Advice Notes on Biomass CHP Economics for the NPA Region

Biomass CHP

The Advice Notes aim to provide introductory material for entrepreneurs, startups and SME’s, considering to enter into the renewable energy sphere and based in the NPA regions partners to GREBE. The scope of the Advice Note covers regional, trade and industry, renewable energy (RE), technology information from Ireland, Northern Ireland, Scotland, Iceland and Finland. Different partner regions have different level of deployment of the various RE technologies covered by the Advice Notes. Thus, the level of information will vary depending on the level of deployment for each technology. For example, wind is not deployed on a large scale in North Karelia (Finland); however, it is widely deployed in Scotland, Ireland and Northern Ireland.

Full details are available on the GREBE website:

http://grebeproject.eu/wp-content/uploads/2018/04/GREBE-Advice-Notes-biomass-chp-2.pdf

The focus of the Advice Notes is on regional information of some of the main economic characteristics sited as imperative, when making an informed choice, regarding which RE technology may be the optimal choice for a new business venture:

  • Costs and economics associated with the relevant technology
  • Support schemes available, relevant to the technology
  • Government allowance/exemptions, relevant to the technology
  • Funding available for capital costs of the relevant technology
  • List of the relevant to the technology suppliers/developers, with focus on local/regional, suppliers/developers and the products and services they offer.

 

Combined heat and power (CHP) is a method that delivers both heat and power on site in a single, highly efficient process, normally over 80% efficiency. CHP creates electricity and as a by-product of the generation process it produces heat. Wood biomass is fed into the CHP system similar to a normal biomass boiler and the produced gas is then fed to an engine which is connected to a generator generating electricity while the heat produced, can be fed into a heating system. Below is a map showing the productive forest potential in relation to the total area of the country. Biomass is the world’s fourth largest energy source, contributing to nearly 14% of the world’s primary energy demand.

Small scale (<100kW) and micro-scale (<15kW) biomass CHP are particularly suitable for applications in commercial buildings, such as hospitals, schools, industrial premises, office building blocks, and domestic buildings. Optimum system design and implementation is crucial for cost-effective operation and it is established that the best economic performance come about with high load factors when the maximum amount of both electricity and heat sold on-site is maximised.Untitled

A reliable feedstock supply chain is vital for the economic viability of a CHP system. Fuel costs are central since when considering the levelled cost of electricity and heat production, ongoing running costs far outweigh capital investment. CHP systems and specifically the ones smaller in scale necessitate fuel of the highest quality and have very low moisture content, wood chip/pellets between 15% and 30% moisture content. Thus, it is imperative before considering investment in a biomass CHP system to ensure that the right fuel can be sourced locally.

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Advice Notes on Wind Technology Economics for the NPA Region

Biomass

The Advice Notes aim to provide introductory material for entrepreneurs, startups and SME’s, considering to enter into the renewable energy sphere and based in the NPA regions partners to GREBE. The scope of the Advice Note covers regional, trade and industry, renewable energy (RE), technology information from Ireland, Northern Ireland, Scotland, Iceland and Finland. Different partner regions have different level of deployment of the various RE technologies covered by the Advice Notes. Thus, the level of information will vary depending on the level of deployment for each technology. For example, wind is not deployed on a large scale in North Karelia (Finland); however, it is widely deployed in Scotland, Ireland and Northern Ireland.

Full details are available on the GREBE website:

http://grebeproject.eu/wp-content/uploads/2018/07/GREBE-Advice-Notes-Biomass.pdf

The focus of the Advice Notes is on regional information of some of the main economic characteristics sited as imperative, when making an informed choice, regarding which RE technology may be the optimal choice for a new business venture:

  • Costs and economics associated with the relevant technology
  • Support schemes available, relevant to the technology
  • Government allowance/exemptions, relevant to the technology
  • Funding available for capital costs of the relevant technology
  • List of the relevant to the technology suppliers/developers, with focus on local/regional, suppliers/developers and the products and services they offer.

