Northern Ireland Forum

for

Political Dialogue

~~~~~~~~~

WILLOW BIOMASS AND

RENEWABLE ENERGY

A REPORT

PREPARED BY STANDING COMMITTEE D

(AGRICULTURE & FISHERIES ISSUES)

~~~~~~~~~

Presented to the Northern Ireland Forum for Political Dialogue

on 24 April 1998

Note

DRAFT REPORTS

This report has been prepared by Standing Committee D for

the consideration of the Northern Ireland Forum for Political

Dialogue. Until adopted by the Forum in accordance with its

Rules, this report may not be reproduced in whole or in part

or used for broadcast purposes.

CONTENTS

Section Page

1. INTRODUCTION 1

2. RENEWABLE ENERGY 4

3. WILLOW BIOMASS 11

4. CONCLUSIONS AND RECOMMENDATIONS 15

Annex A - Membership of Standing Committee D

Annex B - Minutes of Proceedings

Annex C - Oral Evidence - Northern Ireland Agricultural Producers'

Association

Annex D - Oral Evidence - Ulster Farmers' Union

Annex E - Oral and Written Evidence - Mr J Gilliland, Brook Hall

Estate

Annex F - Oral and Written Evidence - Director General of Electricity

Supply for Northern Ireland

Annex G - Oral and Written Evidence - Energy Division, Department

of Economic Development

Annex H - Oral and Written Evidence - Department of Agriculture for

Northern Ireland

Annex J - Oral and Written Evidence - Viridian plc

WILLOW BIOMASS

AND RENEWABLE ENERGY

1. INTRODUCTION

1.1 At the outset, the Committee acknowledges that over the years,

many of the available renewable energy technologies have been

adopted by the agriculture industry. That the Committee has chosen

to address willow biomass - one type of energy crop within one of

many technologies (biofuel) - should not be seen as undervaluing any

of the remaining technologies. The Committee's selection of willow

biomass as the topic for this report is based on its importance as an

alternative land use for farmers.

1.2 The interest of Standing Committee D in the potential for energy

production from willow biomass was sparked in the course of a visit

to the Northern Ireland Horticulture and Plant Breeding Station at

Loughgall in early 1997. As a result of this visit, the Committee

decided to examine this topic in greater detail on its return to

business after the summer recess of the Forum in 1997.

1.3 Because of other pressures, it was not possible to commence this

examination until October 1997, when the Committee made a second

visit to Loughgall. In the course of this visit, the Chief Scientific

Officer of the Department of Agriculture for Northern Ireland,

Dr Cecil McMurray and his staff showed the Committee the

1

advantages of agroforestry (sheep grazing within a specially

prepared and planted ash plantation), poplar plantations and willow

coppice. The Committee was also taken to Castlearchdale to see

standing crops of willow coppice, to hear about the cultivation and

harvesting of willow coppice and to be informed about the diseases

which affect the willow plants.

1.4 Also in late October 1997, the Chairman of the Committee was

invited to the commissioning of a gasifier and combined heat and

power system at the Brook Hall Estate Biomass Project of

Mr John Gilliland in Londonderry. The aim of this project, the first

of its kind in Europe, is to demonstrate small scale combined heat

and power technology through the gasification of biomass, willow

woodchip, sourced from the first commercial willow coppice in

Ireland. Background information on this project is included in

Annex E.

1.5 In the course of a visit to Enniskillen College of Agriculture on

12 November 1997 the Committee was given a demonstration of the

prototype gasifier which uses willow biomass to provide heat and

power to the College.

1.6 The Committee then decided to obtain further evidence from a

number of sources and the following oral evidence sessions were

arranged.

2

13 November 1997 - Northern Ireland Agricultural

Producers' Association

27 November 1997 - Ulster Farmers' Union

9 December 1997 - Mr John Gilliland, Brook Hall Estate

18 December 1997 - Office of Electricity Regulation for

Northern Ireland

2 February 1998 - Department of Economic Development

- Energy Division

5 March 1998 - Viridian plc (ex-Northern Ireland

Electricity)

1.7 In presenting this report, the Committee first examined the evidence

obtained on the wider issue of renewable energy before covering

the development of willow biomass since the early 1970s, and then

proceeding to deal with its conclusions and recommendations.

1.8 The Committee wishes to thank all those who assisted in and

contributed to this report, in particular those who took time to

prepare and present written and oral evidence.

