Memorandum submitted by the Department
for Environment, Food and Rural Affairs (Bio 26)
BACKGROUND
i. Defra supports the use of biomass sources
for the generation of heat and electricity and the production
of transport biofuels. Bio-energy contributes to climate change
targets through reductions in greenhouse gas emissions and promotes
sustainable development. Bio-energy offers opportunities for farmers,
rural areas and sectors linked to farming, and can make a contribution
to fuel security.
ii. This Memorandum incorporates the views
of the Department of Trade and Industry (DTI) and the Department
for Transport because of the close relationship between the departments
on bio-energy policies. The response to each question posed by
the Committee is as follows:
Q1. What is the real scope for biomass and
biofuels to contribute to tackling climate change? What proportion
of the UK's energy and transport fuel needs could they provide?
1.1 The Government believes that biomass
has the potential to provide a significant contribution to the
reduction of carbon dioxide levels if it is substituted for fossil
fuel in the generation of heat and electricity and transport biofuels.
1.2 The work of the Biomass Task Force (see
paragraph 5.1(ix)) has shown that the potential of biomass to
reduce UK carbon dioxide emissions and mitigate climate change
is significant. The "Renewables Innovation Review",
published by DTI and the Carbon Trust in 2004, assessed the potential
development of biomass energy and concluded that biomass, including
purpose-grown crops, agricultural and forestry by-products and
residues, could contribute 5-6% of the UK's electricity supply
by 2020. The "Biomass Sector Review" by the Carbon Trust,
published in October 2005, concluded that there is significant
potential to reduce carbon dioxide emissions today through the
use of biomass, particularly for heat generation. The report concluded
that using UK resources alone, carbon savings of up to 5.6 MtC
per annum could be delivered.
1.3 The UK is actively promoting biofuels
and other renewable fuels primarily for climate change objectives.
Biofuels, and in the future, other renewable fuels, have the potential
to reduce carbon emissions from the transport sector. Life cycle
analysis considering UK-produced biodiesel shows a typical carbon
savings of around 55% compared to fossil diesel, but actual savings
can vary widely, particularly for bioethanol. "Second Generation"
technologies can offer much higher carbon savings, potentially
making them entirely carbon neutral. The Government has announced
that a Renewable Transport Fuels Obligation will be introduced
which will require 5% of fuel sales in 2010 to be from renewable
sources (see paragraph 5.2 (iii) for further information on this).
This will save around one million tonnes of carbon a year: more
than 2.5% of road transport emissions.
1.4 The UK has the land capacity to supply
5% of road fuels today. With advances in technology, it is estimated
that by 2050 the UK could produce as much as one third of its
transport energy needs from biomass.
Q2. How cost-effective are biomass and biofuels
in comparison with other sources of renewable energy?
2.1 The Government's domestic targets are
to cut carbon dioxide emissions by 20% by 2010 and by some 60%
of current levels by about 2050, in line with the recommendation
of the Royal Commission on Environmental Pollution. In order to
meet these targets, a package of integrated policies will be needed,
supporting a broad range of renewable energy sources including
bio-energy, wind, solar, wave, tidal etc. A key advantage of bio-energy,
unlike other renewables, notably wind, is that it is capable of
providing continuous output once a robust fuel supply infrastructure
is in place.
2.2 A study by the Carbon Trust on biomass
concluded that using biomass for heating via combustion and displacing
fuel oil gives the most cost-effective carbon savings, and is
the closest use to being economic without subsidy at the present
time.
2.3 Burning crops for energy is generally
more efficient than producing transport biofuels as the crops
have higher energy yields, lower chemical inputs and a more favourable
balance between the energy obtained on utilisation compared with
that used during growing. Although biofuels are more expensive
than some measures for saving carbon (such as biomass energy and
domestic insulation), they are comparable with others (such as
offshore wind). With prevailing high oil prices, biofuels become
more cost effective and, in the future, advanced technologies
should see higher carbon savings and lower costs. The options
for reducing carbon in the transport sector are limited and low
carbon transport fuels will almost certainly be required if the
Government's 2050 target is to be met.
