3...............................House of Tomorrow

354.4.2.4................................Reheat Programme

354.4.2.5......Combined Heat and Power (CHP) Grant Scheme

364.5 OUTCOMES TO DATE......................................364.6 INTERVIEW COMMENTS.....................................374.7 COMMENTARY & CONCLUSIONS................................38

SECTION 5 - RESOURCE ASSESSMENT...........................40

5.1 INTRODUCTION..........................................405.2 FORESTRY CO-PRODUCTS...................................405.3 POST CONSUMER WOOD WASTE...............................435.3.1 Recycled Timber......................................435.3.2 Sawmill Co-Products..................................445.3.3 Arboricultural Arisings..............................45

5.4 DEDICATED ENERGY CROPS.................................455.5 INTERVIEW COMMENTS.....................................475.6 COMMENTARY & CONCLUSIONS................................48

SECTION 6 - MARKET ANALYSIS...............................50

6.1 INTRODUCTION..........................................506.2 NATIONAL ENERGY MARKET.................................506.3 IDENTIFYING MARKET SEGMENTS.............................546.4 LARGE SCALE USERS.....................................556.5 MEDIUM SCALE USERS....................................566.5.1 Medium Scale Market Survey...........................57

6.6 SMALL SCALE USERS.....................................596.6.1 Assessment of Future Potential.......................61

6.7 INTERVIEW COMMENTS.....................................626.8 COMMENTARY & CONCLUSIONS................................63

SECTION 7 - OPERATIONS & SUPPLY CHAIN.....................65

7.1 INTRODUCTION..........................................657.2 SOLID BIO-FUEL PRODUCTS................................657.2.1 Wood Chip............................................657.2.2 Wood Pellet..........................................667.2.3 Wood Briquette.......................................667.2.4 Cereals/Grain........................................66

7.3 THE FUEL SUPPLY CHAIN..................................677.4 FUEL PROCESSING.......................................687.4.1 Chipping.............................................687.4.2 Pelletising/Briqueting...............................697.4.3 Drying and storage...................................707.4.4 Internal Transport & Delivery to End-Customers.......70

7.5 QUALITY CONTROL FOR SOLID BIO-FUELS......................717.6 SUPPLY CONTRACTS......................................717.7 INTERVIEW COMMENTS.....................................727.8 COMMENTARY & CONCLUSIONS................................73

SECTION 8 - ECONOMIC IMPACT & CONCLUSIONS...............75

8.1 INTRODUCTION..........................................758.2 ADVANTAGES OF SOLID BIO-FUELS...........................758.3 JOB CREATION..........................................768.4 IMPACTS OF REACHING NATIONAL TARGETS.....................788.4.1 Residential Heating Target...........................788.4.2 Electricity Co-Firing Target.........................798.4.3 National Impacts.....................................80

8.5 COMMENTARY & CONCLUSIONS................................80

SECTION 9 - OPPORTUNITIES FOR FURTHER RESEARCH..........84

REFERENCES & BIBLIOGRAPHY.................................86

APPENDIX..................................................90

APPENDIX 1A - HOUSEHOLD SURVEY QUESTIONNAIRE...................90APPENDIX 1B - COMMERCIAL USERS SURVEY QUESTIONNAIRE.............92APPENDIX 2 - TOTAL FOREST COVER BY COUNTY (HA)................94APPENDIX 3 – SAWMILLS IN THE MIDLANDS.........................95APPENDIX 4 - TECHNICAL STANDARDS.............................96Appendix 5 - Existing Solid Bio-fuel Enterprise in Westmeath 98

Glossary

BES Bio-energy Scheme run by the Department of

Agriculture, Fisheries & Food to support the

production of energy crops

Bio-energy Renewable energy produced from biomass

Bio-fuel Liquid, solid or gaseous fuel produced by

conversion of biomass

Biomass Renewable organic matter such as agricultural

crops and residue, wood and wood waste, animal

waste, aquatic plants and organic components

of municipal and industrial wastes

Bord-na-Mona

One of Ireland‘s leading energy providers, BNM

owns significant peat resources

Carbon Neutral

The practice of balancing carbon dioxide

released into the atmosphere with practices

that remove or sequester carbon from the

atmosphere i.e. growing biomass crops absorbs

carbon from the atmosphere which is then

released when the biomass is converted to

energy, so that the net carbon emissions are

zero

CHP Combined Heat & Power. The sequential

production of electricity and useful thermal

energy from a common fuel source

CO2 Carbon Dioxide. A product of combustion. The

most common greenhouse gas

COFORD National Council for Forest Research and

Development

Conventional Oil

Readily accessible (by conventional means)

crude oil

ECAS Energy Crops in the Atlantic Space. An EU

funded research project of the Mid-South

Roscommon Leader Company

Energy Crops

Crops grown specifically for their fuel value

EPA Environmental Protection Agency

ESCo Energy Supply Company

ESRI The Economic and Social Research Institute,

founded in 1960 to produce high quality

research, with a core focus on Ireland’s

economic and social development, in order to

inform policy-making and societal

understanding

EUBIONET European Bio-energy Network

Forfas Ireland’s national policy and advisory board

for trade, science, technology and innovation

(of the Department of Enterprise, Trade and

Employment

GHG Greenhouse Gas. Gases that trap the heat of

the sun in the Earth’s atmosphere producing

the greenhouse effect. The two major

greenhouse gases are water vapour and carbon

dioxide. Other greenhouse gases include

methane, ozone, chlorofluorocarbons, and

nitrous oxide

GJ Giga Joule. A measure of energy equivalent to

278KWh

Green Tonne 1,000 kilogram’s of un-dried biomass material.

Moisture content must be specified if green

tons are used as a measure of fuel energy

Ha Hectare - Unit for measurement of area - 1Ha =

2.49 Acres

IEA International Energy Agency

Ktoe Kilo Tonnes Oil Equivalent (1000 toe)

KW A measure of electrical power equal to 1,000

Watts. 1 kW = 3,413 Btu/hr = 1.341 horsepower.

KWh A measure of energy equivalent to the

expenditure of one kilowatt for one hour

Kyoto The Kyoto Protocol was adopted at the Third

Session of the Conference of the Parties (COP)

to the UN Framework Convention on Climate

Change (UNFCCC) in 1997 in Kyoto, Japan. It

contains legally binding commitments by

countries included in Annex B of the Protocol

(most OECD countries and EITs) who agreed to

reduce their anthropogenic emissions of

greenhouse gases to agreed upon targets

Midlands Counties Westmeath, Longford, Laois and Offaly

Miscanthus A woody perennial tufted or rhizomatous grass

grown as an energy crop (sometimes called

Elephant Grass)

Mtoe Million Tonnes Oil Equivalent

MW Megawatt. Unit of power that equals one

million Watts (1,000 kW).

MWe Megawatt Electricity

NDP National Development Plan

NFI National Forestry Inventory

Peak Oil Peak Oil is the point or timeframe at which

the maximum global petroleum production rate

is reached. After this timeframe, the rate of

production will by definition enter terminal

decline. According to the Hubbert model,

production will follow a roughly symmetrical

bell-shaped curve

RCG Reed Canary Grass. A robust perennial grass

sometimes grown as an energy crop

REFIT Renewable Energy Feed In Tariff - A Government

support mechanism for renewable electricity

projects operated by the Department of

Communications Marine and Natural resources

REIO Renewable Energy Information Office (of the

SEI)

Renewable Energy

An energy source that is replenished

continuously in nature or that is replaced

after use through natural means. Renewable

energy sources include the sun, the winds,

flowing water, biomass and geothermal energy.

REPS Rural Environment Protection Scheme - a five

year scheme where a farmer enters into a

contract with the Department of Agriculture to

farm in accordance with an agri-environmental

plan drawn up by an approved planning agency

RES-H Renewable Energy Supply, Heat

SEI Sustainable Energy Ireland

Solid Bio-fuel

Solid fuel produced by conversion of biomass,

examples include wood chip, wood pellet, fuel

grain

SRC Short Rotation Coppice. Plantings established

and managed under short-rotation intensive

culture practices, for example Willow

SustainableEnergy

An energy source that is replenished

continuously in nature or that is replaced

after use through natural means. Sustainable

energy sources include the sun, the winds,

flowing water, biomass and geothermal energy

Teagasc The Irish agriculture and food development

authority

TFC Total Final Consumption

TFC–H Total Final Consumption, Heat

Toe Tonnes Oil Equivalent

TPER Total Primary Energy Resource

TPES Total Primary Energy Supply

VAT Value Added Tax

WDC Western Development Commission

Willow Rapidly growing deciduous species that coppice

freely, i.e. produce numerous new stems from

the cut stump (popular energy crop)

Section 1 - Executive Summary

Based on various crosschecks, annual ‘solid bio-fuels’

consumption in Europe can be estimated at about 50 million

Tonne Oil Equivalent (Toe). By a systematic salvage of

forestry by-products, industrial wood-waste and scrap wood,

it is estimated that this contribution could probably be

doubled in the next 10 to 15 years. Factoring in the

potential for dedicated energy crops, including willow short

rotation coppice (SRC), Miscanthus and grain, this figure can

be increased even further.

France, Austria, Finland, Sweden, and Germany are among the

countries in the European Union where wood energy consumption

is largest. The southern countries such as Spain, Portugal,

and Italy come next. Among the eastern European countries,

Turkey is the largest wood energy consumer, followed by the

Czech Republic, Poland and Romania.

When produced and managed in a sustainable manner, solid bio-

fuel provides a multitude of advantages. It does not only

serve as an energy provider, but also as an environmentally

favourable and economically beneficial resource. Ireland is

clearly behind in terms of solid bio-fuel usage when compared

to the rest of Europe, but can exploit the "latecomer’s

advantage" through benefiting from technical advances and

industry experience/successes within Europe. Many significant

insights and lessons can be generated from the various

experiences among European countries in relation to the

evolution of this fledgling industry.

Solid bio-fuel is a local and diffuse renewable resource

which, unlike conventional energy, is not distributed by

large industrial groups, but by a network of various small to

medium sized companies or organisations including farmers and

foresters, fuel producers, distributors etc. However, some

companies of an international dimension are starting to show

an interest in the sector.

This document examines the solid bio-fuel industry in

Ireland, with a particular focus on the potential to develop

related value-added enterprise in Co. Westmeath. In

particular this study is designed to evaluate the;

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Government policy driving the sector

Raw material resource available

Specific markets which are relevant to this product

Operations and supply chain development within the

sector

Potential economic impact on the industry for County

Westmeath

A mix of primary and secondary research was undertaken in the

delivery of this report including the following aspects;

Detailed research into relevant literature and current

policy framework as is relevant to the research topic

Evaluation of current and potential future raw material

resources. This aspect of the study is derived from

secondary sources including;

Forest Service

Department of Agriculture, Fisheries and Food

Environmental Protection Agency

Teagasc

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Evaluation of current and potential future markets. This

aspect of the study is derived from a combination of

secondary research in evaluating the scale of the

particular market segments, and primary research in the

form of market survey to determine the potential within

each market sector for solid bio-fuel product

Determination of best fit operational and supply chain

options for the region. This part of the study is

informed by an examination of national and international

best practice, and through a series of in-depth

interview’s and discussion’s with a number of leading

industry experts

Based on the information gleaned from this research, an

evaluation of the potential economic impact for Co.

Westmeath is produced

The findings of this study are briefly summarised as follows;

Government policy is committed to driving the industry

forward, although, in the hierarchy of renewables, bio-

energy is given a lower priority than wind

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There is substantial raw material supply available to

sustain the industry going forward and market growth in

the sector will not be constrained by a shortage of

material. However, the future of dedicated energy crop

farming is not so clear as the uptake on the bio-energy

not likely to change

The main markets are the commercial, and residential

heat markets, both of which show significant potential

if the fuel supply chains are established

In the commercial sector awareness and information is

needed to drive the market

In the residential market, concerns around reliability

and quality of fuel supply must be addressed

Solid bio-fuel will play a part in power generation at

the midlands peat power stations, but as a co-fired

fuel. The extent of this market is not yet known as

other bio-fuels including tallow and animal waste will

also be co-fired to meet government 33% co-firing target

Westmeath, with its central location ideal for clustered

approach to serve greater midlands and Irish market.

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There is a significant number of companies already

operating in this sector, although few are exclusive to

bio-fuel

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Section 2 - Introduction

2.1 Chapter Overview

This section of the report will examine the background to the

solid bio-fuel industry in Ireland and identify some of the

key drivers of that industry. The current position of the

industry in Ireland will also be assessed.

2.2 Background to the Sector

The bulk of solid bio-fuel in Ireland is used in the form of

heat energy in the wood processing industry, and to provide

heat in domestic dwellings. More recently solid bio-fuel is

gaining popularity in the commercial sector, being

particularly suited to hotels, leisure centres and schools.

However, current usage rates represents only a very small

fraction of the potential contribution wood energy can make

to the national energy requirement.

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In recent years the subject of ‘sustainable’ or ‘renewable’

energy has been the focus of much discussion. While the

advantages and opportunities regarding this technology have

been well documented, the industry has not taken off in

Ireland as it has in other European countries. This would

seem to be due to a number of factors, including:

Government failure to commit to the use of ‘biomass’ for

electricity generation by converting peat burning power

generation plants, or building new biomass burning

plants

Issues around the creation of the ‘supply chain’

necessary to take the crop from the field to the fire.

In this regard we have a chicken and egg situation

whereby growers are nervous as the market has not yet

developed for the product, and the market is non-

committal as there is not a steady supply of the raw

material

On the other hand, fluctuating oil prices and the threat of

future shortages has seen an increase in interest in

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renewable energy and many commentators believe this is a

technology whose time has come.

This report will investigate these and other factors

influencing the development of this industry in Ireland in

order to make a reasoned prediction on the future potential

impacts of the industry for Westmeath.