The economics of a biomass system are governed by the capital cost, the biomass fuel cost, the offset fuel costs and the incentives available. The capital cost of a biomass boiler is dependent upon the size, fuel type used and level of automation of the system.

Biomass is the world’s fourth largest energy source, contributing to nearly 14% of the world’s primary energy demand. The most common fuel is wood, which can be supplied in three forms; logs, chips and compressed wood pellets. However, biomass energy also includes energy crops, food waste streams, agricultural residues, industrial wastes and residues which can be used for heating in certain, specific circumstances. A range of biomass boilers are available, in sizes to suit homes, small businesses, community buildings through to large hospitals and industrial processes. A reliable feedstock supply chain is vital for the economic viability of a biomass boiler system.

Fuel costs are central when considering the levelled cost of electricity, since ongoing running costs far outweigh capital investment. Thus, it is imperative before considering investment in a biomass boiler system to ensure that the right fuel can be sourced locally. Economic benefits of biomass include relatively inexpensive resources; locally distributed energy sources provide constancy and reliability, price stability and generation of employment opportunities in rural communities. Risks included price volatility and availability of feedstock.

Farmers warned felling licences taking a year to process – IFA

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Forestry felling licenses are taking up to a year to process farmers are being warned by the IFA. National Farm Forestry Chairman, Pat Collins said that the latest IFA Timber Price report shows that palletwood prices have increased by up to 15pc since February, while average sawlog prices are in excess of €85/tonne. Pat Collins said, “With demand for timber predicted to remain high at a domestic and global level, it is a good time to consider forestry. There are several options available under the Afforestation and Woodland Creation scheme to suit the soil, size, location and management objectives”.

He said that the size of a viable forest from a timber perspective is very location specific, for example a small forest that is near a road and easy to work can generate comparable timber incomes per hectare as a larger forests, particularly if managed as part of a harvesting cluster. “For those who have already planted, but who have not managed the forest or have timber in hard-to-access locations – now is the time to have your asset valued and look at realising a good price”. A farmer is legally required to apply to the Forest Service for a felling license before they can fell a tree in his plantation. If you are planning to apply for a felling licence, approvals can take up to 12 months to issue.

“Farmers are very concerned with the delays in getting felling licence approval”, said Mr. Collins. “The introduction of a single 10 year felling licence and the new public consultation process, although welcomed, is causing further delays”. He said that the Department must work to reduce the turnaround time for felling licence approvals so farmers can avail of the strong timber prices.

https://www.independent.ie/business/farming/forestry-enviro/forestry/farmers-warned-felling-licences-taking-a-year-to-process-ifa-36945543.html

Advice Notes on Biomass CHP Technology Economics for the NPA Region

Biomass CHP

The Advice Notes aim to provide introductory material for entrepreneurs, startups and SME’s, considering to enter into the renewable energy sphere and based in the NPA regions partners to GREBE. The scope of the Advice Note covers regional, trade and industry, renewable energy (RE), technology information from Ireland, Northern Ireland, Scotland, Iceland and Finland. Different partner regions have different level of deployment of the various RE technologies covered by the Advice Notes. Thus, the level of information will vary depending on the level of deployment for each technology. For example, wind is not deployed on a large scale in North Karelia (Finland); however, it is widely deployed in Scotland, Ireland and Northern Ireland.

Full details are available on the GREBE website:

http://grebeproject.eu/wp-content/uploads/2018/04/GREBE-Advice-Notes-biomass-chp-2.pdf

The focus of the Advice Notes is on regional information of some of the main economic characteristics sited as imperative, when making an informed choice, regarding which RE technology may be the optimal choice for a new business venture:

  • Costs and economics associated with the relevant technology
  • Support schemes available, relevant to the technology
  • Government allowance/exemptions, relevant to the technology
  • Funding available for capital costs of the relevant technology
  • List of the relevant to the technology suppliers/developers, with focus on local/regional, suppliers/developers and the products and services they offer.