2.4 On 23 January, DTI launch a consultation
document "Our energy challenge: securing clean, affordable
energy for the long term". This seeks views on the medium
and long-term energy policy issues to be considered in the Energy
Review. The 2003 Energy White Paper—"Our energy future—creating
a low carbon economy"—set out the Government's goals
and long-term framework for energy policy. The Energy Review will
assess progress against these goals and the options for further
steps to achieve them. The Review has a broad scope and will consider
aspects of both energy supply and demand.
Q3. How do biofuels compare to other renewables,
and with conventional fossil-fuels, in terms of carbon savings
over their full life-cycle?
3.1 Table A below shows some general greenhouse
gas (GHG) savings for a range of biomass technologies compared
to their fossil fuel counterparts. Where other renewables such
as wind, wave, tidal and photo-voltaic are concerned, effectively
these are zero GHG emitters, achieving a 100% saving (although
there should be some account taken of energy invested in developing
and servicing units, this is small when expressed over the lifetime
of generation). Biomass energy sources are carbon neutral in the
sense that they take carbon from the atmosphere, but there is
an annual investment in energy use and inputs to grow and process
the crop—so there is an ongoing GHG emission associated
with growing crops, and in producing inputs for the crop, which
reduces the value of GHG savings.
Table A
|
1. Transport fuels |
Kg CO2 equivalents emitted/GJ in fuel |
% saving in GHG v fossil fuel reference |
|
| Ultra Low Sulphur Diesel |
87 |
|
| Biodiesel from OSR | 41 |
53% |
| Biodiesel from recycled veg oil | 13
| 85% |
| Ultra Low Sulphur Petrol | 87
| |
| Ethanol from wheat grains | 29-45
| 49-67% |
| Ethanol from sugar beet | 40
| 54% |
| Ethanol from wheat straw | 13
| 85% |
| 2. Electricity generation | Kg CO2 equivalents/GJ
energy generated
| % saving in GHG v fossil
fuel reference
|
| Grid electricity | 162 |
|
| Electricity from straw | 66
| 59% |
| Electricity from miscanthus | 26
| 84% |
| Electricity from SRC wood chip | 25
| 84% |
| Electricity from forest residue | 22
| 86% |
| Gasification of forest residue wood chips |
7 | 95% |
| Gasification of SRC wood chips | 8
| 95% |
| 3. Small scale heating | Kg CO2 equivalents/GJ heat
energy generated
| |
| Oil fired heating boiler | 105
| |
| Combustion of woodchip | 7 |
93% |
|
| |
|
Table based on information from:
"Carbon and energy balances for a range of biofuels
options", Sheffield Hallam University 2003; and "WTW
evaluation for production of ethanol from wheat", Low Carbon
Vehicle Partnership, 2004.
Q4. Not all biomass is equal—potential carbon savings
depend on, for instance, farming practice. What can be done to
ensure energy crops are sustainably produced?
4.1 In the UK and EU, crops grown for bio-energy or any
other agricultural activity are subject to the same cross compliance
requirements as all other crops. These requirements are designed
to provide a sustainable basis for agriculture and reflect a number
of environmental and other sustainability objectives. These are,
in essence, a baseline of good farm management practices, based
largely on existing legislation, and encourage responsible stewardship
of the land.
4.2 As part of cross compliance, all farmers receiving
the Single Payment are required to complete a simple risk-based
soil management plan, named the Soil Protection Review. The review
must be completed by 1 September 2006, and implemented from 1
January 2007. It should be reviewed annually. The Soil Protection
Review, containing a template and associated guidance on how to
complete the template, was sent to all farmers in England at the
end of last year. There are three key components included in the
review:
— Identification of any soil issues/problems on
the farm;
— Record of measures already being taken or to be
taken to minimise these issues;
— Reviewing success—update.
