The Scottish Government

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8. Bio-energy

Objective: To maximise the sustainable contribution of biomass to meeting renewable heat and electricity targets.

• Scotland is well placed to develop the use of bio-energy, which if properly planned can be carbon neutral and sustainable;
• Biomass energy from waste has a role to play, particularly via plants that deliver a high level of efficiency through combined heat and power and/or district heating;
• Biomass is recognised as a potential growth area in the plans to vary the levels of support to the different technologies, under the RO(S);
• The Scottish Government Scottish Biomass Support Scheme ( SBSS) is expected to deliver up to 20 MWth of renewable energy capacity;
• The new Scottish Rural Development Programme ( SRDP) includes measures to support the generation of renewable energy including from biomass projects;
• There is a case for further support under the SBSS;
• The Woodfuel Taskforce recommendations on making significant volumes of additional biomass material available to the growing biomass energy sector are now being implemented.

8.1. Introduction

8.1.1. For the purposes of this section, bioenergy is defined as the production of energy for electricity and/or heat using renewable biomass. Section 9 deals with transport. On efficiency grounds, the Scottish Government would particularly like to see biomass utilised for heat-only or in combined heat and power plant, while accepting that there will also be a continuing role for stand-alone electricity applications in certain circumstances. Note that the potential sustainable contribution of biomass to meeting our renewable electricity and heat targets is dealt with under Sections 5 and 6 respectively.

8.1.2. As a country with a significant forest resource Scotland is well placed to develop the use of bioenergy. There is rapidly growing demand from the bioenergy sector for forestry material and the Wood Fuel Task Force has identified opportunities for increasing the volumes available to the sector, as well as additional sources of biomass such as commercial and industrial wood waste. Second generation biofuels projects are likely to be very large-scale and developments in Scotland would result in a highly competitive market for the available resource. Using biomass for energy offers a number of benefits as if properly planned it can be carbon neutral and sustainable. We need to recognise, however, that there are competitor industries for biomass supply and that it needs to be able to demonstrate its economic as well as its environmental benefits. A focus on local supply initiatives will therefore be important.

Stevens Croft - E.ONUK's wood fired power station near Lockerbie

Steven's Croft is a 44 MW biomass power plant, burning a mixture of forestry residue and specially grown willow. It is expected to sustain around 300 jobs in the forestry and agriculture sector and to save up to 140,000 tonnes of greenhouse gas emissions a year. The majority of fuel is sourced within a 60 mile radius. The plant will require over 480,000 tonnes of fuel every year. The fuel is a blend of: 60% sawmill co-products and small round wood, 20% short rotation coppice (willow) and 20% recycled fibre (from wood product manufacture). Steven's Croft was voted Best Renewable Project at the 2007 Scottish Green Energy Awards.

8.1.3. Scotland may also be well placed to develop so-called 3 ^rd generation bioenergy systems via marine biomass (micro and macro-algae). Indeed the Scottish Association for Marine Science ( SAMS) is leading a major research and commercialisation project "Biomara" in this area with partner organisations from Ireland under the EUINTERREG programme Cross Border programme.

8.1.4. This consultation focuses mainly on woody biomass and biomass from waste streams, which are currently most commercial. It is worth highlighting that the Scottish Government considers that biomass energy from waste, including agricultural waste, has a role to play, and can be a sustainable alternative to landfill. However, Ministers are opposed to large and inefficient energy from waste plants, and have a strong preference for plants that deliver a high level of efficiency through combined heat and power or district heating. The consultation on banding of the Renewables Obligation (Scotland) reflects this position. Biomass can also be co-fired in large coal burning boilers, up to a certain percentage - Scottish Power do this already. This is arguably the most cost efficient way of using biomass for electricity production.

8.1.5. Additional and important benefits from bio-energy lie in the potential to help rural communities, especially in relation to local economic development and the alleviation of fuel poverty in areas not served by the gas grid. Bio-energy for electricity and heat also has wider roles of enhancing energy security of supply and contributing to renewable electricity targets.

8.2. Scottish Government Policy

8.2.1. The Scottish Government is keen to develop the significant potential for bioenergy, and has in place a number of strategic policies to develop that potential:

• Legislation
  Electricity generation on a large scale is discussed at section 5 above. It states that the production of renewable electricity is driven mainly by the Renewables Obligation ( RO) legislation. The Scottish Government's current consultation on changes to the RO in Scotland includes proposals for increased levels of support for biomass generation, with higher levels available for plant fitted with good quality combined heat and power ( CHP) ¹⁹.

