Forestry Commission Scotland – Forth Energy – G’mouth - response Summary The size of the plant may be excessive given the size of the available local and regional resource Forth Energy has not considered options for the development of a smaller plant that could more reasonably make use of local or regional resources Given the large scale of the plant, information on fuel supply is very limited in the context of a rapidly evolving regional and global biomass market Issues of potential displacement of material from other wood using industries have not been addressed The cumulative impact on supply of four Forth Energy plants has not been considered. Recommendation Consideration should be given to making the proposed use of heat a formal condition of any consent. Introduction Forestry Commission Scotland (FCS) serves as the Scottish Government’s forestry directorate. FCS jointly leads on biomass policy with the Scottish Government’s Renewable Energy team. FCS provided comments to Forth Energy at the gate check stage of this application. The comments below primarily relate to supply, focussing on the Sustainability Statement. Colleagues in Renewable Energy will provide further comment on heat issues. Main points Given the size of the plant and the potential cumulative impact of four plants it is extremely disappointing that Forth Energy has not provided better quality information on fuel supply and considered how it might avoid or mitigate potential displacement issues with regard to existing wood processing industries. Domestic supply and cumulative impacts The annual Scottish timber harvest is currently around 5.2 million green tonnes. 20% of this harvest (over 1 million green tonnes) is currently used for wood fuel with a further rise in use of 600k green tonnes expected in 2010. Preliminary new assessments of wood fibre in Scotland suggest that, although the timber harvest is rising, future supply will become progressively tighter to 2020 and that competition for the resource may become very intense. 1 This plant plans to use 1.5 million green tonnes of material (imported and domestic) and cumulatively for all four proposals, 5.5 million green tonnes. Of this, the proposal is to use 150k to 450k green tonnes of domestic material (up to 30% of all fuel by 2025); and cumulatively for all four developments, 550k to 1.6 million green tonnes of domestic material. However, there is no discussion of the displacement issues in respect of the current processing industries that might arise from this, as required in the scoping guidance. At p16 of the Sustainability Statement, Forth Energy suggests that supply could come from Eucalyptus energy crops on an eight year rotation. This is highly unlikely in Scottish conditions. Forth Energy identifies willow and miscanthus as well as eucalyptus as potential crops but gives no information as to where these are likely to be sourced from. There is very limited current supply in the UK. Forth Energy also notes that there is a considerable amount of waste wood available but provides no evidence to support this. The Remade Scotland report in 2009 identifies around 400k oven dried tonnes (800k green tonnes) of material potentially available from the waste stream in Scotland. However, there will be issues around the percentage of that material that is recoverable as well as very significant competition for it from other biomass plants such as the new Tullis Russell plant (50MWe) in Fife, which will be in operation before any Forth Energy development, as well as the wood panel industries. Global supplies of biomass Forth Energy has identified North America as the major supplier for their fuel supply but has also identified that there is likely to be a considerable biomass deficit in Europe and that other European countries will also be competing for the North American supply. Forth Energy has not considered what the impact of North American renewable energy policies (which are to heavily promote the use of biomass) are likely to be on North American demand for biomass produced there. Forth Energy should have considered both these competing demands for North American biomass supplies in the medium to long term in their assessment of supply, particularly around security of supply and price. Sustainability of fuel supplies It is positive to see Forth Energy’s commitment to sourcing sustainable supplies of fuel by using only material which is FSC/PEFC approved. However, UK and Scottish Government procurement policy recognises that 2 evidence of sustainability may also be provided in other ways. In England and Wales, the main route would be Category B evidence. See: http://www.cpet.org.uk/evidence-of-compliance In Scotland, procurement policy is slightly different. Forth Energy should look at Scottish Procurement Policy Note SPPN 09/2004 http://www.scotland.gov.uk/Resource/Doc/1265/0005315.pdf This states that purchasers should ensure documented or certified evidence under a credible scheme is provided by suppliers; where this is not possible, purchasers should obtain full assurance that the timber or timber product has come from a sustainably managed forest or a viable alternative. An aim of the policy is to ensure that smaller woodlands which are sustainably managed but for which certification is prohibitively expensive, would not be excluded from procurement opportunities. This is relevant in this application where Forth Energy will look to provide