Biofuel Options Outlined for Ireland

The debate on biofuel production has intensified over the last 12 months. The latest government initiatives, the options for biofuel in Ireland, and the situation in other countries were all outlined at the “National Agri-Vision for Bio-Energy” conference, held today, Tuesday 6 March, in Dunboyne, County Meath.

The conference, jointly organised by Teagasc and the Department of Agriculture and Food, was officially opened by Mary Wallace TD, Minister of State at the Department of Agriculture and Food.

The Irish Green Paper on Sustainable Energy suggested a 5.75% substitution of mineral oil with liquid biofuel, replacement of 30% of peat used in electricity generation and 20% of electricity from renewable sources by 2020. The Government recently announced a change from liquid biofuel excise relief to a blending obligation and an advance of the 5.75% target date to 2009.

Speaking at the conference Teagasc researcher, Bernard Rice, said that if the Irish biofuel industry is to achieve significant scale, and we wish to avoid replacing imported mineral fuel with imported biofuels, native production must become more profitable.

He said that while biofuel production may not have increased by much in the last year, discussion and debate has reached a new level. He continued saying it now appears from the list of allocation of excise relief that the vast bulk of biofuel will be imported.

Bernard Rice said that Ireland can produce sufficient native feedstocks to meet the initial 2% substitution target, but supplying the 5.75%, or a 10% target would cause serious difficulties. He pointed out that to substitute 5.75% of diesel fuel in Ireland, approximately 180,000 hectares of rape would be needed, leading to a doubling of the tillage area. He predicted that the 10% target will cost several hundred millions of euro per annum, either in excise relief or in increased fuel prices and he questioned whether there were better ways to support native biofuel development.

The potential to use solid biofuels to replace mineral oil for commercial heating, home heating and in power stations was outlined. Wood chips made from the first thinnings from forestry could service the market for commercial heat which is estimated at 3 million tonnes of oil equivalent, and provide an important market for first thinnings from private forests.

Demand for pellets has exploded since the Greener Home Scheme was introduced and this demand is being met mainly by imported pellets. There is potential for five million tonnes of pellets to replace the two million tonnes equivalent of oil, gas and coal used to heat homes in Ireland. Teagasc researcher, Bernard Rice, believes that capital grants will be needed to allow a number of projects of a suitable scale to get underway before imported produce establishes a firm hold on the Irish market.

The 30% peat substitution target set out in the Green Paper for the three peat burning power stations would require biomass to replace about 0.9 million tonnes of peat. However, Bernard Rice warned that the price currently paid for peat would not cover the cost of producing energy crops.

The potential of energy crops for Irish farmers was presented by Teagasc energy specialist, Barry Caslin. He outlined the costs and returns of growing crops such as Miscanthus and willow for energy and the impact the new establishment grants, announced by the Government, have on the level of profitability. One hectare of Miscanthus can produce the equivalent of 4,660 litres of mineral oil while one hectare of willow can produce the equivalent of 4,000 litres of oil. He predicted that energy crops can and will deliver for Irish farmers.

Speaking at the conference Dr Nuala Ni Fhlatharta, head of Teagasc Forestry Development unit said that farmers are having difficulty in accessing profitable markets for their low value first thinnings. She said that for the forest owners with older plantations the stream of income from premiums is now coming to an end and many of these forests need to be thinned to optimise the output from the forest crop. However she said that the low value and high costs associated with harvesting and transporting the pulpwood can result in first thinning being a loss making operation. A recent study showed that transporting wood for pulp a distance greater than 50 kilometres from the forest resulted in a negative return to the forest owner. The new market with the greatest potential at local level is energy and she outlined the potential for firewood, wood chips and wood pellets.

The second Agri-vision for Bio-Energy conference takes place in Clonmel, County Tipperary tomorrow, Wednesday, 7 March 2007.