Cash for chips from two new energy crop buyers
The fuel company is committed to consuming 300,000 tonnes per annum of biomass such as willow by 2015, increasing to about 500,000 tonnes by 2020.
Bord na Mona is willing to enter into 20-year contracts with farmers to purchase their willow crops, and pay growers up to 50km away €10.00 to €11.50/tonne to deliver chips to the power station at Edenderry.
The company has offered to inspect farms for suitability for willow growing, and has invited farmers to attend open days at the power station. The contracts are likely to be of particular interest to farmers availing of the Government grant scheme for establishment of willow crops.
These grants cover half of the €2,600 per hectare establishment cost.
For the first 200 hectares contracted, Bord na Móna has offered to fund the other 50%, if the farmer so desires. Their price offer is €32 to €38 per tonne ex-gate for willow chips at 55% moisture content. All prices are index linked (upwards only).
* Another company has offered willow growers €160 per acre of willow over three rotations, or €180 per acre if they sign up to the full 12-rotation life of the crop.
Rural Generation are looking for farmers to sign up to 10-year contracts to supply the key willow chip ingredient for the “Croí na Tine” fire log, previously produced in Holland.
The company plans to plant 200 hectares of willow initially, increasing to 600ha the following year.
The Co Derry-based company has already planted more than 1,000 hectares of willow trees throughout Ireland.
