Northern Ireland Assembly Flax Flower Logo

The Committee for Agriculture And Rural Development

Inquiry into Renewable Energy and Alternative Land Use

Written Submission

Action Renewables
Agri-Food and Biosciences Institute
Allied Biodiesel Industries
B9 Organic Energy
Carbon Trust
Committee of Culture, Arts and Leisure
Department of Agriculture and Rural Development
Department of Education
Department for Employment and Learning
Department of Enterprise, Trade and Investment
Department of Environment
Department of Finance and Personnel
Farm Woodlands
Green Energy Ltd
Home Energy Conservation Authority
Mr JWI Duff
Northern Ireland Authority for Utility Regulator
Northern Bio Energy Ltd
Northern Ireland Energy Agency
Northern Ireland Environment Link
Powertech Ltd
Rural Development Council
Rural Generation Limited
Ulster Farmers’ Union
Woodland Trust
WWF Northern Ireland

Action Renewables

Contact: Dr Andy McCrea, Director, The Innovation Centre, NI Science Park, Queens Road, Belfast BT3 9DT. Tel: 028 90737856 e-mail: andy.mccrea@actionrenewables.co.uk

Action Renewables Background

1.1 Action Renewables was established in July 2003 and since then it has been supported by the Department of Enterprise, Trade and Investment (DETI). It was created in response to European, National and Northern Ireland government commitment to renewable energy as one strand of the policy to combat climate change, environmental pollution and to increase fuel diversity.

1.2 The objectives of Action Renewables are to significantly raise awareness of the impending threat from climate change, the depletion of resources and the security of our energy supplies. Action Renewables’ aim to increase understanding of the issues associated with conventional energy use and to promote renewables generally in the context of a possible solution. In meeting these objectives we hope to win the hearts and minds of makers and opinion formers.

1.3 Action Renewables is established as a private company, limited by guarantee with charitable status.

Submission based on the Terms of Reference:

(a) The recent and current policy framework for the development of renewable energy in Northern Ireland, focussing on but not limited to those policies developed and implemented by the Department of Agriculture and Rural Development.

2.1 There is a range of policies and targets affecting decision-making in Northern Ireland which directly, or indirectly, promote the use of renewable energy generating technologies (Table 1).

Table 1: Selected Policies and Targets promoting AD in Northern Ireland

Policy Target Period
Kyoto Protocol – UK Target Reduce CO2 emissions by 12.5% below 1990 levels 2008 - 2012
UK domestic target Reduce CO2 emissions by 20% below 1990 levels 2010
UK domestic target Reduce carbon emissions by 60% 2050
Nitrates Action Programme Spreading organic manure only within a designated period Closed period – 15th Oct to 31st Jan
Nitrates Action Programme Maximum of 170 kg total N per hectare per year from livestock manures applied to the land, including by the animals themselves Outside closed period
European Council Statement on 9th March 2007 20% of total EU energy mix to come from renewable sources 2020
Strategic Energy Framework 12% of all electricity consumed in Northern Ireland is obtained from indigenous renewable energy sources 2012
Strategic Energy Framework 15% of the renewables mix should be generated from renewable resources other than wind 2012
Northern Ireland Renewables Obligation Electricity supply companies in Northern Ireland obliged to supply up to 6.3% of their electricity from renewable resources Up to 2012
Waste Management Strategy Reduce the quantity of biodegradable municipal waste being landfilled to 35% of the 1995 level 2020
Waste Management Strategy Compost or recycle 45% of household waste 2020
Northern Ireland Sustainable Development (NI SD) Strategy Reduce greenhouse gas emissions by 25% below 1990 levels 2025
NI SD Strategy Make the Government estate carbon neutral 2015
NI SD Strategy Establish a renewables centre of excellence at AFBI Hillsborough 2008

2.2 In Northern Ireland, the total greenhouse gas emissions in 2005 were 5.5% below 1990 levels. Overall, however, the UK showed a 15.8% reduction on 1990 emissions of greenhouse gases. Northern Ireland’s performance is poor when compared to the UK total, and indeed, emissions from the industrial and transport sectors in Northern Ireland continue to rise. In particular, emissions associated with the production of energy have risen from 14.8 Mt CO2 equivalent in 2002, to 15.4 Mt CO2 equivalent in 2005.

2.3 Emissions of greenhouse gases from the agricultural sector are also higher per head of population in Northern Ireland than in the UK as a whole, accounting for 9.7% of UK agricultural emissions in 2005 yet being home to only 3% of the population. This reflects the importance of agriculture to the economy of Northern Ireland, but also provides opportunities to improve Northern Ireland’s record on reducing greenhouse gas emissions (Greenhouse Gas Inventories for England, Scotland, Wales and Northern Ireland: 1990 - 2005).

(b) The range of renewable technologies currently in operation or planned in rural communities, taking into account, as appropriate, similar projects elsewhere.

3.1 Northern Ireland currently has a range of operational and planned renewable energy projects:

3.2 Large scale wind > 100kW

There is approximately 180 MW of installed large-scale wind turbines. These are mostly found in wind farms but there are several individual large wind turbines owned and operated privately by rural businesses and farms.

3.3 Small scale wind < 100kW

Utilised by over 100 households and businesses in Northern Ireland to supplement electricity demand.

3.4 Biomass CHP

Provides heat and electricity from biomass, typically woodchips. Gasification units have been installed, but have yet to see widespread uptake. Some large examples exist, such as the sewage sludge incinerator which is 1 MW.

3.4.1 Anaerobic Digestion

A form of biomass power which converts organic material to biogas – a mix of methane and CO2 – by methanogenic bacteria in the absence of oxygen. Some examples are being developed.

3.5 Biomass boilers (woodchip / wood pellet)

A popular heating technology which can directly replace traditional oil-fired boilers in homes and businesses. Comes is a variety of sizes from small room heaters to large industrial boilers used to provide heat and hot water for offices, hotels, schools and government buildings.

3.6 Large scale hydroelectric > 100kW

3.7 Small scale hydroelectric < 100kW

3.8 Photovoltaic Panels

A popular electricity generating technology for householders, which requires little or no maintenance.

3.9 Heat Pumps (Ground, Air, Water)

A heating technology which is commonly incorporated into new developments as disparate as a single large rural dwelling, the apartments being built in Titanic Quarter, Randalstown Heath Centre.

3.10 Biofuels

Several trials and some commercial operations in existence.

3.10.1 Miscanthus

3.10.2 Willow

Pioneered by John Gilliland, there are now numerous willow growers across Northern Ireland.

3.10.3 Biodiesel

3.11 Solar Water Heating

A very popular renewable energy technology used mostly in domestic installations to supply hot water and reduce heating bills, but which is also being used to supplement farm hot water requirements.

(c) The relative importance in terms of contributing to Governments renewable energy targets, of heat from renewable sources, electricity from renewable sources and fuel from renewable sources, and how relevant each could be to the NI economy.

4.1 There is a current level of microgeneration in Northern Ireland of approximately 15,000kW. This compares to an installed capacity of wind farms of approximately 180,000kW. Microgeneration, therefore, currently represents about 8% of Northern Ireland’s renewable electricity generation in 2007, with the remainder coming from wind farms. Renewable electricity generators in Northern Ireland provide about 4% of electricity consumed in Northern Ireland, meaning that microgeneration supplies just 0.32% of Northern Ireland’s electricity.

4.2 Heat is a different matter. 81.4% of energy consumed in Northern Ireland, excluding transport, is used for space heating and hot water in buildings and for commercial and industrial uses. The domestic heat sector alone accounts for half of the energy consumed in Northern Ireland, excluding transport. The current level of installed capacity of renewable generation of heat is in the rough ballpark of 59,000 kW, providing an estimated output of about 1.3% of Northern Ireland’s heat demand.

4.3 Shown graphically, it is clear that there is much work to be done.

4.4 Note: Action Renewables were commissioned by DETI to produce reports on:

(1) Renewable heat potential in Northern Ireland – A Scoping assessment

(2) Research into the creation of renewable based Energy Supply Companies (ESCO’s) in Northern Ireland.

These reports are currently with DETI for evaluation.

Figure 1. Total Electricity and Heat Consumed in Northern Ireland by Source.

Action Renewables Chart 01.ai

(d) The range of support available to renewable initiatives at local, national and European levels.

5.1 The information below covers Householders, Businesses, and Not-For-Profit Organisations

5.1.1 Grant Information for Householders – Renewable Energy

Scheme name & Funding Organisation

What is it?

What’s on offer?

