NFU - Regensw
On farm AD: what’s not to like? Dr Jonathan Scurlock Chief Adviser, Renewable Energy and Climate Change National Farmers Union of England and Wales
NFU regional livestock board, Bakewell: 7 April 2014 RE Marketplace, Exeter: 8 April 2014
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Climate change & renewables – NFU policy • climate change, energy security and food security converge to provide an opportunity, not a threat to agriculture • Substantial land-based renewable energy resources in UK and EU offer solutions – consistent with trend away from ‘coupled’ agricultural support • NFU policy is to encourage farmers to diversify into harnessing and exporting low-carbon renewable energy services of all kinds • Bioenergy (storable/schedulable) plus wind and solar power are the largest of the land-based renewables – for electricity + heat + transport • back to the future? – around 1910 horse fodder utilised large areas non-food use of land supports and enhances profitable food production
The NFU champions British farming and provides professional representation and services to its farmer and grower members
A wide choice of renewables for farmers
The shift towards a low-carbon economy • ‘Green Deal’ or ‘green crap’? from culture of embedded fossil carbon (in energy and products), to a sustainable natural resource economy • ‘Keeping the Lights On’ – as old power stations are retired • NFU policy encourages farmers to diversify into low-carbon energy services – our aspiration is that every farmer could be an clean energy exporter – ‘Farming Delivers’ up to 25% of clean energy • More than one in 3 farmers already diversifying into renewables • bioenergy (many kinds) is already world’s 4th largest energy source (~11%) – now setting new sustainability standards for production • agricultural buildings and land are ideal platforms for small-to-medium wind power and solar PV (‘disruptive’ technology, now with batteries) • on-site energy needs only, or also export of renewable electricity, plus heat services and fuels?
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
Feed-in Tariffs (FiTs) – a success •
•
• • •
•
Since April 2010, attractive tariffs across a range of scales for wind and solar, not so good for biogas; a succession of changes to tariffs, but 2.3 GW installed, equivalent to >2% of UK generating capacity Solar PV still a great investment, probably the most accessible of technologies; Q’ly “degression” dates (1st Jan; 1st Apr = 3.5% 30kW Definition of a ‘site’ not very clear, but avoid artificially dividing installations. Energy Performance Certificates (solar PV – cat D) since Apr 2012 MCS accreditation: 1000s of small suppliers, some still not compliant – farmers need trusted advice!
Endurance 50kW turbine (Dulas Ltd.)
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
Renewable Heat Incentive: progress at last • • •
•
•
Launched Nov 2011 for commercial sector (domestic sector delayed to April 2014) Biomass tariff >1 MW: emissions! Just 400 projects successful in first year (50 Mt feedstocks needed UK Coalition Government commited to ‘huge’ increase in energy from anaerobic digestion (much of which could be located on farms) NFU goal 2009, widely adopted, for 1000 on-farm AD plants by 2020 – requiring up to 100,000 ha silage/maize/beet energy crops (4-5 Mt fr wt or ~2 Mt dry wt 500 MW, 6 TWh electricity + 6 TWh heat)
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Fuel and food, not ‘food vs. fuel’ • UK Renewable Transport Fuels Obligation already mandates reporting of minimum GHG saving and sustainability • EU sustainability criteria guidelines for solid fuels – no use of land with previous high biodiversity or carbon stock value, GHG savings • UK sustainability criteria mandatory from April 2015 – developed in consultation with DECC/Defra working group (obligatory to receive support >1 MW; reporting required >50 kW and from April 2014) • biofuels debate alone must not drive the standard; must avoid disincentivising small-scale supply chains, especially for solid fuels • debate around ILUC highlights need to place in context – ALL agricultural commodities and ALL land uses have indirect impacts
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Exploding some myths •
The world is not particularly short of agricultural land - farmers and growers in many countries lack good infrastructure and logistics, access to inputs (whether scarce or not), and R & D to drive productivity gains - renewed investment needed!
•
Substantial yield potential still unrealised in most developed countries (world record wheat 15 tonnes/ha; UK average 8 t/ha). Just modest progress towards today's best yields in many developing countries (e.g. from one to 3 tonnes/hectare of grain) would utterly transform the lot of the poor farmer.
•
EU arable land area was expected to fall by 7 Mha over the period 2000– 2020 in the absence of biofuel mandates. Land use for bioenergy is reversing a predicted decline in agricultural activity, so recent European Commission policy reversal does not appear evidence-based.