3

2. RENEWABLE ENERGY

2.1 In its memorandum on renewal energy in Northern Ireland, (see

Annex G) the Department of Economic Development (DED)

explains that renewable energy has an important role to play in

helping to tackle the serious threat of climate change, primarily by

reducing carbon dioxide emissions. By comparison with fossil

fuels, it is pointed out that renewable sources of energy produce

much lower quantities of greenhouse and acid gas emissions - some

renewal technologies producing none.

2.2 Renewable energy sources - those which are renewed and replaced

within a short timescale - have been in use in Northern Ireland for

hundreds of years eg windmills and watermills. Present day

renewable technologies such as those based on wind, waste, solar

power, hydro-electric power, wave energy, geothermal energy, tidal

power and biofuels, are much more sophisticated - and some are

now producing electricity for the grid. On Slievenahanaghan

Mountain, Co Antrim, there is a 40 metre tall wind turbine which

delivers 300 Kw of power into the grid. A wind-diesel scheme has

recently been installed on Rathlin Island. Newmills Hydro

Generation Ltd has installed a 22 Kw hydro electric turbine at Inver

Mill, Larne, Co Antrim. At Templepatrick, along the Clady River,

Portmore Engineering has installed a cross-flow turbine which

provides 25 Kw of power during about 200 days of the year.

Northern Ireland Industry is involved in active and passive solar

devices - Thermomax of Bangor, Co Down, being one of the major

4

manufacturers of solar equipment in Europe. At Bangor and

Newtownards, Co Down, Richmond Reproduction Manufacturers

and W L Doggart and Sons have installed wood burning boilers to

heat their premises, supply hot water and at the same time eliminate

the problem of the disposal of wood waste. Larger schemes

burning wood waste for process purposes are to be found at

J P Corry (for timber curing) and at Spanboard, Coleraine (for

heat-setting chipboard). Larger schemes for power generation from

municipal solid waste are being considered for Belfast. The

Department of Agriculture for Northern Ireland leads Europe in the

research and development of willow and poplar coppice.

Pioneering work on the digestion of farm slurries has been

conducted at Our Lady of Bethlehem Abbey at Portglenone, where

the methane gas produced is used to heat both the monastery and

the digester. A pig slurry digester has been installed at

McGuckian's Farm near Cloughmills, Co Antrim. At Lyttle's Farm,

near Waringstown, electricity is being generated from farm slurry

digester biogas for on-site consumption. It should be noted that the

above projects are only consuming a small proportion of what is

available for exploitation in Northern Ireland.

2.3 To encourage the stimulation of new and renewal forms of energy in

Northern Ireland, the Electricity (Northern Ireland) Order 1992

(which mirrored GB legislation) was enacted, empowering DED to

place a non-fossil fuel obligation on Northern Ireland Electricity

(now Viridian plc), requiring it to contract through non-Fossil Fuel

Orders (NFFOs) with generators for the supply of power from

non-fossil fuel sources. In the same year, a collaborative study was

5

commissioned - "Prospects for Renewable Energy in Northern

Ireland" - a copy of which is attached at Annex G.

2.4 To date, two NFFO Orders have been made, in March 1994 for

16 Mw and in September 1996, also for 16 Mw. NFFO contracts

are awarded after open competition, are subject to necessary

planning and other statutory consents, and last for 15 years. NFFO

developers receive varying premium prices for their electricity,

however it is indicated that bid prices will converge with each

succeeding NFFO competition towards the costs of traditional fossil

fuel power generation.

2.5 DED pointed out that to date, Northern Ireland has secured 32% of

its NFFO target (45 Mw by the year 2005).

2.6 DED also explained that in addition to the NFFO regime, two other

measures have been used to stimulate development of renewable

potential - the Energy Demonstration Scheme and the EU

INTERREG programme - both of which are explained in detail in

the DED memorandum.

2.7 The Committee also noted that DED is participating in an ongoing

wide review of new and renewable energy policy which is being led

by the Department of Trade and Industry - a review which aims to

examine how the United Kingdom might achieve a target of 20%

electricity from renewable sources by 2010.

6

2.8 When representatives of DED met with the Committee to discuss

renewable energy, it was explained that since preparing the

memorandum, significant developments had occurred. A review of

renewable energy is presently being conducted by the Government -

a review which could lead to a new renewable energy strategy or

policy for the United Kingdom and in addition, a Government

review of energy policy in its totality is under way. Further, it was

also indicated that the European Union had produced a White Paper

on renewable energy, the thrust and direction of which will have to

be reflected by Government in any new energy policy for the United

Kingdom.