2.3 Drivers of the Industry – Peak Oil

Life is today’s world is critically dependant on the ready

availability of a secure supply of energy in a convenient

form, so the threat of depleting oil resources has the

potential to change the world as we know it. In his article

in the OPEC review (1999), Mamdouh G. Salameh argued that

‘conventional oil’ would reach the last phase of its cycle by

2040, and that “rising global demand and declining reserve

discovery rates could lead to a radical increase in the price

of oil in the near future and that chronic shortages could be

predicted to develop from 2010 onwards”1. John Wilson,

however, in 2007 countered that many “misinformed assumptions

1 Salameh, M.G., Technology, Oil Reserve Depletion and the Myth of the Reserves-to-Production Ratio, 1999

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and misplaced beliefs” are being used as a basis for energy

policy, and that fossil fuels should remain our “primary

energy source for many years to come”. On biomass based fuels

Wilson predicts that they can “at best, be only a minor

contributor to meeting the worlds future energy needs”2.

In the Irish context the Economic and Social Research

Institute, (ESRI), concluded that “the rapidly rising demand

for energy due to the growth of the world economy is eroding

the potential spare world oil and gas capacity with limited

prospects of new finds of fossil fuels over the coming

decades it seems quite likely that real oil and gas prices

will rise dramatically in the longer term. In addition, the

need to tackle the problem of global warming will also lead

to increasing real prices for consumers of fossil fuels.

Preparing for a world of much higher energy prices will

require significant policy changes” 3. They also recognise

that there is a need for major investment in new electricity

generating capacity over the coming decade in Ireland. With

regard to renewables, Irish policy makers are placing a

2 Wilson, J., Energising our Future, How Disinformation and Ignorance are Misdirecting Our Efforts, 2007

3 Fitzgerald, J., et al., (ESRI), Aspects of Irish Energy Policy (Policy Research Series Number 57),

2005

Page 14

strong emphasis on wind as the answer, but the ESRI recommend

hedging the risk by developing a “diverse portfolio of

generating technologies and fuels”. Biomass is one of those

fuels that should be included in that portfolio. With this in

mind the ESRI recommend “peat plant should either be closed

or gradually converted to biomass”, and investment in new

power generation plants should include biomass options.

In their 2006 baseline assessment of Ireland’s oil dependence

Ireland’s national policy and advisory board for trade,

science, technology and innovation, (Forfas), agree that the

supply of conventional oil will peak sometime in the first

half of the 21st century and that Ireland is in a very

vulnerable position due to our heavy dependence on oil4.

Forfas conclude that “viable mitigation options exist both on

the supply and demand sides to address this situation”. The

report puts forward options such as “expanding domestic oil

storage capabilities” and developing more “East-West

electricity interconnection with the UK” as policy options to

mitigate against Irelands sensitivity to high oil prices, and

also endorses the possibility of developing nuclear energy as

4 Forfas, A Baseline Assessment of Ireland’s Oil Dependance, April 2006

Page 15

a long term solution for power generation in Ireland.

However, the report fails to recognise that the nuclear

resource is also finite, and renewables such as bio-fuel are

not given a great deal of consideration in the report which

limits itself by taking a narrow focus and viewing the

potential threat as a “liquid fuel crises” rather than a more

wide reaching energy crises.

2.4 Drivers of the Industry – Climate Change

There is also a growing concern for the harm that burning of

fossil fuels is doing to our global environment. Under the

Kyoto Protocol Ireland agreed to a target of limiting its

greenhouse gas emissions to 13% above 1990 levels by the

first commitment period 2008-2012 as part of its contribution

to the overall EU target. Ireland ratified the Kyoto Protocol

on the 31 May 2002, along with the EU and all other Member

States and is internationally legally bound to meet the

challenging greenhouse gas emissions reduction target. To

ensure Ireland reaches its target under the Kyoto Protocol

and building on measures put in place following the

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publication of the first National Climate Change Strategy in

2000, the Government has published a new National Climate

Change Strategy in 20075. The Strategy provides a framework

for action to reduce Ireland's greenhouse gas emissions. In

this document the Government recognise that “There is now a

scientific consensus that global warming is happening, that

it is directly related to man-made greenhouse gas emissions

and that we have little time remaining to stabilise and

reduce these emissions if we are to avoid devastating impacts

on our planet”. They also concede that “There is also an

economic consensus that the costs of inaction will greatly

outweigh the costs of action and that progressive climate

change policies, based on innovation and investment in low-

carbon technology, are consistent with global economic

growth”. Later on in Section 4 the initiatives introduced by

the government to kick start this drive towards a “low-carbon

economy” as are relevant to the solid bio-fuel sector will be

reviewed.

5 Department of the Environment, National Climate Change Strategy 2007 – 2012

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2.5 Current Situation

The effects of these driving forces can bee seen on the

ground in the form of wood chip and pellet boilers becoming

increasingly popular, encouraged by the financial incentives

introduced through SEI (Sustainable Energy Ireland) in the

form of grants to assist in installation costs. In a 2006

publication Teagasc predicted that “Demand for wood pellets

and chips is set to rise rapidly in Ireland, catching up with

the rest of Europe, as more and more wood chip and pellet

heating systems are installed” 6. The same report suggests

that “Irish farmers growing energy as a crop isn’t as mad as

it sounds. Many farmers are already doing this throughout

Europe. And we only need to go back a few decades when 20% of

the agricultural land in Ireland was devoted to growing fuel:

oats to ‘fuel’ horses pulling the plough before tractors (and

fossil fuel) took over. If the same trend takes place in

Ireland as in other European countries, then energy crops may

well displace food crops on Irish farms". This report

however, does not consider the influence that large scale re-

deployment of land for non-food crops will have on grain

6 Teagasc, Wood Energy from Farm Forests, 2006

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prices or the propensity for Irish farmers to change,

particularly in the event of grain price increases due to a

reduced supply globally.

2.6 Barriers to the Industry

Sustainable Energy Ireland, (SEI), identify the barriers to

bio-energy “On the supply side, fuel resources of sufficient

quality and quantity need to be collected, transported and

stored, all at low cost. On the demand side, selling

electricity in the new market raises access and pricing

issues, and selling heat depends on local demand of

sufficient size and dependability and on appropriate

infrastructure” 7. They suggest these obstacles can be

overcome through “scale and experience, and some specific

interventions”. SEI also suggests that most bio-energy

pathways are currently “not fully competitive.” Although many

are “close to being so”, and that “supports are required to

kick-start the bio-energy market”. The National Council for

Forest Research and Development, (COFORD), point out that

“there is an increasing interest among growers of the

7 SEI, Renewable Energy Development, 2006

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prospects of trading the carbon stored in their forests”

8,and this is also true of farmers in relation to biomass

crops, but we have yet to see landowners embrace this new

alternative land use in any significant numbers.

2.7 Commentary & Conclusions

Currently Ireland imports more than 90% of its energy, with

energy demand increasing by approx. 5% per year 9. Despite

the many opposing opinions on peak oil, the real question is

not ‘if’, but ‘when’, and Ireland is in a very vulnerable

position when this happens. This and a combination of other

factors including the threat of further increases in oil

prices (analysts predict oil will soon hit $100 a barrel),

changes in the farming industry including the demise of the

sugar industry and the increasing trend towards part time

farming, may make the relatively low labour intensive

alternative of growing wood crops for energy an increasingly

attractive proposition for farmers. Naturally though, the

uptake will ultimately depend on the required returns being8 COFORD, Factors influencing farmer participation in forestry, 2002

9 SEI, Renewable Energy Development 2006

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achievable for the participants and many people are yet to be

convinced that the infrastructure, or climate, in Ireland is

suitable to allow this to happen.

The main points emerging from this section are;

The solid bio-fuel industry has been slow to take off in

Ireland in comparison to many other EU countries

The bulk of solid bio-fuel in Ireland is processed from

wood processing industry waste and used ‘in house’

Heat for domestic dwellings is a growing market for

solid bio-fuel, as is heat in the commercial sector

Current usage rates offer significant scope for increase

The main drivers of the industry at the moment are the

peak oil threat and climate change

The main focus of the government with regard to

renewable energy is on wind and tidal technologies, with

biomass considered to have less valuable potential

Many solid bio-fuel pathways are not currently

financially viable

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Section 3 - Methodology

3.1 Introduction

COFORD identifies two categories of value for the biomass

industry, i.e. the value to society and the planetary

community and value to the individual producer10. This report

will focus on the value, or opportunity, for the local

community of Westmeath through the development of the solid

bio-fuel industry in the region. In this section of the

report the methodology used to research the topic is

detailed.

3.2 The Research Question

The research question that this report seeks to address is

“What, if any, is the likely impact of the solid bio-fuel

industry on County Westmeath?”

The desired project outcome is a research report into the

development of a solid bio-fuel industry with a particular10 COFORD, Carbon credits in Ireland: issues and potentials, 2001

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focus on the potential in Co. Westmeath for value-added

enterprise. Solid bio-fuel in this case is defined as

timber, forestry or agriculture crops which can be burned to

produce renewable energy.

3.3 The Research Objectives

In answering the above question, this research document

particularly addresses the specific study objectives detailed

as follows.

3.3.1 Policy Analysis

The study will review the current framework within which bio-

energy policy is formulated with particular attention to the

Ministerial Task Force national ‘Bio-energy Action Plan’

published on March 4th, 2007, and the ‘White Paper on Energy’

published on March 12th, 2007.

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3.3.2 Resource Assessment

In order to understand the potential opportunities for this

industry it is essential to quantify how much of the resource

is produced and what amount is actually available for energy

use. It is essential to understand how this is likely to

change in the future. It is also necessary to determine the

form in which the raw material will be made available in

order to determine the level of processing which will be

required and for logistical planning purposes. In this regard

the resource available to Westmeath is assumed to include

that of the other Midland Counties as this material is easily

accessible for operators in Westmeath.

3.3.3 Market Analysis

There are a number of factors pushing the development of

biomass as a renewable energy source that suggests a great

potential for wood energy development in the region. It is

important, however, to establish the potential scale of the

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market and what is required to initiate and facilitate new

developments.

The aim of this part of the study is to define relevant

market sectors and to evaluate these. This process will

include;

Identifying current and potential future end users

Determining current and potential future

requirements

*The market analysis is extended beyond the borders of Westmeath to include the

other Midland Counties as these are readily accessible markets for Westmeath

Product.

3.3.4 Operations and Supply Chain Development

During the course of this research, different business models

are evaluated in terms of transferability and suitability to

supporting sectoral development in Westmeath. Specific

logistical issues will be identified and investigated as to

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how they interact with each other and impact on the viability

industry as a whole.

3.3.5 Economic Impact

Based on the above analysis, the study will conclude with an

examination of the potential impact that the development of

the industry will have on Westmeath. In summary this report

proposes to examine the overall potential economic impact

that the development of this industry will have on the

region.

3.4 Access and Limitations

To advance this research a strategy was developed which

utilised a range of techniques incorporating both primary and

secondary research, and employing both quantative and

qualitive research methods. My research began with an in

depth review of the literature, with a view to understanding

current position of the sector and likely future government

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and EU policy on energy and agriculture and what impact this

will have on the sector.

My ability to collect primary data was highly dependant on

gaining access to appropriate sources. Fortunately, I have

worked on the EU funded ‘Energy Crops in the Atlantic Space’

(ECAS) project which offered me the opportunity for

networking within the sector, and helped me to build up a

network of contacts within the industry who I could interview

during the course of my research.

3.5 Secondary Data

My secondary research addressed the following areas;

Analysis of national and international energy and

agriculture policy

Analysis of raw material statistics

Comparison of yields and returns with alternative land

use

Analysis and evaluation of existing and future market

Commentary on international best practice

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Relevant data gleaned from other research projects in

this area

3.6 The Interview Process

In researching this subject a number of exploratory

interviews were conducted with key industry experts as

follows:

Date: 10th November 2006

Location: Roscommon

Interview Type: Face to face, one to one, semi-

structured interview

Present: The Author, Senior executive of Bord-na-Mona

Date: 12th December 2006

Location: Roscommon

Interview Type: Face to face, group,

unstructured/informant interview

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Present: The Author, Chairman of Mid-South Roscommon

Leader Company, Past President of Agricultural Scientist

Institute, Willow Farmer, Miscanthus Farmer,

Owner/manager of a wood fuel company, Representative

from Bord-na-Mona.

Date: 18th January 2007

Location: Company Premises

Interview Type: Face to face, one to one,

unstructured/informant interview

Present: The Author, Owner/manager of a renewable energy

systems installation company operating nationally

Date: 28th Feb 2007

Location: Athlone

Interview Type: Face to face, group,

unstructured/informant interview

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Present: The Author, A leading wood consultant,

Environmental campaigner/T.V presenter and award winning

architect, Representative from Mid-South Leader Company.

Date: 24th March 2007

Venue: On site a wood product manufacturing plant

Interview Type: Face to face, group,

unstructured/informant interview

Present: The Author, A leading wood consultant, MD of a

major wood product industry and producer of wood pellet

Date: 24th March 2007

Location: Telephone

Interview Type: Telephone, one to one, semi-structured

interview

Present: The Author, Senior Teagasc wood fuel researcher

Date: 21st August 2007

Location: Business Innovation Centre

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Interview Type: Face to face, one to one, semi-

structured interview

Present: The Author, Regional Manager Business

Innovation Centre

Recognising that the selected interviewees are all experts in

their own fields it was decided to utilise unstructured or

informant interview techniques. This means that the

interviews themselves were loosely structured and conducted

in an informal way allowing the interviewer to explore the

relevant themes without a predetermined set of questions. In

essence allowing the interview to be guided by the

perceptions of the interviewee, who was permitted to talk

freely about events, experiences and express opinions on the

topic, thereby allowing the interviewer the flexibility to

react to, and further develop, points of particular interest.

In a number of cases the researcher elected to conduct these

interviews in a group setting, allowing for more free flowing

discussion. In this situation the topics were comprehensively

discussed and debated, with a variety of points emerging,

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offering the interviewer the opportunity to probe more deeply

in the exploration of concepts.

