Biomass Implementation Plans Argyll & Bute Council - Wood Energy ...

3 rd Meeting of Argyll Woodfuel Forum – 15 th March 2013
Biomass Implementation Plans
Argyll & Bute Council

Contact Details
• Paul Gillies: Energy & Building Services Performance Manager (Property Team)
Tel: 01369 708573
Email: paul.gillies@argyll-bute.gov.uk
• Paul Miller : Mechanical / Energy Engineer (Property Team)
Tel: 01369 708620
Email: paul.miller@argyll-bute.gov.uk
• Hazel Grant : Architectural Technician (Property Team)
Tel: 01369 708550
Email: hazel.grant@argyll-bute.gov.uk
• Elaine Appleby: Purchasing Officer (Procurement & Commissioning Team)
Tel: 01369 708594
Email: elaine.appleby@argyll-bute.gov.uk

working
with
Argyll & Bute Council
Carbon Management Programme 2009 – 2014
Carbon Management Plan Update 2011

Carbon Reduction Targets
Argyll and Bute Council’s Carbon Management Plan 2009 (updated in
2011) set a strategy to:
• Reduce carbon dioxide (CO 2 ) emissions by 20% by 2014
• Reduce dependence on fossil fuels by 12% by 2014
The installation of biomass systems is a major consideration in delivering
these targets.

Rationale for Biomass Conversion Projects
Fuel / Utility
*Carbon Conversion
Factors
Kg CO 2 e per kwh
“Approx”
Cost
p/kwh
Electric 0.5246 10
Gas Oil 0.27857 7
Mains Gas 0.1836 3
Biomass (Pellet) 0.039 ?
Biomass (Chip) Negligible ?
*Source, Carbon Trust Conversion Factors Fact Sheet CTL153 (2011)
Target Sites
• Mid to Large Electric Sites (Wet Systems)
• Mid to Large Oil Sites
• Mid to Large Electric Sites (Due Rewire)

Biomass Project List
Installed
• Aqualibrium, Campbeltown
• Mull Progressive Care Centre (in partnership with West Highland Housing Association/NHS), Craignure, Mull
• Tobermory Pre-5 Unit
In Progress
• Islay High & Bowmore Primary Schools
• Kilmory Offices & Nursery, Lochgilphead
• Lochgilphead Joint Campus
Future Projects (2013 to 2014; subject to further business case development and approvals)
• Ardrishaig Primary School
• Arrochar Primary School
• Dunbeg Primary School , Oban
• Glencruitten Hostel School , Oban
• Inveraray Primary School
• Kilcreggan Primary School
• Lochgilphead Resource Centre
• Park Primary School, Oban
• Port Ellen Primary School
• Tarbert Academy/Primary School
• Tighnabruaich Primary School
• Tiree High/Primary School
• Tobermory High/Primary School

Argyll & Bute Council
Biomass Boiler Installations
Biomass Projects
Installed
In Progress
Future
(subject to further business
case development and approvals)

Scottish Government Frameworks
Procurement Options
1. Biomass (Energy Supply Agreement) – Live
• Design, Build, Finance & Operate
• Design, Build & Operate
• Operate
http://scotland.gov.uk/Topics/Government/Procurement/directory/Utilities/biomassesa
2. Biomass (Fuel Only – Chip & Pellet) – Expected September 2013
Alternatives
• Full range of similar options outwith Scottish Government Framework
• Linking with Scottish Government Framework options (where appropriate)

Procurement Options
• Scottish Government Framework - Energy Supply Agreement
• There are three Energy Supply Agreement options under the Framework:
• Option 1 – Design, build, finance and operate: the appointed Service Provider will be contracted to supply
heat. The Service Provider will own and operate the heat generation equipment and will sell the heat
generated to the Client. There is no capital investment by the Client and the Service Provider is responsible
for ensuring the ongoing efficiency of the boiler, quality of fuel and continuity of supply.
In this option the Service Provider will receive the RHI payments.
• Option 2 – Design, build and operate: the Client will either partially or fully finance the capital investment. If
the Client is partially financing the capital investment the Service Provider will be required to finance the
remainder of the capital costs. The Service Provider will operate the heat generation equipment and will sell
the heat generated to the Client. The Service Provider is responsible for ensuring the ongoing efficiency of
the boiler, quality of fuel and continuity of supply.
In this option the owner (and therefore recipient of RHI payments) may be either the Client or the Service Provider.
• Option 3 – Operate: the Client owns the boiler, the Service Provider will operate the heat generation
equipment and will sell the heat generated to the Client. The Service Provider is responsible
for ensuring the ongoing efficiency of the boiler, quality of fuel and continuity of supply.
In this option the Client will receive the RHI payments.

Procurement Options
• Scottish Government Framework – Energy Supply Agreement
• Framework Service Providers
• This is a multi-supplier Framework with 10 Framework Service Providers who are:
• Alternative Heat Ltd - Co Down Northern Irish – SME
• Angus Biofuels – Forfar Scottish SME
• Barnhill Estates – Stirling Scottish SME
• Buccleuch Bioenergy Ltd - Dalkeith Scottish SME
• Econergy Ltd - Sandy English SME
• Heather Energy Limited - London English SME
• HWEnergy - Fort William Scottish SME
• Linheat PLC - Louth English SME
• MITIE Asset Management - Farnham Large firm
• RES On-site Ltd - Bristol Large firm

Other Information
The Department of Energy and Climate Change has consulted on a further RHI eligibility
requirement that from April 2014, for installations below 1MWth capacity, biomass fuel is to be
purchased from an approved suppliers list. Details can be found following the link below:
• https://www.gov.uk/government/consultations/renewable-heat-incentive-providing-certaintyand-improving-performance
The proposal is that suppliers put themselves forward to the list manager for approval to ensure
they are selling biomass which meets the two criteria below:
• The wood fuel meets the GHG emissions target (ie. achieves a lifecycle greenhouse gas
saving of 60% against an EU fossil heat average – this assessment would take into account
emissions from cultivation, processing and transport of the biomass, and reflect the
conversion efficiency of the boiler plant) and;
• Suppliers have documentary evidence demonstrating the wood supplied is from legal and
sustainable sources or is from a licensed Forest Law Enforcement, Governance and Trade
(FLEGT) partner (Evidence that is accepted can be found at www.cpet.org.uk as the central
point of expertise for timber procurement).
Larger installations would provide reports on the sustainability of their fuel to Ofgem.

Question & Answer
• Paul Gillies: Energy & Building Services Performance Manager (Property Team)
Tel: 01369 708573
Email: paul.gillies@argyll-bute.gov.uk
• Paul Miller : Mechanical / Energy Engineer (Property Team)
Tel: 01369 708620
Email: paul.miller@argyll-bute.gov.uk
• Hazel Grant : Architectural Technician (Property Team)
Tel: 01369 708550
Email: hazel.grant@argyll-bute.gov.uk
• Elaine Appleby: Purchasing Officer (Procurement & Commissioning Team)
Tel: 01369 708594
Email: elaine.appleby@argyll-bute.gov.uk