Ayrshire Woodfuel Forum
10:00 hrs on Wed 7th Sept 2011
Venue: SAC Auchincruive, Ayr
Action Table and Minutes
Present:
Joe Fergusson (JoF), Chair; Adam Baxendine (AB); Angus Carrick-Buchanan (ACB); Sarah Farrell (SF); Jenny Fergusson (JeF); Micky Findley (MF); Claire Glaister (CG); Alastair McIntyre (AM); Keith McKune (KMc); Duncan Mackinnon (DMk); Pat Hunter-Blair (PHB); Bill Miller (BM); Christopher Nicholson (CN); Stuart Reid (SR); Ben Tansy (BT); Fiona Warrender (FW); Duncan Mullholland (DMu); Robert McTurk (RMc)
ACTION TABLE
ITEM / ACTION / RESPONSIBLE3. Introduction to RDI and Forum support / Members to submit ideas for biomass events and key priorities for AWF / All
4. Renewable Heat Incentive update and eligibility / Circulate information on RHI/Ofgem and Department of Energy and Climate Change / CG
4. Renewable Heat Incentive update and eligibility / Circulate details of Woodfuel Usage in Scotland Report 2011 / CG
5. Ayrshire Woodfuel Ltd / Further information on group to be supplied by PHB once further membership/resource information is acquired / PHB
6. Woodfuel Updates/Developments / Establish whether funding for the Land Energy pellet production facility has been withdrawn / CG/JoF
7. Dates for Future meetings / Agree and circulate potential dates for future meetings / JoF/CG
MINUTES OF THE MEETING
Item / Action1. Welcome and Introductions
Joe Fergusson,
Energy Agency / JoF welcomed members of the group
2. Minutes of last meeting & matters arising / Approved
3. Introduction to Rural Development Initiatives (RDI) Ltd support for Ayrshire Woodfuel Forum
Claire Glaister/Ben Tansey, RDI / CG outlined how RDI had been contracted by Forestry Commission Scotland to supply Woodfuel Support Services; these to include the provision of secretariat and liaison services for the Ayrshire, Central Scotland and BIONES woodfuel forums; technical support for group members and investigation into information dissemination events for the sector.
AWF members asked to submit ideas for future biomass events/key priorities for AWF to RDI so that these can be considered by FCS.
BT outlined the technical support that RDI can provide for AWF members and outlined RDI’s work in the biomass sector; this including the IGNITE woodfuel training programme, NEWfuels, NEWHeat, accreditation support for woodfuel suppliers and biomass feasibility studies / All
4. Renewable Heat Incentive update and eligibility
(Jonathan Taylor, Forestry Commission Scotland) / CG provided a verbal update from Jonathan Taylor regarding the Renewable Heat Incentive (RHI) and eligibility criteria.
RHI still forecast to be operational from end of September but currently awaiting final EU approval before then being considered by UK Government.
Information on repayment processes for SBHS/SRDP not yet finalised but will be detailed in RHI Guidance produced by Ofgem. Currently thought that repayment options will be available for commercial boilers commissioned after July 2009 but members advised to refer to Ofgem/DECC website for further information. Details to be circulated to AWF members.
CG also provided information on forthcoming Woodfuel Usage Report to be published later in September. This annual report, compiled by Barrie Hudson, assesses the level of demand and supply for woodfuel from a variety of sources including virgin and recycled wood. The Report will be made available on the Usewoodfuel website and links circulated to AWF members
Information also provided on forthcoming Renewables Obligation Consultation. This consultation will be launched at a UK-wide level and then taken further by the devolved nations. Details will be sent to AWF members but it should be noted this consultation doesn’t just include biomass.
Q&A session followed with discussion covering a range of issues including: -
● Meters – location & type for RHI eligibility purposes and costs
● Accumulator tanks/pre-measured insulated heat systems
● Pre-measured heat options
● RHI-compliant woodfuel equipment age requirements
● Grant repayment options (see also above)
● Accreditation of suppliers
● Domestic v Non-Domestic system eligibility
● Application process
● CHP eligibility
● Eligible boiler types / All
CG
CG
CG
5. Ayrshire Woodfuel Ltd Update
Pat Hunter-Blair, Ayrshire Woodfuel Ltd / Ayrshire Woodfuel Ltd (group) was established to deliver cost savings to members, to bring undermanaged woodlands into management through collaborative woodchip production, marketing and sales and to provide confidence in supply for potential end users.
The company was officially registered in August 2011 with a Board of 4 Directors (Pat Hunter-Blair, Jenny Fergusson, Mark Gibson and Nick Wright).
Action to date:
1. Biomass feasibility studies undertaken by Scottish Agricultural College (SAC) and the Energy Agency
2. SAC are currently undertaking an inventory of resources (woodland and equipment) held by co-operative members
3. A list of potential customers is being drawn up
Next Steps:
§ Establish membership eligibility
§ Confirm annual subscription/membership levy
§ Define minimum supply thresholds for individual members
§ Draw up template contracts
§ Develop strategic alliances (i.e. FCS, UPM, SW)
§ Undertake sales and marketing activities
§ Source new funding mechanisms
Future meetings to be provided with updates.
Ayrshire Woodfuel Ltd also considering the provision of Energy Service Company contracts to end users whereby the company (Ayrshire Woodfuel Ltd) would be contracted to supply heat to end users and potentially own and maintain the boilers; subsequently receiving the RHI payments for the installation.
Questions asked as to why SW and UPM are supportive of the group when they could be competitors. Members recognised that as the group will be operating at a smaller scale, they were not being considered as competitors. In addition, woodland management companies could provide additional timber to the group if required.
It was agreed that it would be beneficial for the company to form strategic alliances between the two strands of the biomass sector – woodland owners/managers and boiler installers.
Q&A session followed which focused on the costs of production and supply, means of comparing woodfuel prices with oil/gas (e.g. through development of Woodfuel Price Index) and likely price trends given timber markets and impact of government subsidies (e.g. RHI).
6.
New Developments
All / Auchrannie Hotel has installed a 1mW woodfuel installation on Arran
Unilever (Coleman) factory has installed a 600kW steam boiler
Six estates are currently installing boilers
Land Energy at Girvan looking to use lop and top in pellet production facility and wish to secure contracts to buy as much as possible. Costs are £100/Ha for LE to clear sites plus price over the weighbridge for the material.
Agricultural contractors have diversified to help Dumfries Estate supply their woodfuel boiler. A 17.5 inch chipper has been purchased with can process 20 tonne/per hour
East Ayrshire Council have been in discussion with Steve Luker and Neil Harrison with regards to assessing existing and new build properties for biomass installation potential
7. Dates for Future meetings / Tbc / JoF/CG