Two of the interviews which were particularly focussed on a

specific topic were conducted in a one-to-one, semi-

structured way with the interviewer having a set list of

themes and some particular questions to be covered.

The use of qualitive research interviews facilitated the

collection of a rich and detailed set of data and offered and

excellent insight into the industry. Much of the thinking in

this report is influenced by the themes raised in these

interviews that were thought provoking and relevant across

all of the research objective topics.

Some of the key themes to emerge from these interviews were

further developed and evaluated in the marketing

questionnaires, while others were very relevant to the

operations and supply chain, and economic impact sections.

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3.7 Questionnaires

In evaluating the particular market segments a survey

strategy was adopted which would allow for a large amount of

data to be collected from a large population in an economical

way and allowing for easy compilation and comparison. In this

regard a questionnaire was developed to evaluate the

residential heat market and the medium scale commercial

market. As mentioned previously, the survey questionnaire was

developed with knowledge input from prior literature based

research and from the interview process.

Based on a number of factors, a self-administered, postal

questionnaire was chosen for both groups. Due to the size of

the population in both cases the probability sample approach

was deemed appropriate. The sampling process used is outlined

below;

3.7.1 Selecting the sample size

In the case of the residential market, the sampling frame was

identified from the 2006 Census report published by the

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Central Statistics Office. This revealed the total number of

households in Westmeath and the Midlands which were used for

the basis of the survey considering that any product produced

in Westmeath would be readily accessible for the midlands

market. For the purpose of this research a 95% level of

certainty was required, and a 3% margin of error. A total of

150 questionnaires were returned.

Similarly, with the commercial, medium-scale energy user, the

sampling frame concentrated on Westmeath and the Midland

counties, and the most appropriate population was developed

based on knowledge acquired from literature and from the

interview process. Again, a 95% level of certainty and a 3%

margin of error was used as a basis for calculating the

sample size. A total of 70 questionnaires were returned.

*Both Questionnaires are included in Appendix 1.

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Section 4 - Policy Analysis

4.1 Introduction

In this section Government Policy with regard to solid bio-

fuel is examined, identifying the relevant EU and Irish

targets and the various initiatives introduced to help

achieve these.

4.2 Policy Overview

Throughout Europe renewable energy is now receiving the

political and economic emphasis that will enable it to make a

meaningful contribution to reducing dangerous carbon

emissions. In parallel there is now real concern that global

fossil fuel reserves are diminishing rapidly and are held in

increasingly unstable areas of the world. In response to the

impact of this on energy prices and security of supply, the

EU is prepared to take action to secure alternative energy

supplies.

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In particular the following actions are taking place:

The EU is committed under the Kyoto Protocol to reducing

greenhouse gas emissions to 8% below 1990 levels by the

period 2008-2012

The EU has also committed to cut CO2 emissions by 20%

from 1990 levels by 2020

Overall, the EU have targeted a contribution from

renewable sources to total energy consumption of 12% by

2010

EU has further targeted a 20% overall renewable fuel use

by 202011

Within this context, Ireland is now placing considerable

emphasis on its renewable energy strategy, offering long-term

purchase contracts for renewable power and committing

significant additional funds through the national development

plan (NDP) and Sustainable Energy Ireland (SEI) to encourage

the development of this industry as a whole. In summary,

Ireland’s current position is as follows:

11 Commission of European Communities, Biomass Action Plan, 2005

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Ireland’s Kyoto target is to limit CO2 emissions growth

to 13% above 1990 levels by 2012. Ireland has already

exceeded this level and the National Development Plan

provides some €270 million to fund the purchase carbon

allowances as part of our strategy to meet the Kyoto

targets

The NDP also provides for €276 million which will fund

the large scale development of wind energy capacity and

the development of alternative sources of energy

including biomass and bio-fuels

Ireland currently imports more than 90% of its primary

fuel needs. This is amongst the highest in the EU and

means that Ireland has, potentially, the lowest security

of supply within Europe

Renewable energy in Ireland currently accounts for only

2% of usage and approximately 5 – 6% of capacity12

With a Green Party influence in Government it is expected

that Ireland will shortly be implementing new carbon taxes on

fossil fuels that will follow the “polluter pays” principle.

12 SEI, Renewable Energy Development, 2006

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Biomass fuel will be exempt from such a tax. While the

implementation of this tax may be phased and/or certain large

businesses may have allowances, the cumulative impact is

predicted to be a 15% price hike on fossil fuels in the

medium term.

In order to underpin the growth of the renewable heat sector,

the Government also introduced a capital programme in 2006 of

€65m over 5 years to promote the wood energy market from the

bottom up. Following a high level of demand in the schemes, a

further €24m was allocated for these schemes in Budget 2007

and the total funding package over the five year period now

stands at €89m. This includes grant schemes for growing

biomass crops, harvesting and processing machinery and

schemes administered through Sustainable Energy Ireland to

promote the adoption of biomass fuel technology by private,

industrial and commercial consumers.

Importantly, many of the renewable energy conversion

technologies have also reduced in price and improved in

reliability and performance making renewable energy projects

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a lower risk and better return prospect for potential

investors. As a result, there is increasing interest in this

area from a business and profitability perspective.

4.3 Bio-energy Strategy

In December 2005 the EU published a ‘Biomass Action Plan’

that focuses on ‘soft’ market support measures such as

training, standards, certification and awareness raising.

This also includes proposals for a renewable heat directive

and builds upon the Sustainable Energy Europe (2005-2008)

Campaign.13

At National Level, the Irish Government sets out its policy

for developing the renewable energy industry in the ‘National

Development Plan’14 and subsequently in the ‘Bio-energy

Action Plan’15 and ‘Energy White Paper’16 both of which were

published in 2007. The following targets relating to the

‘Heat Sector’ were outlined;

13 Commission of European Communities, Biomass Action Plan, 2005

14 National Development Plan 2007-2013 "Transforming Ireland, A Better Quality of Life for All"

15 Department of Communications, Marine and Natural Resources, Bio-energy Action Plan for Ireland, 20007

16 DCMNR, Government White Paper, Delivering a Sustainable Energy Future for Ireland,2007

Page 39

5% renewable share in the heating sector by 2010

12% renewable share in the heating sector by 2020

(taking into account the target of 30% co-firing in the

Peat Stations by 2015)

Expand the Greener Homes Scheme to provide support for

residential consumers to adopt renewable technologies

for heating. This is being delivered through an

additional €20m provided in Budget 2007

Expand the commercial Reheat Scheme to include a

combination of renewable technologies e.g. solar and

wood chip. This is being delivered through an additional

€4m provided in Budget 2007

Expand the eligibility of the commercial Reheat Scheme

to include the voluntary and community sectors.

Through these targets and support the importance of bio-

energy is set to increase in this country. However, unlike

almost all other EU countries Ireland currently has no system

of carbon taxes and this puts wood energy at a disadvantage.

The introduction of a carbon tax would go a long way towards

making many solid bio-fuel processes commercially viable.

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In relation to the large scale power generation sector, the

following targets have been set out by the government;

Expand the REFIT feed-in-tariff support scheme to

facilitate delivery of co-firing in peat stations of 30%

by 2015

33% target for renewable electricity by 2020

Expand the REFIT feed-in-tariff support scheme to

encourage waste-to-energy projects by supporting hybrid

projects.

If biomass is to play a role in meeting these targets,

particularly in the case of the existing peat fired power

stations, it will seriously impact on the availability and

cost of solid bio-fuel to other market sectors.

4.4 Expanding the Renewable Heat Sector

One of the issues identified as inhibiting the development of

the solid bio-fuel industry in Ireland is the slow pace of

progress in developing a reliable supply chain from the

private sector forest and energy crop resource. As a result

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of these supply challenges, potential users of wood biomass

have traditionally been reluctant to invest in biomass boiler

technology. To address this issue a number of grant schemes

have been developed to encourage the development of supply

chains and to directly address the high start up costs for

individuals and small businesses that opt for greener fuels.

These are discussed here in relation to incentives on both

the supply and demand side in this sector.

4.4.1 Incentives on the Supply Side

The following initiatives are directed towards the production

of biomass, and processing of solid bio-fuel.

4.4.1.1 Bio-energy Scheme for Willow and Miscanthus 2007

To increase the production of energy crops in Ireland and to

encourage alternative land use options, the Bio-energy Scheme

(BES) provides establishment grants to encourage the growing

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of willow and miscanthus for the production of biomass

suitable for use as a renewable source of energy. 17

Aid is payable on 50% of the approved costs associated with

establishing miscanthus and willow crops for biomass. The

cost of establishment is estimated at €2,900 per hectare,

giving a maximum payment rate of up to €1,450 per hectare,

with the balance to be invested by the applicant.

On the REPS area, farmers growing willow or miscanthus can

receive the bio-energy establishment grant of €1,450 per

hectare, the EU Energy Premium of €45 per hectare, a national

payment of €80 per hectare and an adjusted REPS 3 payment of

EUR155 per hectare.  Under REPS 4 this payment will increase

to €189 per hectare.

The minimum allowable area per applicant eligible for the

establishment grant is 4 Ha and the maximum allowable area is

20 Ha.

17 Department of Agriculture, Terms And Conditions Bioenergy Scheme For Willow And Miscanthus, 2007

Page 43

4.4.1.2 Relief for Investment in Renewable Energy

Generation

In the Finance Act 200718, The Minister for Finance has

extended relief for investment in renewable energy generation

from 31st December 2006 to 31st December 2011.

This incentive came into force on 18th of March, 1999. The

main provisions allow a company to get a deduction of the

amount of a relevant investment made by it in a qualifying

company i.e. a company carrying out a renewable energy

project. A renewable energy project means a renewable energy

project as certified by the Minister for Communications,

Marine & Natural Resources which includes Biomass projects.

The amount that can be invested in any one project cannot

exceed 50 per cent of the relevant cost of the project, or

€9,525,000, whichever is the lesser. A company can, however,

invest up to €12.7m in various projects in a twelve month

period.

18 Finance Act, 2007, Number 11 of 2007

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4.4.1.3 Wood Biomass Harvesting Machinery Grant Scheme

In 2007 the Department of Agriculture, Fisheries and Food

took steps to stimulate the production of wood chip as a fuel

through the introduction of a limited capital grant scheme to

support the acquisition of suitable machinery. The purchase

of the following types of harvesting equipment is considered

for support under the scheme.19

Mobile Wood Chipping Units: Grant support of up to

€46,000 or an amount equivalent to 40% of the actual

cost (ex VAT) of the completed investment, whichever is

the lesser

Self-Contained Chippers: Grant support of up to €150,000

or an amount equivalent to 40% of the actual cost (ex

VAT) of the completed investment, whichever is the

lesser

For self-propelled chippers: Grant support of up to

€200,000 or an amount equivalent to 40% of the actual

cost (ex VAT) of the completed investment, whichever is

the lesser

19 Department of Agriculture, Biomass Harvesting Machinery Grant Terms And Conditions, 2007

Page 45

4.4.1.4 Afforestation Grant Rates

Afforestation Grants are paid for the creation of woodland on

an area of land. Grants are cost based and are designed to

cover all of the costs of establishing a plantation. The

Grant is paid in two installments. The first installment (75

% of the total grant) is paid after the initial work is

completed. The remaining 25% is paid after four years,

provided that the plantation is fully established. 20

There are six different rates of payment depending on the

trees planted and the land quality. The current levels of

grant payments are shown in Table 1 and 2, overleaf.

Table 1: Forestry Grant Rates

20 Coillte, 2007

Page 46

Category (GPC)1stInstallment€ / ha

2ndInstallment€ / ha

Total Grant€ / ha

Unenclosed LandSitka Spruce/Lodgepole Pine

2,214.42 761.21 2,975.63

Sitka Spruce/Lodgepole Pine 2,214.42 761.21 2,975.63

20% Diverse Mix 2,352.82 761.21 3,114.03Diverse 2,629.63 830.41 3,460.04Broadleaf (exceptOak and Beech) 3,999.67 1,199.90 5,199.57

Oak 5,259.25 1,660.82 6,920.07Beech 5,536.06 1,799.22 7,335.28

Source: Coillte

Note: * First Installment grants are cost based. The

rates shown above are the maximum rates payable

Table 2: Annual Forestry Premium Rates

Forestry Grant Rates

Farmers Premium - AnnualPayment - 20 years €/ Ha

NonFarmer'sPremium -Annually 15years €/Ha 

Plantations< 6ha

Plantations>= 6ha

Plantations>= 12ha

Unenclosed LandSitka spruce/Lodgepole pine

209.51 209.51 209.51 171.41

Sitka spruce/Lodgepole pine 336.48 349.18 361.88 171.41

20% Diverse Mix 391.08 403.78 416.47 171.41Diverse 416.47 429.17 441.87 171.41Broadleaf (except Oak441.87 454.57 467.26 171.41

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and Beech)Oak 473.61 486.31 499.01 184.11Beech 473.61 486.31 499.01 184.11

Source: Coillte

The farmer rate applies to applicants who fulfil the

qualification conditions set out by the Forest Service and is

payable for 20 years. The non-farmer rate applies to

applicants who do not meet all of these conditions and is

payable for 15 years.

4.4.2 Incentives on the Demand Side

As well as incentives for the production of biomass fuels,

there are also a number of initiatives designed to promote

the adoption of renewable technology by end customers. These

are explained below.21

4.4.2.1 Greener Homes Scheme

The Greener Homes grant aid scheme for domestic, renewable

heat technologies established in 2006, allows individual21 SEI, Renewable Energy Information Office

Page 48

householders to obtain grants for the installation of

renewable heat technologies including wood pellet stoves and

boilers, solar panels and geothermal heat pumps. Grant aid of

€1,100 to €6,500 is provided depending on the individual

technology used. The grant is intended to cover approximately

30% to 40% of the installed cost of the renewable technology.

The scheme is being rolled out over a five-year period and

was further resourced in Budget 2007 in light of substantial

demand.

