•          Biomass ‘competitive with other renewable energy technologies’

The Back Biomass campaign has welcomed an independent report that recommends biomass as a cost-effective way to meet UK renewable energy targets. ‘Knock on wood: is biomass the answer to 2020?’ a report published by Deloitte, suggests biomass could become an increasingly important part of the UK’s energy mix.

 

Paul Thompson, Head of Policy at the Renewable Energy Association said:

 

“This report is extremely timely, with critical decisions to be taken by Government over the next few months. Biomass power and CHP can make a strong contribution to energy security and carbon savings – and at an affordable cost. The report clearly details the role that biomass could play in meeting UK renewable energy targets and what needs to be done to ensure this potential is fulfilled.”

 

The UK is legally committed to sourcing 15% of its energy from renewable sources by 2020. Electricity from biomass could potentially contribute up to 21% of this. Deloitte suggests biomass could comfortably go beyond this figure through further conversions of coal-fired plants, many of which are currently set for closure by the end of 2015 under EU air quality regulations. Energy regulator Ofgem warned in October that closures may lead to an energy shortfall as early as 2015, with surplus capacity reduced to as little as 4% - down from 14% currently. Therefore retaining existing capacity on the grid and connecting new generators will be essential to keep the lights on.

 

The Deloitte report comes as a number of coal-fired power stations reveal plans to convert existing facilities to biomass feedstock, and plans for a number of new generators are being developed. 

 

The report also highlights five issues that need to be resolved before biomass can achieve its true potential:

•  Regulation – the sector needs long-term confidence and stability from Government
• Availability of fuel – both from domestic sources and imports
• Sustainability credentials – to be credible, the biomass industry must avoid damaging local environments and deliver substantial greenhouse gas savings  
•  Supply chain – the industry relies heavily on ports, rail freight and other import infrastructure
• Financing – conversion projects of existing station rely on private finance, which itself relies on a predictable public policy environment

 In conclusion, Paul Thompson said:

“The biomass industry has already done a lot to overcome these obstacles to growth: there is the potential for sufficient sustainably sourced biomass stock to be made available globally; the UK leads the world in setting domestic sustainability criteria; and the supply chain is gearing up for action. However, policy and regulatory certainty is essential in order to leverage finance for the development of new biomass projects. Back Biomass will continue to work with Government to ensure these ambitions are met, enabling biomass to play a leading role in the UK’s future energy mix.”

- ENDS-

For more information:

Rob Jeffery, Back Biomass campaign [email protected] t: +44 (0)20 3047 2465 m: +44 (0) 7966 151 753

Paul Thompson, Renewable Energy Association [email protected] Tel:  +44 (0)20 7925 3580 Mob: +44 (0)7980 264580

 

Notes to Editor:

1. 1.       Downloadable copy of Deloitte’s ‘Knock on wood’ report:

http://www.deloitte.com/view/en_GB/uk/industries/eiu/89c42e2e281ca310VgnVCM3000003456f70aRCRD.htm

 

1. 2.       Ofgem warns of capacity crunch in UK electricity supply by 2015, with spare capacity falling from 14% currently to just 4%

http://www.ofgem.gov.uk/Media/PressRel/Documents1/20121005_Capacity_press_release.pdf

 

The Department of Energy and Climate Change has consulted on several issues relating to the biomass industry, creating significant uncertainty and resulting in investment hiatus. These include sustainability criteria for biomass and a cap on the use of ROCs from dedicated biomass generation
http://www.decc.gov.uk/en/content/cms/consultations/biomass_ro/biomass_ro.aspx

 

1. 3.       The Renewable Energy Association’s Back Biomass campaign is an industry led and government supported initiative launched in summer 2011 to urge the Government to ‘Back Biomass’ power as a crucial part of a secure, affordable, low carbon future for the UK. We believe that power and CHP from sustainable biomass offers proven, practical, secure low carbon energy as part of a balanced energy mix. For more information, please visit www.backbiomass.co.uk

 

1. 4.       The REA was established in 2001, as a not-for-profit trade association, to represent British renewable energy producers and promote the use of renewable energy in the UK. The REA endeavours to achieve the right regulatory framework for renewables to deliver an increasing contribution to the UK’s electricity, heat and transport needs. For more information, please visit www.r-e-a.net
   
   
2. 5.       Readers can make their voice heard to the Minister via the Back Biomass website www.backbiomass.co.uk.  Click here to write to the Minister.