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

2014-10-21_bus_3962775_I1 (1)

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.

Online Presentation on the Community Farming Model and the REDIRECT project, Thursday 21st June from 11am – 12pm

Online Discussion

The ReDirect Ireland project would like to invite you to an online meeting on Thursday 21st June from 11am – 12pm. This is an opportunity to hear the details of a ReDirect Partner approach. In Wales a community trust called ‘Cwm Harry’ are taking existing residual biomass, putting it through the ‘IFBB’ process, followed by a pyrolysis, with the intent of producing biochar or activated carbon products and by-products for sale in the economy. They are in the process of getting the site operational. 

An online discussion around the community farm model experience in FFarm Moelyci (Wales) and the RE-DIRECT project aims to utilise waste or low value biomass for the production of energy and value added carbon products such as biochar and activated carbon.

Click here to register.

Contact:

Mr. Stephen McCormack, stephenmccormack@wdc.ie with any queries.

Power from Biomass project final seminar, Monday 11th June, Joensuu

KUAS

The Rural development programme co-financed Power from Biomass project completed its work in June 2018 after three years of renewable energy development in North Karelia, Finland. The project cooperating closely with GREBE in North Karelia, resulted in several new investments including two solar PV and energy storage systems in community buildings of Höljäkkä and Haikola in Nurmes. Project also established a regional network of 15 renewable energy demonstration sites.

The final seminar held in Joensuu, presented projects main outputs, latest developments in renewable electricity production, biomass-based small-scale combined heat and power, solar energy project of heat enterprises, and intelligent solar PV systems.

Project manager Antti Niemi from Pielinen Karelia Development Company PIKES Ltd. summarized the project results. The project established a regional demonstration network with 15 sites demonstrating renewable energy production systems. The Energiaraitti website presents the technical and economic information and live-information of solar PV systems. New production units established were mostly solar PV and some energy storages systems in farms, other rural enterprises and community buildings. The biomass-based renewable energy had a challenging business environment due to low price of fossil fuel oil. Despite, also some new biomass-based energy systems were established.

Project manager Kim Blomqvist from Karelia UAS presented the solar PV systems integrated into biomass-based district heating plants. Investments were made for 7 district heating plants with total annual production of 52 MWh. The heating plans were considered suitable for the solar PV as they have balanced electricity demand.

Marketing and product development manager Kimmo Tolvanen, representing regional energy company PKS, presented an in-depth overview of the energy system development in Finland and North Karelia. The main game changers in the energy system are expected to consist of wind and solar power production, energy storages and digitalization working all effectively together. The energy grid changes toward decentralised, intelligent and adaptive systems are evident. In addition, electricity markets are in transition, and new service developments are expected throughout the system from production to consumption.

Project coordinator Anssi Kokkonen from Karelia UAS presented the technical solutions of biomass-based combined heat and power production. The solutions included woodchip gasification plant (Volter Ltd.), Nano-chp Stirling engine (9 kWth + 0.6 kWe), fuelled by wood pellets (Ökofen).  Both solutions are demonstrated at Sirkkala Energy Park by Karelia UAS.

Project manager Toni Hannula from energy company ESE (Etelä-Savon Energia, Mikkeli) presented intelligent solar power systems. The smart energy transition project by Lappeenranta Technological University has generated an overview of the systems change. The ESE has been successful in establishing biogas fuel stations, and piloting intelligent solar PV systems with 48 hours production forecast and directing the production optimally depending on energy price (electricity spot-price optimizing) and production and consumption loads. The system is piloted in Lumme Energia Oy estates.

The Power from Biomass project developed as a diverse renewable energy project and delivered several new services and RE production sites were established. The project had an international element through cooperation and networks of the GREBE project.