Greener Homes Grant Levels include the following relevant to

the solid bio-fuel sector;

Wood chip/pellet boilers €4,200

Wood chip/pellet stoves €1,100

Wood chip/pellet stoves with back boiler €1,800

4.4.2.2 Warmer Homes Scheme

This programme provides funding to community based

organisations for the installation of energy efficiency

measures in low income dwellings in their respective

geographic areas. The homes to receive the services are

specifically identified by the community based organisations.

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4.4.2.3 House of Tomorrow  

This element of the programme provides funding to developers

for the design and construction of clusters (minimum 10) of

superior energy performing housing units. Projects will be

considered where the energy performance is at least 40%

better than that required by the current building regulations

TGDL 2002 (new build). Preference is given to projects

incorporating renewable energy features including wood

fuelled heating systems.

4.4.2.4 Reheat Programme

This grant support scheme for commercial renewable heat

technologies enables companies and small businesses to obtain

grants for the installation of wood chip and wood pellet

boilers in large buildings and commercial premises. Grant aid

is available up to 30% of overall cost depending on the

overall size of the project. For example, an industrial scale

1 MW boiler, costing in the region of €250,000, could receive

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a grant of €75,000 under the scheme. The scheme is being

rolled-out over a five-year period and will support the

conversion of renewable energy in up to 600 installations

depending on overall project sizes. In Budget 2007, an

additional €4m was allocated to this scheme and it is now

being extended to enable community and voluntary groups to

apply for funding and to include other renewable

technologies.

4.4.2.5 Combined Heat and Power (CHP) Grant Scheme

The Combined Heat and Power (CHP) programme provides grants

for the installation of CHP units. These units generate

electricity at the site where the electricity is used, and

can simultaneously use the heat from the electricity

generating process. The scheme is aimed at small-scale units

(up to 1 MW), which can be deployed in hotels, leisure

centres, small hospitals, offices or commercial buildings

with a substantial heat requirement. Such units can be

fuelled by fossil fuels such as gas, as well as biomass (wood

and waste) products. The programme is running over a five-

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year period. The CHP programme aims to deliver 10 to 15 MWe

Biomass CHP, and up to 200 small-scale fossil fuel CHP

installations generating 10 to 20MWe of high efficiency CHP.

4.5 Outcomes to Date

Through the Bio-energy Scheme for Willow and Miscanthus,

applications have been approved in 2007 for 859.155 Ha of

Miscanthus and 107.56 Ha Willow. This represents a total of

112 different applications. A significant number of other

applications were submitted late or withdrawn and the

expectation is that these will be resubmitted in 2008.

(Source Department of Agriculture and Food)

The SEI schemes have also been heavily subscribed, in

particular the Greener Homes programme, which has attracted

over 14,000 applications to date. Biomass boilers and stoves

are proving to be the preferred technology with applications

in this category at 45% of overall demand, i.e. circa 6,000

applications with approximately 1,750 systems installed since

the launch of the programme. Under the new Reheat programme

aimed at commercial ‘medium scale’ users, SEI have received

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around 90 applications, the Reheat programme replaced the

Pilot Bioheat Programme, under which SEI received around 20

applications with 10 boilers installed. Prior to the launch

of these two programmes the best estimate for installations

is around 200 stoves and less than 50 boilers.

In heating terms alone, the Biomass element of these

programmes is expected to displace the equivalent of 36

million litres of heating oil per annum. The CHP programme,

together with the Bioheat programme, when fully deployed,

will displace almost 100 million litres of heating oil per

annum, which represents 13% of the heating oil consumed in

the commercial sector in 2004. This level of market growth

also represents a very significant development opportunity

for renewable technology suppliers, renewable technology

installers and renewable fuel supply companies.

4.6 Interview comments

“There is not enough awareness in the mainstream, people need

to be convinced that solid bio-fuel is the best option going

forward if they are to make the investment necessary. A

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culture change is needed if the industry is to succeed, this

will take a major financial incentive which does not

currently exist. If this is to be rectified it will most

likely be through taxation.”

“Real leadership is needed but our government is afraid to

rock the boat and there are too many vested interests. Our

energy costs are currently too cheap for the solid bio-fuel

industry to make any real impact, fossil fuels are expected

to increase dramatically but prices are unstable which

introduces uncertainty into the equation, the next ten years

is going to be critical and I believe that a carbon tax needs

to be introduced on a phased basis over this period, fixing

the cost of oil so that consumers know exactly what oil will

cost into the future, taking the uncertainty away and

allowing people to make a balanced decision. The income from

the carbon tax must be ring fenced for re-investment in

renewable energy solutions.”

“People are becoming more conscious of the environment and

becoming more aware that there is a problem, that climate

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change is happening, and the need to put in place policies

that are necessary for the environment and the economy”

4.7 Commentary & Conclusions

Ultimately, oil availability and cost will determine the

success or failure of the solid bio-fuel industry. Taking

Sweden as a case study, political decisions have set the

rules of the energy fuel market in that country through the

implementation of energy and environmental taxes. Considering

only fuel cost, wood pellet is more expensive than oil and

coal since pellet heating requires extra equipment for fuel

handling, more work effort, etc. The introduction of emission

taxes on carbon dioxide and sulphur dioxide bridged this

price gap by making it more expensive to fire fossil fuels

and hence the demand grew for the ‘less expensive’ biomass

fuels. If a carbon tax is introduced in Ireland in the near

future many solid bio-fuel pathways will become more

financially viable and solid bio-fuel will become a

significantly more attractive option for many people and

businesses.

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The main points emerging from this section are;

In Ireland and the EU renewable energy policy is geared

towards Kyoto targets

Irish policy relevant to the solid bio-fuel sector is

set out in the ‘National Development Plan’, ‘The Bio-

energy Action Plan’ and ‘The Energy White Paper’

A range of financial incentives have been introduced to

help develop this industry but many people involved in

the sector don’t believe that enough is being done

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Section 5 - Resource Assessment

5.1 Introduction

Solid bio-fuel is derived from recently grown organic matter

such as wood (e.g. sawdust, forest thinning), energy crops

(fast growing trees like poplar or willow, and grasses like

elephant grass and reed canary grass), and grain (including

oats and barley). The following biomass resources have been

identified which should be readily accessible to the solid

bio-fuel industry;

Forestry co-products including;

o First thinning of plantations

o Forest residues left on-site following final

felling

Post consumer wood waste including;

o Sawdust, bark and off-cuts arising from sawmilling

and board manufacture

o Untreated recycled wood

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Dedicated energy crops such as Willow (Short Rotation

Coppice), Reed Canary Grass, Miscanthus and Grain / Oats

In this section the raw material resources available in

Westmeath for the solid fuel production is evaluated.

5.2 Forestry Co-products

Wood is by far the largest biomass resource and it is in

plentiful supply both globally and in Ireland. National

afforestation policies across Western Europe over the past 50

years have resulted in an abundant and increasing supply of

wood with the following implications:

In the growing/harvesting of forest and the production

of finished timber much wood volume is produced as low

value by-products. Increasingly, there is an oversupply

of low value and waste product within the industry

These low value products are a good fuel. The

technologies to process and convert wood fuel into heat

and power are well proven, with consistently greater

than 90% energy conversion efficiency now possible for

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heating applications and 30% conversion efficiency for

electricity production22

60% of our overall energy requirement is in the form of

heat, not electricity, making wood an ideal renewable

fuel source to fulfil this requirement. Using biomass

for energy is carbon neutral, i.e. the organic matter

absorbs CO2 from the atmosphere as it grows and releases

it when it is converted to energy, with a net zero

effect

The main source of wood biomass in Ireland comes from the

national forest estate, currently 710,000 Ha. A potential 0.5

million tonnes of wood residues is available from this source

annually for energy recovery. Currently, there are sufficient

supplies of raw materials to supply the wood energy and wood

processing sectors.

The National Forestry Inventory (NFI) undertaken by the

Forest of the Department of Agriculture, Fisheries and Food

confirm that the total forest area in Ireland now stands at

22 Sorensen, B., Renewable Energy, Its Physics, Engineering, Environmental Impacts, Economics &

Planting.2004

Page 59

10% of the total land area of which 57% is in public

ownership and 43% in private ownership. Almost two thirds of

national forest estate is less than twenty years old.

Figure 1, below, details forest planting between the years

1985 and 2005 and shows an increasing trend for privately

owned forestry over public plantations,

Figure 1: Total Afforestation (Ha) 1985 - 2005

Source: Forest Service (2006)

County Westmeath has 12,498 Ha of forestry. This represents

7.1% of total area of the County, compared to a national

average of 10% of total land mass. The forestry in Westmeath

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is a mix of private and public plantations, with 7,787 Ha in

private ownership and only 4,711 Ha of public forestry.

Private plantations in Westmeath are divided between 34

owners. 28 holdings by full-time farmers, 3 by part time

farmers and 3 by non-farmers.

The Midlands Counties of Longford, Westmeath, Offaly, Laois

have a total combined forestry resource of 83,683 Ha

representing 9.3% of total land mass. This resource is evenly

shared between public and private plantations. In private

ownership there are 121 holdings, 91 by full time farmers, 17

by part time farmers and 13 by non-farmers.

Appendix 2, presents comparative data on current forestry

cover for all Counties in Ireland. To sustain the supply of

pulpwood and thinning, the levels of forestry need to be

maintained and we can see from the information presented that

levels of forestry in the country is increasing annually,

albeit at a slowing pace. We also see evidence of a growing

trend towards private plantations.

It must be noted though that not all forestry product is

suitable for use as bio-fuel as good quality timber is much

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more valuable in other industry sectors. That which is

suitable for wood energy includes pulpwood (harvested from

the top section of trees) and forest thinning (removal of

smaller, poorly formed trees from the plantation).

5.3 Post Consumer Wood Waste

This includes recycled timber, sawmill co-products and

arboricultural arisings, each of which is discussed in more

detail below

5.3.1 Recycled Timber

A further potential source of wood fuel is recycled timber

that can be processed into woodchips or pellets. Timber can

be recovered from a variety of sources including used

pallets, construction waste and packaging. Most recent data

published by the EPA on the disposal and recovery of

municipal waste reveals that 213,926 Tonnes of wood waste was

generated in 200523. Of this 13,939 Tonnes was sent to land

23 EPA, National waste Report

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fill and a further 17,492 Tonnes was exported to the UK. This

wood was generated from the following waste streams;

Household Waste – 19,010Tonnes

Commercial waste (Including construction) – 74,036

Packaging waste (from commercial sector) – 120,880

The EPA estimated that nationwide, in 2005, about 125,000

Tonnes of mixed wood was recycled. Of this 52% was untreated

and therefore suitable for use as fuel.

The following are some of the important things to consider

when deciding whether recycled material is suitable for fuel

include:

Contamination: the material should not be contaminated

with paint or other chemical products

Metal content: all metal must be removed from the

material during the processing as this can damage auger

feed mechanisms and boiler grates

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5.3.2 Sawmill Co-Products

When round timber is processed through a sawmill it is only

possible to convert a proportion of the log, typically

between 40% and 60%, into a sawn timber product. The rest

forms a co-product of the sawmilling process such as

woodchips or shavings, sawdust, slab wood and other off-cut

material. There may be existing markets for these co-

products, such as the use of sawdust for agricultural

bedding, but they can also be turned into wood fuel by

further processing. Dry sawdust can be processed into wood

pellets, while off-cuts and slab wood can be processed into

woodchips.

There are a number of sawmills in the midlands counties which

will have a supply of potential wood fuel raw material. These

are listed in Appendix 3.

5.3.3 Arboricultural Arisings

The term arboricultural arisings encompasses all the material

produced during arboricultural, or tree surgery, operations

and can include stems, branches and leaf material. Often the

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arisings are chipped on site or taken to land-fill sites.

However, some of this material may be suitable for processing

into wood fuel, most commonly woodchips, potentially turning

a costly waste material into a valuable product. The key

consideration here is in the logistics involved in the

collection and drying of the available material and in the

delivery to the end user. Typically the raw material is

sourced in many disparate locations, often in small

quantities, and the ability to efficiently collect and

transport the material to a central location for processing

is essential in making this source part of a viable supply

chain. 

5.4 Dedicated Energy Crops

Energy crops are plants that are cultivated for the purpose

of producing energy. Energy crops can be classified into

those providing;

Solid fuels for direct combustion, thermal processing

(to yield solid, liquid and gaseous fuels) and

electricity generation, and

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Liquid fuels, notably bio-ethanol and bio-diesel.

Solid fuel crops include Willow SRC, Miscanthus, Reed Canary

Grass and whole-crop cereals. At present there is a limited

resource of dedicated energy crops in Westmeath and the

Midlands. Westmeath has only 4 Ha of Miscanthus planted in

April 2006 and no Willow. Through the Bio-energy Scheme of

the Department of Agriculture, Fisheries and Food,

applications for establishment grants have been approved for

24 Ha of Miscanthus and 6.5 Ha of Willow in County Westmeath.

In the Midlands applications were approved for a combined

total of 61.71 Ha Miscanthus and 6.5 Ha Willow.

Substantial potential exists for increasing this acreage as

energy crop cultivation is a low maintenance form of farming

that can be very suitable for part time farmers. The trend in

Westmeath is towards part time farming as more and more

farmers are finding the need to supplement their farm income

with jobs off the farm. We can see from Figure 2, overleaf,

that the current situation is that there are now more part-

time farmers (1,600) in the County than full time farmers

(1,300). While the importance of dry-stock cattle/sheep,

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dairying and tillage will continue to play an important role

in the economy and rural viability of the County, trials of

selected energy crops carried out in the midlands show that

the land is ideally suited to energy crop production.24

Figure 2: Farming Trends in Westmeath

Source: Teagasc

5.5 Interview Comments

“Farmers are slow to change, for farmers to adopt this new

form of farming the whole supply chain must be right, the

24 WESTBIC, 2006, Energy Crops Research Report (On behalf of ECAS (Energy Crops in the Atlantic Space),

Roscommon

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farmers will need to be 150% sure before they will change in

any significant numbers”

“I have a hundred acres of good grass land. If I do a very

good job working it I can make a living off it. If I do a

very good job working somewhere else I can make a living too

and if I can have a supplementary income from energy crops

without investing too much time or effort then I am better

off.”

