Argyll and Bute Council - Biomass Project Experience and Future Plans (Past, Present & Future)

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1 Argyll and Bute Council - Biomass Project Experience and Future Plans (Past, Present & Future) steveluker@me.com

2 EU renewables: targets to 2020 (& share at 2013) In 2010 wood and wood waste supplied 49% of the share of energy from renewable sources in the EU gross final energy consumption. 60" 2013"%"share" 2020"%"Target" 50" 40" 30" 20" 10" 0" UK" Sweden" EU"27" France" Austria" Germany"

3 UK progress to 2020 renewable energy targets: why heat is key focus. And over 90% of RES heat is wood UK%energy%use%KTOE%(2013)% Transport% 4.4% RES Power% 13.9% RES Heat% 2.8% RES 0" 10000" 20000" 30000" 40000" 50000" 60000" 70000" Total%energy%UK%demand%

4 West"Lothian" West"Dunbartonshire" SWrling" South"Lanarkshire" South"Ayrshire" Shetland"Islands" ScoVsh"Borders" Renfrewshire" Perth"&"Kinross" Orkney"Islands" North"Lanarkshire" North"Ayrshire" Moray" Midlothian" Inverclyde" Highland" Glasgow"City" Fife" Falkirk" Na"hOEileanan"an"Iar" Edinburgh,"City"of" East"Renfrewshire" East"Lothian" East"Dunbartonshire" East"Ayrshire" Dundee"City" Dumfries"&"Galloway" Clackmannanshire" Argyll"&"Bute" Angus" Aberdeenshire" Aberdeen"City" Installed%capacity%in%MWs% 0" 5" 10" 15" 20" 25" 30" 35" 40" 45" 2014 RHI installations Scotland

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7 AB&C biomass projects: ongoing Installed Aqualibrium, Campbeltown (heat pump solution being evaluated) Mull Progressive Care Centre (in partnership with West Highland Housing Association/ NHS), Craignure, Mull Tobermory Pre-5 Unit Islay High & Bowmore Primary Schools (in current contract) Kilmory Offices & Nursery, Lochgilphead (in current contract) In Progress (under contract and being built by Autumn 2016) Ardrishaig Primary School Arrochar Primary School Glencruitten Hostel School, Oban Inveraray Primary School Kilcreggan Primary School Park Primary School, Oban Tarbert Academy/Primary School Tiree High/Primary School Tobermory High/Primary School Lochgilphead Joint Campus (subject to legal agreements being reached)

8 Scheme scopes: excellent progress Site% Annual%amount% purchased%mwhs% HPR%%% Biomass%tariff%(aLer% losses)% boiler% fuel/silo% Ardrishaig" 133" 95%" 50.30/MWh" 80kW"O"herz" 17m3/pellets" Rosneath" 100" 95%" 50.30/MWh" 80kW"O"herz" 17m3/pellets" Glencrui`en" 336" 95%" 50.30/MWh" 201kW"Herz" 25m3/pellets" Inverary" 190" 95%" 50.30/MWh" 201kW"Herz" 25m3/pellets" Kilcreggan" 200" 95%" 50.30/MWh" 201kW"Herz" 25m3/pellets" Lochgilphead"JC" 1,348" 90%" 50.30/MWh" 800kW"Herz" 57m3/pellet" Park" 320" 90%" 50.30/MWh" 201kW"Herz" 25m3/pellets" Tarbert" 480" 90%" 50.30/MWh" 300kW"Herz" 30m3/pellets" Tobermory" 335" 95%" 62.50/MWh" 250kW"herz" 30m3/pellets" Tiree" 358" 95%" 62.50/MWh" 250kW"herz" 30m3/pellets"

9 Glencruitten

10 Ardrishaig

11 Rosneath

12 Inverary

13 Procurement and delivery issues Scottish Government Biomass Procurement Framework (ends Jan 17)! Design, Build & Operate! Single Supplier of all services! Chip and pellet choices (AB&C possible study)! ESA: Buy heat in fixed 6 year contract! HPR and role of back up fossil fixed! Risks with supplier on performance and design! SBCC to build! AB&C Payback judgments 1. Up to 10 years payback very likely to receive approval years payback reasonable prospect of approval years payback very limited prospect of approval; may not be presented for approval; other project work likely to be more attractive for investment. 4. Over 17 years payback unlikely to be presented for approval.

14 Biomass Projects: under development for 16/17 Campbell Town Grammar School a planned Hub project ready for 17/18, looking at RHI accreditation in 16/17. Oban High School an existing Hub project Lochgilphead CEC, Manse Brae and Lochgilphead Library separately or as mini district heating scheme Eader Glinn Oban Home Dunoon Grammar NPDO Helensburgh Pool with a moveable solution Hermitage Academy NPDO Rothesay Joint Campus NPDO Dunoon Riverside Leisure with other options looked at as well Rothesay Pool with other options looked at as well Helensburgh Civic Office Dunoon Hostal Oban Primary Campus Timeline and next steps

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16 RHI reforms and Scottish Rates of Growth to 2020? Using published policy targets (in the RHI and the 11% heat target) from now to 2020 the Scottish wood heat market requires: Say half a billion pounds total in 4 years 500no schemes (at c500kw per scheme) to be built a year (668 so far?) Creating between 1,834 to 3,600 new jobs Will a reformed RHI help deliver this?

17 The proposed reforms will bring to an end any new RHI supported biomass installations in the UK s Local Authority building estate From its start in 2011 the RHI scheme has delivered well over 10,000 biomass installations (of which 31 were large biomass). Over the same time it delivered just 518 heat pumps of all types (both figures as of October 2015). To replace that we understand the proposed RHI reforms are intended to annually deliver 3,200 heat pumps and 60 large biomass installations. A single technology blind tariff of 4.5p? Unworkable reforms?

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