Wood for Fuel

The Opportunity for Tipperary

• Tipperary Imports €85 Million for Coal and Oil for

heating (€582 per person).

• Tipperary could produce a sizeable share from existing

forestry and new forestry on marginal land.

• Every €1M decreases imports and creates 20-25 local

sustainable jobs.

• Wood for fuel currently employs ~ 46 people in

Tipperary.

• 6.4% of heating supplied currently in Tipperary by wood

(mainly medite 75%).

National

Nenagh Leisure Centre Biomass

Heat load in kWh 900,000

Biomass cost €42,903

Equivalent oil cost @80c/ litre €91,043

Saving (biomass only) €48,140

Capital Cost €203,165

SERVE EU Grant €80,000

CO2 Saving in Tonnes 207

• Contract: Design, Supply & Install plant & supply all heat & operate & maintain

Case Studies

With SERVE EU Grant Aid

Simple Payback in Years 2.6

10 Yr NPV €367,000

10 Yr IRR 69%

Without Grant Aid

Simple Payback in Years 4.2

10 Yr NPV €290,035

10 Yr IRR 32%

Key Innovation

• Contracts

• Design Build Operate Contract

• Contractor pays for all oil, maintenance, chip

etc.

• Single heat supply contract fixed at 4.2c/kWh

for 3 years

• All losses, breakdowns covered by contractor

• Chip / pellet supplied locally.

Nenagh Leisure Centre Biomass

Case Studies

Thurles Leisure Centre & Source Arts Centre

Heat load in kWh 1,500,000

Biomass cost €47,000

Equivalent LPG cost @55c/litre €115,000

Saving €68,000

Capital Cost €160,000

DoTTS Grant €135,000

CO2 Saving in Tonnes 400

• Contract: Design, Supply & Install plant & supply all heat & operate & maintain

Case Studies

Thurles Leisure Centre & Source Centre DH

With DoTTS Grant Aid

Simple Payback in Months 6

10 Yr NPV €496,000

10 Yr IRR 194%

Without Grant Aid

Simple Payback in Months 30

10 Yr NPV €377,035

10 Yr IRR 59%

Case Studies

Coolbawn Water Treatment Plant (EE & RE)

Net Heat load in kWh 140,000

Biomass & EE ESCO cost for first 7 years €16,000

Equivalent Oil Cost €18,000

Saving over first 7 years of ESCO €20,300

Capital Cost to client €0

BEW Grant 35%

CO2 Saving in Tonnes 47

• 7 yr Contract: Design, Supply, Finance & Install plant & supply all heat & operate &

maintain (Energy efficiency and Renewable Energy)

Case Studies

• 600+ stoves installed in EU SERVE project

• Opportunity for Domestic Wood for Fuel Business

• Current Supply 2000 Tons annually (€120 per pallet

~0.75T)

• Purchase forestry ~€35/ wet ton (€70/Dry tonne)

• Customer 4c/kWh Vs Coal at 6c/kWh (pallet)

• 2 direct jobs, +transport, +forestry, +indirect etc.(~4)

• Sells via Stakelums and petrol stations.

• Displaces 1000T coal; Est~ €250k

Case Study

Barry Grace Firewood Nenagh

TEA Projects

0

50,000

100,000

150,000

200,000

250,000

LIT Tipperary ThurlesLeisureCentre

NenaghLeisureCentre

GurteenAgricultural

College

CoolbawnWater

TreatmentPlant

RoscreaLeisureCentre

Eu

ros p

er

an

nu

m (

€)

Annual Heat Supply Cost (Oil vs Biomass)

Annual heating cost – Biomass

Annual Heating Cost Oil

63% savings,

3 year payback

• Annual savings are €1.3M

• Was: €2.5M on imported oil,

• Now €1.1M on local biomass,

• Full time jobs supported: 46

Current Status*

* Excludes Medite

• Clear business case for Wood for Fuel Vs Oil

Current Status

0

0.02

0.04

0.06

0.08

0.1

0.12

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Pri

ce o

f E

nerg

y p

er

Un

it (

€/k

Wh

)

Energy Prices (Commercial)

Heating Oil

Mains Gas

Wood Chip

Where’s the opportunity?

• Domestic: Logs

• Cheaper than coal for energy

• Need to provide high quality product

• Commercial scale:

• Nursing homes, Hotels, Pools 100kW-500kW

• Wood pellets or chip

• Industrial Scale:

• Medite, Dairies, steam/ heat boilers.

• Forestry logs, large scale operation

• 50% Norwegian homes heated by wood logs.

• 65% Swedish heat supplied by biomass.

• 5% in Ireland

• <2% in Tipperary excluding Medite (6.7% inc.)

If Tipperary increases to :

• EU average 15% 191 jobs €7.65M

• Top 10: 20% 400 jobs €20M

• Top 5: 45% => 827 jobs €33M

What’s the opportunity?

Where’s the opportunity?

• DCENR likely to introduce a subsidy for renewable heat

for large installations

• Careful design, engineering and contracts needed.

• Tipperary LA’s/ LIT have led the way with innovative

Contracting models

• Industrial/ commercial:

• Buy heat not fuel.

• Careful where risk/ reward balance is.

Fuel Availability

• Forestry Sector not optimised for small private forestry

• Substantial thinning's not exploited

• Fuel/ wood available but not being brought to market

• Results in poor supply-chain

• Credit required to bolster supply chain inventories for

value.

• Market needs more demand to stimulate supply

• Sector maturity needed.

• Access to finance

• Support to district heating infrastructure for high density

heat use

• Further awareness needed of the savings.

• Additional support such as greater feed in tariffs –

coming soon.

• Training for the sector

• Planting of more biomass

• Significant establishment grants for forestry but

demand requires stimulation

Required actions

• Encourage local biomass for Jobs

• Big heat use on oil = wasting money

• Domestic stoves using wood should be encouraged.

• Local wood energy is competitive, sustainable and

supports local jobs.

• We grow food not import it. Energy should be no

different.

Conclusions

• Tipperary Energy Agency

• Craft Granary

• Church St

• Cahir

• Co. Tipperary

• Ireland

• Paul Kenny

• CEO

• T: 052 7443090

• F: 052 7443012

• E: info@tea.ie

• W: www.tea.ie