Memorandum submitted by Robin Twizell
The following are my views regarding development
of Biofuels within the UK as per press notice 24, 27 February
2003.
1. Alternative crops is the wrong expression
with regards to energy crops with particular reference to liquid
fuel crops. This is because the liquid fuels, biodiesel and bioethanol,
are produced from crops already extensively grown in the UK ie
oilseed rape for biodiesel, cereals, sugar beet and other starchy
crops for bioethanol.
2. If considering energy crops for combustion
for energy then these are only grown on a small scale because
of the lack of markets for the actual agricultural produce. Many
farmers are interested in growing these crops as against food
crops as it will give them another marketing opportunity.
3. To most farmers the decision on cropping
of the land is a combination of the financial returns from the
crop in question and environmental considerations. This means
creating the demand for the crop is only part of the equation.
We must create a market that gives a fair price to the producer
as well as giving a return to all others in the supply chain.
This means we have to get away from the commodity market for these
energy crops and market the produce with low carbon credentials
which should allow the final product to be marketed at a fair
price.
4. The expansion of crop production for
liquid fuel crops is relatively small as it is more a change in
production from the oversupplied food market to the energy market.
With cereals this could use up to three million tonne of the cereals
we currently export. If these cereals are exported outside the
EU they are currently subsidised by
12 per tonne so it would save
36 million per year. This export subsidy changes
so any financial saving will also change. The expansion of the
biodiesel market could however lead to a demand for a further
one million tonne of oilseed rape above what we already grow.
This demand could be satisfied by growing the crop on set aside
land.
5. The growth in production of energy crops
will always depend on the value of the crop to the producer as
if it is not financially viable they will not grow it.
6. Agriculture has a huge asset in the land
and given the correct incentives it can be used to produce low
carbon energy crops. This would include Short Rotation Coppice
(SRC) where a significant proportion of carbon is locked up in
the roots of the crop as well as producing low carbon fuels for
combustion.
7. The production of energy crops, as long
as monitored, can deliver both carbon savings and enhance the
biodiversity of the countryside while providing the farmer with
a sustainable income.
8. In order to increase production we need
to increase demand and therefore farmer confidence in the market.
The growing of oilseeds and other arable crops is not a problem
for the farmer what we need is a co-ordinated approach to retailing
the final bio fuel. This is already underway by companies such
as Greenergy. What we need is to have the farmers involved at
this early stage of market development.
There is a lot of pressure to increase the tax
incentive on biofuels but I fear that, as a farmer, if the incentive
is increased too far we will finish up back in the commodity market
but this time for fuels as against food. It would be better to
increase the tax incentive by a few pence to lets say 25p and
encourage a number of smaller production units around the country
as against a few larger ones which would be controlled by the
multinationals if the tax incentive were to be larger. This would
also enhance the image of local production local consumption and
help reduce carbon balances
9. The expansion of biomass crops is more
difficult as farmers are not that used to growing them. The production
of energy crops for electricity has proved very difficult as the
price of electricity has plummeted. What we need is to expand
the use of biomass as a heat source. This means persuading local
government etc to put in biomass boiler for wood chip to generate
space heat. How many government offices around the country have
wood heat boilers? Not even the forestry commission. Once there
are a number of large display units then private landlords etc
will follow. We need to prove it as easy as gas.
10. Miscanthus though is another matter.
I think with Miscanthus it needs to be large scale power generation
because of the bulk of the bales etc. However this is not an area
I know much about.
11. The future of energy crops is in creating
the market for the produce and marketing it correctly.
14 March 2003
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