State willow subsidy ‘inadequate’

THE Government subsidy to farmers growing willow as fuel for renewable energy uses is woefully inadequate and will not provide them with the necessary incentives to invest, according to the Wood Energy Association.

WEA spokesman Raymond O’Neill said farmers face a seven-year pay-back period after taking into account the subsidy of up to €1,450 per hectare.

But annual average net income over a 10-year period is estimated at less than €270 per hectare, not counting the cost of any borrowings which may be involved.

Mr O’Neill said the cost of establishing a coppice of willow is estimated at €2,900 per hectare.

The farmer would not break even until the sixth year, and taking all income from sales of wood and subsidies into account, would make an average of €268 per hectare over the first 10 years of the project.

Mr O’Neill said the use of renewables such as willow and forest thinnings as a source of heat energy has been overlooked to a great degree in Ireland’s concentration on the environmental impact of electricity generation and pollution associated with transport.

“The total cost of fuel used to generate heat in Ireland each year is €3 billion which suggests that if willow and other biomass fuels could be substituted for even 10% of this, the savings in imported fossil fuels would be €300 million,” he said.

Mr O’Neill said common sense would indicate that everything possible should be done to encourage a renewable energy option.