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Putting it all together: Policy directions. Cameron Maxwell, Business Development, FCS FEG Autumn Symposium, 8 September 2011. Forestry is always looking for a White Knight. SG policy.
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Putting it all together:Policy directions Cameron Maxwell, Business Development, FCS FEG Autumn Symposium, 8 September 2011
Forestry is always looking for a White Knight Policy directions
SG policy The Scottish Government would prefer to see biomass deployed in heat-only or combined heat and power schemes, off gas-grid, at a scale appropriate to make best use of both the available heat, and of local supply. Policy directions
Rationale • Heat is 50% of total energy demand • Make most efficient use of a finite resource • Biomass key to delivering 11% renewable heat target • can make a minor contribution to electricity baseload • off gas-grid ensures highest carbon savings • promote development of decentralised energy generation. Policy directions
Balanced approach • Timber processing industries: • low carbon products for construction etc • contribution to economic development • New income stream for forest industries • Better returns for growers • Development of supply chain • More woodland management • Encourage investment in new woodland • Heat – more incremental increase in demand • Local use Policy directions
Resource • Softwood production - 6.3m green tonnes • Sawmills • Wood panel • Paper and paperboard • Wood fuel - 1.6m green tonnes (40% recycled) • Production Forecast, 7.3m green tonnes in 2020 • UK 9.8m gt (2010), 11.8m gt (2020) Policy directions
Biomass demand Forestry Commission Scotland: Wood Fuel Demand and Usage Update Report 2009. Hudson Consulting (www.forestry.gov.uk/scotland) Policy directions
Availability • WFTF update report published in March 2011 • Potential available resource • 0.8m green tonnes in 2010-11, • 2.4m green tonnes in 2017-21 • Increased harvest, forest residues, recycled wood • Renewable heat 2.8% (biomass 90%) • Additional 1m green tonnes in heat only plants would deliver additional 3% renewable heat Policy directions
Imports • May be a significant role for imported biomass • But global market is immature and likely to be volatile • Use dependant on: • price, availability and evidence of sustainability • Use should support maximum heat use and de-centralised energy production. Policy directions
Going forward • Renewable Obligation Banding Review • Review support for biomass to align with policy • Analysis: • Best use of wood fibre and wood fuel • Future wood fuel demand • Likely impact of the Renewable Heat Incentive • Proposals in planning • Energy forestry Policy directions
UK Government policy • Renewables Road Map • Significant role for biomass electricity • Enhanced co-firing, conversion, dedicated biomass • ROC Banding Review • Bioenergy Strategy/Bioenergy Review Policy directions
UK ambition (m odt) + 5m odt for the renewable heat target Policy directions
Demand for UK fibre (m odt) Policy directions
UK biomass inputs Policy directions
Global resource Policy directions
Timber development • Green credentials • Renewable • Carbon substitution • Carbon storage • Incentivisation • Promotion, • Education • R & D, new products, systems, • Building regulations, embodied carbon.
Concerns/conclusions • Scale of demand • Tilbury, Drax • Pellet plants • Georgia, USA – 1m tonnes • Russia – 2-3m tonnes • Canada – 2m tonnes • Electricity generators will go for most accessible material first • Ability to pay • DECC: 5-15% price increase to 2020 • Wood will travel Policy directions