“Regarding the food versus fuel issue, in Europe and Ireland

there is a great deal of set aside land which will come back

into farming. We need to become more self sufficient in terms

of food and fuel. It’s about getting the balance right.”

“The main concern for the wood pellet industry in this

country is suitable raw material resource in the form of

sawdust. ‘Medite’ and other companies in that industry take

most of this suitable material so there is competition for

the material. I can foresee a situation where these companies

will lock up all the saw mills in contracts for this

material”

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“If using waste or recycled timber for fuel it is extremely

important to separate out any pressure treated, or painted

material. Pallets and crates could be sprayed with

insecticide, there are numerous things that need to be

screened for.”

5.6 Commentary & Conclusions

It is evident from this analysis that there is a substantial

raw material resource available in the midlands which could

sustain the development of a solid bio-fuel industry in the

region. Market growth in this sector will not be constrained

by the availability of raw material resources, which also has

the potential to grow through further afforestation and

energy crop cultivation if the demand exists.

To take advantage of this resource the necessary supply

chains will need to be put in place to harness the raw

material resource and process it into a form that can be

presented to the market. To achieve this, the necessary

harvesting and collection facilities will be required as well

as dedicated wood fuel processing plant. Distribution

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networks will be necessary to take the product to the end

user.

The main points emerging from this section are;

Growth in the solid bio-fuel industry will not be

constrained by the availability of raw material

Competition exists for saw dust from the mechanical wood

processing industry which is the most suitable material

for wood pellet production

The main source of biomass in Ireland comes from

forestry

Westmeath has 12,498 Hectares of forestry, most of which

is privately owned

Substantial potential exists for the recovery of waste

timber for use as fuel

The level of dedicated energy crops in the country is

small and the uptake of the ‘Bio-energy Scheme’ designed

to promote planting of these crops was disappointing

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Section 6 - Market Analysis

6.1 Introduction

Ireland’s remarkable economic growth over the last 15 years

has had noticeable effects on the energy sector. Due to

rapidly increasing demand, Ireland has become much more

dependent on international energy markets than it was in the

past and is now dependent on oil and increasingly dependent

on natural gas. The price of these two commodities has risen

sharply in recent years, which results in a heavy burden for

the Irish economy and a risk to energy security. In this

context, opportunities are emerging for substitute fuels.

In this section the market opportunities for solid bio-fuel

is examined. First by identifing the individual market

segments which hold the greatest potential, and second, by

quantifing and evaluateing the potential of each of these

market segments

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6.2 National Energy Market

The total amount of energy used within Ireland in any given

year is referred to as the total primary energy requirement

(TPER). In 1990, Ireland had a primary energy requirement of

almost 9.5 million tonnes of oil equivalent (Mtoe). By 2005

this had increased to 15.6 Mtoe, a 64.3% growth over the 1990

figure.25 Figure 3, overleaf, illustrates the make-up of

Irelands Energy Supply in 2004, highlighting the dependency

on fossil fuels and showing the share of various renewable

energy sources.

Figure 3: Share of Total Primary Energy Supply in 2004

Source: International Energy Agency

25 DCMNR, Government White Paper, Delivering a Sustainable Energy Future for Ireland,2007

Page 72

In absolute terms primary energy consumption in the sectors

considered most suited to solid bio-fuel use grew as follows:

Commercial and public services use of primary energy

grew by 86% over the period 1990 – 2005 (4.25% per

annum). Consumption increased in 2005 by 4.6%

Residential primary energy use decreased slightly in

2005 by 0.8%. Over the period 1990 to 2004 residential

consumption of primary energy increased by 28% (1.7% per

annum)

Total Final Consumption (TFC) is the measurement of energy

that is delivered to energy end users in the economy. This is

total primary energy less any conversion losses that are

incurred in distributing or transforming energy e.g. refining

crude oil to final end use products. The following analysis

is taken from the ‘Bio-energy Action Plan’ published earlier

this year26.

Table 3, overleaf, shows the changes in TPC of fuels over the

period 1990 - 2005. The notable growth rate of renewable

energy in the later years is apparent and this is forecast to

26 DCMNR, Bio-energy Action Plan, 2007

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be a continuing trend with the high levels of development and

increased investment in this area.

Table 3: Growth Rates and Shares of Total Final Consumption Fuels in Ireland

Source: Bio-energy Action Plan

Table 4, below, shows the 2004 position for biomass in the

heating sector which indicates the low usage rates in the

residential and commercial sectors. These are the sectors

which have been identified as offering the greatest potential

for the adoption of renewable heat energy, and in particular

solid bio-fuel energy.

Table 4: Total Final Consumption as Heat (Ireland 2004)

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Source: Bio-energy Action Plan

Table 5, below, forecasts the growth in heat demand up to

2010 while Table 6 looks at this growth in terms of solid

bio-fuel use to achieve the 5% heating target. The figures

show the potential for fuel switching in each sector,

particularly in the residential sector. As the sector with

the biggest heat demand and the lowest renewable heat

development this is a priority area to target for further

growth in renewable energy technology.

Table 5: Estimated Total Final Consumption as Heat in 2010

Source: Bio-energy Action Plan

Table 6: Wood Requirement for 5% Total Final Consumption as Heat in 2010

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Source: Bio-energy Action Plan

6.3 Identifying Market Segments

Based on international trends, essentially, four market

segments are emerging for wood energy applications. These are

listed in Table 7, below, along with a summary of key issues

and market potential for each segment.

Table 7: Market Segments and Key Issues

Market segment Sizerange

Key issues

Power production plants- Combined heat and

power (CHP) plantsor large-scaledirect heatingplants

- Peat stations can burnwet biomass includinganimal wastes to achieve30% target

- Wood products will mostlikely be woodchip orspecifically grownbiomass crops

Medium scale space andwater heating

50kW-1MW

- Significant opportunityaround new build orrefits

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- Government /Council Buildings

- Hospitals, Day-carecentres, NursingHomes

- Schools- Hotels- Shopping Centres

- Swimming Pools /Leisure Centres /Sports Complexes

- Direct project salesapproach feasibleproviding fuel supply canbe guaranteed

- Long lead-in time forpublic users due to redtape and competitionrequirements

- Likely to be thepreferred fuel butdistinct advantages forpellet if can be suppliedat a competitive price

Small Scale space andwater heating

Central heatingindividual homes

10-50kW

- Overall a smaller marketand will requiredevelopment of indirectpromotion, sales anddistribution channels

- Wood pellet likely to bethe preferred fuel

Stoves and open fires ~5kW - Wood briquette likely tobe the preferred fuel

- Specialised pelletbaskets for open fireswill allow competitionwith peat briquettes/coal

Source: Primary Research

Further breakdown of the individual market segments is

detailed in Table 8, below. While individual circumstances

will influence the economic haul distance of wood fuel, this

report has focussed on Co. Westmeath and the other midland

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counties to help define the analysis and produce more

realistic results.

Table 8: Target Area and Market Size

Marketsegment

Target area Scale of market segmentNo ofcustomers

Capacity

Powerproductionplants

Local peatburning powerstations

1. Edenderry Pwr

2. West Offaly Pwr

3. Lough Ree Power

118MW

137MW

91MW

Medium scalespace andwater heating

MidlandsCounties

160 see Table9,

Small scalespace andwater heating

MidlandsCounties

85,535 seeTable 11

450MW

Stoves andopen fires

MidlandsCounties

85,535 seetable 11

90MW

Source: Primary Research

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6.4 Large Scale Users

The most promising opportunity for solid biomass fuel for

power generation is as a co-firing fuel in the existing peat

power stations. In the course of my interviews I learned that

“Bord-na-Mona is interested in going down the co-firing

route” and have purchased the power station at Edenderry

where 3000 Tonne of peat is combusted annually and currently

100 to 200 Tonne of wood chip is also burned.

For large scale co-firing of wood or other solid biomass

fuels haulage is expensive, so it would be necessary for the

fuel to be sourced from crops growing in the hinterland

around the plant. Meeting the 30% white paper target could

mean one million tonnes of biomass per year for Edenderry,

which, in the case of miscanthus, for example, would mean

150,000 Ha of the crop (Total land area of Westmeath is

176500 Ha). In reality, other forms of biomass would also be

combusted, including tallow and animal waste, but

nevertheless this development would be a significant boost to

the solid bio-fuel in the region. Bearing in mind that there

are three peat fueled power stations accessible to Westmeath

the potential market for biomass producers in the county is

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massive. Unfortunately, Bord-na-Mona reveal that biomass for

power generation is not a viable option without government

subvention, as is the case in the UK where wood co-firing is

already well established with substantial subvention from the

Government.

6.5 Medium Scale Users

Table 9, below, gives a detailed breakdown of medium scale

energy users in the midlands, based on the most likely

consumers as identified through the interview process and

literature review.

Table 9: Breakdown of Medium Scale Heat Users in the Midlands

Counties

Hotels

Hospitals

Prisons

NursingHomes

ShoppingCentres

Leisure/SportsComplex

Second

Level

Schools

PublicLibraries

Total

Westmeath

12 2 0 11 5 5 5 6 46

Longford 3 1 0 6 5 5 4 6 30Offaly 8 5 0 7 1 3 6 13 43Laois 11 5 2 4 3 2 4 10 41Total 34 13 2 28 14 15 19 35 160

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Source: Regional Tourism Authorities, HSE, Irish Prison Service, Golden Pages,Local Authorities, The Library Council, County VEC’s

Based on estimated annual usage rates this represents a

significant market for wood fuel products, as detailed in

Table 10, below.

Table 10: Estimated Usage of Medium Scale Heat Users in the

Midlands Counties

  Hotels

Hospital

Prisons

NursingHomes

ShoppCentres

Leisure

S'drySchool

PublicLibrary

Total

Total 34 13 2 28 14 15 19 35 160EstimatedAverageUsage(Toe) 130 100 110 80 80 120 65 50  Estimate

d

Potentia

l Usage

(Toe) 4420 1300 220 2240 1120 1800 1235 175014,085

EstimatedPotentialUsage(Twc) 9010 3690 450 4480 2240 3675 2527 3570

29,642

* Average annual usage estimated in tonnes oil equivalent(Toe), and tonnes woodchip(Twc) based on industry average identified through market survey

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6.5.1 Medium Scale Market Survey

A survey of the market for ‘medium scale’ energy users was

conducted as part of this study. Medium Scale users were

identified as existing, or potential users of size ranging

from 50kW to 1MW. These were identified under the categories

listed in Table 10, above. The survey was conducted via a

questionnaire and explanatory material sent via post to each

identified business.

The response to the survey was poor and it is believed that

this is an indication of the apathy and lack of knowledge in

the marketplace for this technology. To generate a response

to the questionnaire a number of the businesses in each

category was contacted by telephone. Through this medium the

lack of knowledge of renewable technology was further

evident. There was also a sense that the issue of converting

to renewable energy was low on the priority list for most.

Many of those who did partake in the survey displayed a low

level of knowledge and understanding of renewable energy, but

it was found that as the discussion progressed, their

interest increased. Those who had prior knowledge of the

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subject displayed a real passion for it and a number of

businesses had already converted to renewable energy systems.

The main points emerging from the survey are as follows;

A lack of information was prevalent among those who were

contacted directly. Many warmed to the idea as the

discussions progressed and expressed a desire to find

out more about options suited to their individual needs

The majority of those who participated in the survey

were interested in converting to a renewable source of

heating energy

The most common renewables considered by the medium

scale commercial users were solar and solid bio-fuels

When identifying the influencing factors for or against

renewable energy, ‘cost savings’ was the most common

consideration, followed closely by ‘environmental

reasons’. With specific regard to solid bio-fuels like

grain, pellet or wood chip, storage space for the fuel

is a very important factor in the decision making

process, particularly for existing businesses with

limited yard space

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The main concern respondents had with regard to

converting to a renewable energy heating system was

‘installation cost’. For many the capital cost was also

compounded with uncertainty about the disruption that

would be caused to the business during the conversion.

Fuel cost / payback was the second most important factor

expressed

1. To alleviate the pressure on cashflow, an ESCo type system

is the preferred option for many. No one expressed a

preference for installing and maintaining the equipment

themselves although the majority of those surveyed did

admit to have

6.6 Small Scale Users

Table 11, below, gives a detailed breakdown of small scale

(residential) energy users in the midlands.

Table 11: Breakdown of Small Scale Heat Users in the

Catchment Area

  No of Estimated

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Households

PotentialUsage TPA

Westmeath 27064 135,320Longford 12,111 60,555Offaly 23,769 118,845Laois 22,591 112,955TotalMidlands

85,535 427,675

TotalState

1,469,521 7,347,605

Source: CSO 2006(Average annual usage estimated at 5 Tonne wood pellet)

To evaluate the residential heat market a survey of

homeowners carried out. The results of this survey shows that

6% of home owners are currently burning wood pellets for

residential heat, with oil and remaining the most popular

option currently used (Figure 4).

Figure 4: Fuels Used for Residential Heating

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Source: Household Survey

A significant majority (80%) of those surveyed said they have

considered converting to renewable energy, while 68% of those

interested in converting to renewables expressed a preference

for solid bio-fuels like wood chip or pellets (see Figure 5)

Figure 5: Renewable Preferences in the Residential Heating Market

Source: Household Survey

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Interestingly, over 75% of households employ more than one

heat energy source, yet the main concern expressed by those

surveyed when considering converting to renewable energy is

the reliability of fuel supply. The survey also revealed that

the average spend on residential heat is €1,583 per annum it

is not surprising that the cost of fuel is also a significant

influencing factor. A total of 76% of respondents cite cost

savings as the main reason for considering converting to a

renewable form of home heat, with environmental reasons the

second most quoted reason (61%) With the potential for

significant savings through the use of renewables, it is

reasonable to conclude that a local, reliable, supply of

quality wood fuel products would encourage many more people

to adopt this technology.

