Incentive price structure for biomass energy leads to forest fears

FEARS have arisen that forestry thinnings will be redirected from Coillte timber processing plants to biomass-powered electricity generating stations because of incentives in that sector.

The issue was raised in the Dáil after Energy Minister Eamon Ryan announced a new Government price structure for energy produced from biomass.

Fine Gael agriculture spokesman Michael Creed said the law of unintended consequences had arisen.

The issue relates to the supply of thinnings to Medite in Clonmel, Co Tipperary, and SmartPly in Waterford, which comprise Coillte’s panel products division.

Mr Creed said Coillte is concerned the tops and tails of the forestry product may well be re-directed into biomass, in particular as a replacement fuel in peat burning stations.

“That has real consequences for the long-term viability of the plant in Clonmel,” he said, urging Forestry Minister Sean Connick to consult with Coillte.

Mr Creed said it was important Mr Ryan had announced the price structure for energy produced from biomass because an incentive in that regard was needed. But the issue that had arisen in relation to the forestry thinning needed to be addressed,

Mr Connick said there was increased opportunity for those involved in forestry to use thinnings for biomass and other markets such as SmartPly and Medite.

“It is a good news story for farmers in that it will put a floor on the price of pulp wood. However, there are difficulties in other respects.

“I am concerned about the possibility of virgin fibre being used. We want trees to go through their full life rather than for forests to be cut down and burnt,” he said.

“We would prefer to see trees go through the sawmill process and the timber being used for other products which means add-on value through the process.”

Mr Connick said he was fully aware of the issue raised by Mr Creed and intended to speak with Mr Ryan.

Meanwhile, Agriculture Minister Brendan Smith said an adequate supply of timber was a crucial factor for sawmills, especially in view of the demand created by the emerging biomass sector. The extraction of the timber from the existing forest estate and new planting into the future are necessary to meet these demands both in the short and long term, he said.

Mr Smith was visiting Glennon Brothers Sawmills in Fermoy, Co Cork, which recently secured a €1.5 million contract to deliver the first shipment of home-grown timber to France.