FEATURE BIO ENERGY & RENEWABLES
Reaping the benefits of biomass
Paul Smith at Green Square explores how biomass boilers are offering an attractive option for generating heat through renewable energy
L
ast October, the Government signed up to an EU agreement to cut greenhouse gas
emissions by 40% by 2030, compared with 1990 levels, and produce 27% of our energy from renewable sources by the same date. The fact that we lag far behind other EU countries, with just 4.2 percent of our energy derived from green sources (with only Luxembourg and Malta performing worse) means we have a long way to go. On the positive side, as part of that commitment to reduce our reliance on fossil fuels and reduce the country’s carbon footprint, the Government is offering a range of incentives to make the installation of renewables more attractive for businesses and households. On the space heating side - heat produces 44% of the UK’s CO2
emissions - the
Government’s main mechanism has been the Renewable Heat Incentive (RHI), which replaced the Low Carbon Building Programme. The non-domestic RHI has been around
since November 2011 and pays businesses for the heat they produce from renewable sources, such as heat pumps, biomethane, solar thermal and, overwhelmingly (95%), from biomass. The domestic RHI was introduced in April last year. For biomass the Government also has schemes supporting innovation and new technologies, such as torrefaction; improvements in the fuel-supply chain; new forms of financing; and training. Traditionally, biomass boilers have been
more expensive to install than fossil fuel boilers but the RHI, by providing a guaranteed, indexed-linked income stream over 20 years for commercial installs, and seven for domestic, has sharply reduced the payback time making it a much more attractive proposition. According to the Government, those who install biomass will earn a return of 12% per annum. As biomass systems enter the mainstream costs are also decreasing. Modelling by the Low Carbon Innovation Coordination Group indicates that costs across the supply-chain lifecycle will fall by 12 percent for larger systems and 14 percent for small-scale systems by 2050. Another benefit of biomass is that the
price of fuel is lower and less volatile than fossil fuels, which could provide significant savings over the long term.
14 SPRING 2015 | ENERGY MANAGEMENT According to the Biomass Energy Centre
typical prices for wood chip, at 30% moisture content, are 2.9p per kWh, while wood pellets are 4.2p, mains gas is 4.8p, heating oil is 6p, LPG is 7.6p and electricity is 14.5p. The Wood Pellet Information Resource also expects the cost of biomass to stabilise and even reduce as economies of scale start to outweigh the increase in the marginal cost of supply. A major benefit of biomass is that it is a very low carbon technology, enabling businesses to reduce their carbon footprint. Biomass also produces fewer pollutants such as sulphur dioxide, responsible for acid rain. From later this year the production of
biomass fuel under the RHI, whether woodchip or pellets will have to meet
Figure 1:
Compact biomass boiler from Green Square
sustainability criteria, in effect creating a carbon-neutral cycle in which carbon produced by burning biomass will be absorbed by new plantations. Lowering carbon emissions can improve a business’s carbon accounting report, and in some cases will lead to carbon credits and tax relief. Biomass fuels can also be sourced sustainably from within the UK. This offers security of supply and reduces transport emissions. Locally-sourced biomass can also offer local business opportunities and support the rural economy, while increased demand provides an economic incentive to manage woodland, which in turn boosts biodiversity. Modern biomass boilers are also
sophisticated machines and operate at over 90% efficiency, comparable to the best fossil-fuel boilers. Most biomass boiler systems can be fully automated and require little user input, apart from supervising fuel deliveries, ash cleaning, routine maintenance and annual servicing. Biomass heating systems are retrofit ready and are particularly suitable from a cost and carbon standpoint for a wide variety of off-grid buildings. However, despite the advantages, a biomass boiler may not be suitable for every business. Each install is unique and there are a number of practical concerns to consider. Biomass boilers need space. They are
bigger than a traditional boiler and will also need room for a fuel store as well as access for fuel delivery. They also need a chimney or flue and a bit of elbow room for ash removal and maintenance. Biomass boilers work most efficiently
while running flat out and while they can modulate they are inefficient when cycling, so sizing the system correctly is essential, as is space for connection to a thermal store. As with all Government schemes, support for renewables and in particular biomass and the RHI is open to “tweaking” and yet, despite there being an election in the offering, all political parties are committed to moving to a low carbon economy. As part of that they look certain to
maintain financial incentives to support businesses installing biomass systems and those systems will play an increasingly important role in the mixed-technology heating market.
Green Square
www.greensquare.co.uk 0845 263 7474
Enter 204 / ENERGYMANAGEMENT
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