4.3 Defra has produced the enclosed best practice guidance
booklets for growing short rotation willow or poplar coppice,
and miscanthus as an energy crop ("Best practice guidelines
for applicants to Defra's Energy Crops Scheme: Growing short rotation
coppice", August 2004 and "Best practice guidelines
for applicants to Defra's Energy Crops Scheme: Planting and growing
miscanthus", March 2001). These booklets provide guidance
on the choice of site, planting techniques, crop management and
harvesting methods. The miscanthus guide is currently being updated
and the revised version will be issued this year. Further information
on short rotation coppice is available in the Forestry Commission
Information Note "The establishment and management of short
rotation coppice—a practitioner's guide" (Tubby and
Armstrong, 2002).
4.4 The Home-Grown Cereals Authority is setting up a
carbon accreditation scheme for bioethanol from wheat and sugar
beet which will help to ensure that participating farmers use
environmentally-friendly techniques to grow their crops.
4.5 As part of the Renewable Transport Fuels Obligation,
the Government proposes to develop carbon and sustainability assurance
schemes. The schemes would apply to fuels sourced in the UK, wider
EU and at the international level. Obligated companies would be
required to report on the level of carbon savings achieved and
on the sustainability of their supplies. The Low Carbon Vehicle
Partnership is commissioning a study to define the principal environmental
criteria required to protect sensitive eco-systems and will prepare
a draft environmental standard for biofuels.
4.6 The European Commission's Biomass Action plan sets
out the Commission's proposals for research. This includes several
actions with a biomass component, including considering how best
to take forward research into the optimisation of agricultural
and woody crops for energy purposes, and biomass to energy conversion
processes, and research into second-generation biofuels, with
an aim of improving their efficiency and cost-effectiveness.
Q5. What impact will UK Government and EU actions have
in increasing demand for, and production of, biomass and biofuels?
5.1 Various initiatives seek to promote biomass for heat
and power generation:
(i) the Renewables Obligation requires electricity
suppliers to source 15% of their electricity from renewables,
including biomass, by 2015-16. Co-firing of biomass with coal
in conventional power stations is permitted.
(ii) £66 million of funding has been allocated
to develop dedicated biomass power stations, combined heat and
power schemes, and heating boilers.
(iii) £12.5 million is available for household
and community renewable energy projects, including biomass heating.
(iv) In the Pre-Budget Report in December 2005, the
Chancellor announced that from 1 January 2006, a 5% reduced rate
of VAT will apply to the installation of boilers fuelled solely
by wood, straw or similar vegetal matter in homes and certain
residential and charity buildings.
(v) The 2005 Pre-Budget Report also announced that
from 1 January, biodiesel used for electricity generation would
be exempt from duty.
(vi) Defra's Energy Crops Scheme, part of the England
Rural Development Programme, was introduced in 2000 and made £29
million of assistance available to farmers in England to establish
energy crops, short rotation coppice (SRC) and miscanthus and
to set up producer groups for SRC growers. The scheme runs to
2006. The Government will consult on further measures to apply
under the new EU Rural Development Regulation from 2007 onwards.
Plantings to 2006 under the existing scheme are expected to lead
to carbon savings of 11.3ktC in 2010. However, in addition to
the contribution to emissions reduction through fossil fuel substitution,
the expansion of SRC additionally enhances on-site carbon stocks.
In 2010, it is estimated that uptake of around 47 ktC will be
associated with standing biomass stocks (stumps and roots).
(vii) The UK-wide Bio-energy Infrastructure Scheme
provides grants for farmers, foresters and businesses to help
develop the supply chain required to harvest, store, process and
supply biomass to energy end-users. The Scheme supports purpose-grown
energy crops (short rotation coppice, miscanthus and other grasses),
straw and woodfuel (including tree management residues and sawdust).
(viii) The EU €45/ha Energy Aid payment, introduced
in 2004, is available for energy crops grown on non set-aside
land. 600 ha of short rotation coppice were claimed in 2005.
(ix) Despite the support available, the Government
recognises that there are issues that make it difficult to encourage
the confidence which farmers, community organisations and industry
need before they will invest and take up the opportunities biomass
energy can offer. As a result, a Biomass Task Force, led by Sir
Ben Gill, was commissioned to look at the barriers to developing
the sector and to recommend ways to overcome these problems. Their
report was submitted in October 2005 and a cross-departmental
team is currently looking at the recommendations. The Government
will publish a full response by April 2006.
