Presentation on the Biomass Opportunities in Tipperary including case studies on Nenagh Leisure Centre and Thurles Leisure Centre.

1. Wood for Fuel
The Opportunity for Tipperary

2. National
• Tipperary Imports €85 Million for Coal and Oil for
heating (€582 per person).
• Tipperary could produce a sizeable share from existing
forestry and new forestry on marginal land.
• Every €1M decreases imports and creates 20-25 local
sustainable jobs.
• Wood for fuel currently employs ~ 46 people in
Tipperary.
• 6.4% of heating supplied currently in Tipperary by wood
(mainly medite 75%).

3. Case Studies
Nenagh Leisure Centre Biomass
•
Contract: Design, Supply & Install plant & supply all heat & operate & maintain
Heat load in kWh
Biomass cost
Equivalent oil cost @80c/ litre
Saving (biomass only)
Capital Cost
SERVE EU Grant
CO2 Saving in Tonnes
900,000
€42,903
€91,043
€48,140
€203,165
€80,000
207

4. Case Studies
Nenagh Leisure Centre Biomass
With SERVE EU Grant Aid
Simple Payback in Years
10 Yr NPV
10 Yr IRR
2.6
€367,000
69%
Without Grant Aid
Simple Payback in Years
10 Yr NPV
10 Yr IRR
4.2
€290,035
32%
Key Innovation
• Contracts
• Design Build Operate Contract
• Contractor pays for all oil, maintenance, chip
etc.
• Single heat supply contract fixed at 4.2c/kWh
for 3 years
• All losses, breakdowns covered by contractor
• Chip / pellet supplied locally.

5. Case Studies
Thurles Leisure Centre & Source Arts Centre
•
Contract: Design, Supply & Install plant & supply all heat & operate & maintain
Heat load in kWh
Biomass cost
Equivalent LPG cost @55c/litre
Saving
Capital Cost
DoTTS Grant
CO2 Saving in Tonnes
1,500,000
€47,000
€115,000
€68,000
€160,000
€135,000
400

6. Case Studies
Thurles Leisure Centre & Source Centre DH
With DoTTS Grant Aid
Simple Payback in Months
10 Yr NPV
10 Yr IRR
6
€496,000
194%
Without Grant Aid
Simple Payback in Months
10 Yr NPV
10 Yr IRR
30
€377,035
59%

7. Case Studies
Coolbawn Water Treatment Plant (EE & RE)
•
7 yr Contract: Design, Supply, Finance & Install plant & supply all heat & operate &
maintain (Energy efficiency and Renewable Energy)
Net Heat load in kWh
Biomass & EE ESCO cost for first 7 years
Equivalent Oil Cost
Saving over first 7 years of ESCO
Capital Cost to client
BEW Grant
CO2 Saving in Tonnes
140,000
€16,000
€18,000
€20,300
€0
35%
47

8. Case Study
Barry Grace Firewood Nenagh
• 600+ stoves installed in EU SERVE project
• Opportunity for Domestic Wood for Fuel Business
• Current Supply 2000 Tons annually (€120 per pallet
~0.75T)
• Purchase forestry ~€35/ wet ton (€70/Dry tonne)
• Customer 4c/kWh Vs Coal at 6c/kWh (pallet)
• 2 direct jobs, +transport, +forestry, +indirect etc.(~4)
• Sells via Stakelums and petrol stations.
• Displaces 1000T coal; Est~ €250k

9. TEA Projects
Annual Heat Supply Cost (Oil vs Biomass)
250,000
Euros per annum (€)
200,000
150,000
100,000
50,000
Annual heating cost –
Biomass
63% savings,
3 year payback
Annual Heating Cost Oil
0
LIT Tipperary
Thurles
Leisure
Centre
Nenagh
Leisure
Centre
Gurteen
Agricultural
College
Coolbawn
Water
Treatment
Plant
Roscrea
Leisure
Centre

10. Current Status*
• Annual savings are €1.3M
• Was: €2.5M on imported oil,
• Now €1.1M on local biomass,
• Full time jobs supported: 46
* Excludes Medite

11. Current Status
• Clear business case for Wood for Fuel Vs Oil
Energy Prices (Commercial)
0.12
Price of Energy per Unit (€/kWh)
0.1
0.08
Heating Oil
0.06
Mains Gas
Wood Chip
0.04
0.02
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

12. Where’s the opportunity?
• Domestic: Logs
• Cheaper than coal for energy
• Need to provide high quality product
• Commercial scale:
• Nursing homes, Hotels, Pools 100kW-500kW
• Wood pellets or chip
• Industrial Scale:
• Medite, Dairies, steam/ heat boilers.
• Forestry logs, large scale operation

13. What’s the opportunity?
• 50% Norwegian homes heated by wood logs.
• 65% Swedish heat supplied by biomass.
• 5% in Ireland
• <2% in Tipperary excluding Medite (6.7% inc.)
If Tipperary increases to :
• EU average 15%
191 jobs €7.65M
• Top 10: 20%
400 jobs €20M
• Top 5: 45% =>
827 jobs €33M

14. Where’s the opportunity?
• DCENR likely to introduce a subsidy for renewable heat
for large installations
• Careful design, engineering and contracts needed.
• Tipperary LA’s/ LIT have led the way with innovative
Contracting models
• Industrial/ commercial:
• Buy heat not fuel.
• Careful where risk/ reward balance is.

15. Fuel Availability
• Forestry Sector not optimised for small private forestry
• Substantial thinning's not exploited
• Fuel/ wood available but not being brought to market
• Results in poor supply-chain
• Credit required to bolster supply chain inventories for
value.
• Market needs more demand to stimulate supply

16. Required actions
• Sector maturity needed.
• Access to finance
• Support to district heating infrastructure for high density
heat use
• Further awareness needed of the savings.
• Additional support such as greater feed in tariffs –
coming soon.
• Training for the sector
• Planting of more biomass
• Significant establishment grants for forestry but
demand requires stimulation

17. Conclusions
• Encourage local biomass for Jobs
• Big heat use on oil = wasting money
• Domestic stoves using wood should be encouraged.
• Local wood energy is competitive, sustainable and
supports local jobs.
• We grow food not import it. Energy should be no
different.

18. •
•
•
•
•
•
Tipperary Energy Agency
Craft Granary
Church St
Cahir
Co. Tipperary
Ireland
•
•
•
•
•
•
Paul Kenny
CEO
T: 052 7443090
F: 052 7443012
E: info@tea.ie
W: www.tea.ie