•
Many bioenergy options can help to deliver additional environmental benefits such as resource protection, methane abatement, good practice in nutrient and soil management - as well as supporting profitable farming
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
NFU Members can opt in and out at any stage: • • • •
initial advice on energy management a second opinion on supplier quotes finding approved suppliers complete project management
Tel. 0870 844 5700 www.nfufarmenergyservice.com
Linked to support from NFU Legal Panel Firms, Rural Surveyors Panel, NFU Mutual
NFU Farm Energy Service – 2013 results More than 950 members used the Service over Jan-Sep 2013: • 80% of the energy contracts offered are taken up • breakdown of technology enquiries shown on left
The NFU champions British farming and provides professional representation and services to its farmer and grower members
AD - agricultural or waste management? • •
•
•
Government tends to emphasise diversion of waste from landfill; NFU sees also a rural economic / diversification opportunity maximum benefit, as water resource protection and reduced GHG from livestock farming (optimal manure management), requires large number of farm-based AD projects distributed nationwide on-farm AD - manures and farm-based (silage) feedstocks, regulated under low-risk environmental permitting, income mostly from energy sales. Typical scale 600-3000 m3, 100 kW–1.0 MWe. May benefit from enhanced FITs/RHI and project development support waste-licensed AD – multiple organic feedstocks, may be in a rural location but different business model (income from both energy and gate fees). Typical scale up to 10,000 m3, 0.5-5 MWe – more profitable and ‘bankable’ (RO or FITs), but longer development lead time
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
Are AD plants causing a hike in land rents? We especially support smaller-scale AD plants (25-250 kW) that fit typical farm sizes, processing mostly manures, slurries, discards, outgrades and farm residues But most AD plants also require some high-energy crop feedstock for co-digestion in order to be profitable and financeable NFU will monitor concerns in local “hot-spots” where AD units are seeking crop feedstock, to better understand long-term impact on nearby land rents On the basis of evidence we do not see a problem at national scale AD maize/beet area ~15,000 ha: could rise to 30-40,000 ha (still only 15-20% total forage maize)
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
How small is still viable for farm AD? Several manufacturers (UK and imported) trying to ‘downsize’ AD without losing reliability, process control, safety, etc. Typically 25 kW-250 kW
Aim is mostly farm slurry, little or no crop feedstock. Target price £100-300k but hard to show economic return, only modest energy output, difficult to quantify or reward other benefits (nutrients, water resources, GHG emission) Small plug flow development digester
100 m3 cylindrical digester
AgriDigestore – slurry store/AD
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
Recent AD policy developments • AD Strategy and Action Plan (June 2011): progress on environmental permitting; planning/permitted development; electric/gas grid connection • Mar 2014, ~140 non-sludge AD plants in Britain, up to 400 projected by 2016, so 1000 still feasible? But Germany already has 7800 (4GW) ! • German FIT / EEG reforms are also driving availability of smaller sizes (150 kW; 75 kW) for farm AD, alongside British innovation • but UK FITs for smaller on-farm AD (
NFU regional livestock board, Bakewell: 7 April 2014 RE Marketplace, Exeter: 8 April 2014
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Climate change & renewables – NFU policy • climate change, energy security and food security converge to provide an opportunity, not a threat to agriculture • Substantial land-based renewable energy resources in UK and EU offer solutions – consistent with trend away from ‘coupled’ agricultural support • NFU policy is to encourage farmers to diversify into harnessing and exporting low-carbon renewable energy services of all kinds • Bioenergy (storable/schedulable) plus wind and solar power are the largest of the land-based renewables – for electricity + heat + transport • back to the future? – around 1910 horse fodder utilised large areas non-food use of land supports and enhances profitable food production
The NFU champions British farming and provides professional representation and services to its farmer and grower members
A wide choice of renewables for farmers
The shift towards a low-carbon economy • ‘Green Deal’ or ‘green crap’? from culture of embedded fossil carbon (in energy and products), to a sustainable natural resource economy • ‘Keeping the Lights On’ – as old power stations are retired • NFU policy encourages farmers to diversify into low-carbon energy services – our aspiration is that every farmer could be an clean energy exporter – ‘Farming Delivers’ up to 25% of clean energy • More than one in 3 farmers already diversifying into renewables • bioenergy (many kinds) is already world’s 4th largest energy source (~11%) – now setting new sustainability standards for production • agricultural buildings and land are ideal platforms for small-to-medium wind power and solar PV (‘disruptive’ technology, now with batteries) • on-site energy needs only, or also export of renewable electricity, plus heat services and fuels?
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
Feed-in Tariffs (FiTs) – a success •
•
• • •
•
Since April 2010, attractive tariffs across a range of scales for wind and solar, not so good for biogas; a succession of changes to tariffs, but 2.3 GW installed, equivalent to >2% of UK generating capacity Solar PV still a great investment, probably the most accessible of technologies; Q’ly “degression” dates (1st Jan; 1st Apr = 3.5% 30kW Definition of a ‘site’ not very clear, but avoid artificially dividing installations. Energy Performance Certificates (solar PV – cat D) since Apr 2012 MCS accreditation: 1000s of small suppliers, some still not compliant – farmers need trusted advice!
Endurance 50kW turbine (Dulas Ltd.)