Eligibility

Further Information

Reconnect Grant Scheme - Action Renewables & DETI

Grants for Renewable Energy Technologies

Range of grants available for installing micro-generation technologies in domestic-households.

If you are a home owner living in Northern Ireland and willing to use an accredited installer, you are entitled to the grants. Please note that the grants must be applied for before the technologies are installed - they are not retrospective.

Reconnect Programme, Action Renewables

Tel: 08000234077

Email: reconnect@detini.gov.uk

Website: www.reconnect.org.uk

Low Carbon Buildings Programme – Phase 1 (UK)

Grants for Renewable Energy Technologies

Range of grants available for micro- generation technologies for the home.

If you are a home owner living in the UK you are entitled to the grants.

Low Carbon Buildings Programme

Tel:08009150990

Email: info@lowcarbonbuildings.org.uk

www.lowcarbonbuildings.org.uk

‘PV Top-Up Grant’

NIE Energy

Grants for Renewable Energy Technologies

It has been agreed that NIE will top up both the Reconnect grant and the Low Carbon Buildings grant for Photovoltaics (PV). NIE will now top this up with an additional 15% (or £900 per kWp, whichever is less, capped at £10,000).

The grant is available to Householder PV schemes in Northern Ireland, and is only for new schemes - it will not be paid retrospectively.

NIE Energy

Website: www.nie-yourenergy.co.uk/renewablegrants.php

‘Help with Hydro – Small Scale Hydro Programme’

NIE Energy

Grants for Renewable Energy Technologies

This programme is to help encourage the development of small-scale hydro schemes in Northern Ireland.

Support is offered to help develop micro hydro in the form of:

Householders - Grant for 0.5kWe to 5kWe system is £1,000 per kWe, up to a maximum of £5,000, (whichever is smaller).

The grant is only available to hydro schemes in Northern Ireland, and is only for new schemes - it will not be paid retrospectively. Grants must be claimed within 12 months of a grant offer being made by NIE.

NIE Energy

Website: www.nie-yourenergy.co.uk/renewablegrants.php

Phoenix ‘Solar Warmth’ Scheme in partnership with Action Renewables

Cashback of £400 for solar panels

Solar Warmth will offer new Phoenix Natural Gas customers and Reconnect applicants a £400 top-up grant to help with the installation of a high efficiency natural gas boiler alongside a Reconnect solar water heating panel.

This grant is in addition to the Reconnect grant of £1,125

You can only avail of this grant if you live in the Phoenix Natural Gas area

Telephone 08454 55 55 55 and select option 1.

Please quote Solar Warmth Offer when you ring.

This grant ends on the 31st January 2008

5.1.2 Grant & Loan Information for Businesses – Renewable Energy

Scheme name & Funding Org

What is it?

What’s on offer?

Eligibility

Further Information

‘PV Top-Up Grant’

NIE Energy

Grants for Renewable Energy Technologies

It has been agreed that NIE will top up both the Reconnect grant and the Low Carbon Buildings grant for Photovoltaics (PV). NIE will now top this up with an additional 15% (or £900 per kWp, whichever is less, capped at £10,000).

The grant is only available to Householder/Community Group/Business PV schemes in Northern Ireland, and is only for new schemes - it will not be paid retrospectively.

NIE Energy

Website: www.nie-yourenergy.co.uk/renewablegrants.php

‘Help with Hydro – Small Scale Hydro Programme’

NIE Energy

Grants for Renewable Energy Technologies

This programme is to help encourage the development of small-scale hydro schemes in Northern Ireland.

Support is offered to help communities and other organisations develop micro hydro:

- Grant applied for is a maximum of 25% of total capital and installation costs, or £10,000, (whichever is smaller).

The grant is only available to hydro schemes in Northern Ireland, and is only for new schemes - it will not be paid retrospectively. Grants must be claimed within 12 months of a grant offer being made by NIE.

NIE Energy

Website: www.nie-yourenergy.co.uk/renewablegrants.php

5.1.3 Grant & Loan Information for Not-for-profit Organisations – Renewable Energy

Scheme name & Funding Organisation

What is it?

What’s on offer?

Eligibility

Further Information

Low Carbon Buildings Programme (Phase 2) grant scheme

Grants for Renewable Energy Technologies

Grants are available for the installation of micro-generation technologies covering between 30%- 50% of project costs up to a maximum of £1 million.

Grants are available to public sector buildings (inc. schools, hospitals, housing associations and local authorities) and charitable bodies, wishing to install renewable technologies.

Low Carbon Buildings Programme

Tel:08704232313

Email:info@lcbpphase2.org.uk

Website: www.lowcarbonbuildingsphase2.org.uk

Community Low Carbon Buildings Programme Phase 2 top-up

– NIE Energy

Grants for Renewable Energy Technologies

LCBP grant levels vary for PV, SWH, Wind & Biomass, so NIE will top-up the grant to an overall 65% of the installed cost (capped at £5,000 for each technology).

Community groups in Northern Ireland who have applied to and are receiving LCBP (Phase 2) funding to install renewables in a community project.

Contact Action Renewables on 02890 737868 or freephone: 08000234077

Eco-Schools Grant Scheme

Grants for Renewable Energy Technologies

Grants of up to £4000 are available to enable registered Eco-Schools in Northern Ireland to carry out building work and cover the cost of new equipment which supports the development of the school’s Eco-Schools programme.

Primary and Secondary schools in Northern Ireland registered in the Eco-Schools Programme who have achieved a minimum of a Bronze Award and are working towards their green flag are eligible to apply.

Tidy Northern Ireland, Tel:0282768434, ecoschools@tidynorthernireland.org

The Green Energy Trust – Scottish Power

Grants for Renewable Energy Technologies

Projects are supported that promote renewable energy and the installation of renewable energy technologies. The Trust can provide up to 50% of the project costs, up to a maximum of £25,000.

The Green Energy trust supports not-for-profit organisations in the development of new renewable energy sources in the UK. Potential projects must support communities through education and public involvement.

Scottish Power Green Energy Trust

Tel:0141 568 3492

Email: greenenergytrust@scottishpower.com

Website: www.scottishpower.co.uk/green

‘PV Top-Up Grant’

NIE Energy

Grants for Renewable Energy Technologies

It has been agreed that NIE will top up the Low Carbon Buildings grant for Photovoltaics (PV). NIE will now top this up with an additional 15% (or £900 per kWp, whichever is less, capped at £5,000).

The grant is only available to Householder/Community Group/Business PV schemes in Northern Ireland, and is only for new schemes - it will not be paid retrospectively.

NIE Energy

Website: www.nie-yourenergy.co.uk/renewablegrants.php

‘Help with Hydro – Small Scale Hydro Programme’

NIE Energy

Grants for Renewable Energy Technologies

This programme is to help encourage the development of small-scale hydro schemes in Northern Ireland.

Support is offered to help communities and other organisations develop micro hydro:

- Grant applied for is a maximum of 25% of total capital and installation costs, or £10,000, (whichever is smaller).

The grant is only available to hydro schemes in Northern Ireland, and is only for new schemes - it will not be paid retrospectively. Grants must be claimed within 12 months of a grant offer being made by NIE.

NIE Energy

Website: www.nie-yourenergy.co.uk/renewablegrants.php

5.1.4 Useful Contacts for Householders

Name of Organisation

Service Offered

How can they help?

Who do they help?

Further Information

Action Renewables

Advice & Information

Action Renewables provides free impartial advice on sustainability including transport, energy efficiency and renewable energy, renewable technologies, accredited installers and grants in Northern Ireland.

Action Renewables provides free impartial advice and support services for Householders, Community groups, Not-for-profit organisations and SME’s in Northern Ireland.

For further information contact Action Renewables on freephone 0808 141 2020 or log on to www.actionrenewables.org or email info@actionrenewables.org

Northern Ireland Environment Link (NIEL)

Advice & Information

NIEL is the forum and networking body for organisations interested in the environment of Northern Ireland. It aims to facilitate understanding of environmental issues and enhances the capacity of groups and individuals to speak and act in a co-ordinated way in the interests of the natural and built environment.

Who can join?

Full membership is open to voluntary organisations whose aims include promoting the conservation of the environment of Northern Ireland.

Statutory organisations, companies or individuals with environmental interests are eligible for Associate Membership.

For further information contact NIEL via

Tel: 02890 455770

Email: info@nienvironmentlink.org

Website: www.nienvironmentlink.org

Heatsmart -NIHE

Advice & Information

The service offers free impartial information on heating and includes a home visit providing advice on the heating system, timers, controls etc.

This service is for Housing Executive tenants only.

Contact Action Renewables on 02890 737868 for more information.

