William Cracroft-Eley

Miscanthus - the commercial opportunities

Transcript

1. William Cracroft-Eley Director, Terravesta
2. Miscanthus, the Miracle Energy Crop - the Commercial Opportunities William Cracroft-Eley 13th February 2013
3. Miscanthus The Sustainable Biomass Option • Local • Long life • Low Input, High Output • Rapid CO2 reabsorption - 1 year (wood decades) • Annual crop from end of year 2 • Rapid rollout - maturity in 5 years (wood decades) • UK sustainable potential 350,000ha - 340k to go! • Marginal land - minimal food impact • Totally traceable
4. Introduction • Markets • power generation • heat • Miscanthus - the crop • Why Miscanthus? • Establishment & Energy Crops Scheme • Introducing Terravesta • Conclusion
5. Massive & Growing Market • Electricity Generation • Expansion of new dedicated biomass • Decarbonisation of existing facilities • Heat • Substantial off (gas) grid sector 176TWh • Mains gas no longer cheap • CHP • Large & small scale potential • Carbon Reduction & Sustainability are the drivers - not fuel shortage
6. Electricity Generation • Energy Bill; Commitment to treble investment in clean generation to £7.6bn by 2020 • Decarbonisation of existing generating facility will massively increase biomass demand •Drax 50% conversion = 8m tonnes •Other coalfired plants will convert or close • ROC’s review incentivises energy crops in certain circumstances • Not enough straw for planned dedicated capacity
7. Heat • Drivers; legislation/incentives (CRC/RHI/ROC’s) commercial pressure/advantage. • Technology expensive • Heat competitive, but wood fuel could soar. • The product is SUSTAINABILITY • UK grown perennial energy crops are; •Highly sustainable •Totally auditable • Massive Own Use Potential!
8. Miscanthus - the crop • Perennial Energy Crop, 20+ year life • Minimal inputs • Highest sustainability credentials • Stable annual yields from most land types including marginal arable land
9. Why Grow Miscanthus? • Stable, predictable yields and net margins • Secure, long-term, end user backed contracts • Perennial crop = low establishment risk • Net returns comparable with arable rotation • RPIX minimum annual price increase • Fantastic “own use” opportunity (Grower Fuel Loop). • Enterprise stability • Positive Rest of Farm Impact • Significant Carbon Footprint benefit
10. Volatitilty
11. Updated Miscanthus margins 2012
12. Establishment & Energy Crops Scheme • Spring planting April May • Good tilth, 10 cm depth • Contract planted by supplier of rhizome • Total Cost c.£2,600/ha • ECS Planting Grant 50% of approved costs • current scheme closes September 2013 • Applications can be for phased planting over 3 years (application 2013, plant 2014, 2015, 2016). • www.naturalengland.org.uk
13. Introducing Terravesta • The complete supply chain provider for miscanthus in the UK. • Long-term supply contracts with Drax Power and Eco 2. • Unparalleled experience pool for growing miscanthus. • Only producer of 100% miscanthus pellet • Absolute commitment to growers • Unparralleled long-term supply contracts • The largest supplier of Miscanthus in UK
14. Terravesta Growers - Dec ’12
15. Products For the Grower • Grower Contracts • Grower Support • Supply chain management For the End User • Sustainable, Renewable, Biomass Energy • “Energy Pods” & heat infrastructure
16. Conclusion • Markets both for power generation and heat exist today and demand is enormous & growing • Strong on-farm enterprise delivering long-term predictable returns, comparable with cereals, from marginal/higher risk land. • Terravesta is the complete supply chain providing a market for the crop, wherever it’s grown, and offering unparalleled grower support.
17. www.terravesta.com Thank you...