Select Committee on Environment, Food and Rural Affairs Written Evidence


Memorandum submitted by the Environment Agency (Bio 17)

SUMMARY

  1.  The Environment Agency welcomes this opportunity to provide written evidence on some of the issues surrounding renewable energy and the role of bioenergy. The Environment Agency is the Government's principal adviser on the environment.

  2.  We support bioenergy as a renewable source of energy that contributes to limiting climate change and as a part of sustainable development. However, adequate safeguards must be in place to minimise environmental impacts.

  3.  In considering the role of bioenergy we offer the following comments:

    —  Whole life-cycle impacts of bioenergy should be assessed including net greenhouse gas emissions, environmental and biodiversity impacts and wider sustainable development contributions. The Environment Agency has developed a tool to enable environmental assessment of different biofuels.

    —  Incentives such as grants, reduced excise duties or supplier obligations should be focussed on those technologies and fuels with low environmental impact.

    —  A certification and labelling scheme would enable consumers to choose biofuels with the lowest environmental impact and for any market support to be commensurate with environmental impact.

    —  A long-term biofuels strategy would clarify what role biofuels can play in a low carbon transport strategy and send important investment signals to fuel suppliers and vehicle manufacturers.

    —  A Renewable Heat Obligation or a targeted capital grants scheme would encourage wider uptake of bioenergy, beyond the transport sector, and would create a more consistent approach to supporting renewable energy outside the electricity sector.

    —  Energy from waste has a role in sustainable waste management, provided it does not undermine the prevention, minimisation or recycling of waste. At present most of the waste strategy incentives favour diversion from landfill, but not necessarily towards the higher end of the waste hierarchy, for example, waste minimisation and resource efficiency.

    —  Co-firing is an efficient form of biomass use, but any support for co-firing should avoid creating perverse incentives, for example to switch from gas to coal generation.

    —  There is a good case for support for small-scale use of wood fuels meeting the needs of local communities in particular in areas where there are homes off the gas grid or concentrations of fuel poverty.

INTRODUCTION

  4.  Bioenergy is usually produced from combustion of plant material or organic wastes in the form of biomass or biofuels, such as biodiesel or ethanol. Bioenergy use can reduce fossil fuel pollution and is a form of renewable energy. Whenever fossil fuel is substituted by bioenergy, overall emissions are commonly reduced as each growth cycle, driven by solar energy, takes up most of the equivalent carbon dioxide (CO2) that is released in combustion and processing.

  5.  Making bioenergy from waste can avoid the disposal of this waste through landfill or direct incineration. In addition, using waste vegetable oil and fats as fuels is important now that these can no longer be mixed in with animal feed. This can contribute to sustainable waste management, and reduces our dependence on non-renewable energy.

THE ENVIRONMENT AGENCY ROLE IN BIOENERGY

  6.  Our role in biomass includes regulation of waste and aspects of agriculture, pollution permitting for large biomass plants and as a statutory consultee in the planning system. The permits and consents required for developing a new plant vary depending on the proposal.

  7.  Producing bioenergy (whether from crops or wastes) requires a range of permits, such as pollution control, and we require developers to work with us to ensure statutory arrangements and planning permission are all in place.

ENVIRONMENTAL IMPACTS OF BIOCROPS

  8.  Different forms of bioenergy have varying degrees of environmental impact. Our concerns range from large scale changes to land use for energy crops, impacts on water resources, soils, and biodiversity, the handling and reuse of wastes as fuel, and emissions from power stations. Carbon savings are undermined if rainforests are cleared to grow biocrops, fertilisers are used extensively, fuels are transported excessive distances, or if processing plants are powered by inefficient use of fossil fuels.

  9.  Impacts depend on a variety of factors such as the type of crop, its location and how it is managed. For example, sugar beet and miscanthus are late harvesting crops, which can lead to soil erosion problems that one would see less of with oilseed rape. However, oilseed rape causes problems with nitrate leaching (with losses of approximately 77kg of nitrogen per hectare) that are more serious than for these other crops.