Energy Savings Trust

Advice and Information

The service offers free impartial advice on energy efficiency and transport

EST works with householders and community groups

Freephone 0800 512 012

5.1.5 Useful Contacts for Businesses

Name of Organisation

Service Offered

How can they help?

Who do they help?

Further Information

Action Renewables

Advice & Information

Free impartial advice on renewable energy, renewable technologies, accredited installers and grants in Northern Ireland.

Action Renewables provides free impartial advice and support services for Householders, Community groups, Not-for-profit organisations and SME’s in Northern Ireland.

For further information contact Action Renewables on freephone 0808 141 2020 or log on to www.actionrenewables.org or email info@actionrenewables.org

Northern Ireland Environment Link (NIEL)

Advice & Information

NIEL is the forum and networking body for organisations interested in the environment of Northern Ireland. It aims to facilitate understanding of environmental issues and enhances the capacity of groups and individuals to speak and act in a co-ordinated way in the interests of the natural and built environment.

Who can join?

Full membership is open to voluntary organisations whose aims include promoting the conservation of the environment of Northern Ireland.

Statutory organisations, companies or individuals with environmental interests are eligible for Associate Membership.

For further information contact NIEL via

Tel: 02890 455770

Email: info@nienvironmentlink.org

Website: www.nienvironmentlink.org

Carbon Trust

Advice & Information

The Carbon Trust supports the development of low carbon technologies and provides free advice and information on how to reduce your carbon footprint and help cut carbon emissions.

Mainly offers support to businesses and the public sector.

The Carbon Trust

Tel: 0800 085 2005

Email: customercentre@carbontrust.co.uk

Website: www.carbontrust.co.uk

STEM (Sustainable Together through Environmental Management) Project - SGEHC

Advice & Information

The STEM project aims to assist businesses in implementing an Environmental Management System (EMS) within their organisation and help them work towards achieving ISO 14001.

The STEM Team delivers the EMS through a combination of workshops and on site visits, at a pace that suits the individual businesses needs.

If you are a small-to-medium sized enterprise operating in any of the nine participating council areas (listed below), you are eligible to register.

  • Ards Borough council
  • Armagh City & District Council
  • Banbridge District Council
  • Craigavon Borough Council
  • Down District Council
  • Dungannon & South Tyrone - Borough Council
  • Louth County Council
  • Monaghan County Council
  • Newry & Mourn District Council.

STEM Project

Tel: 02837 515810

Email:
stem@sgehc.com

Website: www.stemproject.com

Envirowise

Advice & Information

Envirowise seeks to improve environmental performance whilst increasing the competitiveness of UK industry by encouraging the take-up of good practice technology and techniques.

The main themes of the Programme are the promotion of waste minimisation and the adoption of cost-effective cleaner technology.

Envirowise is mainly aimed at those in industry and commerce. It organises and supports workshops, seminars, exhibitions and Waste minimisation clubs throughout the UK and provides on-site consultancy for SME’s.

The Environment & Energy Helpline: 0800585794

Website: www.envirowise.gov.uk

Northern Lights Carbon Reduction Programme – ARENA Network, Northern Ireland

Advice & Information

ARENA Network is offering free Carbon Footprint audits to Northern Ireland based companies. Specially trained representatives will work with businesses to develop a strategic approach to energy management and to adopt simple cost saving measures.

Grant assistance is available for Northern Ireland businesses that are interested in implementing renewable technologies to reduce their carbon consumption.

To be eligible businesses must have an annual energy spend of less than £50,000.

Michael Schwartzentruber

Tel:02890 460606

Email: Michael.Schwartzentruber@bitcni.org.uk

Website: www.arenani.org.uk

5.1.6 Useful Contacts for Not-for-profit Organisations

Name of Organisation

Service Offered

How can they help?

Who do they help?

Further Information

Action Renewables

Advice & Information

Free impartial advice on renewable energy, renewable technologies, accredited installers and grants in Northern Ireland.

Action Renewables provides free impartial advice and support services for Householders, Community groups, Not-for-profit organisations and SME’s in NI.

For further information contact Action Renewables on freephone 0808 141 2020 or log on to www.actionrenewables.org or email info@actionrenewables.org

Northern Ireland Environment Link (NIEL)

Advice & Information

NIEL is the forum and networking body for organisations interested in the environment of Northern Ireland. It aims to facilitate understanding of environmental issues and enhances the capacity of groups and individuals to speak and act in a co-ordinated way in the interests of the natural and built environment.

Who can join?

Full membership is open to voluntary organisations whose aims include promoting the conservation of the environment of Northern Ireland.

Statutory organisations, companies or individuals with environmental interests are eligible for Associate Membership.

For further information contact NIEL via

Tel: 02890 455770

Email: info@nienvironmentlink.org

Website: www.nienvironmentlink.org

Energy Savings Trust

Advice and Information

The service offers free impartial advice on energy efficiency and transport

EST works with householders and community groups

Freephone 0800 512 012

5.1.7 EU Funds – Normally on a rolling call basis

ALTENER”, which concerns the promotion of new and renewable energy sources for centralized and decentralised production of electricity and heat and their integration into the local environment and energy systems, including the preparation of legislative measures and their application;

STEER”, which concerns support for initiatives relating to all energy aspects of transport, the diversification of fuels such as through new developing and renewable energy sources and the promotion of renewable fuels and energy efficiency in transport, including the preparation of legislative measures and their application.

(e) To compare the range of fiscal and other incentives offered elsewhere to support the development of a renewable energy industry and the infrastructure to support it.

Grants Support Programme

Lennox & Wyfold Foundation

Steel Charitable Trust

The Polden-Puckham Charitable Foundation

Green Energy Trust

Alcan Community Investment Programme

(1) Promote recycling

(2) Promote the conservation of natural resources

(3) Enhance the knowledge among young people of the interdependence of sound environmental practices and sound business practices

(4) Sustain or foster relationships between Alcan and non-governmental organisations (NGOs)

(5) Sustain or foster relationships between Alcan and institutions involved in environmental science and research.

(6) Include opportunities to involve Alcan employees and their families.

Oak Foundation

Esmee Fairbairn Foundation

Renewable Energy Installers Academy

The Renewable Energy Installer Academy (REIA), a pilot project funded under the INTERREG programme as a joint initiative of Action Renewables in Northern Ireland and Sustainable Energy Ireland in Republic of Ireland, was developed in response to the recognition that the lack of trained installers and specifiers is one of the critical barriers to the development of a sustainable renewable energy market.

The objective of the REIA pilot project was to develop structures for training, registration and quality control of installers in the INTERREG region, which is Northern Ireland and the six border counties, namely Cavan, Donegal, Leitrim, Louth, Monaghan and Sligo.

During the pilot phase of the project, REIA developed training courses and a laboratory specification for training facilities, and facilitated the establishment of training facilities for Solar Water Heating, Heat Pumps and Biomass in four training centres in the INTERREG region.

The curriculum in each technology was developed in accordance with best practice in Europe with the support of European experts in the relevant technologies.

It is now planned to build upon the success of the pilot project and to develop REIA into a sustainable association for renewable energy installers to promote and ensure quality renewable energy installations. A key function of REIA will be the accreditation of training facilities to deliver the required competence in renewable energy installers and the registration of installers.

The establishment of sufficient capacity in training institutes to deliver training will be essential to meeting the training needs and ensuring the competence of renewable installers. The training courses and learning outcomes have been registered with FETAC in RoI and BPEC in NI and in order to provide training, training providers must be nationally accredited (eg by FETAC/BPEC) and by REIA.

(f) The potential role of farm and rural business and rural communities in the delivery of a renewables programme which contributes to the sustainability of those business and the wider community.

One potential role in this area would be the creation of rural ESCO’s.

The concept behind ESCOs is not new with the market in Europe and the US having been in existence since the 1970’s, when firms attempted to establish energy performance contracting as a viable, self sustaining business activity aimed at energy efficiency measures, following the OPEC oil crises. Within the EU, the ESCO model has been developed and promoted by the European Commission since 1988, with early initiatives aimed at promoting the ESCO concept, and the use of third party financing.

Experience throughout the UK and elsewhere has shown that ESCOs are organisations that can make a significant contribution to the achievement of both energy efficiency and renewable energy targets as part of the EU and UK Climate Change Programmes. With specific regard to Renewable Energy, the ESCO concept should help to alleviate some of the barriers in the uptake of these “new” technologies. They do this by transferring some of the risk (technology and/or financial) of the project from the end user/consumer.