5.2 The following measures are aimed at promoting transport
biofuels:
(i) The 20 pence per litre cut in the duty for biodiesel,
introduced in 2002, and a similar cut for bioethanol, introduced
in January 2005, has led to a significant increase in the production
of biofuels. In the last three months of 2005, the provisional
figures for biodiesel sales averaged three million litres a month
and bioethanol sales averaged nine million litres a month. This
accounts for 0.25% of total road fuel used.
(ii) The European Union's Biofuels Directive requires
Member States to set indicative targets for the use of biofuels.
The UK's 2005 target was 0.3% use of biofuels. This amounts to
12 million litres per month. The Government is awaiting the final
sales figures for 2005 to see whether this target has been met.
The Directive does not require the target for 2010 to be set until
2007.
(iii) In order further to develop supply, the Government
announced on 10 November that it will introduce a Renewable Transport
Fuels Obligation. It is anticipated that this will start in April
2008 and will require the major oil companies and importers to
ensure that a growing proportion of their fuel sales are from
a renewable source. By 2010, that proportion will be 5%, which
will save around one million tonnes of carbon a year: more than
2.5% of road transport emissions. The target levels for 2008-09
and 2009-10 will be discussed at stakeholder workshops in January
and February 2006 and the decision will be announced in the 2006
Budget. Further consultation with stakeholders on the detail of
the Obligation will be taken forward over the next year.
(iv) The Government is looking at the potential for
using fuel duty incentives to encourage the mixing of biofuels
with hydrocarbons in the conventional refinery process. The Government
intends that a pilot project should begin from 2006, subject to
approval by the European Commission.
(v) The Government is also considering an enhanced
capital allowance scheme for the cleanest (ie most carbon beneficial)
biofuel processing plants. Such a scheme would allow 100% of first
year qualifying spending to be written off against taxable profits.
The allowances will be for plants which manufacture fuel to a
more carbon beneficial standard than conventional processes by:
— incorporating environmentally beneficial processes,
such as combined heat and power which can recycle waste heat to
provide heating or electricity, or the use of renewable power
produced specifically for use on site; or
— using designated "advanced processes", such
as the processing of ligno-cellulosic feedstocks.
The aim is to have the scheme up and running for
April 2007, subject to State aid agreement. The scheme is not
expected to result in an increase in the production of biofuels
but it is predicted that around 50% of the UK production will
be incentivised by the scheme, leading to processors switching
to "cleaner" technologies than would otherwise have
been used.
(vi) Regional Selective Assistance grants for capital
investment in production plants are already available from the
Regional Development Agencies.
(vii) Farmers can claim the €45/ha Energy Aid
payment for energy crops grown on non set-aside land. In the first
year of the scheme in 2004, the payment was claimed on nearly
33,000 ha of oilseed rape for biodiesel production. In 2005, there
over 39,000 ha of oilseed rape.
5.3 The following measures are aimed at promoting both
biomass and biofuels:
(i) The first phase of the EU Emissions Trading Scheme
started on 1 January 2005. The scheme aims to reduce emissions
of carbon dioxide at least cost to industry. Member States set
an emissions cap for all installations covered by the scheme.
Participants are allocated tradeable emissions "allowances".
Each installation covered by the scheme must surrender sufficient
allowances to account for its annual emissions (where one tonne
of carbon dioxide is equivalent to one allowance). The UK National
Allocation Plan for the first phase of the scheme aims to reduce
carbon dioxide emissions by around 65 million tonnes carbon dioxide
(around 8%) below projected emissions over the next three years.
Emissions from the combustion of bio-energy fuels are included
in the scheme, but are zero rated and so are not required to surrender
allowances for these emissions/fuels. Therefore plants burning
bio-energy need only to surrender allowances equivalent to the
emissions from any fossil fuels also being burnt.
