Kents woodland Resource

1 KDWfP Woodfuel Opportunities - July 2011

Woodland: South East Context

270,000+ ha of woodland
Englands most wooded region ~25% of total in England Substantial hardwood resource 13% Forestry Commission 41% Private owners (with FC grants/felling licence etc. for management) 46% classed as under-managed

Ownership

The development of woodfuel markets is an opportunity

More/better woodland management Woodfuel & other products logs, chip, pellets, charcoal, briquettes, fencing Employment & training Diversification Retail local businesses, national retailers, community projects
KDWfP Woodfuel Opportunities - July 2011

Biomass as part of the energy mix

Wood biomass
+ other sources (e.g. waste wood, energy crops, tree surgery, saw mills)

Important contribution to make to our use of energy South East region

consumes around ~223,900 GWh of energy pa 18% of that is as electricity 33% transport fuel 49% heat (space heat, hot water, cooking)

Forestry Commission (conservatively) estimates

woodfuel resource from woodland management in SE 500,000 tonnes pa This could provide ~900 GWh of renewable heat enough energy to heat around 45,000 homes

Biomass is not the energy silver bullet

But it can make an important contribution Part of non-fossil fuel energy mix Alongside other renewable/low carbon technologies (wind, solar, etc.)

KDWfP Woodfuel Opportunities - July 2011

Kent - Woodland Cover

39,487 ha
~11% of land area

Majority privately owned ~ 600 individuals

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Forestry Commission Other Public Charity

3,500 ha 2,500 ha 1,200 ha

KDWfP Woodfuel Opportunities - July 2011

AONB Woodland Cover

The Kent Downs AONB
Woodland cover at 21% (Vs 8% avg. nationally) >70% farmed

Many large estates, schools and communities Reliant oil, LPG and electricity for heating Some districts 1/3 of properties off-gas
KDWfP Woodfuel Opportunities - July 2011

How much fuel can Kent provide?

Kent Biomass energy from locally harvested woodfuel highly feasible
15,000 hectares Would yield 90,000 m3 pa sustainably potential to support ~90MW thermal installed heating capacity

How many installations is this?

~90 1MW boilers (e.g. Beacon Community College in Sussex, Betteshanger) Or ~140 650kW boilers (e.g. Hever castle) Or ~360 250kW boilers (e.g. Scotney castle) Thousands of domestic scale boilers (25-35kw range)

How much is this worth to the economy?

Conservative estimate is ~54m capital investment alone plus fuel, maintenance, operation

KDWfP Woodfuel Opportunities - July 2011

Do we have enough woodland?

In short- to medium-term Yes!
Careful monitoring needed of boiler installs and fuel usage RHI stats will help enormously

FiT stats for domestic solar PV show massive increase in uptake

from <5k installs in Q2 2010 to >30k in Q1 2011 RHI demands that users >1MW undertake regular appraisal of supply sustainability

KDWfP Woodfuel Opportunities - July 2011

Feed In Tariff Installations

April 2010 30th June 2011
1,116 installations (2.8MW capacity) 1,091 PV 1,073 9 9

Domestic Community Commercial

17 Wind 11 2 4

Domestic Community Commercial

7 Micro CHP (Domestic) 1 Hydro (Domestic) 0 Anaerobic Digestion

Do we have enough woodland?

Conservative estimates for sustainable yield
Increase in demand can be comfortably catered for Remember that trees are a renewable resource more woodland will be plantedmore waste wood will be used Uptake of woodfuel will not be universalnot applicable in many situations

Demand will build relatively slowly

Plenty of time for supply to develop Installation lead times can be long (esp. for large boilers) 2011: RHI uptake will remain low 2012: RHI uptake of small/med sized boilers should increase more rapidly

Woodfuel markets (except for logs) are not currently mature

Room for new processors/suppliers Chip: only 3 large-scale chip producers in Kent Pellets: Negligible production at present Waste wood: much is currently exported to Europe New products: charcoal, briquettes, pellets Large domestic/commercial/public sector usage expected to pick up quickly

Rural areas will benefit most from RHI (higher heating costs, better storage/delivery options, proximity to woodland)
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Current installed/planned capacity