2.9 The Director General of Electricity Supply for Northern Ireland,

Mr Douglas McIldoon, indicated that his role as regulator has

permitted him to act as a catalyst and as an energy policy instigator

in relation to the renewable energy market, taking action such as

- highlighting the opportunity which exists for Viridian plc to

develop a 'green' tariff;

- pushing for regulations which will allow the transmission of

electricity across the Viridian transmission and distribution

system, and in particular, will permit renewable generators to

sell electricity to third parties using the Viridian system - a

situation which will uniquely advantage renewable generators

whereas fossil fuel generators will be restricted to transmitting

their surplus electricity to remote sites of the same company or

organisation.

7

2.10 Mr McIldoon supported the development and expansion of

renewable energy sources in Northern Ireland and the extension to

customers of the right to choose electricity from a renewable source

should that be their preference. He also pointed to the substantial

benefits to be gained from agriculture based renewable energy - eg

increased income and jobs in the rural areas, reduction in carbon

dioxide emissions, environmental sustainability (the ability always

to grow willows or to turn manure into energy), fuel diversity and

the improvement of social structures in rural areas. However he

also listed the problems - eg a demand is needed before a supply

can be provided, the high cost of renewable energy installation and

the lack of market enablement mechanisms. In examining the

opportunities which exist for renewable energy, he indicated that a

niche market existed for self-generation, that customers who wish to

purchase 'green' electricity should be able to do so and that trading

at peak demand - ie selling electricity at peak times at a high price -

should be introduced.

2.11 Mr McIldoon called for a comprehensive cost benefit study to

examine the benefits to be gained from renewable energy -

particularly those which have little or nothing to do with the price

factor - eg rural development and social factors. He also explained

that Viridian is permitted to own 5 megawatts of renewable

generation (they own the renewable energy production on Rathlin

Island). However, he pointed out that he would be happy to

increase the present limit of 5 megawatts of owned renewable

generation should Viridian show any interest. In addition, he said

8

"......But they (Viridian) will not get involved in

supporting these kind of village schemes. If they came to

me and said 'We would like to develop renewables.

Some of this is a bit risky, but we believe that it is in the

long-term interests of the community. Will you make an

allowance for us in the price control? Perhaps 30p to 40p

per customer could be added into a fund to develop

renewables.' I would have to look at that seriously. It is

certainly not a proposal that I could reject out of hand."

Mr McIldoon went on to say that if Viridian is to be persuaded to

move in the direction of the development of community projects,

then the Board must be persuaded.

2.12 The Committee noted that Viridian in examining renewable energy,

applies four main criteria:

- environmental impact;

- customer demand;

- community input;

- cost effectiveness.

The Committee was interested to learn that an environmental tariff

will be launched shortly which will for the first time give customers

the opportunity of indicating that they want renewable 'green'

energy.

9

2.13 With regard to biomass, the Committee also noted that Viridian has

concluded that willow is worthy of further examination and support

through the development phase. Mr McCrea, in his evidence to the

Committee stated:

"We are looking at the willow now and it looks as though it

is a technology which is very appropriate for Northern

Ireland. It is getting over its teething problems and we might

invest some capital in its development. So far we have made

no R&D investments in such projects."

2.14 The Committee welcomes the commitment shown by Viridian to

renewable energy generation in the future. Mr Gaston of Viridian

indicated that while Government and European bodies play a major

role in providing assistance to develop research and development

capacity, Viridian

"intend to increase our profile and take more of a leading role

in that regard ......."

10

3. WILLOW BIOMASS

3.1 As explained by the Chief Scientific Officer of the Department of

Agriculture for Northern Ireland (DANI), interest in growing short

rotation willow coppice in Northern Ireland began in the 1970s as a

response to a projected world shortage of cellulose for paper

manufacture. Subsequently the Middle East oil crisis of the

middle-1970s led to a change of emphasis. Willow biomass was

then seen as a potential energy source both in terms of

diversification of supply and as a response to escalating prices.

This oil crisis was however, resolved and the foreseen problems did

not materialise.

3.2 Since then, DANI has continued the research and development of

willow and is now leading the United Kingdom and Europe (with

the possible exception of Sweden) in this field.

3.3 The detailed research and development activities of DANI, past

present and future are set out in the paper prepared by the Chief

Scientific Officer which is attached at Annex H.

3.4 In addition to the research and development efforts on the

horticulture and plant breeding aspects of willow biomass, the

Department has devoted considerable time and resources since the

early 1990s to the use of the willow biomass crop for gasification

and combined heat and power. A prototype unit was built and

installed at Enniskillen Agricultural College to generate electricity

11

which can be fed into the grid, using the waste heat to heat the

intake water for the College. This was the first ever integrated

facility of its kind in the world.