  10.  The European Commission promotes the use of set-aside land for the growth of bioenergy crops. Taking land out of production and increasing the amount of organic matter contained in soils acts to decrease levels of atmospheric greenhouse gases. Such use could lead to negative environmental impacts. Soils, wildlife and water would need to be suitably protected. It may also increase emissions of carbon. For example, practice has shown that SRC willow grown on set-aside land leads to an increase in CO2 emissions. In contrast, when SRC willow is grown in place of arable production carbon emissions are shown to decrease.

  11.  Even where good practice is followed, some areas may not be suited to certain crops. For example, SRC willow is likely to have serious implications for water resources in drought prone areas, but could help prevent flooding by reducing the level of extreme flows. Software is currently being developed by the Centre for Ecology and Hydrology, which should provide information to allow biomass crop impacts on water resources to be modelled more accurately.

  12.  Ultimately the question of which crops are most suited to which circumstances should be dependent on a full life cycle assessment of the various potential options. This should be supported by growers' code of practice, perhaps based on the guidelines adopted as part of the Energy Crops Scheme.

  13.  As part of our commitment towards developing sustainable new bioenergy capacity, we have developed the Biomass Environmental Assessment Tool (BEAT). It was developed within our science programme to ensure the wider impacts of biomass facilities can be assessed to minimise overall environmental impacts (from areas such as crop production methods and transport) and to maximise sustainable development benefits. BEAT has recently been deployed to all our staff dealing with biomass facility proposals.

BIOFUELS FOR TRANSPORT

  14.  Road transport accounts for a growing proportion of UK CO2 emissions, currently around 22%. Using liquid biofuels in vehicles can cut overall carbon dioxide emissions by replacing fossil fuels.

  15.  The EU Biofuels directive (2003/30/EC) promotes bioethanol and biodiesel for use in transport. The directive requires each member state to have a suggested target of 5.75% of all petrol and diesel sold by 2010, measured by energy content. Current policy allows for blends of up to 5% by volume (equating to a lower share by energy content because biofuels have lower energy density than fossil fuels). In November 2005 the UK government announced its intention to introduce a Renewable Transport Fuels Obligation (RTFO) which would require 5% of all UK fuel sold on UK forecourts to come from a renewable source by 2010.

  16.  In the short term there may be enough organic resources to make biofuels even with an expansion in biomass energy at the same time. In terms of energy yield the RCEP[40] argues that heat and power are a better use of the same resource if there has to be a choice. In the long term biofuels will be based on woody biomass with more efficient technologies, so the likely competition for land and crops will have to be assessed and a balance set.

  17.  Biofuels may be used instead of conventional vehicle fuels or blended with them. In the short-term, blends that work in current vehicle engines are the most practical option, such as bioethanol (5-20%, with petrol).

  18.  Several hundred thousand vehicles running on biodiesel from 100% vegetable oils and animal fats are already in use in Europe. The UK is a long way behind other EU member states—for example, in 2004 the UK produced 9,000 tonnes of biodiesel compared to Germany's 1,035,000 tonnes and France's 348,000 tonnes[41]. Although fossil fuel energy may still be used in production, there is an overall net carbon saving of between 40% and 57% compared to fossil diesel (depending on how the product is produced and shipped). Biodiesel from waste oils is the only biofuel currently in production in this country. Vehicles running on biofuels from waste should not require individual waste permits. However, a long-term biofuels strategy must make clear the regulatory requirements that apply to biofuel production plants.

  19.  The recent announcement of the government's intention to develop a Renewable Transport Fuel's Obligation should provide a significant boost to the UK biofuel's market. However, a long-term biofuels strategy is needed and should be part of an integrated transport, fuel and energy strategy in the context of climate change. It should also link with rural strategy.

  20.  For the RTFO and the biofuels strategy we stress the need for sustainability checks being built into the system. We recommend the government:

    —  protect natural resources affected by expanding the cultivation of biofuel crops at home and abroad by focusing grants and concessions on low impact options.

    —  introduce a labelling certification scheme that enables buyers at the point of sale confidently to choose biofuels with the lowest overall environmental impact across the whole life-cycle. This must be independent, credible and transparent.

BIOMASS

  21.  Despite promotion of both energy crops and recovery of energy from wastes, and incentives to mix biomass with coal, UK progress has been slow. Including wastes, crops, and landfill gas, biomass amounts to 80% of the UK's current renewable energy (including refuse combustion) used as either heat or power. Austria and Scandinavian countries have made most progress with modern biomass energy.

