Transcript Overview of Biomass for Heating

Biomass Heating and the
Renewable Heat Incentive
www.hwenergy.co.uk
About us
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Headquarters in Fort William
Staff located across Scotland
Currently employing 30+ staff
Design, Build, Operate, Fuel and Own biomass systems
www.hwenergy.co.uk
130 Projects across Scotland
www.hwenergy.co.uk
The Renewable Heat Incentive
• What is it?
– “A transformation in the way we heat our country”
– Greg Barker, Minister of State, DECC, 10th March 2011
• Why?
• Good News:
– Annual, guaranteed payment for switching to renewables. Payable for
20 years and inflation uplifted.
– Relatively simple to understand
– An attractive financial return to encourage investment, particularly
against oil
– Applies to groups of buildings and individual non-domestic buildings
– Any installation completed after 15th July 2009 is eligible.
• Not so Good News
– No domestic RHI until 2012 and details not confirmed
www.hwenergy.co.uk
Types of Projects: Rural
Rural Property Sector
• Large buildings and
groups of buildings
• Produce own fuel
• Project Type
– 50,000 litres of oil = 130
tonnes CO2
– 300kw boiler
– £250,000 investment
– Oil saving @ 60p per litre =
£18,000
• RHI impact = £20,000 per
annum for 20 years.
www.hwenergy.co.uk
Projects and RHI: Small
B&B or Small Guest
House
• Purchase boiler and pellet
fuel
• Project Type
– 4,000 litres of oil = 8 tonnes
of CO2
– 30kw Boiler
– £25,000 investment
– Oil saving @ 60p per litre =
£800
• RHI impact = £3,000 per annum
for 20 years.
www.hwenergy.co.uk
Projects and RHI: Mid
Mid size community sector
• Heat Supply Contract
• Project Nature
– 35,000 litres of oil
– 150kw boiler
– £200,000 investment
– Oil saving @ 60p per litre = £4,000
• RHI impact = £15,000 per annum for 20 years.
www.hwenergy.co.uk
Projects and RHI: Large
Large Hotel
• Heat Supply Contract
• Project Type
– 120,000 litres of oil = 300
tonnes CO2
– 600kw – 1MW boiler
– £450,000 investment
– Oil saving @ 60p per litre =
£25,000
• RHI impact = £45,000 per
annum for 20 years.
www.hwenergy.co.uk
Projects and RHI: Very Large
Industrial Sector
• Heat Supply Contract
• Project Type
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3,000,000 kWh per annum+
1MW boiler +
£500,000+ cap ex
Oil saving @ 60p per litre =
£120,000+
– Bulk delivery of chip via artic
• RHI impact = £80,000 per
annum + for 20 years.
www.hwenergy.co.uk
ESCO Contracts
• Not everyone has the capital to invest
• RHI allows for others to own the heating equipment
and the RHI payment and sell renewable “heat”
• This allows cost and carbon savings to be achieved
without capital outlay.
• Offer significant immediate savings against oil (circa
50%) and some savings against mains gas.
www.hwenergy.co.uk
“Soft” Loans
• “Green Bank” – details & remit still uncertain.
• Scottish Government have allocated £2.5m interest
free loan fund to district heating schemes – now open
for expressions of interest
• Carbon Trust have partnered with Siemens to
develop a £540m loan fund – commercial rates,
accessed via partner companies
• Other commercial solutions are available: the co-op
bank are the leading provider.
www.hwenergy.co.uk
Conclusions
• RHI is a long awaited announcement that will
revolutionise our heating sector.
• Offers a financial incentive to do the right thing
• Particularly attractive to people currently heated by oil
• Great opportunity for Scotland and Rural Scotland to
both benefit from affordable heating and the supply
chain opportunities.
For more information: [email protected]
Tel. 01397 70 6412
www.hwenergy.co.uk