Succinctly, an ESCO is an organisation that delivers energy services and/or energy efficiency improvement measures in a user’s facility or premises, and accepts some degree of (financial) risk in so doing. The payment for the services delivered can be based (either wholly or in part) on the achievement of energy savings and/or on the meeting of other agreed performance criteria.

The development of a renewable energy based ESCO market in the UK is still in its early stages and in particular for Northern Ireland. In terms of renewable energy technologies the following offer the greatest potential for ESCO participation:

The following types of sites / end-uses, offer the greatest potential for consistent off take loads and therefore present the ESCO with the best opportunity for achieving required profitability and return on capital employed:

The diagram below details the various operational functions of a renewable energy based ESCO (delivering, in this case, a wood fuel based energy service). The operational mode for a non-fuel based ESCO will be obviously be simpler (i.e. minus the fuel sourcing, processing delivering etc.).

Action Renewables Chart 02.ai

Specifically then an ESCO can offer a range of benefits to customers:

An established renewable energy based ESCO industry in Northern Ireland will provide an integrated package of goods and services to energy consumers, selling energy and therefore helping to overcome some of the obstacles in the implementation of renewable energy technology.

As a result, the ultimate benefit of a successful Renewable Energy based ESCO industry in Northern Ireland will be an increase in the uptake of renewable energy technologies.

(g) The ways by which the Department of Agriculture and Rural Development could implement and resource a renewable energy programme in a manner which contributes to the sustainability of the agricultural/rural sector and contributes to Northern Ireland’s renewable energy targets.

6.1 The key driver should be “to maximise the agricultural, environmental and economic benefits of renewable energy through its integration into mainstream policy and practice at all levels within the rural sector.”

A strategy should be employed with a regional focus:

The strategy should incorporate a practical action plan for each of these areas including timescales, suggestions for target audiences and indicators for measuring success.

Deploying renewable energy on the ground – ensuring that the appropriate policy climate exists for more renewable energy projects to be deployed in Northern Ireland.

This action plan would aim to remove the barriers that prevent more renewable power projects being set up in rural environment; to support the wider use of renewable heat;; and to encourage a more transparent and consistent approach to planning decisions.

Developing skills and awareness – changing attitudes towards renewable energy in order to mainstream its development

This action plan would aim to increase awareness of the need and potential for renewable energy; increase skills available to the industry (the Renewable Energy Installer Academy has already been identified in the respect); and increase understanding of renewable energy amongst decision makers.

Grant support and the setting of Targets - This action plan would aim to - increase the availability of finance incentives for renewable energy in the rural environment; set challenging but achievable targets; devise performance indicators for measuring success.

Agri-Food and Biosciences Institute

AFBI Logo.ai

Agriculture Branch,
Hillsborough,
Northern Ireland
BT26 6DR
United Kingdom
Telephone 028 92682484

1. AFBI is a Non-Departmental Public Body, sponsored by DARD, which conducts research and provides statutory services in support of the agriculture, food, forestry and fisheries in Northern Ireland, providing technology transfer of its research findings to the industry and providing scientific advice to DARD.

2. AFBI also receives external funding from levy bodies, other government departments, EU contracts, industry sponsors and a range of other sources in support of its activities.

3. Renewable Energy

3.1 AFBI Loughgall

Short rotation coppice willow is now a well established source of renewable energy. AFBI has been involved in research into short rotation coppice willows for over 30 years and has pioneered the development of the crop, working closely with industry as SRC willows have moved from research to commercial development. Significant aspects in which AFBI has been active and in which it continues to play a leading European research role are: -

Active DARD funded research projects continue in most of these areas. AFBI staff have recently contributed to the publication of an authoritative guide “Short rotation coppice willow Best Practice Guidelines” by the EU funded RENEW project.

3.2 The Environment and Renewable Energy Centre, AFBI Hillsborough

AFBI has set up an Environment and Renewable Energy Centre (EREC) at Hillsborough through funding from the Environment and renewable Energy Fund (2006 to 2008). A wide range of renewable energy schemes are being incorporated into the infrastructure of the site providing facilities for an extensive research programme into aspects of renewable energy relevant to the agriculture industry.

The key components of the EREC currently being constructed and installed are:-

The research programme being undertaken through the EREC is fully integrated with the continuing research at AFBI Loughgall. A number of the research projects have been agreed by DARD while others have either been submitted for approval or are in preparation. External funding is being sought for research in a number of areas.

The research projects currently approved, submitted or in preparation are:-

3.3 AFBI-Economics

Agricultural and Food Economics is seeking external funding for a strategic study of the full economic and environmental impacts within the regional food chain and wider economy of changing energy prices, including the impacts of greater uptake of different forms of renewable energy.

4. Other related projects

In addition to the specific renewable energy research projects listed above other research groups within AFBI are actively involved in research related to renewable energy and to issues related to green house gas emissions, and in the production of reports related to these topics. For example:

Global Research Unit

Agriculture Branch: The reduction of methane emissions from ruminant livestock

Agri-Environment Branch:

Applied Plant Science Division: Bio-fraction of ensiled grass (including the production of bio-fuels)

5. AFBI has made the commitment to develop this research programme into aspects of renewable energy related to production agriculture to provide rigorous evidence of the extent to which agriculture can develop enterprises which produce biomass and biofuel resources which contribute to government targets for the generation of electricity and heat from indigenous renewable resources.

6. However, AFBI believes that the development of renewable energy schemes must be based on sound scientific and socio-economic evidence and justified in terms of carbon emission benefits, sustainability, economic return and environmental impact. AFBI aims therefore from its research and in-depth reviews to provide objective data to government and the public on renewable energy schemes and to provide scientific advice to government on which to base effective renewable energy.

7. It is clear that there is much debate currently around issues such as food vs fuel production and the benefits or otherwise of first generation biofuels. AFBI believes that future research will need to look beyond this debate to provide research into the next generation of renewable energy opportunities which will lead to the most efficient production of biofuels from biomass through new fermentation, refinement and combustion technologies as clearly highlighted in the Royal Society Report (Jan 2008). Renewable energy resources which are derived from animal manures, forest brash and waste materials will not complete with other land uses and are therefore also potentially valuable resources.

8. AFBI is confident that, given the range of research into renewable energy being developed at its centres and the links it is developing with other research centres both nationally and internationally, it is uniquely placed to become a centre of excellence in renewable energy research related to agriculture. This provides the local agricultural industry and the wider commercial sector with access to scientific findings which will strengthen its hand in developing economically viable renewable energy enterprises.

Alternative land uses: The AFBI research programme in over the last 10 years has encompassed both flax and hemp and AFBI have provided technical support both through CAFRE and directly to those seeking to set up enterprises based on flax and hemp processing for both fibre and oil.

This submission has been prepared by

Dr Lindsay Easson
Environment and Renewable Energy Centre Project Leader
AFBI Hillsborough
Large Park
Hillsborough
BT26 6DR
028 92682484

31/1/08

Allied Biodiesel Industries

The Trade Organisation for British SME Biodiesel Producers

T L de Winne MF

6, Coyle’s Lane, Ballyrobert, Bangor, Co. Down BT19 1UF

028 91 853318
0788 157 3269

Response to NIA Committee for Agriculture and Rural Development Consultation –

Renewable Energy and Alternative Land Use

The ABI(UK) is the representative trade organisation for SME biodiesel producers in the UK. It was set up by the above individual, who has had eight years experience of transport biofuels and over 30 years association with renewable energy.

Aim

“To establish the potential economic benefits Northern Ireland family farm and rural businesses could derive from renewable energy and alternative land uses relative to existing land use and agricultural practices, the potential agricultural and environmental effects of any such changes and to what degree renewables should become a focus of DARD resourcing relative to other agri-rural objectives.”

It is suggested that the Committee refer to the document “Renewable Energy in the Millennium”[1] to re-establish the economic benefits of renewable energy production to the agricultural economy, and then to enquire of DETINI (via the inter-departmental group set up for this purpose) their current activities in this area – namely, further consultation.

Reference may also be made to “Renewable Energy Resources in Ireland for 2010 and 2020”[2] and figures that may be extrapolated to Northern Ireland.

It would have been quite helpful if up-to-date statistics had been supplied as part of the consultation in order that evaluation be made regarding progress of DARDNI in achieving its oft-stated aspirations.

Unfortunately, statistics regarding the use of biomass for renewable electricity[3] are only available for the 2005-06 period, the 2006-07 Ofgem report not being due until February. It is therefore not possible to quantify the effects of any DARDNI policy implemented within the past two years.

NI Renewable Obligation Certificates issued (one per MWh) for 2005-06 amounted to –

Biomass – 6,783; Co-firing – 5,905; Hydro – 6,860; On-shore wind – 253,889.

