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Forestry Commission Update

Renewable Energy Marketplace 8th March 2012

Mark Prior

SW Partnerships and Expertise Manager Forestry Commission

Woodfuel Implementation Plan 2011 - Woodfuel Implementation Plan • 2009 EU Renewable Energy Directive - 15% energy from renewable sources by 2020 • 50% of UK carbon emissions from heating buildings • Renewable Heat Incentive will increase demand for woodfuel • Additional 2m tonnes pa woodfuel by 2020 • New Woodfuel Grant for improving woodland access and harvesting

Aims: • • • •

Facilitate access within woodlands Develop and test new approaches to woodland management Develop woodfuel supply chains Provide expert and impartial information on heating buildings using wood

Forests in England 1000

900

800

700

600

Hectares

697,000 ha 500

Conifers

400

300

200

100

52,000 ha 153,000 ha

217,000 ha

0

Forestry Commission

3

Broadleaves

Private Sector

Under-managed Woodlands by Region

South West

Coppice (+ Standards)

160,000

Mixed

140,000

Conifer Broadleaf

Hectares

120,000

100,000

80,000

60,000

40,000

20,000

0 NW(E)

NE(E)

YTH

E MIDS

W MIDS

Region 4

E(E)

SW(E)

SE(E)

LONDON

Off-gas areas

5

SW woodland resource 245,000 hectares (8.9%)

400,000 tonnes pa by 2020???

Sustainable annual cut = 1,600,000 tonnes pa 6

1 million tonnes of wood

Salvage harvest following ice storm in Sweden

Woodfuel: Saves carbon and £’s Fuel

Price per unit

kWh per unit

pence per kWh

Wood chips (30% MC)

£90 per tonne

3,500 kWh/t

2.6p/kWh

Wood pellets

£185 per tonne

4,800 kWh/t

3.9p/kWh

Natural gas

4.1p/kWh

1

4.1p/kWh

Heating oil

56p per litre

10 kWh/ltr

5.6p/kWh

LPG (bulk)

54p per litre

6.6 kWh/ltr

8.2p/kWh

Electricity

13.3p/kWh

1

13.3p/kWh

12

Fuel costs per kWh (ex VAT)

Annual CO2 emissions (tonnes)

10

8

6

4

2

0

al Co

8

l Oi

t Na

s Ga

hip

ity c Pe ric d t o c d o o e l w o E C W id r G G LP

t lle

ra St

w

Annual CO2 emissions to heat a typical house

Grant Availability • Most grants are now committed for 2011/12. • All grants are open for 2012/13 and 2013/14 claim years. • Grants are: – – – – –

Woodland Planning/Assessment Grant (WPG/WAG) Woodland Improvement Grant (WIG) Woodland Management Grant (WMG) Woodland Regeneration Grant (WRG) Woodland Creation Grant (WCG)

– Woodfuel Woodland Improvement Grant (WF WIG)

• Farm and Forestry Improvement Grant (Defra) • Rural Enterprise Fund (Defra)

Woodfuel Woodland Improvement Grant It will fund work that establishes wood supplies from currently undermanaged or inaccessible woodlands, e.g. • Timber Fund - measuring and marketing of wood • Roads Rund - infrastructure needed to extract wood for renewable energy purposes or as other wood products.

• £3 million budget in SW

Eligibility issues...

• Eligibility criteria common to both Roads and Timber Funds: – Rural Land Register – Approved up-to-date management plan – Necessary permissions (GDO, Planning, etc.) – Must result in timber harvesting

Eligibility for Timber Fund

• Woodland/compartment must be undermanaged (i.e. has missed 2 thinnings) • Payment based on standard costs • Supports preparation of wood for sale and managing subsequent harvesting

Eligibility for Roads Fund • Management plan must support the need for proposed infrastructure • Scheme must meet FC ‘roading’ guidelines (ON25) • Based on 3 quotes* • Grant must be commensurate with timber harvested (1 tonne per £50 grant) • Grant paid on actual costs* (receipted invoices) – Grant rate – 60%* – Grant amount – de minimis*

*Axis 1 funding imposes conditions

Myths and misconceptions...

• Agent’s management fees can be included • There doesn’t have to be an increase in timber output – can be just more efficient. • Doesn’t need to be ‘under-managed’ for ‘Roads’ grants • Don’t have to take cheapest quote • Value of timber arising is not taken into account.

Ngage’s role with the WF-WIG Ngage administering the grant on behalf of the FC in:  South West Region  South East Region  Cumbria Ngage’s involvement starts with receipt of your application and ends with appraisal of your grant claim – final claims March 2014.

For all other EWGS grants – please apply, as normal, to your local FC office.

Ngage’s delivery model...

How to apply...

• Contact Mike Furness (Ngage) to discuss any eligibility issues and to submit applications • Download the forms and email or post your application • To include: • EWGS1 • ‘Mastermap’ • EWGS5 • WIG calculator • Up to date management plan • Technical drawings (for Road fund) • Get quotes once specs have been agreed with Ngage

Ngage – Mike Furness

[email protected] 01494 568970 07795 515 413 NGAGE The Saunderton Estate, Wycombe Road, Saunderton, Bucks HP14 4BF

Supporting Initiatives

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SW Bioheat Programme



FOREST Project



Westwoods Woodfuels



Dartmoor Woodfuel Co-op



Ward Forester



Woodfuel Suppliers Group

Key issues…. • Phytophthora ramorum…. Increasing Demand: • Capital cost – Renewable Heat Incentive • Appropriate sites • Good design, i.e. fuel storage and delivery Ensuring Fuel Supply: • Need for a robust, and secure supply chain • Ensuring the best mix of fuel sources • Woodland owner engagement– new Woodfuel Grant • Sell heat not woodchip

…..Building Confidence is still essential! 2

[email protected]

www.southwestwoodshed.co.uk

2

www.forestprogramme.com

www.biomassenergycentre.org.uk

www.wardforester.co.uk

Phytophthora ramorum

Phytophthora ramorum

2

Infected larch

2

Plym Forest

2

Glyn Valley, Cornwall

2