opportunities for local biomass supply chains which could include smaller, uncertified woodlands. FCS would be happy to discuss further with Forth Energy. Heat Forth Energy’s proposals to maximise the use of heat are to be welcomed but given the Scottish Government’s priorities on the use of heat, consideration should be given to making it a condition of any consent that Forth Energy do follow through with their proposals. Policy Para 2.3.5 Forth Energy should note that the Biomass Action Plan for Scotland is now a relatively old document; and that other, more recent, SG policy documents are more current. Para 2.4 Forth Energy should note that the UK and Scottish Government are currently holding consultations on the sustainability of biomass used in generating electricity under the Renewable Obligation for the UK and Scotland respectively. These can be found at: http://www.decc.gov.uk/assets/decc/Consultations/Renewables%20Obligation /261-statutory-con-renewables-obligation.pdf http://www.scotland.gov.uk/Publications/2010/09/06152625/0 3 Reference should also be made to Scottish Government policy, particularly as it relates to efficiency and making use of local resources, as set out in: Scottish Government Guidance on thermal power stations in Scotland Scottish Government - General Biomass Scoping Advice National Planning Framework 2 The relevant parts of these documents are set out in Annex 1. 4 Annex 1 Scottish Government Guidance on thermal power stations in Scotland Page15 of this guidance is set out below. "Using biomass for energy offers a number of benefits and, if properly planned, it can be considered a low carbon and sustainable option. 3.17 The biomass heat and power sector has a small but significant role to play as part of the overall energy mix and in contributing towards our renewable electricity and heat targets as set out in: Scotland's Renewables Action Plan (Scottish Government 2009) http://www.scotland.gov.uk/Resource/Doc/278424/0083663.pdf Scotland’s Renewable Heat Action Plan (Scottish Government 2009) http://www.scotland.gov.uk/Publications/2009/11/04154534/15 3.18 Sources of biomass include virgin wood, certain energy crops, industrial wood residues, marine algae, and certain agricultural residues. 3.19 Given that much of the biomass resource is located off the gas-grid where displacement of fossil fuel heating systems will have the greatest carbon benefit, biomass will have a particularly important role to play in meeting renewable heat targets. 3.20 On efficiency grounds, the Scottish Government would particularly like to see biomass utilised for heat-only or for combined heat and power plant, while accepting that there will also be a continuing role for stand-alone electricity applications in certain circumstances. 3.21 In terms of scale, it is anticipated that new biomass plant will be relatively small in scale, both to optimise local supply and, where heat is deployed, to serve localised heat markets. Indeed, whilst biomass is a renewable resource, there is also a finite supply of sustainable biomass available at any one time, and a limited indigenous supply. Without utilising the potential for heat deployment within biomass power plants there is a risk that larger plants will use the available biomass resource in a way that does not use whole energy content effectively, and Scotland could therefore fall short of its renewable heat target.” Scottish Government - General Biomass Scoping Advice Developers should also refer to the Scottish Government’s General Biomass Scoping Advice. In respect of forestry, the Advice notes that Developers should consider the finite nature of domestic supply; the potential demand on the Scottish and UK 5 harvest from the proposed project; issues around energy security when proposing to use imported fibre; and sustainability issues. The Advice also sets out requirements re the use of heat; and in particular, around biomass. National Planning Framework 2 There is some reference to the NPF2 but Forth Energy should make reference to paragraph163 of the NPF2. 163. “The Government is keen to facilitate the development of a more dispersed pattern of energy generation and supply as part of the response to the climate change challenge. This will involve encouraging community and household heat and power generation, the decentralisation of generation capacity and the development of local heat networks. The efficiency of power stations can be substantially increased by capturing the heat produced by electricity generation to warm our buildings. Advances in technology which allow heat to be transmitted efficiently over longer distances may create scope for developing heat networks based on some of our existing power stations. Harnessing components of the waste stream and other biomass offers the potential to develop new, smaller combined heat and power (CHP) stations close to communities. In some areas, particularly in rural Scotland, wood or other biomass may provide the most appropriate fuels for local heating schemes. Investment in transmission and distribution networks may be required to facilitate more decentralised patterns of electricity generation. In Scotland, planning authorities have an important role in facilitating more decentralised patterns of energy generation and supply. They should take account of the potential for developing heat networks when preparing development plans and considering major development proposals.” 6