Figure 6: Factors Influencing the Residential Home Heat Market

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Source: Household Survey

6.6.1 Assessment of Future Potential

While the potential for growth in the residential heat market

illustrated above is significant, newly constructed housing

continues to offer the greatest opportunity for new biomass

heat installations. Figures for housing completions are given

in Table 11, overleaf. While the housing sector is

experiencing a ‘slow down’, it is still expected that 80,000

new dwellings will be completed in 2007. This offers

significant opportunity for installations of the solid bio-

fuel systems. It is worth noting that a very significant part

of the supply chain is the installation, service and

maintenance of solid bio-fuel heating systems, suppliers of

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which have to date have been mainly responsible for driving

this market.

Table 11: Annual Housing Completions

DwellingsCompleted 2000 2001 2002 2003 2004 2005 2006Number ofSocialHousingdwellingscompleted 3,155 4,875 5,763 6,133 5,146 5,559 5,208Number ofPrivateHousingdwellingscompleted

46,657

47,727

51,932

62,686

71,808

75,398

88,211

Totalnumber ofdwellingscompleted

49,812

52,602

57,695

68,819

76,954

80,957

93,419

Source: Department of Environment

6.7 Interview Comments

“The industry is very much in its infancy and while it is

becoming more popular it will be a long time before the

mainstream market takes it on board. There will always be a

certain amount of people dabbling in it, but will be very

much a niche”

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“People want convenience, they want oil and gas piped in,

and electricity on a switch, people in this country have

disposable income and will be prepared to pay that little bit

extra, biomass is a messy fuel”

“Wood chip has a low margin, what scale is required to make

it pay?, commercial users are preferred as less customers are

needed but commercial users are more difficult to convert

than the private residential user. You will convert a private

user ten times easier than the commercial user.”

“Wood chip and other solid bio-fuels are a problem because

of the handling issues, they need large scale mulloking. It

is not suitable for the residential application because it is

delivered by the truck load, I cant see it suiting commercial

settings either because it is dirty and dusty, and moisture

can cause fungi and even composting, then there is the issue

with maintaining boilers and handling ash. People don’t want

that hassle.”

“It is not viable to use biomass for power generation.

Capital costs are much higher than for any other fuel and so

without subvention driving it, this will not happen. For a

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co-fuel option the capital is already spent if you have a

compatible fuel like peat, and you also have the advantage of

having a back up in the form of peat if the biomass supply

falls due to bad harvest or seasonal factors. The power

station would need to be very comfortable with the

reliability of its supply to consider only biomass. In

realistic terms the co-fuelling power station will start with

a small percentage of biomass, gradually building up to the

30% target”

6.8 Commentary & Conclusions

In recent years there has been a shortage of solid bio-fuel

on the Irish market. This was a consequence of a rise in

demand encouraged by the SEI incentive schemes described

earlier and a limited number of fuel suppliers. As a result

of these conditions solid bio-fuel became scarce and

expensive, at times during 2006 wood pellet was even more

expensive than oil. The consequences of this was that the

industry suffered somewhat of a public relations crisis. With

more and more producers, boiler manufacturers and installers

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entering the industry in reaction to the demand, the current

situation is much more encouraging. With prices again

competitive and standards introduced to ensure consistency in

product quality, consumer confidence is gradually being

restored.

The main points emerging from this section are;

The heat market is the most suitable application for

Solid Bio-fuel

There is also potential for solid bio-fuel to be used as

a co-firing fuel in the country’s peat burning power

stations, but this is not yet financially viable

In the residential and commercial market sectors

awareness of the options regarding solid bio-fuel and

confidence in the technology and fuel supply are factors

that need to be addressed for the industry to succeed

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Section 7 - Operations & Supply Chain

7.1 Introduction

In this section the fuel supply chain is detailed by first

identifying the various solid bio-fuel product, then

graphically representing the various supply chain options.

Some operational issues are also examined in this section

7.2 Solid Bio-fuel Products

Solid bio-fuel is typically presented on the market in the

following product forms;

7.2.1 Wood Chip

Wood chip is widely use in other

European countries as a fuel for

heating, particularly in countries

with a strong forestry tradition

such as Scandinavia and Austria.

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Wood chip boilers are available

for all scales of operation though

wood

chip systems are normally medium scale commercial and

industrial applications, or CHP plants.

7.2.2 Wood Pellet

Wood pellets are a highly

compressed standardised product

made from sawdust, normally

without other additives. Wood

pellets are a clean, sustainable,

high energy fuel. With easy

handling and storage, fully

automated systems, low

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emissions and low ash content, wood pellets are becoming

increasingly popular.

7.2.3 Wood Briquette

Wood briquettes consist of

sawdust, chips and cutter dust

formed under high pressure in a

briquette press. Briquettes are

bigger than pellets (typical 65mm

Dia, 25-200mm length), while the

raw material is similar to that

used in pellets. Due

to their bigger size and higher combustion temperatures,

briquettes are not only suitable for use in home heating

boilers, but are also ideally suited to solid fuel range,

stoves or open fires.

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7.2.4 Cereals/Grain

‘Avena Negra’ commonly known as

black oats can be grown to supply

the rapidly growing wood pellet

stove and boiler market. Fuel oats

is well developed as a fuel in

many European countries.

On average 2.2 tonnes of black oats will provide the same

level of heating as 1,000 litres of oil or 2 tonnes of wood

pellets. Other cereal crops can also be used as bio-fuel.

These are compared to oil for energy output as follows;

Oats: 2.457 kg of oats equivalent to 1 lt. of oil

Barley: 2.3 kg of barley equivalent to 1 lt. of oil

Rape Cake: 2.2 kg of rape cake equivalent to 1lt. of oil

7.3 The Fuel Supply Chain

Supply chains can be developed in several of ways depending

on a number of factors:

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Available markets will determine product type and volume

Available resources will determine which products can be

supplied

Harvesting systems will depend on the timber resource,

available equipment, ground conditions and the end

product

Drying and processing can be carried out on site or

transported to a central processing site. Transport,

storage and processing options will depend on available

vehicles and distances, type of storage facilities,

drying and chipping equipment and the end product

Delivery may depend on the customers storage facilities,

i.e. a hopper may need a high-lift tipper or a bulk bag

lifted by crane. Delivery options include loose logs,

logs in net bags, loose chips or bulk bags of chips;

pellets in plastic sacks or in bulk loads, briquettes in

bales

Potential supply chain options are shown in Figure 6, below.

Figure 15: Solid Bio-fuel Supply Chain

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Source: Primary Research

7.4 Fuel Processing

A number of fuel processing options are available, including

the following;

7.4.1 Chipping

Wood chippers vary in size from the small hand-fed chipper

for dealing with arboricultural waste to machines which can

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chip large diameter round wood with outputs of over 100

tonnes an hour. Buying a chipper is a considerable investment

and the characteristics, outputs and costs need to be

considered before purchase. Chipping can be carried out at

any stage from terrain-chipping at stump to a centralised

chipping facility at a fixed location, so it is important to

consider what type of machine will suit the particular supply

chain in operation.

7.4.2 Pelletising/Briqueting

Pellets and other densified wood fuels such as briquettes are

usually formed from the by-products of the wood processing

industry such as sawdust or planer and moulder shavings.

Because a fine, dry feedstock is required to make pellets it

is more energy efficient to utilise such by-products rather

than to grind up and dry freshly felled timber.

Densified wood fuel is easier to handle, cheaper to transport

and more suited to automated handling systems than other

types of wood fuel. Pellets, however, cost more to produce

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than other wood-based fuels and require a high capital

investment in plant and machinery. Most pellet production is

by large-scale industrial pellet manufacture, integrated with

a large sawmill and/or heat user. This is to make the project

economics viable. The production of pellets is also more

energy-intensive than the production of other wood fuels and

it is estimated that the energy needed is approximately 10%

of the pellet's own energy content in the case of fresh, wet

sawdust. If already dry sawdust is available then the energy

requirement falls to around 2% of the pellet's energy

content.

7.4.3 Drying and storage

Wood fuel processing involves the drying of residues to

reduce the moisture content to 30% for wood chip and 8-12%

for wood pellet. This improves the combustibility and heat

output of the residues whilst also reducing residue volumes

for more efficient transportation to end consumers.

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Stems and logging residue can be left in the forest for a

year or 18 months to dry before chipping, or else the freshly

harvested products can be chipped and dried later through

storage. The latter option has health hazards associated with

fungal growth and requires a drying shed, but chipping drier

material is harder on the machinery.

7.4.4 Internal Transport & Delivery to End-Customers

This involves the transportation of extracted residues to

established depots for processing and storage. Transportation

of the raw material can be achieved via conventional lorries

under a tarpaulin. Transport costs are estimated at current

prices to be €10/Tonne, including loading and unloading

activities, for transport up to 70km.

The final aspect of the supply chain will be delivery of end

product to end-customers. Again, conventional trucks can be

used, at similar cost to that estimated in the above

paragraph, or special blower trucks can be used to improve

handling of wood pellet and grain.

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7.5 Quality Control for Solid Bio-fuels

As discussed previously, there is a wide range of biomass

potentially suitable for energy use. However, most types of

conversion equipment work effectively with very few types and

forms of biomass fuel. Even with a specific form of fuel

there can be major differences in characteristics and

properties between different batches, for example, wood chip

using different chippers, from different material, with

different moisture content. This means that while it is all

eminently usable, one batch will allow a particular piece of

equipment to operate according to specification, but another

may cause blockages in the fuel feed line, inefficient

operation, emissions, condensation in the flue, or automatic

shut down of the equipment as it moves outside its design

operating regime.  In different equipment, however, the

second batch of fuel may be perfectly acceptable.

Standards are required to describe biomass equipment and

biomass fuels. They are vital if forms of biomass are to

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become commodity fuels that users can buy with confidence of

trouble free operation.

A comprehensive listing of the EU Standards relevant to this

industry sector is available in Appendix 4

7.6 Supply Contracts

There are a number of different contract options for

renewable energy supply within the solid bio-fuel supply

chain. Fuel suppliers, equipment suppliers and Energy supply

companies (ESCo's) will all offer varying levels of service.

As well as supplying wood fuelled heating equipment many

companies will offer a tailored ‘Energy Service Contract’ for

customers. The ESCo contract is a complete package where the

company will manage the entire installation and operate the

system including fuel supply and operation and maintenance.

The customers simply purchase metered heat at a fixed tariff,

usually at a rate that is lower than conventional heat

systems.

Page 103

7.7 Interview Comments

“You will have a lot of people trying to get into the

business who will not be able to make a return and will get

out again, similar in a way to other industries like

broadband, those with deeper pockets are the ones who will be

able to stay in for the long term, invest heavily, and become

bigger players, but there wont be many of them”

“The Leader companies really should be getting actively

involved in creating and developing the supply chains

necessary for this industry by going out and securing the

medium and large scale customers and help to develop the

production capacities within their regions. This is a locally

produced fuel which will be consumed locally and so offers

great opportunity for rural based enterprise”

“It is incredibly important that we train people from the

different sectors”

“The best way for it to work is to start small and spread out

geographically”

Page 104

“There is a need to guarantee consistency in fuels,

particularly in terms of moisture content and calorific value

as boiler output must be reliable and consistent”

“Compared to wood pellet, burning wood chip requires a

different boiler and the installation is much more expensive,

on average twice the cost. Part of the reason for this is the

need to cope with the higher moisture content. Given the

amount of boilers that can burn pellets, and the amount that

can burn wood chip, there is a larger market for pellets. As

grain is also suitable for these boilers I can see it

increasing in popularity”

“We are looking at Scandinavia as role models but they have

different circumstances to us. Look at Sweden, they were

paying huge heat bills in comparison to us, with their cold

winters the heat is needed all the time. Also, the wood

industry is the backbone of the country, the industry is

massive and they have an abundance of raw material. They do

not have large centralised power generation stations but

small, more localised power generation facilities. There is

Page 105

no comparison. To copy this model we would need to dismantle

our whole structure. It would take years and I cannot see it

happening.”

7.8 Commentary & Conclusions

As illustrated in Figure 15, the wood fuel supply chain

covers a large range of industries including: forestry;

farming; timber processing; machinery and equipment

manufacturers and dealers. To develop a robust solid bio-fuel

industry, those in the supply chain need to develop links

with heating equipment manufacturers, suppliers and

installers, energy supply companies, consultants, transport,

training, advisory and grant-awarding bodies. The increased

use of solid bio-fuel in Ireland depends on all these

elements being accessible. The development of clusters of

these resources across the midlands will aid the development

of the solid bio-fuel industry in this region. Also vital to

this development is the creation of awareness among potential

users in both private residential and commercial/industrial

markets.

Page 106

The main points emerging from this section are;

Most common solid bio-fuel product are woodchip, wood

pellet, briquette and grain which is becoming

increasingly popular

There are still many issues surrounding the handling,

processing (particularly drying) and storage that add

significant cost to the end production process

Anecdotal evidence exists of bad experiences with poor

quality product reaching the end user, including

contaminated wood chip damaging boilers and flue

installations, and poor quality wood pellet turning to

‘mush’, or producing very little heat. For this reason

it is necessary to ensure that quality standards are

applied to the industry

Page 107

Section 8 - Economic Impact & Conclusions

8.1 Introduction

The potential for Bio-energy is very large and widely

distributed throughout the world. Because bio-energy can be

implemented at small, medium and large scale, it is

applicable to a wide variety of resources and

processing/utilisation schemes. There is a need for wider

availability of modern and efficient technologies of bio-

energy, and great efforts are being made to promote the

contribution they can make towards environmentally,

technically and economically sustainable use of resources. In

the future, a large contribution to bio-energy production is

expected to be derived from dedicated crops.