The primary barrier to the effective introduction of agricultural renewable energy in Northern Ireland has been the lack of infrastructure to utilise any biomass produced. With a few micro-generation exceptions, there is virtually no Northern Ireland market for energy biomass. This is witnessed by the deplorable export of thousands of tonnes (allegedly[4]) of wood pellets from the publicly-funded Balcas operation to generators in England – costly, both financially and in transport carbon emissions, carrying a bulky fuel.

It is noted that the AES Kilroot power station appears to be a non-obligated generator and therefore not subject to the NI Renewables Obligation legislation. However, despite the pronouncement by Mr Shane Lynch[5] that “Substituting about 10% of coal with biomass would achieve 25% of the (NI 2012) renewable energy targets,” the generator has since contributed virtually zero carbon savings. Discuss.

There has been recent news of a GB-based power company – Scottish and Southern Energy – wishing to possibly build a new power station in Northern Ireland. This should be offered public funding (and DARDNI and DETINI should discuss the source), on the condition that it is primarily a biomass generator.

The same scenario applies to the introduction of the RTFO.[6] Whilst it is viable for farmers to grow oilseed rape – area increased from 200 ha in 2000 to 300 ha in 2005[7] - the oilseed has to be exported to England.

for pressing, thereby losing not only the cost of transportation but also the benefit of the residual cattle cake. Additional land has therefore to be dedicated to producing cattle fodder – an illogical and wasteful procedure, for the want of capital investment and focussed government support. Consideration must be given to promoting (by DETINI or Invest NI?) the installation of an oilseed press in the province.

The 2005 NI oilseed rape yield per hectare exceeded the national average, but the tiny crop (1100 tonnes of seed) would only have been capable of producing 300 tonnes of biodiesel, replacing just 0.075% of the amount of diesel used per annum. The 2008-09 RTFO target is 2.5% aggregate biofuels.

The use of used cooking oil is more productive, having ten times this potential. Unfortunately, the only biodiesel plant capable of producing this amount has now been closed down due to lack of both government support and interest.[8] Meanwhile, DoENI had an outstanding offer under the Community Waste Innovation Fund – subsequently withdrawn through lack of matching funding - that could have saved the inward (Republic of Ireland) investment and avoided six employee redundancies. The basic cause of this was ill-advised funding targeting and lack of inter-departmental co-operation.[9]

The logical conclusion is that it is futile for DARDNI to implement another paper renewable energy programme without the assistance of DETINI Energy Branch and other government funding departments to be both pro-active and cohesive in the renewable energy field, supporting means of utilising the crops that are grown. Given a stable local produce demand, there is no doubt that the increased value of crops – for both biomass and biofuels – will be to the advantage of the agricultural economy.

A further aspect that requires scrutiny is the barrier to adoption caused by the high cost of connection of renewable energy generation plants to the grid. Consideration should be given to subsidising this cost for micro-generators.

It is further suggested that the Committee establish the reason why, since 1939, the area of Northern Ireland under crops has fallen from 1.26925M ha to 1.0145M ha – a loss of 254,750 ha.

Finally, it must be noted that tourism is not a sustainable activity and should not be subsidised from public funds – it is damaging to the environment in terms of transport carbon emissions. An Environmental Impact Assessment should be carried out in respect of every proposal.

T L de Winne
31 January 2008

[1] NIE/DEDNI, June 1999; Consultants - ETSU (now UKAEA) and WREAN

[2]Updating the Renewable Energy Resources in Ireland; Sustainable Energy Ireland/ESB; Report No 4P305A-R5, November 2004

[3] Ofgem Annual Report, per pro the NI Authority for Utility Regulation

[4] Renewable Energy Action Plan; DARDNI; January 2007

[5] Managing Director, AES Kilroot, vide press release on 19th August 2004

[6] Renewable Transport Fuels Obligation Order 2007, due implementation 15th April 2008.

[7] DARDNI 2007 statistics publication has omitted to include essential crop production figures.

[8] With the notable exception of DRD Water Service, who carried out a two year trial before losing interest, and the Environment Agency of England & Wales, who are currently undertaking a four year B22 trial. The writer is on the Board of Management of same as technical adviser.

[9] Invest Northern Ireland were not involved in the DRD procedure.

B9 Organic Energy

AD is a natural process and describes the biological digestion or decomposition of organic materials into biogas and a stable fibrous material. This biogas is a mixture of circa 60% methane and 40% carbon dioxide. In Northern Ireland this naturally occurring process is commonly found at landfill sites and is responsible for the biogas given off from the breakdown of organic waste deposited in the sites. This biogas can be used as fuel to generate power.

B9 have won the first contract (with Down District Council) to do this at a landfill site in NI.

Aerobic Digestion - when this natural process occurs in air (i.e. the compost heap in the back garden), this process is called aerobic digestion more commonly known as composting. The gas emitting from the compost pile is a mixture of carbon dioxide and water vapour.

Anaerobic Digestion - when this natural process occurs in the absence of air (i.e. in a landfill site) the process is called Anaerobic Digestion.

The key difference is that AD gives methane which can be used as a fuel and is therefore preferable.

Where is the technology now?

This natural process can be replicated in processing plants called Anaerobic Digestors and is a very efficient way of capturing the biogas (energy) available from organic wastes and using it as a fuel.

AD technology is widely available and has been used for power generation throughout the world most notably in China and India, for many years.

AD is also widely used throughout Europe with the exception of the UK and Ireland. This is primarily because up until recently both (fossil fuel) energy, and landfill costs were relatively cheap, and organic waste was not recognised as a significant source of renewable energy, thefore historically AD had no market incentive in the UK or Ireland.

NB. There are still no targets to produce/encourage renewable energy produced from organic waste in the UK.

This is in direct contrast for example with Germany and Scandinavia whose governments recognised the significant benefits of using AD; which are -

To achieve these benefits, the German Government introduced several measures to kick-start their AD industry some years ago such as;

1. Capital grants for plant construction

2. Long term high value contracts for the production of ‘renewable energy’ from AD

3. and statutory rights to grid connection.

This kick-start has resulted in excess of 3,000 AD plants now operating in Germany today.

How much of our energy is provided through the technology now?

None of these or any other strategic mechanisms of support currently exist in the UK and the writer is unaware of any AD sites currently operating in NI.

The government support that is strategically required to ‘kick-start’ the benefits available from AD should reflect the success of the German model, and be applied for a number of years to give confidence to the financial sector to support such investment. This is no different to the ‘kick-start’ needed and provide to the wind industry in the UK some 12 years ago via NFFO contracts (the Non Fossil Fuel Obligation)

In the past several months there has been greater recognition of the benefits of AD, vested in for example, the Governments Energy white paper which is proposing that energy produced from AD plants would qualify for double the financial incentive currently available to other renewables such as wind generation. While this is to be welcomed it is unlikely on its own to ‘kick-start’ the scale of investment in AD infrastructure which would make a significant difference to renewable energy production in NI.

NB. B9 awaits the result of a ‘one-off’ DETI sponsored ‘kick-start’ energy from waste fund regarding their proposed development of a large-scale AD project in NI.

What is the potential using existing AD technology, and what are the likely innovations?

- Recent Quotation from the Royal Institution of Chartered Surveyors

NI (Northern Ireland) has an 18 million tonnes reserve (annually) of good quality biomass (otherwise described as biodegradable waste) that when digested in the absence of air (Anaerobic Digestion) in a biogas plant can yield in excess of 30% of its vehicle fuel demand, or 16% of its heat and power consumption.

As yet this ubiquitous resource is virtually unexploited.”

These figures illustrate clearly the enormous potential available from using AD, but as yet unsupported and undeveloped.

B9 as a renewable energy company involved in generating power from wind, and water began researching the possibilities of generating renewable energy from waste some time ago.

This research concluded that the most environmentally sensible way to deal with organic waste is not to dispose of it at all, but to treat it using the natural processes of AD to fully recover the methane (renewable energy), generated during the process.

The by-product of this is the production of soil improver or fertiliser – the remaining fibre.

This represents a real ‘closed loop’ system where the organics and nutrients (which originated from the soil) are returned in a useable way to repeat the cycle, having given up some of the energy (the methane) they took from the sun in photosynthesis. The process of AD can currently provide both;

1. the most energy efficient conversion of organic wastes to energy available

2. and productive use of the remaining material as a soil improver

Our environmental preference for AD is entirely to do with the production of methane (a fossil fuel substitute), as opposed to the production of carbon dioxide which is a greenhouse gas.