Non-domestic capacity is ~17-20MW FC estimate 2-4,000m3 of virgin wood pa Ca. 160,000t waste wood pa
Valley Park Community College (KCC) Shorne Country Park (KCC) Torry Hill Estate (Private) Godinton House (Private) Amery Court Farm (Private) Bedgebury Pinetum (Forestry Commission) Godinton Park Estate (Private) Scotney Castle (National Trust) Hever Castle (Private) Sainsburys Faversham Pembury Hospital St Nicholas Rochester (church) St Augustines Primary School, Tunbridge Wells Bapchild and Tonge Primary School Maidstone Gateway (Council office) Northfleet Technology College, Northfleet Thamesview School, Gravesend St John's Catholic School, Gravesend St Nicholas Church, Rochester Kenward House (care home) Pines Calyx (conference centre) Jacksons Fencing (waste wood) Stelling Minnis (private domestic) Crundale (private domestic) SusCon Dartford (commercial) Ridham Dock (STEAG waste wood) 500kW 60kW 150kW 400kW 100kW and 300kW 40kW 40kW and 350kW 250kW 650kW 500kW 1.2MW 50kW 150 kW 200kW 320kW 450kW 350kW 450kW 50kW 250kW 30kW 725kW 50kW 65kW TBC 8-10MWt (25MWe)

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KDWfP Woodfuel Opportunities - July 2011

Current installed/approved capacity

Others include: Kent Highway Services Depot (Ashford), Trosley CP, Canterbury Innovation Centre, Canterbury CC Some with planning approval (but not yet built): Ridham Dock Several at design stage: Chaucer Technical College, Chevening Strong interest elsewhere: Cobham Hall, St. Margarets, Aspinall Foundation, farms/estates/schools Doubling of installed capacity could happen within 2-3 years

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KDWfP Woodfuel Opportunities - July 2011

Consumer response

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KDWfP Woodfuel Opportunities - July 2011

UK Climate Change Act 2008

Scale of the challenge?

Hypothetical example!!  To offset 80% of current CO2 emissions in Swale:  382 large wind turbines (rated @ 2.5MW)  There are other ways.......  How far can we get?

Woodfuel as a business opportunity

Kent Economic Board (May 2011)
Offshore wind Kent already a world leader Energy from Waste - well developed

Renewable heat (at all scales) ready to be exploited By woodland owners (who control the fuel) To heat demanders (over-exposed to fossil fuel prices) RHI will act as a catalyst Commercial tariff from 30/9 Domestic tariffs in 2012 RHPP domestic grants from Aug 1st 2011 It is a business opportunity
surveying, feasibility, consultancy, design, installation, maintenance, fuel and heat supply

DECC, 2011

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KDWfP Woodfuel Opportunities - July 2011

Biomass potential
List

Energy conversion can be complex

Biomass heat potential in Kent

Scale
Wood pellets Already a globally traded commodity North US/Canada - major supplier to Europe 2010 ~1.6 million tons to NL, UK and BE doubling of volume Vs 2008 Verdo 2 plants in UK Grangemouth and Andover 55k tonnes pa 30-40 jobs 15m plant 180-200/tonne delivered Dalkia Bio-Energy Pollington 100 acre site Waste wood diverted from landfill Up to 350k tons pa 18 MW biomass power station at Chilton One of 170 wood biomass schemes across Europe
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Scale
Wood chip
Relatively short, local supply chains 3 producers in Kent currently All 3 has own biomass boiler Often diversification of farm/estate business Production growing year on year 80-110/tonne delivered

Torry Hill
Around 1,000t pa Orders growing year on year Schools, prisons, supermarkets, offices

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KDWfP Woodfuel Opportunities - July 2011

Woodfuel as a business opportunity

Supply opportunities can cover multiple feed stocks and products Local supply chains are essential Collaboration will be important Woodfuel hubs Machinery purchasing Processing sites Packaging, distribution

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KDWfP Woodfuel Opportunities - July 2011

Woodfuel pilot in the Kent Downs

Exploring how we can work with partners to test a series of interventions to see what can be achieved with focused effort:

Market Pull:
Helping establish good examples of woodfuel heating (including installations) Promote them Drawing on experience from Europe Provide support to woodfuel buyers, woodland managers, installers, specifiers, building managers

Supply Chain Development:

Introducing suppliers to buyers (local and national) Helping woodland owners identify opportunities their woodland offers (advice, grants and training) Fostering collaboration and development of new products and services

What do you think would help?

22 KDWfP Woodfuel Opportunities - July 2011