(ii) The European Commission's Biomass Action Plan
explains that the Commission intends to carry out a fundamental
review of its energy policy which will be the subject of a Green
Paper in Spring 2006. The document does not contain legislative
proposals but lists, in an Annex, a series of actions which the
Commission will take. These include proposing new legislation
including amendments to the Directive on renewable transport fuels
(including requiring that only biofuels whose cultivation complies
with minimum sustainability standards will count towards the market
share targets), reviewing the impact of existing measures, encouraging
member states to give more emphasis to biomass in national policies,
bringing forward a forestry action plan, reviewing waste legislation
and encouraging bio-energy through research. The Commission estimates
that these measures could lead to an increase in biomass use to
about 150 million tonnes oil equivalent in 2010 or soon after.
This would more than double the EU's 4% share of energy needs
which is currently met from biomass.
Q6. What level of financial and policy support do bioenergy
technologies require in order to achieve the Government's targets
for renewable energy?
6.1 This is presently being considered. Following the
final report of the Biomass Task Force in October 2005, its findings
and recommendations are now being studied by the cross-departmental
team and will be used to inform and guide future policy development
in the sector. The Government will publish its detailed response
in April 2006. The Government will also be considering the work
of DTI's ongoing Energy Review, and the Climate Change Programme
Review.
Q7. What impact might an increase in energy crops in the
UK and the rest of the EU have on biodiversity, production of
food crops and land use and the environment more generally?
Biodiversity and the environment
7.1 Crops grown for bio-energy or any other agricultural
activity are subject to the same cross compliance requirements
as all other crops (see paragraphs 4.1-4.2).
7.2. Biomass crops planted under Defra's Energy Crops
Scheme are subject to an environmental assessment before planting
to include landscape, archaeology and wildlife considerations.
If the intention is to plant on uncultivated or semi-natural land,
the application will be subject to a screening test under the
Environmental Impact Assessment regulation, before a decision
is made on whether planting can go ahead, or further assessment,
consultation or detail is necessary. Applications are placed on
a public register which can be viewed by organisations or members
of the public.
7.3 R&D projects funded by Defra are looking at pest
and disease biology and host/pest interactions to support the
development of non-pesticide control strategies.
7.4 For crops such as short rotation coppice (SRC) and
miscanthus grown for heat and power generation, fewer chemicals
are required than for growing arable crops once the initial weed
control required to establish energy crops is completed. Research
suggests that, in comparison with arable crops, energy crops encourage
bio-diversity, although some of the species may be different to
those normally found on arable land. Research on short rotation
coppice plantations by the Game Conservancy Trust found that the
crop can have biodiversity benefits compared to arable crops.
Some key results were:
— Higher densities of birds during the summer in
the SRC plots;
— Migrant bird species such as warblers were as
high on the edge of SRC as in surrounding hedgerows;
— Recently planted and cut-back SRC plots supported
higher numbers of open ground species such as skylarks and lapwings
than the arable control plots;
— More butterflies were recorded in the managed
and sheltered headlands of the SRC plots than the arable plots.
7.5 Other research has found that species of high conservation
value such as bullfinch, reed bunting and song thrush have been
noted regularly to hold territories in SRC during the breeding
season.
7.6 Currently, the UK's supply of biodiesel comes from
recycled waste vegetable oil, animal fats and imports, and bioethanol
comes from imports. However, companies are now looking to produce
biofuels from UK-grown crops such as oilseed rape, wheat and sugar
beet. Currently, the crop varieties grown for biofuel use are
the same as those grown for food use. The crop management is therefore
broadly the same as for food crops although the quality and grain
protein specifications may be less demanding, allowing some inputs,
such as nitrogen, late fungicides and insecticide applications
to be reduced.
7.7 Most biofuel crops will be grown in rotation as part
of a mix of several crops on the farm. A study by Defra's Central
Science Laboratory found that biofuel production from a mix of
feedstocks and replacing crops for food would have a neutral effect
on biodiversity. Any replacement of spring sown break crops with
winter oilseed rape would have a negative effect on crop diversity
and farmland birds. If arable crops replaced natural-regeneration
set-aside, this would reduce habitat diversity. In the longer
term, as technology improves, ligno-cellulosic feedstocks such
as straw, wood and waste paper could provide raw material for
bioethanol production without significantly affecting biodiversity.
