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Bord na Móna will ramp up its biomass imports until the Irish energy crop industry develops, the company’s head of bioenergy division Patrick Madigan has told the Irish Farmers Journal.
It follows last week’s announcement that Bord na Móna is planning to open a wood pellet plant in the US.
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“We don’t want to be in pellet manufacturing,” Madigan said. “We will increase our supply from Irish forestry and we will get out of imports. That is our mission.”
Shortfall
However, the 200,000t annual shortfall in biomass used by Bord na Móna’s power plants and the extra 800,000t needed by 2020 will come from South Africa, Cameroon and soon from Georgia in the US. The company’s plant there will ship 300,000t of pellets across the Atlantic for use at the three stations.
The €50m to €60m investment is awaiting Government approval.
Madigan said the volumes required would not be available in Ireland for five to 10 years, adding that the current price paid to Bord na Móna for electricity generated from biomass under the REFIT3 scheme does not cover the cost of Irish-grown fuel.
However, Bord na Móna Bioenergy will also start trading biomass for other users under the Renewable Heat Incentive (RHI) scheme due in the next budget.
Asked what was needed to kickstart the Irish biomass industry, Madigan said: “There needs to be an RHI.”
He added that his company would offer contracts of up to 15 years to supply energy crops such as willow and eucalyptus, working with the IFA to interest farmers and groups.
Poor contracts
IFA renewables project chair James Murphy said the association was happy to discuss “significantly improved contracts to what is already there”, citing poor offers for willow.
While acknowledging that Irish farmers could not cover the biomass needs of Bord na Móna’s three large power plants, he said the company’s US plan was “not the right message” to those interested in entering the sector.
He called on Bord na Móna to also support the establishment of smaller local renewable energy companies, including farmer co-ops.
IFA north Tipperary chair Tim Cullinan said other options such as biomethane should be explored instead of using State funds to import biomass.
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