Opportunities for biomass as fuel Bernard Rice

Why biofuels now? Increasing mineral fuel prices Need for new farm enterprises Need for secure fuel supply EU Directives/obligations Kyoto Protocol, Transport Biofuels DirectiveKyoto Protocol, Transport Biofuels Directive

Factors limiting progress Limited excise relief for road biofuelsLimited excise relief for road biofuels Low price for renewable electricityLow price for renewable electricity High cost of biomass boilersHigh cost of biomass boilers Lack of boiler fuel supply chainsLack of boiler fuel supply chains

Biofuel possibilities LIQUID BIOFUELSLIQUID BIOFUELS –Veg oil/fats as biodiesel or in modified engines –Ethanol from cereals, beet –“Biofine” process, ethanol from straw/wood SOLID BIOFUELSSOLID BIOFUELS –Straw, wood residues –Short-rotation willow + effluent disposal –Other energy crops (e.g. miscanthus, hemp) –Biogas + food wastes

In this talk Vegetable oilVegetable oil Ethanol from wheat, beetEthanol from wheat, beet Wood residues, strawWood residues, straw Energy crops + effluent disposalEnergy crops + effluent disposal

1. Liquid biofuels (oils and fats)

Transport Biofuels Directive substitution targets (%)

To achieve 2% substitution Petrol1.5 PJ= 70 ML ethanolPetrol1.5 PJ= 70 ML ethanol = ha beet= ha beet » or = ha cereals Diesel1.7 PJ= 86 ML oil/fatDiesel1.7 PJ= 86 ML oil/fat » e.g. = 30 ML biodiesel ( RVO/tallow) » + 50, 000 ha rape

Transport Biofuels Directive: MOTR Scheme Proposes excise relief on:Proposes excise relief on: –6 Million litres vegetable oil ( ha rape) –1 Million litres biodiesel –1 Million litres bio-ethanol (250 ha beet) Cost of excise foregone ~€3MCost of excise foregone ~€3M –most would be recovered in VAT, income tax etc Substitution achieved ~0.1%

July 6, 2005: European Union sends Reasoned Opinions to 9 Member States (including Ireland) for failure to implement European legislation on biofuels

Oil/fatuseoptions Convert to biodiesel Use in modified engine Use for heating ~Projects in planning ~Projects in planning 3 plants operating Tallow in rendering plants (40,000 t)

Delivered fuel costs

2. Liquid biofuels (Ethanol)

BIO-ETHANOL Current Irish options Produce from wheat or beet Produce from wheat or beet Add 5% as octane booster to petrol Add 5% as octane booster to petrol Replacement for MTBE or lead Replacement for MTBE or lead (no engine modifications needed)

Delivered cost of ethanol ( wheat €120/t, beet €40/t)

Ethanol yields From wheatFrom wheat –350 litres per tonne –3000 litres per ha From sugar beetFrom sugar beet –90 litres per tonne –4500 litres per ha

Ethanol from wheat, beet For 2% substitution 25,000 ha beet or 35,000 ha wheat –Needs Large scale Excise relief Investor/promoter interest

From Liquid Biofuels Strategy Study for Ireland (sei.ie)

GHG impact of 2% substitution Biodiesel1.5 PJ = 86 MLBiodiesel1.5 PJ = 86 ML ~ 130,000 t CO 2 ~ 130,000 t CO 2 Bio-ethanol1.9 PJ = 70 MLBio-ethanol1.9 PJ = 70 ML ~ 168,000 t CO 2 ~ 168,000 t CO 2

Other environment impacts Cereal breaks desirable (beet, rape) Spring vs winter rape? Rape pollen effects? Visual impacts? Overall, little impact expected

Economic impact If 2% substitution keeps the required land in tillage, benefit to farm output would be ~ €90M

3. Solid biofuels (wood residues, straw, energy crops as boiler fuels)

Large quantities of both available Wood use now developing Many companies active Fewer options for strawFewer options for straw More difficult fuel More difficult fuel No market leaders No market leaders Wood residues and straw

Estimate of wood residue in excess of current demand, (ktonne)* 1 t of this wood abates about 3/4 t of CO 2

Current straw uses (1.1 Mt)

Wood/straw fuel markets (1) Boiler fuel –Medium size units kW –Value of heat ~€200/t of biomass –High-efficiency modern wood boilers –Several wood units installed –Is there an opening for straw?

Wood chip boiler (Oak Park) Efficient, expensive, needs capital grantEfficient, expensive, needs capital grant Suitable for wood onlySuitable for wood only Supply chains neededSupply chains needed

Cost of biomass heating systems (Austrian study)

Questions about straw pellets Suitability for stove market –higher ash content –binding problems –more corrosion –emissions? What scale is needed?

Willow used as boiler fuelWillow used as boiler fuel Sites used forSites used for –sewage sludge injection Rapid progress in N.I.Rapid progress in N.I. Potential for 3000 haPotential for 3000 ha –trickle irrigation of dilute effluents Several projects under waySeveral projects under way Promising results to datePromising results to date Full potential not establishedFull potential not established Energy crops and waste disposal

Sewage sludge injector (N.I.)

Energy crops and waste disposal Research needed onResearch needed on –volume and composition of effluents –uptake by energy crops Liaison needed withLiaison needed with –local authorities, EPA –heat users –effluent producers

Miscanthus High yield. High establishment cost.Easy to maintain and harvest. Handling and burning still problems

Annual crop. High yield. High production cost. Low moisture at harvest. Fibre + fuel. Hemp

Conclusions Some biofuel opportunities emergingSome biofuel opportunities emerging They needThey need –Clear govt policy and supports more extensive road excise reliefmore extensive road excise relief grants for biomass boilersgrants for biomass boilers establishment grants for energy cropsestablishment grants for energy crops Realistic price for renewable electricityRealistic price for renewable electricity –Pilot projects in newer technologies