Impact on production of food crops and land use
7.8 At present, most energy crops for heat and electricity
generation are grown on set-aside land but purpose-grown energy
crops are not the only source of biomass. In the future, approximately
half the biomass needed could come from agricultural by-products
such as straw or woodfuel from forestry operations or arboricultural
tree management operations, such as thinnings and trimmings, and
co-products from sawmills and other wood processing plants, such
as offcuts, slabwood, bark, chips and sawdust.
7.9 For the longer term, Defra's R&D funding (of
around £600,000 per annum) underpins an expansion in the
commercial breeding programme for biomass energy crops. This aims
to double the output of new varieties by developing crops which
combine the exploitation of elite genes to maximise yield potential
with the use of a diverse range of resistances to fungal diseases
and pests.
7.10 UK agriculture could have sufficient capacity to
provide crops to meet 5% of total UK fuel demand. While some biofuel
crops are likely to replace food crops, there are significant
quantities of oilseed rape and wheat that are currently exported
which could be retained for domestic biofuel use, with no loss
to UK food production. At present, most biofuel crops are grown
on set-aside land but in the longer term, there is a question
mark over the future of the scheme.
7.11 In the longer term, ligno-cellulosic crops have
potentially much higher energy yields per hectare than traditional
biofuel crops and therefore could produce larger quantities of
fuel from a much smaller land area. There is also the potential
to use waste material such as straw and waste paper.
Q8. Does bioenergy production constitute the best use
of UK land for non-food crops? Should UK and EU policy focus on
increasing domestic production of energy crops and biomass, or
are there merits in importing biomass for energy production, or
raw feedstock or refined biofuel, from outside the EU?
8.1 There are many types of non-food crops which can
contribute positively to sustainable development, as described
in "A Strategy for non-food crops and uses", published
by Defra and DTI in 2004. The Government favours a diverse approach
in order to maximise the benefits from a wide range of renewable
materials, for example in the chemicals, pharmaceutical and construction
industries. It is likely that in terms of volume, bio-energy crops
will be the predominant non-food crops in the short and medium
term. There is much interest in the "biorefinery" concept
under which plants are used to produce fuels together with other
chemicals and by-products in an integrated process. This is likely
in the future to form a highly sustainable means of utilising
crops to produce a range of products from renewable materials
while contributing substantially to energy objectives.
8.2 The Government encourages UK farmers to grow crops
for the production of energy as this offers diversification and
new market opportunities for farmers and can help create jobs
in rural areas and new income opportunities in, and linked to,
farming. Bio-energy can also make a contribution to UK fuel security.
A study by Defra's Central Science Laboratory study found that
the production of biofuels from UK crops has a net beneficial
impact on the UK economy due to the incomes that are generated
in the agricultural, manufacturing, engineering construction,
retail distribution and transport haulage sectors. There is additional
employment where crop feedstocks are grown on set-aside land as
more labour is invested in crop production than in maintenance
of set-aside. About two farming jobs are created (or sustained
where crops substitute for other cultivation) for each 1,000 tonnes
of biodiesel produced. Bioethanol production from wheat and sugar
beet would generate around 5.5 jobs/1,000 tonnes of bioethanol
production. Additional jobs would be created in biofuel processing.
A 100,000 tonne biodiesel plant would employ in the region of
62 staff in processing and blending industries. A similar sized
bioethanol plant would employ 50-55 staff, plus a further 16-28
in fuel blending and transport.
8.3 However, biomass and biofuels are internationally
traded commodities and the Government recognises that imports
are likely to continue to take a share as the UK market develops.
It is important to ensure that both imported and domestically
sourced fuels do provide greenhouse gas savings and are produced
sustainably.
8.4 The European Commission's biomass action plan gives
a commitment to consider requiring that, through a system of certificates,
only biofuels whose cultivation complies with minimum sustainability
standards will count towards Member States' indicative targets
under the Biofuels Directive. Such a system of certificates would
need to apply in a non-discriminatory way to domestically produced
biofuels and imports.
Q9. What more can be done to make more efficient use,
as an energy source, of the by-products of agriculture and forestry
(eg wood waste and other organic waste)?
