Lucy Hopwood

Conference Chair

Transcript

1. Lucy Hopwood Head of Biomass and Biogas, NNFCC
2. NNFCC: The Bioeconomy Consultants NNFCC Lucy Hopwood Head of Biomass & Biogas Energy Crops: Opportunities & Constraints
3. NNFCC NNFCC: The Bioeconomy Consultants UK Policy Situation Renewable Energy Strategy (RES) 15% renewable energy by 2020  10% transport fuels  14% heat  32% electricity
4. NNFCC NNFCC: The Bioeconomy Consultants Bioenergy Strategy – Statement of principles • Support for bioenergy should make a cost effective contribution to UK carbon emission objectives • Support for bioenergy should aim to maximise the benefits and minimise costs • When changing policies promote additional demand for bioenergy, policy makers should assess the impact on other areas, such as food security and biodiversity. • Policies that support bioenergy should deliver genuine carbon reductions NNFCC: The Bioeconomy Consultants
5. NNFCC NNFCC: The Bioeconomy Consultants Bioenergy Strategy – Headlines • International supplies, e.g. from North America will be key contributor • Impact on food production should have limited effects BUT tensions are there if bioenergy develops in wrong way • Wood and energy crops are favourable options • Sustainable biomass could contribute – 8-11% of UK energy demand in 2020 – 12% in 2050 NNFCC: The Bioeconomy Consultants
6. NNFCC NNFCC: The Bioeconomy Consultants What do we mean by energy crops? Agricultural feedstock Perennial crops – SRC/ Miscanthus/ Grass Annual crops – Maize/ Sugar Beet/ Cereals Crop residues – Outgrades/ Processing losses Livestock Waste – Slurry/ Manure Straw – Cereal/ Oilseed Biological (wastes / residues)
7. NNFCC NNFCC: The Bioeconomy Consultants RED Sustainability Criteria • All biomass supply must meet good agricultural practice standards • Avoid cultivation of or production on: – Areas of high biodiversity  Areas designated for nature protection  Primary forest and other wooded land  Highly biodiverse grasslands – Peat lands or land of high carbon stock (including wetlands or continuously forested areas (>30% canopy)) • Minimum lifecycle GHG savings apply • Biomass and biogas from wastes are exempt from reporting NNFCC: The Bioeconomy Consultants
8. NNFCC NNFCC: The Bioeconomy Consultants GHG emissions breakdown – Biomass SRC Miscanthus
9. NNFCC NNFCC: The Bioeconomy Consultants Energy Crops: Potential Maximum theoretical potential = 0.93 – 3.63Mha Likely uptake based on gross margins = 0.72 – 2.80Mha Likely uptake based on social factors = 0.007 – 0.05Mha
10. NNFCC NNFCC: The Bioeconomy Consultants Current Situation – Crops for Combustion Miscanthus Area (ha) SRC Area (ha) Grant Paid (£000’s) ECS1 (2000 – 2006) 6379.09 1814.94 £ 7,672,453 ECS2 (2007 – 2013) 1294.98 467.66 £ 1,597,467 ECS3 (2014 – 2020) ?? ?? ?? ECS2 budget was £47 million – why the underspend? Energy Crops Scheme (ECS2): • Supports planting and establishment of energy crops – Miscanthus & SRC Willow Current RDPE Scheme ends on 31st December 2013 – Application window closes: • for SRC Willow @ end August 2013 • for Miscanthus @ end September 2013
11. NNFCC NNFCC: The Bioeconomy Consultants - 2,000 4,000 6,000 8,000 10,000 12,000 Cancelled Planned Awaiting decision Consented Awaiting Construction Under Construction Operational Hectares Crop usage in development pipeline © NNFCC TOTAL = 30 – 40,000ha TOTAL = <10,000ha Current Situation – Crops for Digestion
12. NNFCC NNFCC: The Bioeconomy Consultants The Future? CONSTRAINTS:  Knowledge  Confidence  Economics  Lack of supply chain infrastructure  Poor dissemination of best practice  Political uncertainty & concerns “…Government policy is to deliver an increase in energy from waste through AD. It is not our policy…to encourage energy crops-based AD, particularly where these are grown to the exclusion of food producing crops.” ACTIONS:  Improved access to information and sharing of best practice (e.g. AD Crops for AD Guide)  Local supply chains  Continued support (e.g. ECS3)  Clear policy position
13. NNFCC NNFCC: The Bioeconomy Consultants NNFCC Consultancy Services :  Future market analysis  Resource planning  Feedstock sustainability appraisal  Technology evaluation and due diligence  Project feasibility assessment  Business to business introductions  Investor to developer introductions  Policy and regulatory support Contact details: +44 (0) 1904 435182 enquiries@nnfcc.co.uk www.nnfcc.co.uk Connect and follow us on Twitter and LinkedIn