The following graph illustrates the Energy Balance – the amount of energy both used and generated by;

1. Aerobic digestion (in vessel composting) compared with

2. Anaerobic digestion AD

- to treat one tonne of household waste to Landfill Directive standards.

It shows clearly the;

1. net energy used by in-vessel composting, compared to the

2. net energy available produced by AD.

Technology Energy Balance to treat 1 tonne of MSW or household waste.

Chart 1a.eps

Given our current dependence on fossil fuels and the need to create more renewable energy locally, the evidence is now insurmountable for the rationale of using our organic wastes as a source of renewable energy. To do this efficiently we need to use AD and coincidentally we are fully complying with Landfill Diversion targets.

Likely innovations in AD

The innovation in AD is targeted at improving the quantity of (methane) gas that is given off from any given tonne of waste, and B9 are directly involved in a research project which shows significant potential for improvement.

Conclusion

Most organic wastes are in fact ‘wet’, highly volatile, and degrade easily (as illustrated under in the yellow zone) i.e. are naturally suitable for the AD process. This contrasts with incineration where much energy is needed to ‘burn’ off the water content to get the wastes dry enough to burn them - and that’s not efficient (compared to AD) but it works! To achieve energy efficiency Thermal treatment should only be used on wastes that are not ‘wet’ (as illustrated under in the orange zone)

Historically waste management policy has ignored the ‘energy balance’ of waste treatment options. The rising cost of fossil fuels coupled with concern over energy security means it is no longer tenable to limit waste management options to compliance issues alone. The energy issue associated with waste management must be properly accounted for. When this is done the net energy available from AD is the key decision maker in choosing this technology in preference to ‘energy using technologies for the treatment of organic waste.

Organic Fraction of Waste Streams

Chart 2a.eps

Carbon Trust

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Committee of Culture, Arts and Leisure

Dr Wm McCrea MP MLP
Committee for Agriculture and Rural Development
Room 284
Parliament Buildings
Stormont
Belfast
BT4 3XX

Dear

Thank you for your letter of 8 January 2008, forwarded to me by Barry McElduff MLA, inviting a response to the Agriculture and Rural Development (ARD) Committee’s inquiry into Renewable Energy/ Alternative Land Use.

The ARD Committee may wish to be aware that low head hydro-electric facilities on rivers may, if inappropriately designed, impact upon fish migrations.

This issue was identified in the Culture, Arts and Leisure Committee Inquiry into Inland Fisheries in October 2001. The submissions received with regard to this matter at that time may be of interest to the ARD Committee. My Department has prepared a handbook ‘Protecting Fish: Guidelines for Water Abstractors’ and continues to use Sections 58 and 59 of the 1966 Fisheries Act to monitor water abstractors. DCAL also works closely with the Environment and Heritage Service to enforce abstraction and impoundment regulations.

Department of
Agriculture and Rural Development

Foreword

I am delighted to endorse the publication of the DARD Renewable Energy Action Plan. The Plan seeks to ensure that the schemes and services provided by DARD will enable farmers, landowners and the wider rural community to capitalise on the opportunities presented by renewable energy within the broader strategic context of energy policy, tackling climate change, waste management and sustainable development.

This Action Plan provides a sound platform to take forward an exciting new agenda. It expands on the principles set out in DARD’s Strategic Plan 2006-2011 published last year and will help guide the work of the Department in this significant and challenging area.

Its development has involved a lengthy and broadly based consultative process which reflects DARD’s desire to work with stakeholders to address current issues and future challenges in the most effective way. The key objective in this process has been to create opportunities for the land-based and rural sector which will realise the potential of renewable energy in a balanced and sustainable way.

I hope that this Action Plan can be taken forward and implemented by a local Minister on the basis of an inclusive approach to sustainable development and the linking of policies across Government. Its success will depend on leadership, active engagement and sustained, integrated effort across the public sector and the broad sweep of stakeholder interests.

This initial Action Plan represents a major initiative and a commitment to future development in an area that is evolving rapidly in terms of technology and the underlying policy framework. Some of its proposed measures are subject to EU approval of the new Northern Ireland Rural Development Programme and final decisions on the content of the EU Competitiveness Structural Funds Programme. It is, therefore, a work in progress that will need to be reviewed and updated to take account of all of these issues and to reflect the priorities and aspirations of an incoming Executive.

With that in mind, an early review date of April 2008 has been fixed. However, by launching this initial Action Plan now, I am seeking to inject and maintain momentum in this important new area of opportunity.

David Cairns, MP

Minister for Agriculture and Rural Development

Contents

Introduction x

Context x

Changes in Agriculture x

Climate Change x

EU Policy Context x

United Kingdom Policy Context x

Northern Ireland Policy Context x

Dard Work to Date on Renewable Energy x

Driving The Renewables Market in Northern Ireland x

The Scope of the Dard Renewable Energy Action Plan x

Actions to Support the Exploitation of Opportunities for Alternative Land Uses
and Sustainable Management of Agri- Food Waste Linked to Renewable Energy x

Actions to Underpin Knowledge and Increase Awareness of Renewable Energy Technologies x

Conclusion x

Appendix: Responses to Recommendations and General Comments x

Appendix: Responses to Recommendations and General Comments x

Copies of this document can be made available, on request, in alternative formats e.g. in large print, Braille, disc, audiocassette (for those with vision difficulties), and other languages. For copies please contact:

Fiona Browne on (028) 9052 4725,
via e-mail - fiona.browne@dardni.gov.uk ; or
by using the Department’s Textphone (028) 9052 4420

Introduction

1. The 2002 report, ‘Vision for the Future of the Agri-food Industry’, recommended that the Department of Agriculture and Rural Development (DARD), along with the Department of Enterprise, Trade and Investment (DETI), and the Department of the Environment (DOE), should take a ‘strategic approach to the development of sustainable energy systems at rural community level’. The Government’s response to the report, the Vision Action Plan, gave a commitment to review DARD’s policy in this area.

2. Therefore, an interdepartmental steering group was brought together to oversee the creation of a needs-based policy for the use of agriculture and forestry resources to assist the competitive and sustainable development of land-based renewable energy sources. To inform the development of a policy for renewable energy, a study was undertaken to investigate the potential for, and economic sustainability of, small scale embedded heat and power and heat-only systems in the rural economy. The potential of cropping for biofuels for transportation was also addressed. The study was completed in June 2004 and based on its findings, the steering group developed a set of recommendations for DARD to take forward. These were issued for public consultation in October 2005.

3. This initial Action Plan represents DARD’s response to those recommendations, including the feedback received from the public consultation. The development of renewable energy is, of course, a broadly based agenda that impinges on several important issues, such as climate change, diversity of energy supply, waste management and sustainable development. In drawing up this Action Plan, DARD recognises that DETI has lead responsibility for energy issues in Northern Ireland. More broadly, the Office of the First Minister and Deputy First Minister (OFMDFM) has lead responsibility for the implementation of the Northern Ireland Sustainable Development Strategy and the DOE for addressing climate change and waste management issues.

4. From DARD’s perspective, the DARD Strategic Plan 2006-2011, published in March 2006, provides the overarching framework that will guide the development of DARD’s evolving work programme in relation to the agri-food industry, animal health and welfare, the environment and broader rural development for the coming five years. Consequently, the Action Plan must sit within this overall framework and accord with the direction and principles stated in the Strategic Plan.

5. In developing a Renewable Energy Action Plan, DARD’s objective has been to shape a coherent support framework that will enable the land-based and rural sector to realise the potential of renewable energy and contribute to the delivery of targets for renewable energy production at a regional, national and EU level in a balanced and sustainable way.

6. DARD also wishes to promote efficient energy utilisation within primary agriculture which will reduce energy input costs as well as help meet carbon reduction targets and have a relevance right across the industry.

7. This Action Plan promotes “the opportunities afforded by the sustainable development of renewable energy in the agri-food and forestry sectors and wider rural economy” by exploiting existing technologies and by expanding the knowledge base within Northern Ireland through appropriately targeted research and development and technology transfer activities.

8. However, with the rapid evolution of the broader policy framework at EU, national and regional level, plus the evolution of technologies and the market, it is recognised that this Action Plan must be reviewed at an early stage in order to maintain its relevance. Therefore, a review date of April 2008 has been set for this purpose.

Context

Changes in Agriculture

9. Farming communities are facing continuing change, with fewer farms remaining economically sustainable in the absence of an additional external source of income and a continuing downward pressure on agriculture’s level of employment. Meeting the challenges that this creates requires diversification out of traditional agricultural activities and the growth of a stronger, more broadly based rural economy.

