ESCO Presentation (Tom Brennan
Action Renewable Conference September 2011
Tom Brennan Managing Director
The BiomassTechnology Heat Only
KWB Automatic Boiler
KWB Automatic Feeder
KWB Combustion Chamber
“The Energy Cabin” - Biomass & Solar to Heat
“The Energy Cabin” Wood Chip, Pellets & Grain
Heating Finance Solutions Straight Purchase of Equipment
Heat Contract Energy Services Contract (ESCO)
Heat Contract •
Contract period generally 5 –10 yrs
•
Client buys boiler & feed system
•
Client incurs building costs, inc additional boiler house & fuel store
•
RGL operate & maintain biomass boiler system
•
RGL manage & supply fuel requirements
•
Client pays for heat consumed per Kwh
Energy Services Contract
•
Contract period generally 10 –20 yrs
•
RGL buy boiler & feed system
•
RGL incur additional building costs, inc boiler house & fuel store
•
RGL operate & maintain biomass boiler system
•
RGL manage & supply fuel requirements
•
Client pay for heat consumed per Kwh
Operation & Maintenance
•
•
Ash removal built into price per kWh Maintenance costs – Higher than fossil fuel systems but built into price per kWh
•
Includes spare parts, repairs & call outs
•
Burden is removed from Client
Who gets the RHI
•
Straight Purchase – Heat User
•
Heat Contract – Heat User
•
ESCO – ESCO Company
Renewable Heat Incentive A Case Study E.g. Omagh Leisure Centre
400kW Boiler Run 1,700,000 kWh/yr (50% load) Oil Displaced = 160,500 Litres Oil Cost pa = £86,670 (£0.54/l) Wood Chip Cost pa = £51,944 Saving pa = £34,726 Payback without Grant or RHI = 3.5 years
UKRHI = Extra Income from RHI = £44,520 pa or Payback of 1.5 Years
Ni RHI =1,700,000 x 1.3p = £22,100 = Payback of 2.5 years
ESCO Profitability, England versus NI, Without RHI 200kW Woodchip Boiler, 36% Loading, 85% Output Assumptions – 536,000 kwhrs/yr, 85% System Efficiency, 15% Wood Moisture - Consumes annually 150t of Wood or 60,000 litres of Oil Eqiv. England
N. Ireland
Installation Cost £500/kW
£100,000
£100,000
Finance Charge %
£3,000
£3,000
Maintenance £10/t of fuel
£1,500
£1,500
Wood Fuel Cost (150t x £85/t) £12,750 (150t x £125/t)
£18,750
Saving on Oil displaced
£33,600 (56p/l)
£35,400 (59p/l)
Annual Saving/Pay Back
£16,350 (6.1yrs)
£12,150 (8.2yrs)
ESCO Profitability, England versus NI, With RHI 200kW Woodchip Boiler, 36% Loading, 85% Output Assumptions – 536,000 kwhrs/yr, 85% System Efficiency, 15% Wood Moisture - Consumes annually 150t of Wood or 60,000 litres of Oil Eqiv. England Annual Saving/Pay Back
£16,350 (6.1yrs)
N. Ireland £12,150 (8.2yrs) No RHI
+ RHI GB Tier 1, 4.7p x 200kW x 1314hrs
£12,350
Tier 2, 1.9p x 273,200 hrs
£5,190
+ RHI NI 536,000 kwhrs X 1.3p Annual Saving/Pay Back
£6,968 £33,890 (3yrs)
£19,118 (5.2yrs) With RHI
Invest in England as 40% better Return & 3 times more Timber !!
Tom Brennan Managing Director
The BiomassTechnology Heat Only
KWB Automatic Boiler
KWB Automatic Feeder
KWB Combustion Chamber
“The Energy Cabin” - Biomass & Solar to Heat
“The Energy Cabin” Wood Chip, Pellets & Grain
Heating Finance Solutions Straight Purchase of Equipment
Heat Contract Energy Services Contract (ESCO)
Heat Contract •
Contract period generally 5 –10 yrs
•
Client buys boiler & feed system
•
Client incurs building costs, inc additional boiler house & fuel store
•
RGL operate & maintain biomass boiler system
•
RGL manage & supply fuel requirements
•
Client pays for heat consumed per Kwh
Energy Services Contract
•
Contract period generally 10 –20 yrs
•
RGL buy boiler & feed system
•
RGL incur additional building costs, inc boiler house & fuel store
•
RGL operate & maintain biomass boiler system
•
RGL manage & supply fuel requirements
•
Client pay for heat consumed per Kwh
Operation & Maintenance
•
•
Ash removal built into price per kWh Maintenance costs – Higher than fossil fuel systems but built into price per kWh
•
Includes spare parts, repairs & call outs
•
Burden is removed from Client
Who gets the RHI
•
Straight Purchase – Heat User
•
Heat Contract – Heat User
•
ESCO – ESCO Company
Renewable Heat Incentive A Case Study E.g. Omagh Leisure Centre
400kW Boiler Run 1,700,000 kWh/yr (50% load) Oil Displaced = 160,500 Litres Oil Cost pa = £86,670 (£0.54/l) Wood Chip Cost pa = £51,944 Saving pa = £34,726 Payback without Grant or RHI = 3.5 years
UKRHI = Extra Income from RHI = £44,520 pa or Payback of 1.5 Years
Ni RHI =1,700,000 x 1.3p = £22,100 = Payback of 2.5 years
ESCO Profitability, England versus NI, Without RHI 200kW Woodchip Boiler, 36% Loading, 85% Output Assumptions – 536,000 kwhrs/yr, 85% System Efficiency, 15% Wood Moisture - Consumes annually 150t of Wood or 60,000 litres of Oil Eqiv. England
N. Ireland
Installation Cost £500/kW
£100,000
£100,000
Finance Charge %
£3,000
£3,000
Maintenance £10/t of fuel
£1,500
£1,500
Wood Fuel Cost (150t x £85/t) £12,750 (150t x £125/t)
£18,750
Saving on Oil displaced
£33,600 (56p/l)
£35,400 (59p/l)
Annual Saving/Pay Back
£16,350 (6.1yrs)
£12,150 (8.2yrs)
ESCO Profitability, England versus NI, With RHI 200kW Woodchip Boiler, 36% Loading, 85% Output Assumptions – 536,000 kwhrs/yr, 85% System Efficiency, 15% Wood Moisture - Consumes annually 150t of Wood or 60,000 litres of Oil Eqiv. England Annual Saving/Pay Back
£16,350 (6.1yrs)
N. Ireland £12,150 (8.2yrs) No RHI
+ RHI GB Tier 1, 4.7p x 200kW x 1314hrs
£12,350
Tier 2, 1.9p x 273,200 hrs
£5,190
+ RHI NI 536,000 kwhrs X 1.3p Annual Saving/Pay Back
£6,968 £33,890 (3yrs)
£19,118 (5.2yrs) With RHI
Invest in England as 40% better Return & 3 times more Timber !!