8.2 Advantages of Solid Bio-fuels

Avoiding carbon emissions, environmental protection, security

of energy supply and economic effects of substitution on GDP

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are an added bonus for the development of any renewable

energy project, but the primary driving force for local

communities are much more likely to be employment or job

creation and contribution to the regional economy. A well

developed solid bio-fuel industry in Westmeath has the

potential to contribute to all the important elements of

regional development, including;

New enterprise and employment opportunities

Rural diversification

Support of existing industry/commercial enterprises

through local reliable fuel

Lower fuel costs

Community empowerment

Rural depopulation mitigation

Reduction in waste to landfill

Figure 7, below, illustrates the benefits that can be

achieved through the supply of locally produced solid bio-

fuel over imported oil for the regional economy.

Figure 7: Solid Bio-fuel versus Oil in Regard to Locally Retained Benefits

Page 109

Source: Dare Ltd.

8.3 Job Creation

Bio-energy production creates new and stable jobs, mostly in

rural areas, and high demand for biomass conversion and

utilisation technologies can be expected in the future. It is

estimated that the implementation of the Biomass Action Plan

would involve the creation of 182,000 additional jobs in the

EU. These jobs will be created at every level of the supply

chain and will include both direct employment in the

harvesting and production processes and indirect employment

in support services. Potential for employment exists in the

following categories;

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Direct Employment

Raw material production, harvesting

Transport of raw materials

Fuel processing / manufacture

Fuel distribution

Fuel retail

Indirect employment

Boiler Manufacture and Supply

System instillation

Service and maintenance

Energy supply company’s

Energy consultancy

Marketing and promotion

Training

Page 111

8.4 Impacts of Reaching National Targets

The following is an assessment of the impact to the local

economy of reaching its share of the national targets as set

out in the government policy discussed earlier. This analysis

assumes that the county is self sufficient in reaching these

targets and does not include impacts of Westmeath enterprise

serving markets outside the county.

8.4.1 Residential Heating Target

The impact at local level of reaching the residential heat

market target of 5% share of the heating sector is assessed

in terms of benefits to Westmeath. The following are the main

potential outcomes;

22,866 tonnes of fuel used per annum (figures are based

on medium and small scale market analysis in Section 6)

€3.5 million per annum in Solid bio-fuel sales – (based

on an average of €150/Tonne)

54MW of solid bio-fuel boilers installed (over 20

thousand residential boilers installed)

Page 112

€2.7 million capital investment - Based upon our current

market knowledge that wood heating systems will cost on

average €50,000 per installed MW

28 new jobs created in the sector - This estimate is

based on work by SEI and IEA Bio-energy

Displaces 9,899 tonnes of imported oil each year

(11.5million litres/annum or €6.3 million)

By 2010 and with a 5% market share the sector will have

developed a critical mass of installers, suppliers with the

inherent skills and expertise. This suggests market growth

can then be more rapid and the 2020 target of 12% share of

the heating sector will bring significantly more benefits for

the region.

8.4.2 Electricity Co-Firing Target

The economic impacts of an emerging co-firing market are

different and less than in the heat market. This is because

there is little capital investment (as the fuel is used in

existing infrastructure) and there are fewer jobs created in

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the fuel supply chain (as the supply chain is on a larger and

more mechanised scale). Nevertheless there will be positive

economic impacts to the region of reaching the 30% target set

out in the ‘Bio-energy Action Plan’ for co-firing at the

three midlands peat power stations. These are estimated and

set out below.

500,000 tonnes of solid bio-fuel will be used per annum,

this will most likely be derived from Miscanthus energy

crops grown within a 70 Km radius on the plants

(Estimated value €70/Tonne = €3.5million)27

There will be some investment associated with co-firing,

both at the peat power stations to handle and process

biomass and in the supply chain to harvest fuel

Some new jobs will be created in the fuel supply chain.

The experience of co-firing supply chains elsewhere

suggests relatively low rates of new employment. A

speculative figure of 30 new jobs in the supply chain

and 5 new jobs at the power plants can be assumed

(Source: WDC)

27 Estimated share of biomass derived from solid bio-fuel sources

Page 114

8.4.3 National Impacts

On a national level, achieving these growth targets in the

Irish market is expected to displace the equivalent of 3

million barrels of oil a year (estimated €180M. in 2010

prices). Other benefits include,

Save 5.5 million tonnes of GHG emissions

Leverage capital investment of €640M

Provide over 3,000 new jobs in construction and

installation

Provide over 700 new jobs in operations and maintenance.

0.9 million tonnes per annum reduction in Irelands CO2

emissions

8.5 Commentary & Conclusions

Westmeath is well positioned to capitalise on the targets set

out in the ‘Bio-energy Action Plan’ and ‘Energy White Paper’

through the natural advantage of being centrally located and

with land mass that is very suitable to the cultivation of

energy crops. Westmeath is also within the catchment area of

Page 115

three peat power stations at Edenderry, Shannon Bridge and

Lanesborough, should the co-firing initiative progress.

A key point about solid bio-fuel is that it is inherently

more job intensive than other renewable energy options

because of the need to have a fuel supply chain. This is

unlike most other renewables which are passive technologies

that reply on the wind, the sun, or the waves to collect

energy. Most of the economic benefits of these technologies

occur at the capital investment stage and are not sustained

over the lifetime of the investment.

A key aspect of the most successful countries and regions in

terms of renewable energy is that they place wood fuel

heating at the centre of a renewable energy strategy, so it

is evident that the sector does require a regional strategy

and that the potential benefits of market growth are

significant to the region and its economy. This report is not

intended to set out a strategy or action plan, but the

following points should be considered in developing a

strategy for solid bio-fuel in the future.

Page 116

It is evident from the market study that the most

significant economic gains will occur as a result of

market growth in the residential heat sector and as such

this sector should be supported. Figure 8, below,

illustrates how the solid bio-fuel industry evolved in

Sweden and is currently developing in Ireland,

emphasising the importance of the heat market in the

development of this industry.

Figure 8: Evolution of the Wood Energy Industry in Sweden

Source: KMW Energi (Sweden)

A coordinated, sustained promotional campaign is

necessary to inform potential clients in the region and

to build confidence in the market for both energy users

and suppliers. Market analysis established that one of

Page 117

the main issues for market development in the region is

the lack of awareness and information about the

technology and its potential benefits. This campaign

should focus on the main issues raised in the survey,

i.e.

Set-up costs to adopt a renewable energy heat

energy system

Fuel costs and payback

Benefits of a solid bio-fuel system, e.g.

environmental advantages, security of fuel supply

and savings that can be achieved

System management options

Business opportunities are available at various entry

points in the solid bio-fuel supply chain. Additionally,

the formation of a cluster based approach to the

development of the industry may be appropriate given the

interdependency of the individual entities involved

Market growth will be facilitated by the availability of

substantial amounts of wood resources and the forest and

Page 118

farming sectors will benefit from a new market that this

industry will provide

An energy audit service targeted at businesses in the

region would help inform potential clients of the cost

savings that can be made through adopting solid bio-fuel

heating and/or CHP systems

A local energy agency representing the Midlands would be

beneficial as an avenue for the companies to promote

their products and services to the local authorities,

especially in regard to new buildings and facilities

In this section I have answered the research question posed

in section 3.2, i.e. “What, if any, is the likely impact of

the solid bio-fuel industry on County Westmeath?” in terms of

the impacts of reaching the national targets. To determine

the likelihood of the industry succeeding is a less empirical

task. One leading figure in the industry commented to me

during an interview that “It has a chance, because there is

enough people willing it to succeed”. Observable evidence

suggests that the industry is already succeeding, although at

Page 119

the early stages of its life cycle and growth is slow. A

significant number of new entrants have entered the market in

the past 12 months, mostly system suppliers and fuel

distributors. As yet the production of solid bio-fuel in

Ireland is not yet proven, and currently the growing demand

is met by wood pellets imported from sources as diverse as

Canada, Norway, Latvia Russia and even China.

A listing of businesses currently operating in the solid bio-

fuel sector in County Westmeath is included in Appendix 5 and

includes;

Registered wood fuel system installers

Wood pellet suppliers

Boiler/stove suppliers

Page 120

Section 9 - Opportunities for Further

Research

While this report is comprehensive in its approach, there are

a number of variables that affect this industry which were

outside the scope of the research. These include:

A study of trends in grain and other food crop prices

would be useful to determine the likely future take-up

of energy farming in Ireland. The summer of 2007 has

seen significant increases in the price of grain and

cereals as the global market reacts to the shortage of

this resource due, in part, to the amount of land which

has been converted to non-food crops in the USA and

elsewhere. One interviewee predicted that ‘Grain prices

will continue to increase, and Irish farmers will stick

to what they know’

As solid bio-fuel requires energy at all stages of the

production process from planting, to harvesting,

transport, chipping, drying, milling, pressing etc. Oil

Page 121

costs will continue to impact the production costs of

solid bio-fuels. It will be important to understand the

extent of this impact will determine how competitive

bio-fuels

If Ireland adopts a policy endorsing nuclear energy,

opportunities for bio-fuel could be severely hampered. A

study into the impacts of such an eventuality should

produce some interesting results

One of the main side effects of the solid bio-fuel

industry is the production of ash. For large scale power

generation the ash is not an issue as it is simply

reused as a fertiliser on the land from where the

biomass is grown. For commercial, industrial and

residential consumers however, ash can become an

expensive waste stream. A study into the potential uses

for this ash would be useful in determining if this is

worthless waste stream or a potentially useful

commodity. As previously mentioned this ash can be used

as a fertiliser. It is also known to have useful

insulation and binding properties and indeed this is the

subject if some research by Energy Research Center of

Page 122

the Netherlands (ECN), while scientists from the Brigham

Young University in Utah worked on analysing whether

biomass ash can replace cement in concrete28.

28 Shuangzhen Wang and Larry Baxter, Comprehensive Investigation of Biomass Fly Ash in Concrete:

Strength, Microscopy, Quantitative Kinetics and Durability, 2007

Page 123

References & Bibliography

References

Salameh, M.G., (1999) Technology, Oil Reserve Depletion and

the Myth of the Reserves-to-Production ratio, OPEC Review 23

(2), 113-125

Wilson, J., (2007) Energizing our Future: How Disinformation

and Ignorance are Misdirecting Our Efforts, 2007 APS March

Meeting Session A2, Future of Fossil Fuels, Denver, Colorado,

March 5

Fitzgerald, J., et al., (2005) Aspects of Irish Energy Policy

(Policy Research Series Number 57), Dublin: ESRI. ISBN 0-

7070-0236-2

Amarach Consulting, (2006) A Baseline Assessment of Ireland’s

Oil Dependance, Forfas

Page 124

Department of the Environment, Heritage and Local Government,

(2007) Ireland National Climate Change Strategy 2007 – 2012,

Dublin: PRN: A7/0397

Teagasc, (2006) Wood Energy from Farm Forests, Dublin

SEI, (2006) Renewable Energy Development 2006, Dublin

Collier, P., Dorgan, J., Bell, P., (2002) Factors influencing

Farmers Participation in Forestry, Dublin: COFORD. ISBN 1-

902-696-28-X

Barry, P.B., Clinch, J.P., Convery, F.J., (2001) Carbon

Credits in Ireland: Issues and Potentials, Dublin: COFORD.

ISBN 1-902696-18-2

Commission of European Communities, 2005, Biomass Action

Plan,Brussels, SEC 1573

National Development Plan, 2007-2013 "Transforming Ireland, A

Better Quality of Life for All", Dublin

Department of Communications, Marine and Natural Resources,

(2007) Bio-energy Action Plan for Ireland, Dublin

Page 125

Department of Communications, Marine and Natural Resources,

(2007) Government White Paper - Delivering a Sustainable

Energy Future for Ireland, Dublin

Sorensen, B., 2004, Renewable Energy, Its Physics,

Engineering, Environmental Impacts, Economics & Planting,

Third Edition, UK: Elsevier Academic Press. ISBN 0-12-656153-

2

WESTBIC, (2006) Energy Crops Research Report (On behalf of

ECAS), Roscommon

ShuangzhenWang and Larry Baxter, (2007) Comprehensive

Investigation of Biomass Fly Ash in Concrete: Strength,

Microscopy, Quantitative Kinetics and Durability, Brigham

University ACERC Annual Conference, Feb 28th 2007

Bibliography

Campbell, C.J., Laherrere, J.H., (1998) The End of Cheap Oil,

The Scientific American March

Page 126

Deffereyes, K.S., (2005) The View from Hubbert’s Peak, Hill

and Wang. ISBN 9780809029563

Teagasc, 2006, Wood Energy from Farm Forests, Dublin

Saunders, M., Lewis, P., Thornhill, A., (2003) Research

Methods for Business Students, Third Edition, England: FT

Prentice Hall. ISBN 0-273-65804-2

Klass, D.L., (1998) Biomass for Renewable Energy, Fuels, and

Chemicals, USA: Academic Press. ISBN 0-12-410950-0

Hope, A., Johnston, B., (2003) English Nature Discussion

Paper on Bio-fuels, Terrestrial Wildlife Team

Smith, N.O., et al, (1997) Crops for Industry and Energy in

Europe, England: European Commission. ISBN 92-827-9415-6

Commission of the European Communities, (2007) Renewable

Energy Roadmap – Renewable Energies in the 21st Century:

Building a More Sustainable Future, Brussels

Edenderry Power Ltd, Renewable Electricity – A 2020 Vision

(Preliminary Consultation Document)

Page 127

Western Development Commission, (2007), Wood Energy

Development in the Western Region

SEI, (2006) Security of Supply in Ireland, Dublin

COFORD, (2005) Wood Energy for Production, Dublin

Teagasc, (2006) Wood Energy from Farm Forests, Dublin

EUBIONET2, (2003) Fuel Prices in Europe 2002/2003

EUBIONET2, (2007) Biomass Fuel Trade in Europe

EUBIONET2, (2003) Biomass Heat Entrepreneurship in Finland

EUBIONET2, (2006) Current Situation and Future Trends in

Biomass Fuel Trade in Europe - Country Report of Ireland

EPA (ERTDI), (2000) Climate Change, Scenarios and Impacts for

Ireland, ISBN 1-84095-115-X

Boyle, G., (1996) Renewable Energy – Power for a Sustainable

Future, Oxford University Press, ISBN 0-19-856451-1

Lomborg, B., (2001) The Skeptical Environmentalist (Measuring

the Real State of the World), Press Syndicate of the

University of Cambridge, ISBN 0521 804477

Page 128

Helm, D., (1991) Economic Policy Towards the Environment,

Blackwell, ISBN 0631-18201-2

Page 129

Appendix

Appendix 1a - Household Survey Questionnaire

1. Please give details of your annual heating fuel usage

Fuel used Quantity / Volume Cost per annumTurf CoalOilGasElectricityOther

2. Have you, or are you interested in converting to renewable energy for home heat?

Yes ____ No ___

3. If yes, what (if any) renewables have you considered? (Tick all relevant)

Geothermal / Heat Pump Solar PanelsWood PelletWindOther

4. What are the most important factors in your decision to (or not to)convert to renewable energy?

Cost / SavingsEnvironmental reasonsConvenience – Ease of use

Page 130

Storage considerationsOther

5. What are the main concerns you have when considering converting to renewable energy?

Fuel CostReliability of supplyLack of informationReliability of technologyInstallation costOther

Page 131

Appendix 1b - Commercial Users Survey Questionnaire

I would be grateful if you complete the attached questionnaire andreturn to us on or before Friday June 15th, 2007. The informationprovided on your business will be treated in the strictestconfidence and will not be revealed in the study report orelsewhere.