9.1 In so far as the by-products of agriculture and forestry
are waste, the Government's waste objectives are to reduce landfill
and manage waste in line with the waste hierarchy. This prioritises
recycling and composting over energy recovery although each of
these options has a role to play Defra will shortly launch a consultation
on the revision of the existing Waste Strategy for England.
9.2 The UK only harvests 47% of the annual growth increment
of its forests. While not all of this timber would be available
to the woodfuel market, it indicates significant potential for
expansion. 9.6 million m3 of softwood timber is currently harvested
annually from UK forests and is forecast to rise to 16 million
m3 by 2020. The best quality timber will continue to go to higher
value uses such as sawn timber and veneer. But significant quantities
of small round wood and co-product from sawmills could become
available for energy use as the wood panel industry and paper
mills convert to using recycled material. In addition, forest
residues up to a maximum of 1.5 to two million oven dry tonnes
per year is potentially available.
9.3 Current estimates for all types of wood waste vary
from 1.9-7.5 million tonnes per annum. This includes municipal,
commercial, industrial, construction and demolition waste. A significant
proportion currently goes to landfill, which could be used instead
as a valuable energy source.
9.4 The key barriers to supplying woodfuel are the market
price for biomass and the development of the skills and infrastructure
to bring it to the energy end-users. Currently there is a gap
between the electricity price and the resource cost for biomass
which will need to close for this material to become available.
Funding for developing woodfuel supply chains is available under
the Bio-energy Infrastructure Scheme. The planting of new woodlands
and the sustainable management of existing ones are currently
promoted under grants available from the Forestry Commission.
9.5 The use of meat and bone meal, tallow and slurry
in energy generation is permitted under the Animal By-Products
Regulation and the Government is keen to encourage the use of
these valuable energy sources. The Renewables Obligation requires
licensed electricity suppliers to source at least part of their
electricity from renewable generation. The use of meat and bone
meal and the anaerobic digestion of slurry for the generation
of electricity are eligible sources of renewable energy. Detailed
guidance on the anaerobic digestion of slurry has been provided
to industry.
9.6 The Biomass Task Force made a number of recommendations
that relate to the use of waste material from industry, agriculture
and forestry as an energy source. These recommendations are being
considered by the cross-departmental team.
9.7 As part of the review of the Renewables Obligation,
the Government recently consulted on options for incentivising
a broader range of mixed waste energy projects.
Q10. What lessons can be learned from other countries'
experience in the production and use of bioenergy?
10.1 A report by the EU Renewable Energy Action Plan
(REACT) programme demonstrates that, internationally, successful
policies depend on a comprehensive and consistent approach over
the medium-term (six to seven years). This can involve substantial
financial recourses, and economic incentives have been a feature
of every successful case of market development. Even so, regulations
can be an effective and cheap measure.
10.2 The key lessons which emerged from the Biomass Task
Force's assessment of international comparisons include:
— A consistent approach to support in Austria led
to the installation of over 850MW of biomass heating since 1994.
— In Finland and Sweden, fossil fuel taxes for heat
production have been shown to be an efficient and effective way
to make bioenergy competitive.
— Some countries have pursued policies of higher
energy prices which have encouraged investment.
— An absence of targets, coupled with fragmentation
between national and regional government and low energy prices
have undermined the development of biomass energy in Canada.
— Tax reducing policies in Denmark introduced uncertainty
about the commitment to future support, and undermined confidence
in the market for renewable energy, leading to a rapid decline
in investment.
— The creation of local ownership, both of the installed
equipment and the concept, has underpinned the development of
district heating in Sweden.
10.3 The G8 Summit, chaired by the UK at Gleneagles last
year, agreed a plan of action on climate change, clean energy
and sustainable development. This set out a wide ranging programme
for international collaboration and included a commitment to launch
a Global Bio-energy Partnership to support wider, cost-effective
biomass and biofuels deployment. The UK is closely involved in
establishing the Partnership, which is expected to be launched
in March 2006.
Department for Environment, Food and Rural Affairs
February 2006
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