3.5 Having proved the concept DANI has now transferred all the

technology of generation to Rural Generation Limited who are

taking the system forward as a commercial enterprise and who are

hoping to market it in the future on a world-wide basis.

3.6 The Committee was most interested in the evidence given by the

Chief Scientific Officer about the detailed research and

development which has been devoted to willow biomass over a long

period, and the future activities in this area which will be required.

The Committee noted that DANI sees rural renewable energy

generation being applied in future to small, integrated projects -

although larger projects could be considered. With regard to the

economics of short rotation coppice, it was explained that farmers

should not enter coppice production on a short-term basis - a

long-term commitment is required to obtain a positive response.

Dr McMurray stated

"Short rotation is only viable on a significant scale if planted

on grassland in Northern Ireland. You are probably aware

that there is a very limited amount of set aside with respect to

cereal crops, so if we have to put it only on to arable ground,

it is not going to make a very big impact. We really have to

be thinking that if it is going to make a significant impact

here, it is going to have to go on to grassland. The

12

establishment costs are likely to drop significantly as the

scale increases. Benefits are expected in terms of

maintaining rural employment with an integrated

production/utilization chain ......."

Dr McMurray also pointed out that if the national carbon dioxide

target reduction of 20% by 2010 is to be reached, short rotation

coppice will be required as the target cannot be met solely by other

means. It is for this reason that Dr McMurray stressed the

importance of a national strategy for biomass which is capable of

being adapted for Northern Ireland use.

3.7 The Committee was also very impressed with the vision,

enthusiasm, expertise and persistence of Mr John Gilliland of Brook

Hall Estate. Mr Gilliland has been a trail-blazer with regard to the

development of renewable energy generation using willow biomass,

being the first person to produce willow biomass as a commercial

crop and the first person to generate electricity using willow wood

chip and sell it on the grid. Rural Generation Ltd, of which

Mr Gilliland is Chairman, won the contract from the Department of

Agriculture to commercialise the biomass generation technology.

Indeed, Mr Gilliland indicated that a multi-national oil company has

approached Rural Generation Ltd, wishing to sell 100 power plants

per year, as from mid-1999, to developing countries such as

Ethiopia, Morocco, Guatemala and Uruguay.

3.8 In the course of his evidence to the Committee, Mr Gilliland stated

that he was lobbying very hard for energy crops to be recognised as

13

a bona fide land use so that when the Agenda 2000 package is

eventually agreed, such crops will be on the same level playing field

as other agricultural commodities. He also pointed to the

advantages for borough or district councils using willow biomass,

indicating that there is room for partnerships between councils and

farmers, and explaining that his local council is to commence a

project in the near future.

3.9 The Committee, being aware of the benefits to the rural community

of projects such as willow biomass, was disappointed to hear of the

lack of co-operation extended to Mr Gilliland by the Rural

Development Branch of DANI. The Committee was, however,

pleased to note that the Chief Scientific Officer of DANI and the

head of the relevant DANI policy division did show interest - and

was particularly pleased to hear that the Permanent Secretary of

DANI made a personal visit to see the Brook Hall Estate project.

3.10 The Committee was also interested to hear from Mr Gilliland that

the Energy Directorate of the European Commission has supported

the need for energy crops and industrial crops and alternative land

use to be included in the Agenda 2000 proposals.

14

4. CONCLUSIONS AND RECOMMENDATIONS

4.1 When the Committee commenced this examination of willow

biomass, it did not anticipate that its interest in the research and

development aspects being undertaken by DANI would lead to such

a wide-ranging report.

4.2 The Committee was very impressed with the detailed research and

development pioneered by Malcolm Dawson of DANI into willow

biomass since the early 1970s and having seen and discussed it with

the Chief Scientific Officer of DANI, Dr Cecil McMurray and with

Mr Dawson, can understand why the Department is leading the way

nationally and internationally in this area. The enthusiasm and

expertise generated by the DANI staff is most commendable. The

Committee acknowledges that while some 25 years have been

devoted to the research and development of willow biomass, more

effort is needed and therefore recommends that DANI should

continue to devote resources to this particular topic to ensure that

the prime position enjoyed by Northern Ireland with regard to

willow biomass research and development is maintained in the

future.

4.3 The Committee regards research and development is a most

important sector of work in the Department. However, the

Committee recognises that when times are hard and resources are

needed elsewhere, it is easy to stop research and development

projects, using the money saved in what are seen as more important

15

areas of work. The Committee regards such action, if taken, as

short-sighted and recommends that DANI should sustain the

research and development budget as an important contributor to its

overall operations.