Combined heat and power (CHP) is a method that delivers both heat and power on site in a single, highly efficient process, normally over 80% efficiency. CHP creates electricity and as a by-product of the generation process it produces heat. Wood biomass is fed into the CHP system similar to a normal biomass boiler and the produced gas is then fed to an engine which is connected to a generator generating electricity while the heat produced, can be fed into a heating system. Biomass is the world’s fourth largest energy source, contributing to nearly 14% of the world’s primary energy demand.

Small scale (<100kW) and micro-scale (<15kW) biomass CHP are particularly suitable for applications in commercial buildings, such as hospitals, schools, industrial premises, office building blocks, and domestic buildings. Optimum system design and implementation is crucial for cost-effective operation and it is established that the best economic performance come about with high load factors when the maximum amount of both electricity and heat sold on-site is maximised.

 

Finnish experience in co-operative partnerships in small forest-based local heating energy businesses – outcomes from the MADIE project

LUKE1LUKE2

The MADIE project published a booklet which highlights the economics and organizational aspects of small local heating energy supply schemes set up in rural regions as a market-driven business by their owners for earning them a profit and, apart from private self-interests, for promoting the social claims of their stakeholders.

The booklet tells about the Finnish experience in co-operative partnerships, especially in small forest-based local heating energy businesses. Start-up entrepreneurs and their partners need inspiration and guidance in how to establish and operate their business successfully. Besides technical and market information, for starting and organizing a business, multifaceted upfront information is needed. Here, decisions as to the legal form, ownership, liabilities, participation rights and selecting the right partners, are crucial for the continuity of the business. There is a need for arguments that help persuade stakeholders about the legitimacy of the business and related social benefits.

The booklet addresses, among others, forest owners, rural entrepreneurs and their public stakeholders. Policy makers have been attracted by a business model that meets the triple bottom line: by offering an attractive return to investment, providing support to renewable energy transition, and creating jobs and income in rural economies. Co-operatives have been able to demonstrate to be a convenient participatory model of organizing joint business activities.

The booklet, with its focus on renewable energy co-operatives, contributes to the outcomes of the MADIE-project, an initiative supported by the European Union’s Erasmus programme, which offers a comprehensive range of views on multifunctional agriculture as a driver for innovation in rural Europe.

MADIE is funded by the Erasmus+ Programme of the European Union and coordinated by the German Starkmacher e.V. with partners Natural Resources Institute Finland (LUKE, Finland), County Governor of Hordaland (Norway), NAK Nonprofit Kft. (Hungary) and Terre di loppiano srl (Italy).

The booklet “Co-operatives and forest-based heating entrepreneurship in a rural setting – the Finnish experience” can be found from here or from the library at https://www.ruralacademy.org/contents

The booklet is available in English and also in Finnish (as summary report from the English version).

Information gained during the MADIE project are beneficial also for the GREBE project and are supporting the activity towards a guideline supporting enterprises in introducing new to market energy solutions.

LUKE investigates alternatives to side-stream utilisation of Woodpolis Timber Cluster

LUKE1

Natural Resources Institute Finland (LUKE) made a survey on the alternative uses of side streams of wood processing in Woodpolis industrial area in the City of Kuhmo. Woodpolis Timber Cluster consists of Kuhmo Ltd.’s large saw mill and some ten SME companies specialised in further processing of sawn timber and side-streams of wood processing. A good example of new growing industries in the area are CLT, cross laminated timber and element factories producing prefabricated building products for multi-storey and one-storey buildings, such as residential, office, school and kindergarten houses.

