2. Energy in Agriculture 2016 On Farm Heat From Biomass Gurteen Agricultural College August 23 rd 2016 barry.caslin@teagasc.ie

3. On Farm Heat From Biomass Self supply versus delivered Supply chain analysis Supply chain considerations Costed project example

4. Establishment Costs Assumptions Establishment cost €2,600 per ha Capital grant40% of establishment cost Production costs spread over 22 years Assumed Yield Willow 8.4 tonnes / ha Assumed yield miscanthus 10.4 tonnes / ha ActivityMiscanthusWillow Self Supply (Chip) Sell to end user (Pellet) Self Supply (Chip) Sell to end user (Chip) Establishment cost € /dry tonne€6.82 €8.44 ` €8.44

5. Harvesting Costs Assumptions Harvesting costs of Miscanthus Chip €270 per ha Miscanthus Yield10.4 tonnes of DM / ha Cost of miscanthus bales€300 ha Harvest cost of SRC willow€500 ha Assumed Yield Willow 8.4 tonnes / ha Note harvest is assumed to be every second year ActivityMiscanthusWillow Self Supply (Chip) Sell to end user (Pellet) Self Supply (Chip) Sell to end user (Chip) cost € /dry tonne€25.96€28.85€29.76 ` €29.76

6. Processing Costs Assumptions Cost of Drying Willow Chip €18 per tonne Processing cost to miscanthus pellet €50 per tonne ActivityMiscanthusWillow Self Supply (Chip) Sell to end user (Pellet) Self Supply (Chip) Sell to end user (Chip) cost € /dry tonne€0€50€18 ` €18

7. Haulage to End User Costs Assumptions Haulage costs of oven dry miscanthus pellets €27 per tonne 100km radius Haulage costs of willow €20 per tonne 100km radius ActivityMiscanthusWillow Self Supply (Chip) Sell to end user (Pellet) Self Supply (Chip) Sell to end user (Chip) cost € /dry tonne€0€27€0 ` €20

8. Lost Revenue Costs Assumptions Assumed yield of miscanthus 10.4 t/DM/ha Lost revenue from food crops€250 / ha Assumed yield of willow 8.4 t/DM/ha ActivityMiscanthusWillow Self Supply (Chip) Sell to end user (Pellet) Self Supply (Chip) Sell to end user (Chip) cost € /dry tonne€24€0€29.76 ` €0

9. Willow & Miscanthus Self Supply and Third Parties ActivityMiscanthusWillow Self Supply (Chip) Sell to end user (Pellet) Self Supply (Chip) Sell to end user (Chip) Total cost to produce € /dry tonne Farmer Profit €/dry tonne Total Cost €/dry tonne Cost € cent per kWh 4920 kWh per tonne Miscanthus 5140 kWh per tonne Willow €56.82 €0 €56.82 1.15 €112.66 €50 €162.66 3.31 €85.97 €0 €85.97 1.67 ` €76.20 €60 €136.20 2.65

10. Comparison to Oil at 8 cent per kWh Assumptions Energy in miscanthus 4,920 kWh per dry tonne Energy in willow 5,140 kWh per dry tonne ActivityMiscanthusWillow Self Supply (Chip) Sell to end user (Pellet) Self Supply (Chip) Sell to end user (Chip) Equivalent oil price for self supply Farmer Profit from Self supply €394 €337 //// €411 €325 ` €0 /

11. Existing Woodland Costs Fuel FellingExtra Action ChippingLog Splitting Total Productio n Costs Total Producti on Costs €/tonne @ 20% MC CV (kWh/ tonne Cost c/kWh Cost / tonne @ 30% Moisture Content€/odt Chips€20€10€15/€45€64.3€51.443,1001.45 Logs€20€10/€45€75€107€85.713,9801.88 Note: If oil costs €0.80 per litre There are10.4 kWh per litre of oil Oil is costing 7.7 cent per litre

12. Farmer Supply Chain Example - Hospital Assumptions Supply Chain pay farmers €20 per fresh tonne Yield 44 fresh tonnes / ha after 2 years growth €880 S. Chain dries to 15% MC 44 tonnes per ha @ 55/MC drop to 23.3 tonnes@15%MC Its really costing the supply chain €880 / 23.3 = €37.77 to procure one dried tonne to 15% MC

13. Harvesting Costs If we assume harvesting costs €11 per fresh tonne of willow harvested = €484 per hectare. 85% DM = 15% Moisture content €11 per fresh tonne 55% MC = €20.70 per tonne dried to 15% MC (€11 / 0.45DM x 0.85DM)

14. Delivery to Depot Assume it costs €10 per fresh tonne to deliver to the depot. Its costing €18.90 for each dried tonne (15% MC) to get it to the depot.

15. Drying Costs Assume it costs €10 to dry one fresh tonne 55% MC to 15% MC True cost is €18.90 per dried tonne to 15% MC

16. Transport to Hospital Biomass Storage Transport costs of the dried material to 15% MC to the hospital = €8 per tonne

17. Total Supply Chain Costs Operation€/tonne @ 15% MC Paid to Farmer€37.77 Harvesting€20.70 Delivery to Drying Depot€18.90 Drying Costs€18.90 Transportation to Boiler Storage€8.00 Total€104.27 Excludes Own Labour & Capex Repayment on Buildings / drying facilities.

18. Supply Chain Considerations Fuel properties of supplied material Storage and its effect on fuel quality Boiler type destination What cost elements of the supply chain will the supply chain absorb? Difference between energy tonnes and metric tonnes Funding mechanisms RHI would make a big difference

19. Thank you for you attention!