Green energy entrepreneurs on verge of leaving sector, conference told
Teagasc bioenergy specialist Barry Caslin cited eight biodiesel and oil production companies who have “mothballed” plants which had together been producing 60 million litres of renewable fuels. Other speakers at the event in Tullamore, Co Offaly, cited 26 projects that have been put on hold due to a lack of clarity over state support for the sector, a factor which banks are also citing as their reason for refusing to invest in bioenergy.
John Galliland, chairman of bioenergy company Rural Generation, said: “If the Government doesn’t give us a joined-up policy on renewable energy soon, then I am packing my bags and leaving. If we can’t somehow wake up this sleeping giant, then I have just wasted the last 20 years of my life.”
Tom Bruton, president of the Irish Bioenergy Association, said Ireland currently imports 90% of its fuel needs, around €6 billion in oil and gas, to produce energy. Duncan Stewart, presenter of RTÉ’s Eco Eye, said this money could be used to fund Ireland’s renewable energy ambitions and create 120,000 sustainable jobs.
Ireland is set to fall well of its EU legal obligation to get 16% of its total energy from renewable sources by 2020. Mr Bruton said the goals, a legal obligation set for Ireland by the EU, for heating (10%), transport (6-10%) and electricity (4.3%), are just too far off their present 4%, 3% and 0.3% levels.
Farmers said their resistance was due to the Government’s failure to increase the REFIT, a tariff on consumers’ domestic electricity usage, and the better prices available for cereals.
Teagasc economist Dr Fiona Thorne outlined research which found that farmers who were renting out land at €100 per hectare would just about break even by converting to willow, and make an annual profit of a little over €60 p/ha, based on current unit prices offered by Bord na Mona and the ESB.
Dr Thorne said: “Beef farms appear to be the most likely farms to convert to biomass production, based on comparative economics. However… widespread adoption by cereal farmers is unlikely unless we see cereal prices of around €120 per tonne or lower.
“At current market prices for conventional agriculture commodities, a 10% or 15% price increase for biomass crops would be necessary before cereal farmers would consider switching.”
Some attendees queried the validity of basing the analysis on those unit prices. However, most farmers are voting with their feet. Ireland has less than 3,000ha devoted to willow and miscanthus. Even if Ireland converted another 10,000ha annually over the coming years, it would still only reach 50% of the crops required to meet its biomass targets.
Food Minister Shane McEntee said that a number of Government representatives have arranged to visit Germany to examine its bioenergy set-up. Germany returns a REFIT (Renewable Energy Feed-In Tariff) of 26c per litre to producers, versus the 8c to 9c on offer to most Irish producers (with some on 14c). Germany also has around 5,000 anaerobic digestion plants, versus 40 in Britain and only five here.
Mr McEntee said: “We must make sure that farmers who plant renewable crops are paid for what they produce. We will continue to support farmers who grow crops for renewable energy.”
Department of Agriculture spokesman Paul Dillon said that local authority managers could play a vital role in promoting renewable energy. He cited the example of Clare County Council, which spends 23% of its total budget on renewable energy.
Teagasc director Gerry Boyle agreed: “A number of small businesses have grown out of that commitment. Ireland could save €200m just through committing to renewable energy for public buildings and transport. Public procurement policy should set an example for others to follow on this.”
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