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CULTIVATING RENEWABLE ENERGY SECTORS
In association with Business & Innovation Centres (BIC)
Mary Ryan,
Assistant Director,
WESTBIC

As demand for renewable energy continues to rise so to do the number of entrepreneurs embarking on ‘green’ busineses. The Midlands is set to be at the fore of innovative renewable energy industries, many of which were showcased at the recent ‘EC AS’ Energy Conference in Athlone.

Life in today’s world is critically dependant on the availability of a secure supply of energy in a convenient form so the threat of depleting oil resources has the potential to change the world as we know it. Some countries are already very advanced in the use of renewable energy technology but in Ireland there is a need for major investment in new heat and power generating capacity over the coming decade. The recent publication of the government ‘Bio-energy Action Plan’, and the ‘Energy White Paper’ are an indication of the growing emphasis on this sector and it is set to be one of the key political issues in the run up to this years general election.

For rural communities like the midlands renewable energy in the form of ‘biomass’ holds significant potential to positively impact the local economy Wood chip and pellet boilers are becoming increasingly popular, encouraged by the financial incentives introduced through Sustainable Energy Ireland (SEI) in the form of grants to assist in installation costs. Teagasc suggest that the demand for wood pellets and chips is set to rise rapidly in Ireland, catching up with the rest of Europe, as more and more wood chip and pellet heating systems are installed. This demand will ideally be met through locally grown dedicated ‘energy crops’.

BIOMASS CROPS

Many other EU farmers are already heavily involved in the growing of specific crops as a source of energy. If the same trend takes place in Ireland as in other European countries, then energy crops may well displace food crops on many Irish farms. The SEI suggests that most bio-energy pathways are currently close to being fully competitive, and with government supports the bio-energy market will get the kick-start it needs.

There is also an increasing interest among growers of the prospects of trading the carbon stored in their forests and biomass crops. Currently Ireland imports more than 90% of its energy, with energy demand increasing by approx. 5% per year. This, and a combination of other factors including the threat of unstable oil prices, changes in the farming industry including the increasing trend towards part time farming, may make the relatively low maintenance, low labour intensive alternative of growing wood crops for energy is an increasingly attractive proposition for farmers.

To help take the mystery out of the subject of ‘biomass’ the ECAS Renewable Energy Conference and trade fair was held in the Athlone recently. The impressive list of speakers at the event included RTE’s Duncan Stewart, ecological design and energy specialist, the IFA project team on bio-energy, Teagasc, and the Western Development Commission.

CONVERTING RENEWABLE ENERGY

For those domestic and commercial users who are considering converting to green energy, some very interesting case studies were profiled including details of Longford domestic pellet fuel systems installations, the RDS wood chip system installation and the experiences of the Hillgrove Hotel and Spa in Monoghan in converting to renewable energy.

The event was organised as part of the Mid-South Roscommon LEADER Interreg IIIB ECAS project, funded through the EU, and supported, by Roscommon County Enterprise Board, and the Western Development Commission.

Contact: Mike Ward, WESTBIC, T: +353 (0)90 6625196, E: mward@westbic.ie

ECAS CONFERENCE KEYNOTE SPEECH
In a passionate presentation to the audience at the ECAS Renewable Energy Conference Duncan Stewart criticised the lack of political leadership for a move towards renewable energy.

Duncan Stewart
In his address, Duncan Stewart directed his comments to Government and opposition parties alike when he spoke of the failures in long term planning for the transition that is taking place globally. “Without strong leadership and commitments from the government to promote renewables and disincentives fossil fuels, Ireland faces a very bleak future in terms of unreliable security of energy supply in the form of imported oil and gas and penalties by the international community for our failures in meeting our Kyoto targets,” he said.

He highlighted the government’s announcement to set aside €270 million to purchase carbon credits and pay fines imposed for Ireland’s dismal record in the fight against climate change, while over the same period only €10 million has been ear marked for development of the fledgling renewable energy industry. Meanwhile Ireland has lost its international reputation for being ‘green and clean’ and is now the biggest emitter of greenhouse gasses per capita in the EU and second only to the USA in the world rankings.

The aim of the conference was to inform people in the region of the possibilities that exist in the production of biomass energy and the benefits of adopting the use of renewable energy in homes and businesses. The main focus of the conference was opportunities for the growth of the biomass industry in rural areas through cultivating dedicated energy crops such as willow, miscanthus and reed canary grass. Employment opportunities could be created in the production of the crop into fuels products. Stewart urged individuals to play their part and take control of our future in particular with regard to satisfying our ‘heat’ energy needs through adopting biomass energy in the form of wood chip and pellets produced from locally grown sources.


