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Dr. Jonathan Scurlock National Farmers Union of England and Wales Biofuels: Opportunity or Threat

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Dr. Jonathan Scurlock National Farmers Union of England and Wales Biofuels: Opportunity or Threat

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    1. Dr. Jonathan Scurlock National Farmers’ Union of England and Wales Biofuels: Opportunity or Threat? EERU / Design and Innovation Seminar Open University, Milton Keynes: 12 March 2008

    2. Energy security, food and climate change Climate change – non-stop media coverage? Not just 2006 or 2007; we face decades of climate change! Oil prices and energy security: $109/bbl – higher than 1980 Rising food prices (at last!) due to worldwide structural change, globalisation and new markets (biofuels) Climate change, energy and food security are all driving policy at international, national and regional level

    3. Why this is important for agriculture

    4. Biofuels – one part of the solution With 75% of UK area, agriculture can provide abundant land-based renewable resources replacement of farm energy inputs export of electricity to the rest of the economy provision of renewable heat and wood fuels agricultural commodities for electricity or fuel production off-site For the first time in 50 years, farming today offers a solution, no longer a financial burden Back to the future? – horse fodder used to occupy large areas of land (biofuels are modern equivalent) Biofuels strategically important – no other pathways ready to substitute for road, rail, even aviation fuels

    5. Biofuel production – large scale Most commercial opportunities to UK growers are at large scale – through conventional grain trading, maybe on different terms

    6. EU and UK targets for biofuels EU Biofuels Directive – 2% by 2005, 5.75% by 2010 – indicative targets only (UK only 0.3% by 2005) UK RTFO sets 2.5% (2008/09), 3.75% (2009/10), 5% (2010/11) by volume (Roy Soc called for 2025 target) EU 2020 target (March 07, Jan 08 RE Directive) – 10% is binding on MS – much-needed long-term signal large biofuels plants now operational or planned Biofuels Seal Sands, Greenergy Immingham, D1 Oils, Argent/ESL Ensus Teesside, BP/ABF/DuPont South Humberside, Abengoa? 5% UK petrol = 3 million tonnes wheat to ethanol 5% UK diesel = 2.7 million tonnes OSR to biodiesel

    7. Myths and Misconceptions Continuing media/public backlash – only to be expected? NFU wants a mature, science-based debate – sustainability criteria could be extended to all biomass or even all agricultural commodties in future (1) Food Prices (2) World markets and rural incomes (3) Not enough land? (4) Harming, not helping the environment? (5) We should wait for cellulosic technologies (6) Energy subsidies? Feed prices?

    8. Getting the message across Public sector procurement Captive vehicle fleets High-blend biofuels (E85, B30)

    9. Small-scale biofuel production HM Revenue and Customs – simplification of regulations from Summer 2007, allow 2500 litres/year without registration or payment of fuel excise duty

    10. Is this Easy?

    11. Farm-based business examples

    12. Perennial energy crops – a new sub-sector SRC willow (harvested every three years) and miscanthus (harvested annually) Solid biomass fuel for power stations, local heat, future transport fuels – new NFU discussion group formed Explicit ES needs to be rewarded (biodiversity, permeability, low inputs, low run-off, flood control) However – poor market devt., loss of flexibility in marketing, cannot be diverted back to food/feed uses like grain-based feedstocks

    13. Economic evaluations and biogas Reports and calculators for small-scale biofuels Booth et al. (SAC) for NNFCC (Report 07-012) – www.nnfcc.co.uk Andrew Martin (report for SEEDA) farming@rmfarms.co.uk Marches Energy Agency www.mea.org.uk - spreadsheet still available?

    14. Conclusions Agriculture – a major natural resource - significant contribution to energy supply and climate change mitigation Biofuels (small and large scale) are just one of many options NFU supports sustainable development and the transition to a low-carbon economy Dr Jonathan Scurlock Chief Policy Adviser, Renewable Energy and Climate Change National Farmers’ Union Stoneleigh Park Warwicks CV8 2TZ jonathan.scurlock@nfu.org.uk

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