4.4 The Committee notes that at present, the Government is not only

conducting a review of renewable energy, but also a review of

energy policy in its totality, and that the European Union White

Paper on renewable energy will influence the content of both

reviews. The Committee awaits both reviews with interest. The

Committee recommends that in finalising these reviews,

Government should ensure that the development and expansion of

renewable energy sources is given top priority and that, in

particular, a national strategy for biomass is developed - otherwise

there will be no chance of meeting the stated national carbon

dioxide target reduction of 20% by 2010.

4.5 The Committee was most interested in the evidence of the Director

General of Electricity Supply for Northern Ireland, in particular his

conviction that a niche market exists for self-generation of

electricity, his belief that customers who wish to purchase 'green'

energy should be able to do so, and his suggestion that renewable

energy generators should be permitted to trade at peak demand

times. The Committee also noted the Director General's call for a

comprehensive cost benefit study to be conducted to examine the

benefits to be gained from renewable energy - particularly those to

be gained from rural development and social factors. The

16

Committee therefore recommends that the Energy Division of the

Department of Economic Development should ensure that these

matters are given attention in the reviews of energy being conducted

by Government, and that the Department should conduct the

comprehensive cost benefit study without delay.

4.6 In his evidence to the Committee, the Director General also

explained that Viridian are presently permitted to own 5 megawatts

of renewable generation (they are the renewable energy production

on Rathlin Island) and that he would be happy to increase this limit

should Viridian show any interest. He went on to indicate that

Viridian had shown no inclination to become involved in supporting

and developing small renewable energy schemes. However, when

Viridian representatives gave evidence to the Committee, it was

stated that they were now convinced that willow was worthy of

further examination and support through the development phase,

being a technology which is very appropriate for Northern Ireland.

The Committee was also pleased to hear that Viridian "intend to

increase our profile and take more of a leading role ......" with

regard to the development of research and development capacity.

The Committee therefore recommends that Viridian should without

any further delay put its stated plans for involvement in the

development of willow biomass into effect. The Committee wishes

in particular to see the Board of Viridian endorsing and aiding the

development of community based renewable energy projects,

particularly those using willow biomass. The Committee further

recommends that Viridian should without any further delay

17

introduce a voluntary environmental tariff to give customers the

opportunity of indicating that they want renewable 'green' energy.

4.7 In its report 'Northern Ireland Agriculture - Preparing for the

Future', the Committee addressed the proposals contained in the

European Commission's Agenda 2000 document. With regard to

rural development, the Committee identified the need to address

renewable energy generation in the rural community. The

Community endorses the view expressed by Mr Gilliland that

energy crops should be recognised as a bona fide land use. The

Committee therefore recommends that in putting forward its

proposals to the European Union on Agenda 2000, the Government

should stress the need for financial incentives such as subsidies and

capital grants to be given to encourage the provision of

environmentally sensitive systems, including the growing of energy

crops.

4.8 Having earlier in this report expressed its disappointment at the lack

of co-operation extended to Mr Gilliland of Brook Hall Estate by

the Rural Development Branch of DANI, the Committee

acknowledging the fact that rural renewable energy projects could

play in maintaining the social and other structures of the rural

community, recommends that DANI should ensure that projects

such as those involving willow biomass are given priority within its

rural development policy.

18

4.9 The Committee, recognising the benefits to be gained by local

government authorities, statutory Boards, industrial companies and

other large firms from the use of the willow biomass technology,

recommends that they should give serious consideration to the

feasibility of installation of gasifiers at their sites, contracting local

farmers to grow the willow biomass fuel. Further, the Committee

recommends that local government authorities should examine the

benefits of growing willow biomass on Council owned land as fuel

for gasifiers which could be installed at facilities such as swimming

pools and leisure centres. In addition the Committee, recommends

that local government authorities should investigate the advantages

of using the willow plant's ability to absorb materials which are not

regarded as environmentally friendly - eg toxic materials and

leachate at landfill sites and sewage sludge. The Committee also

recommends that local authorities and others involved in waste

management should investigate the advantages of segmenting and

stockpiling burnable waste which could be used for generation

purposes.

19

• Willow Biomass and Renewable Energy: Report by Standing Committee D (introduced on 1998-04-24 10:02:00 - CREATE_FROM - e841418) [This document] [view current proposal at this moment]
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  • None (introduced on 1998-04-24 10:02:00 - ADOPT_PROPOSAL - e841428) [view current proposal at this moment]