BOOMING BUSINESS: RENEWABLE ENERGY

Two companies involved in waste management and renewable energy tell Niamh MacSweeney what inspired them to start-up a business in this sector.

WASTE NOT WANT NOT
An organic composting facility is limiting the amount of waste going to landfill, which Michael Dolan says is the best approach to our waste management problem

Michael Dolan, in newly planted Miscanthus Crop last July
Once Michael Dolan had planning permission to build a composting facility and his waste permits it was all systems go for this inspiring entrepreneur. The new facility is the only one of its kind in the midlands, as it organically recycles all biodegradable waste and turns it into compost. Dolan says the inspiration came because he saw it as a viable business model. “I think it is needless to send waste to landfill when it can be composted and turned into a valuable product. We can treat waste and create compost within six to eight weeks,” he explains.

INCREASED DEMAND

Predicting the rising demand for renewable energy, Dolan has also invested in farming Miscanthus as a biomass energy crop. Initially he went to WESTBIC who helped subsidise him in this undertaking and through the Mid-South Roscommon LEADER Company ECAS project he now has ten acres of the grass planted.

Dolan agrees that the renewable energy business is a fast growing sector and says the incentives are there for others to get involved. “Renewable energy is the way forward. You get 50% of a grant for growing anything to do with renewable energy. I think the government is committed to it because it is the future,” he says.

CONSCIOUS EFFORT

Dolan feels that for the most part ordinary people and businesses are becoming more conscious of the need to address environmental issues and the need to switch to greener energy supplies. However, he argues that the government needs to do more to encourage people to set up businesses in waste management. “More money is going on the renewable energy sector and less on the waste management sector, ” he says. Dolan believes that if the government puts the pressure on more people will be responsible with waste. “The government are not laying down the law enough to say to consumers and businesses that this waste doesn’t have to go to a landfill site but can go to a compost site,” he says.

OUTLOOK FOR THE FUTURE

According to Dolan composting and energy farming will become very popular as government policy such as the EU Waste Strategy, and Bio-energy Action Plan fall into place. "It is a major topic at the moment, people want to go greener and they want to save money. This will bring down the price of oil because as we focus on timber and renewable energy we will relieve the pressure of being reliant on oil and gas". For Johnstown Recycling the future is very bright and Dolan has plans to expand the business further. “There is plenty of waste coming in so I want to build a new site elsewhere. I want to continue to have a good market for my end product,” Dolan says.

Contact: Michael Dolan, Johnstown Recycling
E: johnstownrecycling@eircom.net
W: www.johnstownrecycling.com


CHIPPING AWAY
Wood energy is the way forward says Michael Spellman and his company is at the fore of this growing industry

In 2006, with WESTBIC help, Michael Spellman set up Greengrove Wood Energy with the view to processing timber to wood chip primarily as an alternative to oil or gas. According to the entrepreneur he could see the opportunities in the renewable energy sector given the efforts being made to reduce carbon emissions and the depletion of fossil fuels.

A GROWING SECTOR

“There are going to be opportunities in the future for this type of business and we thought it was a good time to go at it. I have some background in the forestry business which would be the main area for sourcing our raw material,” Spellman explains. He says that the renewable energy sector is going to witness considerable growth in the coming years as consumers demand greener alternatives.

STARTING THE BUSINESS

Getting the business up and running was a challenge for Spellman. “We had to source a wood chipper and the type of machine that we ended up buying was not available in Ireland so we looked at one in the UK,” he says. Like any new business sourcing capital is never easy. Spellman had to prepare a business plan that had to be sufficiently convincing. WESTBIC helped him with the plan and a combination of funding from financial institutions and grant aid enabled him to get his wood chipping business started.

PROACTIVE APPROACH

According to Spellman more should be done to encourage people to embark on new start-ups in the renewable energy sector. “The government hasn’t been very proactive in promoting this by comparison to other European countries. Most others are further advanced but if the government had a definite policy and if they took the lead by switching over some of their own buildings and energy requirements from oil and gas and encourage some of the state or semistate organisations to invest in the alternative, I think that would be a major step forward,” he says.

FUTURE AMBITIONS

Although Spellman has only been in operation for less than a year, he has ambitious plans for the future, which he hopes will encourage business growth and success for the wood chip sector. “Depending on how well we perform in the first year, if we meet our target expectations we would hope to expand the business,” he concludes.

Contact: Michael Spellman, Greengrove Wood Energy, T: 090 6627075