10. The agricultural industry is currently in the process of adapting to a fundamental change in the system of EU support, which has radically altered the economics of agricultural production and the viability of specific agricultural enterprises. The full implications of this in terms of land use, particularly in the more marginal areas, are not yet clear. However, these changes are beginning to impact in a period when the possibilities for alternative land use are gaining greater prominence, not least in terms of energy production.

11. A move into energy crops could provide a new income stream for agriculture and help broaden its economic base. Agriculture in Northern Ireland today is dominated by grass-based enterprises, but this dominance has not always been so marked. For example, at the beginning of the Twentieth century, the cropped area was six times larger than it is at present.

12. This specialisation in grass-based enterprises was driven by economic forces. If viable markets emerge for energy crops and profit margins compare favourably with those of existing agricultural enterprises, then a move to a more diverse mix of land-based enterprises will emerge. In the early stages of such a change at least, farmers currently involved in the production of conventional arable crops are more likely to make this transition as they will have both the suitable land and husbandry skills needed to grow energy crops.

13. However, renewable energy technologies will also create opportunities for livestock farmers. With an increasing emphasis on sustainable waste management and minimising the environmental footprint of agriculture, the use of technologies such as anaerobic digestion may enable livestock farmers to convert what are now largely regarded as costly waste streams into a possible source of revenue (or, at a minimum, to reduce the cost of sustainable waste management).

Climate Change

14. Climate change, brought about by increasing atmospheric concentrations of carbon dioxide and other heat-trapping greenhouse gases, has been described as “the most severe problem that we are facing today”[1]. The burning of fossil fuels is the primary cause of increased atmospheric carbon dioxide concentrations - thought to be responsible for up to 80% of annual global carbon dioxide emissions.

15. International recognition of the global impact of increasing carbon dioxide emissions has come in the form of the Kyoto Protocol. At the United Nations Framework Convention on Climate Change in December 1997, a significant number of industrial countries committed to cut combined emissions to 5% below 1990 levels by 2008-2012. EU countries committed to an 8% reduction in emissions.

16. In responding to this challenge, the UK Government has made a commitment to reduce greenhouse gas emissions by 12.5% by 2008-2012 and to move towards a target of a 20% reduction of carbon dioxide by 2010.

17. It has been suggested that climate change in Northern Ireland could see average temperatures rising by between 2°C and 4°C by 2080, with summers being 50% drier and winters 25% wetter. Other possible effects include a lengthening of the growing season, a reduction in the number of snow days and a greater likelihood of extreme weather events, e.g. floods and drought.

18. The potential impact on the rural economy may include changes in crops and cropping patterns, increased pressures from pests and diseases and more weather-related damage.

19. Alternative, carbon reducing or neutral energy technologies will be key to lowering greenhouse gas emissions. Allied to the need to cut emissions of greenhouse gases is the need to ensure a sustainable energy supply in the future. Renewable energy resources will help form part of a portfolio of technologies that will provide the means of responding to these challenges. A number of these technologies offer the Northern Ireland agri-food industry the potential to play its part in this process.

EU Policy Context

20. A number of policy initiatives at EU level are proactively driving the renewable energy agenda:

21. More recently, the EU Commission, in its ‘energy for Europe’ package, has made proposals to reduce greenhouse gas emissions at least 20% below 1990 figures by 2020. To help meet the new targets, the Commission has proposed that 20% of the EU’s energy should come from renewable sources, and biofuels should account for at least 10% of all transport fuel.

22. A number of other EU policy initiatives are also indirectly driving the renewables agenda. For example, the reform of the Common Agricultural Policy (CAP) has decoupled payments of subsidies to livestock and crops in favour of the Single Farm Payment Scheme. This allows farmers greater flexibility in terms of the crops they choose to grow, including energy crops. This may help facilitate realisation of the Biomass Action Plan goals. However, a central principle in the move to decoupled support was that future production decisions on the part of farmers would be driven by market forces alone. Therefore, the commercial viability of energy crops at farm level will be a key factor in the evolution of this sector. The reformed CAP includes a special payment for energy crops and the possibility of growing energy crops on set-aside land.

23. Apart from the CAP, a number of environmental Directives will also have an indirect bearing on the development of renewable technologies within the agri-food sector, specifically with regard to the sustainable management of waste:

All of these Directives will drive a greater focus on the sustainable management of waste streams. Some renewable energy technologies have the potential to play a part in addressing this issue, thereby offering an integrated approach to waste management and renewable energy production.

United Kingdom Policy Context

24. On a UK level, several initiatives are in place to promote the development of biomass energy systems, including the Department of Trade and Industry (DTI) sponsored Bioenergy Capital Grants Scheme.

25. The UK Renewable Transport Fuel Obligation (RTFO), which Government proposes to introduce with effect from April 2008, is intended to help deliver the objectives of the EU Biofuels Directive. Under this Obligation, 5% of transport fuel sold in the UK will have to come from renewable sources by 2010. It is expected that biofuels will be mixed in a 5% biofuel/95% fossil fuel blend to meet this target. Clearly, this initiative will create a sustained demand for biofuels (biodiesel and bioethanol) from the transport fuel industry.

26. The UK Biomass Task Force Report made a series of recommendations for the development of the biomass sector in England and Wales. The UK Government published a response to the Task Force Report in April 2006 in which it outlined the actions already, and still to be, taken to meet the recommendations set out in the report. Although the Biomass Task Force was aimed at England and Wales, the Government response included an Annex outlining the action being taken to develop and support the biomass industry in Northern Ireland. Work is now in hand to develop a UK Biomass Action Plan.

Northern Ireland Policy Context

27. There is a number of existing Northern Ireland strategies and policies which have a direct bearing on the future development of the local renewable energy sector.

28. Published in May 2006, the Sustainable Development Strategy for Northern Ireland: First Steps Towards Sustainability outlines Government’s commitment to tackling the challenges of sustainable development, thereby securing a better future for the present generation and protecting the interests of generations to come. It commits Northern Ireland to becoming more resource efficient, both in its production and consumption, to reducing waste and to looking more critically and imaginatively at how it generates and uses energy. It emphasises the need to build sustainable communities founded on economic prosperity and attractive, healthy and high quality environments, with greater community engagement and civic leadership.

29. It addresses 6 priority areas for action:

30. It is well recognised that, as well as reducing greenhouse gas emissions, energy efficiency will help to improve the competitiveness of businesses. In Northern Ireland, the Carbon Trust estimates that businesses and public sector organisations could save around £100 million per annum through the deployment of existing energy efficient technologies and practices. Clearly, improvements in energy efficiency represent a key step in the process of meeting Northern Ireland’s energy needs in a sustainable manner, and this applies as much to the agri-food sector as to other parts of the economy.

31. This Renewable Energy Action Plan is firmly rooted in the principles of sustainable development, and DARD-specific actions relating to the encouragement of renewable energy production have been included in “A Positive Step – Northern Ireland - A Sustainable Development Implementation Plan”, published in November 2006.

32. The DARD Strategic Plan 2006-2011 sets out a vision of a thriving and sustainable rural community. In order to achieve this vision, DARD has acknowledged that sustainable development will be a key driver of change over the next five years.

33. Within the context of the DARD Strategic Plan, the support framework described in this Renewable Energy Action Plan will help enable the Department to address some of the issues and challenges specific to rural areas and the land-based economy.

34. The Regional Development Strategy ‘Shaping our Future’ provides a comprehensive policy framework for the development of Northern Ireland to 2025, and dedicates a chapter to caring for the environment. An objective of the Strategy is to contribute to reducing the impact of global warming, both locally and globally, and to emphasise the importance of cutting environmental costs generally, by reducing the consumption of natural resources and energy from non-renewable sources.

35. Targeted demand reduction and the development of renewable energy sources is at the centre of Northern Ireland’s energy policy. This is also recognised as a major factor in environmental policy in terms of mitigating climate change and carbon reduction. In line with the overall climate change agenda and the Northern Ireland Sustainable Development Strategy, the Strategic Energy Framework, published in June 2004, places a firm emphasis on renewable energy generation and reduced environmental impact. The Environment and Renewable Energy Fund, announced in February 2006, committed resources specifically to realise the aims of the Strategic Energy Framework.

36. The DOE’s Towards Resource Management: The Northern Ireland Waste Management Strategy 2006-2020 sets out a clear vision for the development of renewable energy from waste facilities as part of the development of an integrated network of waste treatment and disposal facilities in Northern Ireland. This involves using material resources in a way that reduces the quantities of waste produced and, where waste is generated, to manage it in a way that minimises its impact on the environment and public health and contributes positively to economic and social development.