• Financial support
  The focus of public sector support for bioenergy (heat) to date has drawn on Scotland's forestry strengths by promoting woody biomass. The Scottish Government's Scottish Biomass Support Scheme ( SBSS), (a 1 year grant scheme covering 2007-08, now closed), is funding around 65 projects from a wide range of organisations who are investing in the sector from the supply side through to boiler and plant installation. The scheme is expected to deliver up to 20 MW of renewable energy capacity. ( See Section 6 on renewable heat)
  The Scottish Government has also provided funding under the community element of the Scottish Community and Householder Renewables Initiative for a programme of biomass demonstrators in the Highlands and Islands, and one-off demonstrator funding to the boiler installation at the new campus of Queen Margaret University College. Through regional aid, the Scottish Government has also assisted larger biomass schemes - Balcas in Invergordon and UPM Caledonian in Irvine.
  The new Scottish Rural Development Programme ( SRDP) also includes measures to support the generation of renewable energy including from biomass projects.
  Despite the above, there may still be, in the wider context of the commitment to renewable heat ( see Section 6), a case both for additional support for businesses to install biomass heating systems, and to promote demonstrator district heating schemes using biomass. Hence we are planning to run a further round of the Scottish Biomass Support Scheme ( SBSS) specifically to address these areas.
  Several biomass district heating schemes are now in operation in Scotland, mainly in social housing schemes. Extending the use of district heating presents a number of challenges in terms of additional costs, planning and infrastructure. An important factor in promoting district heating is for local authorities and developers to adopt this approach as part of the way they approach housing scheme development.

Supply

8.2.2. The Scottish Government wants to see a viable biomass bioenergy sector. Demand for woody biomass from bioenergy is increasing rapidly and a number of large scale projects are seeking to secure substantial volumes. The number of suppliers from large-scale projects, local woodfuel markets, has increased rapidly over the last 5 years resulting in a number of new businesses using local resources, particularly in rural areas. In response to the growing demand, the Scottish Government set-up the Woodfuel Taskforce. The Taskforce published its findings in January, concluding that there are significant volumes of additional biomass material which can be made available to the growing biomass energy sector. The Scottish Government has responded by identifying 25 actions to be implemented to ensure the biomass resource will be available to the renewable energy sector now and in the future ²⁰.

8.2.3. In taking this forward it will be important to tackle the challenges in relation to the growth of the biomass sector - e.g., competition for wood fibre, weak supply chains, and quality standards as well as other barriers to growth.

8.2.4. The Task Force recommendations covered a range of areas which need to be addressed to increase availability of material:

• Improving knowledge both of the volume and location of the raw material and of the means of producing it and making it available to the market;
• Efficient markets with clearer price transparency and standards for biomass material;
• An effective supply chain to create an integrated an effective supply of biomass material, from the forest sector to the industrial waste sector;
• Support and incentives to stimulate and encourage the development of new markets, new biomass resources and development of the supply chain.

8.2.5. Initiatives which are delivering some of the key recommendations include demonstration sites being set up by Forestry Commission Scotland to promote bioenergy best practice and gain new knowledge; the development of a branch wood and brash recovery grant to encourage growers to bring this material to market, and increase thinning of their forests and woodlands; improving knowledge about, and handling of, biomass in the waste streams to ensure that as much as possible is used for bioenergy; development of a life cycle assessment model to enable the calculation of carbon benefits and disadvantages from the various biomass growing or utilisation options; and development of the appropriate infrastructure to utilise arboriculture arisings as a wood fuel and avoid the material entering the waste stream

8.2.6. The Government has set up a working group to oversee the implementation and monitoring of the accepted recommendations. The working group and the full task force will meet for a plenary session later in the year to review progress towards delivering the recommendations.

Sustainability

It is important that all renewable energy production is sustainable. If biomass sourcing were to take place without sufficient regard to environmental, social and economic impacts, its continued production and expansion would not be possible in the longer term.

The EU recently consulted on the development of sustainability criteria for biomass for heat and energy. We are working with UK government to produce a detailed response to the consultation.

Environment

8.2.7. Maintaining the high quality of our environment is an important element in the development of a sustainable biomass industry. There are a number of potential environmental impacts associated with the development of the raw materials and use of biomass for energy. How significant these impacts are will depend on a number of factors, which can be mitigated in many cases through the use of best practice in land management and adherence to air quality standards and planning regulations.

8.2.8. On air quality, the Scottish Government has carried out research into the emissions from biomass boilers, with a focus on urban areas currently deemed to be at high risk of being declared an Air Quality Management Area. See section 6.

Questions for debate

• Do consultees agree that there is significant potential for developing bioenergy through wood and recyclable waste
• Is there anything more that can be done to encourage next generation bioenergy, including marine biomass?

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