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
Renewable Heat Incentive: progress at last • • •
•
•
Launched Nov 2011 for commercial sector (domestic sector delayed to April 2014) Biomass tariff >1 MW: emissions! Just 400 projects successful in first year (50 Mt feedstocks needed UK Coalition Government commited to ‘huge’ increase in energy from anaerobic digestion (much of which could be located on farms) NFU goal 2009, widely adopted, for 1000 on-farm AD plants by 2020 – requiring up to 100,000 ha silage/maize/beet energy crops (4-5 Mt fr wt or ~2 Mt dry wt 500 MW, 6 TWh electricity + 6 TWh heat)
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Fuel and food, not ‘food vs. fuel’ • UK Renewable Transport Fuels Obligation already mandates reporting of minimum GHG saving and sustainability • EU sustainability criteria guidelines for solid fuels – no use of land with previous high biodiversity or carbon stock value, GHG savings • UK sustainability criteria mandatory from April 2015 – developed in consultation with DECC/Defra working group (obligatory to receive support >1 MW; reporting required >50 kW and from April 2014) • biofuels debate alone must not drive the standard; must avoid disincentivising small-scale supply chains, especially for solid fuels • debate around ILUC highlights need to place in context – ALL agricultural commodities and ALL land uses have indirect impacts
The NFU champions British farming and provides professional representation and services to its farmer and grower members
Exploding some myths •
The world is not particularly short of agricultural land - farmers and growers in many countries lack good infrastructure and logistics, access to inputs (whether scarce or not), and R & D to drive productivity gains - renewed investment needed!
•
Substantial yield potential still unrealised in most developed countries (world record wheat 15 tonnes/ha; UK average 8 t/ha). Just modest progress towards today's best yields in many developing countries (e.g. from one to 3 tonnes/hectare of grain) would utterly transform the lot of the poor farmer.
•
EU arable land area was expected to fall by 7 Mha over the period 2000– 2020 in the absence of biofuel mandates. Land use for bioenergy is reversing a predicted decline in agricultural activity, so recent European Commission policy reversal does not appear evidence-based.
•
Many bioenergy options can help to deliver additional environmental benefits such as resource protection, methane abatement, good practice in nutrient and soil management - as well as supporting profitable farming
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
NFU Members can opt in and out at any stage: • • • •
initial advice on energy management a second opinion on supplier quotes finding approved suppliers complete project management
Tel. 0870 844 5700 www.nfufarmenergyservice.com
Linked to support from NFU Legal Panel Firms, Rural Surveyors Panel, NFU Mutual
NFU Farm Energy Service – 2013 results More than 950 members used the Service over Jan-Sep 2013: • 80% of the energy contracts offered are taken up • breakdown of technology enquiries shown on left
The NFU champions British farming and provides professional representation and services to its farmer and grower members
AD - agricultural or waste management? • •
•
•
Government tends to emphasise diversion of waste from landfill; NFU sees also a rural economic / diversification opportunity maximum benefit, as water resource protection and reduced GHG from livestock farming (optimal manure management), requires large number of farm-based AD projects distributed nationwide on-farm AD - manures and farm-based (silage) feedstocks, regulated under low-risk environmental permitting, income mostly from energy sales. Typical scale 600-3000 m3, 100 kW–1.0 MWe. May benefit from enhanced FITs/RHI and project development support waste-licensed AD – multiple organic feedstocks, may be in a rural location but different business model (income from both energy and gate fees). Typical scale up to 10,000 m3, 0.5-5 MWe – more profitable and ‘bankable’ (RO or FITs), but longer development lead time
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
Are AD plants causing a hike in land rents? We especially support smaller-scale AD plants (25-250 kW) that fit typical farm sizes, processing mostly manures, slurries, discards, outgrades and farm residues But most AD plants also require some high-energy crop feedstock for co-digestion in order to be profitable and financeable NFU will monitor concerns in local “hot-spots” where AD units are seeking crop feedstock, to better understand long-term impact on nearby land rents On the basis of evidence we do not see a problem at national scale AD maize/beet area ~15,000 ha: could rise to 30-40,000 ha (still only 15-20% total forage maize)
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
How small is still viable for farm AD? Several manufacturers (UK and imported) trying to ‘downsize’ AD without losing reliability, process control, safety, etc. Typically 25 kW-250 kW
Aim is mostly farm slurry, little or no crop feedstock. Target price £100-300k but hard to show economic return, only modest energy output, difficult to quantify or reward other benefits (nutrients, water resources, GHG emission) Small plug flow development digester
100 m3 cylindrical digester
AgriDigestore – slurry store/AD
The NFU champions British farming, and provides professional representation and services to its farmer and grower members
Recent AD policy developments • AD Strategy and Action Plan (June 2011): progress on environmental permitting; planning/permitted development; electric/gas grid connection • Mar 2014, ~140 non-sludge AD plants in Britain, up to 400 projected by 2016, so 1000 still feasible? But Germany already has 7800 (4GW) ! • German FIT / EEG reforms are also driving availability of smaller sizes (150 kW; 75 kW) for farm AD, alongside British innovation • but UK FITs for smaller on-farm AD (