  22.  A wider life-cycle study of the potential for use of land for the growth of different biomass crops should be undertaken, including the consideration of more complex alternative strategies, such as leaving fields to lie fallow, or using digested sewage sludge to increase the yield of wood crops. We would be happy to design such a study.

  23.  The permits and consents required for developing new biomass plants vary depending on the proposal. We support small-scale generation where proportionate and risk based environmental standards can be maintained. We would like to see support for small-scale use of wood fuels meeting the needs of local communities, in particular in areas where there are homes off the gas grid or concentrations of fuel poverty.

  24.  Given the RCEP recommendation that it is better to use biomass resources for heat and electricity we would like to see Government support for biomass heat at least comparable with the RTFO. We urge the government to either follow the RCEP's recommendation to introduce a Renewable Heat Obligation, or the Biomass Taskforce Report's suggestion for a targeted capital grants scheme.

ENERGY FROM WASTE BIOMASS

  25.  It is clear that energy recovery from waste is preferable to incineration without energy recovery. All incinerators regulated by us (those burning over 1 tonne waste/hour) and burning municipal waste, or sewage sludge now recover energy. However, policy on energy recovery from waste must not undermine waste management options that are economically achievable and more environmentally beneficial. The forthcoming update of the waste strategy should secure the potential benefits of energy from waste but only as part of a properly considered integrated waste management strategy, based on life cycle assessment. Any such policy should reflect the relative environmental benefits of waste minimisation, reuse and recycling. At present, the economic incentives to manage waste at these higher levels of the waste hierarchy are weak compared to the incentive to divert from landfill to incineration.

  26.  Many organic wastes, for example from food processing, are a potential source of energy and we would welcome further research and actions to deliver this potential. Upcoming regulations concerning nutrient additions from spreading manure on fields may restrict the traditional land application recovery route for many nutrient rich organic wastes in the future. We are working with Defra to look for successful and safe ways to spread organics to land in the medium term. Central to this will be agreeing a standard which waste derived organic materials can meet. Other important solutions will be to carefully separate waste at the point of disposal and designing harmful materials out of the organic waste streams.

  27.  There is an environmental case that burning certain biomass wastes is much cleaner and produces lower emissions of carbon dioxide than burning fossil fuels. However, biomass wastes, like fuels, vary in their threat to the environment. This creates a need for stringent emissions standards and biomass wastes must meet the requirements of the Waste Framework Directive and, in some cases, the Waste Incineration Directive (WID). This is especially so when there is a risk of contamination in the materials used and a consequential potential for environmental pollution (eg municipal waste, clinical waste, sewage sludge and waste wood that has been treated with heavy metals and/or halogenated chemicals). On the other hand, cleaner biomass wastes such as vegetable waste from forestry, agriculture and food processing industry, clean wood, animal carcasses and waste from paper making are not subject to the controls of the WID. We have produced a list of 30 such clean wastes that are exempt from the WID. In order to help the developers of biomass energy, we are planning to produce a simple guidance on the requirements of environmental regulations and how to apply for relevant permissions.

CO -FIRING

  28.  Current indications are that the Renewables Obligation is supporting increased interest and investment in the co-firing of biomass in conventional power stations, which promises to provide a significant proportion of the growth in the biomass sector. The main problem from co-firing would arise if it caused coal generation to become more competitive through the RO. This could cause coal with biomass co-firing to displace gas-fired CCGT generation—thereby potentially creating a net carbon emission increase, though that would depend on how allowances are allocated in the EU emissions trading regime in future. A large scale uptake of biomass co-firing may also reduce Renewables Obligation Certificates prices and stall investment in other renewables. This would only be acceptable if there was high confidence in the carbon savings arising from biomass co-firing and the award of ROCs for biomass co-firing was commensurate with carbon reductions.

CONCLUSIONS

  29.  The Environment Agency recognises that bioenergy could make a significant contribution to delivering UK and global emissions reductions. However, environmental gains risk being seriously undermined, unless the government introduces measures to ensure low environmental impacts.

Environment Agency

February 2006





40   RCEP: Biomass as a renewable energy source, 2004. Back

41   European Commission: Biofuel Barometer. EurObserv/ER -EEB 2005. Back


 
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