Please fill in the following company details:

Business Name: _________________ Business

Address:_____________________

e:mail: _________________

______________________

Please give details of your annual heating fuel usage

Fuel used Quantity / Volume Cost per annumOilGasOther (PLSSpecify)

Comments:________________________________________________________________

_________________________________________________________________________

__________

Are you interested in converting to renewable source of heat energy? Yes ____ No ____

If yes, what (if any) renewables have you considered? (Tick all relevant)

Page 132

Solar Wood ChipWood PelletFuel oats

Combination (e.g. Energy Cabin)Other (Please Specify)

Comments:________________________________________________________________

_________________________________________________________________________

__________

What are the most important factors in your decision to (or not to) convert to renewable energy? (Number 1 to 3 in order of importance)

Comments:________________________________________________________________

_________________________________________________________________________

__________

What are the main concerns you have about converting to renewable energy?(Number 1 to 3 in order of importance)

Comments:________________________________________________________________

_________________________________________________________________________

__________

Page 133

Cost SavingsEnvironmental ReasonsConvenience

Storage ConsiderationsOther (Please Specify)

Installation costFuel CostReliability of fuel supplyReliability of technology

Lack of informationFuel consistency/QualityOther (Please Specify)

If you are interested in switching to renewable energy please indicate your preference of the two options for adopting a renewable energy heat system

1. You install, own and maintain the equipment, and pay for the fuel

2. An ESCO (Energy Supply Company) install, own and maintain the

equipment, and you pay for energy used

What length of energy / fuel contract do you prefer? __________Years

Any other comments?

_________________________________________________________________________

_________________________________________________________________________

__________

Thank you for taking the time to fill out this survey

Appendix 2 - Total Forest Cover By County (Ha)

County TotalPrivate

Public

Totallandarea

Percentage of

ofCounty

Countyplanted

Carlow 5,776 1,967 3,809 89,635 6.4

Cavan15,68

5 8,235 7,450189,06

0 8.3

Clare48,44

725,08

823,36

0318,78

4 15.2

Cork83,33

334,48

848,84

5745,98

8 11.2

Donegal57,94

421,54

736,39

8483,05

8 12Dublin 3,624 1,842 1,782 92,156 3.9

Page 134

Galway55,89

517,01

338,88

2593,96

6 9.4

Kerry52,42

233,33

719,08

5470,14

2 11.2

Kildare 8,819 4,812 4,007169,42

5 5.2

Kilkenny18,80

6 8,70610,10

0206,16

7 9.1

Laois24,39

3 8,43015,96

3171,85

4 14.2

Leitrim24,21

211,61

312,59

9152,47

6 15.9

Limerick24,87

213,19

311,67

9268,58

0 9.3

Longford 7,863 4,692 3,171104,38

7 7.5Louth 3,152 1,723 1,429 82,334 3.8

Mayo55,66

221,20

034,46

2539,84

6 10.3

Meath 6,429 4,925 1,504233,58

7 2.8

Monaghan 5,925 2,769 3,156129,77

4 4.6

Offaly19,28

910,04

9 9,240199,77

4 9.7Roscommon

19,640

11,268 8,372

246,276 8

Sligo21,12

4 8,49612,62

8179,60

8 11.8Tipperary

47,793

19,399

28,394

425,458 11.2

Waterford

27,701 9,008

18,693

183,786 15.1

Westmeath

12,498 7,787 4,711

176,290 7.1

Wexford14,77

7 6,142 8,636235,14

3 6.3

Wicklow43,18

113,86

129,32

0202,48

3 21.3TOTAL 709,2 311,5 397,6 6,889, 10.3

Page 135

63 58 74 456

Source: Forest Service (2006)

Page 136

Appendix 3 – Sawmills in the Midlands

John Rogers Engineering Ltd, Rathowen, Westmeath

Rene Mayer Mobile Sawmills, Killanure, Monthrath, Laois

Laois Sawmills Ltd, Ballymacken, Portlaoise, Laois

Hyland Sawmills, Ballybrittas, Portlaoise, Laois

O'Connor K&L Sawmills Ltd, West End, Patrick St.,

Portarlington, Laois

Clonmore Sawmills Ltd, Clonmore, Tullamore, Offaly

Standish Sawmills, The Leap, Castle, Roscrea, Offaly

Glennon Bros Timber Ltd, Longford

Banagher Sawmills, Banagher, Offaly

Ballymahon Timber, Ballymahon, Co. Longford

Page 137

Appendix 4 - Technical Standards

CEN/TS

14588:2003

Solid bio-fuels - Terminology, definitions and

descriptions

CEN/TS 14774-

1:2004

Solid bio-fuels - Methods for determination of

moisture content - Oven dry method - Part 1:

Total moisture - Reference method

CEN/TS 14774-

2:2004

Solid bio-fuels - Methods for the determination

of moisture content - Oven dry method - Part 2:

Total moisture - Simplified method

CEN/TS 14774-

3:2004

Solid bio-fuels - Methods for the determination

of moisture content - Oven dry method - Part 3:

Moisture in general analysis sample

CEN/TS

14775:2004

Solid bio-fuels - Method for the determination

of ash content

CEN/TS 14778-

1:2005

Solid bio-fuels - Sampling - Part 1: Methods

for sampling

CEN/TS

14780:2005

Solid bio-fuels - Methods for sample

preparation

CEN/TS

14918:2005

Solid Bio-fuels - Method for the determination

of calorific value

CEN/TS

14961:2005

Solid bio-fuels - Fuel specifications and

classes

Page 138

CEN/TS

15103:2005

Solid bio-fuels - Methods for the determination

of bulk density

CEN/TS

15104:2005

Solid bio-fuels - Determination of total

content of carbon, hydrogen and nitrogen -

Instrumental methods

CEN/TS

15105:2005

Solid bio-fuels - Methods for determination of

the water soluble content of chloride, sodium

and potassium

CEN/TS

15148:2005

Solid bio-fuels - Method for the determination

of the content of volatile matter

CEN/TS 15149-

1:2006

Solid bio-fuels - Methods for the determination

of particle size distribution - Part 1:

Oscillating screen method using sieve apertures

of 3,15 mm and above

CEN/TS 15149-

2:2006

Solid bio-fuels - Methods for the determination

of particle size distribution - Part 2:

Vibrating screen method using sieve apertures

of 3,15 mm and below

CEN/TS 15149-

3:2006

Solid bio-fuels - Methods for the determination

of particle size distribution - Part 3: Rotary

screen method

CEN/TS

15150:2005

Solid bio-fuels - Methods for the determination

of particle density

CEN/TS 15210-

1:2005

Solid bio-fuels - Methods for the determination

of mechanical durability of pellets and

Page 139

briquettes - Part 1: Pellets

CEN/TS 15210-

2:2005

Solid bio-fuels - Methods for the determination

of mechanical durability of pellets and

briquettes - Part 2: Briquettes

CEN/TS

15289:2006

Solid Bio-fuels - Determination of total

content of sulphur and chlorine

CEN/TS

15290:2006

Solid Bio-fuels - Determination of major

elements

CEN/TS

15296:2006

Solid Bio-fuels - Calculation of analyses to

different bases

CEN/TS

15297:2006

Solid Bio-fuels - Determination of minor

elements

Page 140

Appendix 5 - Existing Solid Bio-fuel Enterprise in Westmeath

Registered Wood Fuel System Installers

Eamon Mc Cormack, Reea Developments Ltd, Athlone,

Westmeath, [email protected], 087-8377283

Joseph Allen, Allen Gas and Oil, Killucan, Westmeath,

[email protected]

Anthony Ryan, Anthony Ryan Plumbing Ltd., Mullingar,

Westmeath, [email protected] , 087-6633376

Colm Lynch, Aquaseal Heating&Plumbing, Mullingar,

Westmeath, 044-9664868

Cormac Reilly, Arch Plumbing&Heating, Delvin,

Westmeath, 087-6670483

Bernard Dolan, B. Dolan Mechanical Services, Killucan,

Westmeath, 044-74581

Bill Collentine, Bill Collentine Ltd., Mullingar,

Westmeath, [email protected] , 044-934142

Christopher Meehan, C M Heating & Plumbing, Mullingar,

Westmeath, 044-9226636

Nigel Campbell, Campbell Heating, Athlone, Westmeath,

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087-6290145

John Fagan, Central Energy Limited, Westmeath, 044-

64914

Chris Cooper, Athlone, Westmeath, 090-6439989

Dermot Lovely, Mullingar, Westmeath, 044-9372260

Sean Kelleher, Dolan Kelleher Heating&Plumbing Ltd.,

Moate, Westmeath, [email protected] , 087-

9694373

Don Bakker, Don Bakker Plumbing&Heating, Delvin,

Westmeath, [email protected] , 087-2330143

Eamon Coyne, Eamon Coyne Plumbing&Heating, Kinnegad,

Westmeath, 087-9691394

Pat Egan, Egan Technical Services, Athlone, Westmeath,

[email protected] , 090-6472056

John Raleigh, Ennellbrook Engineering Ltd., Mullingar,

Westmeath, [email protected] , 044-

90175/90176

Matt Kennedy, Enviro Friendly Heating Ltd., Mullingar,

Westmeath, [email protected] , 044-9343581

Tony King, Gastech Installations&Services Ltd.,

Mullingar, Westmeath, [email protected] , 086-

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8230277

Kenneth Cox, Rathowen, Westmeath, 043-76089

Frank Darb,y Lakeland Plumbing & Heating, Mullingar,

Westmeath, [email protected] 086-2519253

Luke Molloy, Athlone Westmeath,

[email protected], 087-9558225

Patrick Madden, Maddens Kedco Engery, Moate, Westmeath,

[email protected] , 090-6482564

Martin Healy, Moate, Westmeath, [email protected] ,

086-2241950

Martin Tormey, Mullingarm Westmeath

[email protected], 087-2261381

Maurice Nea, Maurice Nea Heating&Plumbing,

Castlepollard, Westmeath, 044-61537 / 086-2577004

Thomas Seery, Newline Heating&Plumbing, Athlone,

Westmeath, [email protected] , 090-6485115/087-2634450

Fredrick Murray, Next Gen Heat Ltd., Mullingar,

Westmeath, [email protected] , 044-939005

Peter Nangle, Next Gen Heat Ltd., Mullingar, Westmeath,

[email protected] , 044-939005

Vincent Leavy, Next Gen Heat Ltd., Mullingar,

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Westmeath, [email protected] , 044-939005

Noel Burke, Noel Burke, Mullingar, Westmeath,

[email protected] , 087-9384273

Oliver Killian Oliver Killian Heating&Plumbing Ltd.,

Streamstown, Westmeath, 090-6436125

Pat Nea, Pat Nea & Sons, Castlepollard, Westmeath, 044-

61535

Paul Reville, Paul Reville & Sons Ltd., Mullingar,

Westmeath, [email protected] , 086-8232790

Rory Quigley, Rory Quigley Heating&Plumbing, Athlone,

Westmeath, 087-6274891

Patrick Sammon, Sammon Plumbing, Athlone, Westmeath,

090-6473431

John Mulvaney, Sean Mulvaney & Sons Ltd. Ballynacargy,

Westmeath, 087-6130455

Sean Mulvaney, Sean Mulvaney & Sons Ltd. Ballynacargy,

Westmeath, 044-9373192

William Fitzgerald, Teermore Heating&Plumbing,

Mullingar, Westmeath, 057-9335172

John Flynn J.F Heating & Plumbing, Ballydangan,

Athlone, 090-9642576

Oliver McManus, McManus Electrica,l Drum, Athlone, 090-

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6437410

Wood Pellet Suppliers

Crone Pellets, Collinstown, Westmeath. (087) 2971901

Next Gen Heat, Unit 6A, Brosna Business Park,

Mullingar. (044) 939 0005 . [email protected] ,

www.nextgenheat.ie

Coradden House, Kilfoylan, Moate, Westmeath. (090)

6482564, [email protected]

Prime Energy Solutions, Moydrum, Athlone. Tel: 0906

490642 EMail: [email protected] , Web:

www.primeenergysolutions.ie

Boiler/Stove Suppliers

Prime Energy Solutions, Moydrum, Athlone. Tel: 0906

490642 EMail: [email protected] , Web:

www.primeenergysolutions.ie

Heatmerchants Branches Nationwide, 090 6424000

www.heatmerchants.ie,

Flynns of Moate, Tel: 090 64 81116 EMail:

[email protected] , Web: www.flynnsofmoate.ie

Next Gen Heat, Unit 6A, Brosna Business Park,

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Mullingar. (044) 939 0005 [email protected] ,

www.nextgenheat.ie

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