In addition to saw mill chips supplied to pulp mill, versatile side streams from saw dust and bark to massive left-over pieces of log house and CLT construction are produced in the area. In 2015, of the total amount of 475,000MWh of bioenergy from the side streams 376,000MWh was used at the local CHP plant or for the briquette and pellet production, and 99,000MWh was sold to other CHP plants in Northern Finland. However, oversupply of wood chips and pellets for bioenergy as well as long transport distances reduce the profitability of selling the entire excessive bioenergy fraction. Increase of pellet or briquette production is not seen very profitable either. Therefore, new ways of utilizing side streams are actively sought.

The most technically challenging side-stream fraction is CLT leftover pieces because of their variation in shape, dimensions and chemical composition. Once the product is piled up with gluing, chipping it back to bioenergy or bio-refinery fractions is not easy or reasonable. New ways of utilizing them are sought from packaging and wood panel industries. If chipped, semi-finished products for manufacturing of for example wood-plastic composites should be given preference over bioenergy uses.

LUKE2

Bioethanol production would be a feasible step in the further processing of more advanced biofuel products from saw dust, planer shavings and bark. Biochar production for purposes which require bioactivity from the char, or for metallurgic processes may also provide promising options. In addition, saw dust and bark contain extracts some of which are already in the markets: for example, pine tar, turpentine, pyroligneous acid, and adhesives. However, bio-refineries (e.g. bioethanol plants) usually require large amounts of raw materials to be technically feasible and economically profitable, much more than what is generated now in Woodpolis industrial area.

Probably, the best potential for local bio-refinery production would be in high priced bioactive compounds or upgraded raw materials intended for uses like in health products, cosmetics, or food products. In all cases, new bio-refinery production in the Woodpolis area requires investments and operating capital, and attraction for new initiated entrepreneurship. There are no ready-made solutions for a new bio-refinery production. Technical implementation must be planned and tested on a realistic raw material basis and market perspective with a convincing proof-of-concept before the start of a full scale production. If they are realized, the new large-scale bio-refinery projects going on in Northern and Eastern Finland, St1’s bioethanol factory and KaiCell Fiber’s pulpmill and related bio-refinery activities being the closest, may increase quickly the demand of the side-streams generated in the Woodpolis industrial area.

The entrepreneurial community of Woodpolis Timber Cluster has worked together for a long time, which has enabled the refinement of joint development work and common practices. Therefore, Woodpolis can offer an example for other wood-based industrial clusters of the same kind about good practices, collaboration between SMEs and large companies regarding cooperation and new options to acquire and market raw materials, as well as product and service development activities.

Entrepreneur Enabler Scheme EES Roll–out completed successfully in Finland

KUAS

The roll-out of the GREBE EES in North Karelia took place in February-April. Three companies Eno Energy Cooperative, Rajaforest Ltd. and Havel Ltd. attended in mentoring sessions together with the Spiralia Ltd. – an experienced SME mentoring and consultancy. The results of the EES were positive: there was initiation of new business cooperation, business plan development for a new innovative technology, introduction of LEAN quality management principles, among others.

Eno Energy Cooperative is in a phase of business renewing and thus the focus was in creating and diversifying collaboration with other energy enterprises. These discussions identified opportunities to cooperate in acquisitions and raw material procurements, and potential of additional business activities in wood fuel sector. Rajaforest Ltd. had a technology development case on biomass drying and received support in business planning. Havel Ltd. Benefited from information on renewable alternatives for plastic raw materials, as well as introduction of LEAN quality management in production.

The EES process was rolled-out successfully as it resulted in new collaborations and business activities. The process, developed in GREBE project, will be further adopted for regional use in North Karelia. It was identified that there is still further work to do to establish stronger mentor networks, develop orientation guidance for attending businesses, disseminate the scheme for larger audience, and establish funding base for the service. One potential continuation is to integrate the EES into a new regional renewable energy research and development project prepared by the Karelia UAS and Finnish Forest Centre.

The GREBE project meets in Thurso, Scotland in May 22nd-24th, which provides a unique opportunity to share the EES roll-out experiences between the NPA Programme regions.