37. The above description of the policy context at EU, national and regional level illustrates the broad and complex policy arena in which the renewable energy sector is evolving. In developing this Action Plan, DARD has sought to create a support framework that will help deliver against the targets and objectives already specified, rather than create an additional layer of unnecessary complexity or duplication. Consequently, its central focus is to help the land-based sector and broader rural economy capitalise on the opportunities that are emerging in this area.

Dard Work to Date on Renewable Energy

38. DARD (and more recently the Agri-Food and Biosciences Institute - AFBI) already has a significant research base in renewable energy technologies extending back over many years and this is likely to remain an important element of DARD’s new research and development strategy (to be finalised in 2007). Research and development work has been undertaken locally on short rotation coppice willow (SRC) since the mid-1970’s. This has focused on the following five main areas to ensure that commercial developments are founded on a reliable knowledge base:

39. Specialist advice in a number of areas, including short rotation coppice, biogas and industrial crops, is provided to the agricultural industry, local councils, community groups etc. by the College of Agriculture Food and Rural Enterprise (CAFRE) and AFBI.

40. In 2004, DARD’s Forest Service established the three year Challenge Fund for SRC to increase the amount of willow grown for energy use in Northern Ireland. Energy crops received a special grant within the Woodland Grant Scheme, under the Northern Ireland Rural Development Regulation Plan 2000-2006. The Challenge Fund operated as a competitive mechanism under which applicants were required to bid for the support they needed to establish SRC for an energy end use.

41. During the first two application phases, agreements between DARD and private landowners were put in place to convert nearly 400 ha of high quality agricultural land to SRC by 2007. Provisional indications show that approximately 410 hectares will be planted in 2007 as part of the third and final application phase.

42. As a result of the support provided by the SRC Challenge Fund (£1.5 million committed), it is expected that by 2012, land in agreements will have the potential to produce around 8,000 tonnes of willow biomass annually for the energy sector.

43. A recent review of the SRC Challenge Fund by DARD’s Forest Service concluded that the Fund:

44. DARD’s Forest Service has also been working with wood processors to create stability in the wood supply chain and promote long-term business planning. In response to this initiative, a major sawmill has invested in facilities to produce 2 megawatts (MW) of electrical energy and 10 MW of heat using wood chips and sawdust produced on site, as well as producing about 50,000 tonnes of wood pellets for combustion off site. Most of the pellets are currently being exported to power stations in England. However, the demand for wood pellets from the local domestic sector is expected to increase rapidly. The economic contribution from this wood-based energy operation is serving both to strengthen the financial performance of the sawmill operator and to underpin the demand for home-grown timber.

45. Forest Service is also working with wood processors to investigate ways of improving the recovery of low value wood residues from forest harvesting sites for an energy end use.

46. DARD’s Rural Connect Branch has the remit to ‘connect’ farming families to DARD services and public funding programmes and services. Rural Connect Advisers have provided advice and guidance to individuals considering diversifying into and/or investing in renewable energy crops and technologies.

47. Advisers have also worked with groups taking forward different types of renewable energy projects. Several farmers’ groups across Northern Ireland have been researching options around waste management and energy generation. Some of these have had funding approved through various programmes under DARD’s Rural Development Programme 2000-2006.

48. DARD’s Rural Development Division manages the overall delivery and implementation of the Rural Development Programme 2000-2006. The main elements of this programme comprise capacity building, local regeneration projects and programmes, sectoral and area-based development programmes and microbusiness development. Renewable energy produced locally offers the potential to increase business competitiveness and stimulate diversification in rural communities. Renewable energy projects can be embraced within each of the elements of the Rural Development Programme and, currently, Rural Development Division is actively involved in a number of renewable energy projects.

49. Since 2003, DARD has committed a total of some £4 million in grant assistance to a range of renewable energy projects and technologies (including SRC) across Northern Ireland.

50. Under the Rural Development Programme, several projects have been awarded funding to erect wind turbines to provide wind energy for rural businesses. These schemes will enhance the viability of rural businesses and promote the concept of a sustainable renewable energy source. The most notable of these is a project being delivered by the Western Regional Energy Agency & Network (WREAN), which has provided grant aid to 26 rural businesses, most of whom are farmers, for the installation of 20kW wind turbines. The objective of these turbines is to replace some of the NIE sourced power and to spill any excess electricity back into the grid. Several rural community groups have been awarded funding to install various renewable energy technologies, including wind turbines, biomass boilers and water turbines. Funding has also been awarded for the installation of renewable energy technologies in rural schools.

51. CAFRE is in the process of installing a range of renewable energy technologies which will assist it to meet its energy targets and also provide demonstration projects for the benefit of farmers, landowners and rural communities. These renewable energy technologies will be developed, installed and demonstrated in partnership with a range of public and private sector organisations.

Driving the Renewables Market in Northern Ireland

52. Government has introduced (or will be introducing) a number of measures to incentivise the development and deployment of renewable sources of energy in Northern Ireland. These initiatives will help create sustainable markets in renewable energy supply that can link to a local supply base, thereby providing significant commercial opportunities for the Northern Ireland land-based sector.

Environment and Renewable Energy Fund (EREF)

53. The DETI led £59 million Environment and Renewable Energy Fund (EREF), launched in February 2006, seeks to enhance and accelerate the deployment of renewable energy technologies in Northern Ireland, thereby contributing to a reduction in the level of environmentally harmful emissions and helping to establish Northern Ireland as an exemplar region in renewable energy development.

54. The Fund supports action in four programmes: Research and Demonstration; Building Market Capacity through the Provision of Infrastructure and Supply Chain Development; Accelerated Deployment; and Underpinning Knowledge and Raising Awareness. Initiatives within these areas are focused on both the supply and demand sides and are targeted at all sectors, including agriculture and the public sector.

55. In July 2006, the Household Programme was launched to provide £8 million of support for the installation of renewable energy technologies, such as solar heat and power, biomass, geothermal and wind, in the domestic sector.

56. The Fund has added a very significant stimulus to the development of the renewable energy market in Northern Ireland and provides major opportunities for the agri-food industry to contribute to its sustainable development.

Energy Management in the Public Sector

57. The public sector estate in Northern Ireland currently comprises some 3,500 buildings. On the basis that the public sector should lead by example, a range of “greening” Government policies are currently being implemented in the management of this estate.

58. Northern Ireland Government Departments, with Ministers’ agreement, have been working to meet national targets set out in the Sustainable Development Framework for the Government Estate. As a consequence, the Northern Ireland Sustainable Development Strategy includes a target for the Government Estate to be carbon neutral by 2015. This target can be met only by the widespread adoption of renewable energy technologies.

59. The Department of Finance and Personnel (DFP), which has a central role within Government to promote sustainability in the procurement, operation and maintenance of buildings, has adopted the targets set under the Climate Change Programme published in 2000 to give effect to obligations arising from the 1997 Kyoto Summit, and the further objectives in the 2003 Government White Paper “Our Energy Future – towards a low carbon economy”. The latter outlines far-reaching changes in energy use, leading towards a national reduction in the level of carbon dioxide emissions of about 60% against current levels by about 2050, with further targets specifically for Government bodies.

60. In pursuit of these objectives, DFP monitors and reports on energy usage by all Northern Ireland public sector bodies. It also administers the Central Energy Efficiency Fund (CEEF), supporting specific projects to improve energy performance and the utilisation of renewable energy technologies (such as wind turbines, solar panels and biomass boilers) throughout the public sector. Since 1993, the Fund has invested over £35 million in schemes of this nature. The Fund has also supported significant investments in the installation of combined heat and power (CHP) plants, which are now operational in over 20 District Council leisure centres, in seven hospitals and in Northern Ireland’s two universities.

61. In 2006/07 and 2007/08, an injection of additional resources from the EREF has enabled the CEEF to support an increased number of energy efficiency and renewable energy projects across the public sector. This includes support for 14 separate renewable energy projects. It will also support the conversion of heating plants on the Stormont Estate to use biomass rather than fossil fuels – planning for this is now at an advanced stage.

Northern Ireland Building Regulations

62. DFP is also responsible for the Northern Ireland Building Regulations, and has recently completed an amendment to Part F: Conservation of Fuel and Power, which came into effect in November 2006. This amendment requires adherence to higher thermal standards in building design, the effect of which will be to reduce carbon emissions by up to 40% in the buildings to which the new Regulations will apply. Although the amendment does not include a specific requirement to include renewable energy systems in buildings, the achievement of the required reductions without deploying renewable energy technologies will be technically and financially challenging. If these technologies are not included,