Biofuel schemes in the pipeline

SCHEMES to support the purchase of specialised biomass harvesting and processing machinery, and the planting of short-rotation willow coppice as a source of energy, are likely to be announced shortly by the Department of Agriculture and Food.

Minister Mary Coughlan said she is in consultation with the Minister for Finance on these two new schemes, and hoped to be able to make an announcement on the initiatives soon.

“The whole area of biofuels presents an important opportunity for the agricultural sector, one that we must be ready to pursue actively and effectively in the future,” she told the Oireachtas Committee on Agriculture and Food.

“We are also looking at the potential for developing wood energy uses for forestry thinnings. The forests planted over the past few decades offer a source of alternative, carbon-neutral and renewable fuel. There is a need to develop to maximise the energy potential of those forests and of biomass in general.”

Increased demand is expected for wood biomass, following the recent announcement of grant aid for commercial-scale biomass boilers, and the earlier announcement of a €27 million greener homes grant scheme for domestic burners and boilers.

Up to 600,000 megawatt hours of wood fuel will be used annually if the commercial-scale biomass boilers scheme reaches its full potential. The target is to help companies and small businesses to install wood chip and wood pellet boilers in up to 600 large buildings and commercial premises. Grant aid will be given for up to 30% of the overall cost.

“For example, an industrial scale 1 Megawatt boiler costing in the region of €250,000 would receive a grant of €75,000 under the scheme,” said Minister for Communications, Marine and Natural Resources, Noel Dempsey.

The wood fuel would replace about 60 million litres of heating oil per year, result in a reduction of carbon dioxide emissions of about 160,000 tonnes per year.

“This new scheme will build on the success of the recent Greener Homes scheme which has proved very popular with the public,” Mr Dempsey said.

The Government is committed to a multi-annual finance package of €65m for renewable energy, which will also include grants for a range of renewable heat, electricity and transport initiatives.

Details of the Bioheat Boiler and Greener Homes grant schemes, and application forms, are available on the Sustainable Energy Ireland website, and SEI has a dedicated low-call phone line (1850 734 734) to deal with queries and applications in relation to the Greener Homes grant scheme.