Woodfuel supply chains present and future Ian Tubby PPG Woodfuel Officer Forestry Commission England

2 Presentation overview Where woodfuel fits into the energy mix How woodfuel is currently used, and FC involvement in the sector Suggest what could happen in the future

3 Energy Demand Rises 2% pa The Energy Hierarchy: Conservation, Efficiency, Renewable 80% Carbon reductions by % Renewables by 2020

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5 Barriers to progress Many woodlands not managed for 50+ years Engaging with woodland owners - 80,000 owners 43 Woodland Officers. Small skills base in both forestry contractor and boiler installer sectors Small number of boilers in use Fuel quality poorly understood, boilers need specific moisture contents and chip sizes to work High capital cost of boilers and fuel processing kit, uncertain and sometimes confusing grants for both fuel producers and end users Public perception of forest management

6 Wood Fuel Strategy for England Published in March 2007 Describes six aims Not rule out support to any development, but prioritise the development of local heat. Regional examples/case studies

Current markets Most common application is heat production using woodchips, logs or pellets Typical scale is between kW (around 3000 installations at present) Generally a single boiler in a single building Growing interest in and application of ‘district heating’ systems - 1 boiler serving many buildings Creation of many small markets each using 10s or 100s of tonnes suits scattered distribution of privately owned woodland Many estate or farm based business starting with self supply Energy Supply Companies - sell heat not woodchip

8 Woodchip for fuel

Typical boiler installation

10 Don’t forget firewood

11 Power generation 16 biomass fired powerstations up and running in the UK, roughly half use wood, stimulated by Renewables Obligation ~30 planned of which 11 will use wood IF all go ahead this will require 30 million tonnes of biomass. Many planned plants located on the coast, ready for imports In 2005 Cofiring market used 1.5million tonnes of biomass (and 52million tonnes of coal) Concern over what this market will do to non fuel markets…. ….but some wood processors have invested or are looking to invest in power and/or heat generation equipment

12 Fuel prices Gas and oil both around 4p per kWh Wood chips for heat 2.3p - 3.0p per kWh (£80 - £105 per tonne delivered) Wood pellets for heat 3.9p per kWh (£185 per tonne delivered) Wood chips for power generation £ per tonne delivered Logs £120 a tonne delivered? Very variable, often sold by the ‘load’ Domestic house uses around 20,000kWh a year or about 6 tonnes of seasoned wood Prices vary around the country and are very sensitive to delivery distance

13 Lets not forget TIMBER

14 Anderwood cottages, New Forest

15 Wood Fuel Strategy for England Deliver at regional/sub-regional level, supported by a national core of research & development, advice and advocacy.

16 But cutting down trees is bad isn’t it? Wildlife Link Statement 2009 Endorsed by 13 NGOs including RSPB, Wildlife Trusts, Woodland Trust, Friends of the Earth, Butterfly Conservation Amounts to 8.3million people

17 Research and development FC funded research has focused on: Systems and equipment evaluation, chippers, harvesting heads, time studies Attitudes of woodland owners to woodland management - how can we unlock the potential? Case studies of fuel supply businesses and boilers Development of CEN fuel quality standards - very technical but could ultimately improve consumer confidence Brash baling, site selection decision support

18 Biomass Energy Centre Established in 2006 Telephone and enquiries answering service Covers all aspects of fuel production and end use Around 70,000 page hits each month and 120 enquiries Currently lists 300+ fuel suppliers this helps give confidence to the end user Access to FR research team and experts and practitioners in both public and private sector BEC stand in FC tent at APF

19 Confidence, Confidence, Confidence Biomass Heating - A Practical Guide for Potential Users -

20 Wood Fuel Strategy for England Manage more existing woodland as a priority but use other woodfuel sources to add support and flexibility to the system

21 Unharvested resource

22 Woodland Grant Scheme (EWGS) Woodland Planning Grant £1k /Plan minimum Woodland Improvement Grants Woodland Assessment Grant Woodland Regeneration Grant Woodland Management Grant Woodland Creation Grant Advice from 43 Woodland Officers - 80,000 owners?

23 Improved infrastructure No management for years Access tracks absent or unfit for modern vehicles Access unlocks the resource for all markets, not just fuel

24 E. Nitens 6 years old, unthinned Pictures courtesy of John Purse, PrimaBio Increasing the resource

25 SRF viability in Britain Defra funded trials in England FC conducting trials in Scotland Growth rates, establishment, water use, economics, public perception Native and non native species

26 Wood Fuel Strategy for England Maintain high environmental quality in all activities

27 Sustainability criteria Driven by EU Renewable Energy Directive but to be developed on a national basis For government and society, no point in using biomass if this leads to deforestation and environmental damage For the industry, demonstrating sustainability gives public confidence and ensures future resource availability Need to balance need to regulate international supply chains against admin burden on small scale domestic suppliers UK Forestry Standard provides a framework for sustainable forest management. Evidence of compliance already available in the form of felling licences and management plans

28 The Future Tough decisions to make on land use, energy supply technologies, energy consumption levels We import: 70% of our coal, 23% of our gas, 7% of our oil We can’t grow enough biomass to meet all of our energy needs Steam turbine power stations and internal combustion engines % efficient Do we try and increase efficiency? Or reserve oil and biomass for production of plastics and building materials and use wind and nuclear for power generation?

29 Heat Likely to see continued volatility in gas and oil markets Continued growth of small to medium scale heat projects based around farms and estates Rate of growth may depend on level of Renewable Heat Incentive due in April 2011 Development of more Energy Supply Companies Continued interest in stoves Increase in use of particulate and NOx abatement kit

30 Fuel Poverty ‘Completely out of money for gas, Billen took apart a shelf unit to use as fuel in her fireplace. “I figured I needed it more for heat than storage”.’ Guardian 17 th Jan 10

Power generation International trade in biomass for power generation likely to increase Power generators becoming interested in forestry? CHP - Steam turbines, 4:1 heat to power ratio Several manufacturers developing technology in the kWe Carbon Capture and Storage on ‘carbon negative’ biomass plant?

32 Waste wood resource 5 million tonnes from construction & demolition 4.4 million tonnes from other industry Separation Contamination Regulation

33 Liquid fuels A handful of plants exist Choren in Frieberg Produces ‘SunDiesel’, synthetic fuel from wood In future, do we want to use biomass to produce liquid fuels? Mass flow – 5 tonnes of dry wood to produce 1 tonne of diesel Probably of limited interest to woodland owners in the UK Picture taken fom

34 In Summary Woodfuel industry is small but market opportunity significant Needs of existing markets to be taken into account when trying to stimulate new markets Attractive financial return to woodland owner needed to mobilise unmanaged woodland Which ever energy and material technologies are adopted, forestry is likely to play a significant role Wider stakeholder support crucial We need to improve awareness, access and markets today to benefit tomorrow!

35 Bye and…... Thank you!