Some of Ireland’s leading food and drink companies
are supporting a big move into production of biogas, an emissions-free
energy source from agricultural waste and energy crops.
Diageo, one of the State’s biggest gas consumers –
mainly through St James’s Gate brewery in Dublin – and Dairygold co-op
are leading the way.
Ireland, with its large agriculture sector, is
considered the EU member state with best potential to exploit biogas.
But a “renewable heat incentive” (RHI) to support this sector is absent.
It’s urgently required, according to those prepared to back the green
technology – Ireland is the only EU country without a RHI.
Biogas comes with benefits: it’s a renewable energy
source that farmers can help generate and it reduces CO2 emissions
associated with farming, which are responsible for a third of Irish
greenhouse gas (GHG) emissions.
Much of Diageo’s gas needs next year are likely to be
supplied by Green Generation in Nurney, Co Kildare, an anaerobic
digester (AD) plant set up by pig farmer Billy Costello. The €5 million
biogas facility is beside one of his pig farms. It is designated a
demonstration facility by Gas Networks Ireland, the State-owned Ervia
subsidiary supporting development of renewable energy.
The Costello family also operates a 3,000-sow unit
and dairy farm in Germany, where they have two digesters. The Nurney AD
uses piggery slurry and 23,000 tonnes of foodwaste a year, generating
enough electricity to power 500 houses.
The facility generates heat and electricity for the
piggery from a combined heat and power (CHP) unit. Their aim is to
purify and certify the methane, pipe it into the national network for
large industry to utilise such as Diageo. A national gas grid injection
point at Cush, 8 km away, is due to be commissioned soon.
Germany has 8,000 biogas plants built up over 20
years; the UK has 600. A reasonable start, Costello says, would be to
build quickly to match the UK.
Income stream
Currently, about 14 cents/kilowatt hour is paid for
electricity from this energy source; the equivalent in Germany is 22
cents – A 7.5 cent/kilowatt hour subsidy is needed, GNI estimates.
Costello, who is from north Co Galway, cites the case of west of Ireland beef farmers.
“Thousands of them are not making money. They don’t
want to change their farm over to bushes or forestry. It goes against
the Irish psyche.”
By allowing grass silage to be sold for biogas
production, “they remain farmers, the land is green, and the
infrastructure is largely in place already. Farmers are helping to
decarbonise...and in the process have a new income stream.”
Biogas enhances energy independence by replacing
imported fossil fuels and is cheaper. In contrast, “there is not much
point to producing beef at a loss, while also adding to GHG emissions,”
he says.
Costello believes the Government attitude to energy
has favoured monopolies and “old way” thinking – when it came to
electricity, it meant “leave it to the ESB” – making acceptance of
biogas difficulty to achieve.
Massive fines loom for Ireland after 2020 for failing
to meet renewable energy targets in heat and transport, he warns. In
much the same way creameries became co-ops, he believes building 15 to
20 ADs a year is realisable.
The preferred system is “Hub and Pod”; pods being
small to medium sized farm-scale AD plants in regional clusters; the hub
a central injection point connected to the national gas grid.
“This is the most cost-effective solution, and
maximises the potential benefit (commercial and environmental) for Irish
farmers,” explains Liam Reid Diageo’s corporate relations director.
“Diageo want to be first movers with this proven
technology in other European countries. It could unlock a sustainable
solution for farm waste management and provide a double benefit in terms
of reducing GHG emissions in farming alongside displacing fossil
fuels.”
Diageo intends to derive all of its power from
renewable sources by 2030 and is seeking a 50 per cent reduction in GHG
emissions by 2020 from a 2007 baseline. Already it has achieved a 26 per
cent reduction at St James’s Gate. Biogas is set to help close the gap.
The Green Generation model is a template that can be
replicated and expanded, says GNI business development manager Ian
Kilgallon. Biogas can be upgraded to natural gas quality and injected
into the grid or used as vehicle fuel.
Hub projects are also underway in Mitchelstown, Co
Cork (beside Dairygold’s dairy processing facility), in Louth/Cavan and
another Munster location. Others are at planning stage.
Permanent jobs
PJ McCarthy, chair of the Renewable Gas Forum of
Ireland, an industry body, underlines ease of transition. As most
businesses are gas customers and renewable gas can run to the same
efficiency in CHP generators and gas boilers, switching is simple. It
has the potential to generate 3,000 permanent jobs in rural Ireland by
2050 and 5,000 jobs in the construction phase.
If Ireland does not decarbonise, its reputation as a green producer of food and drink products will unravel, he warns.
A constant focus for Simon Shannon, Diageo supplier
performance manager, is on energy efficiency and sustainability. Biogas
offers huge opportunity for the agrifood sector, he says, in parallel
with helping Diageo to meet its sustainability targets and reduce GHG
emissions.
Current maximum capacity of Green Generation would meet about 35 per cent of St James’s Gate total energy (gas) requirements.
“We would purchase this gas via a certification
scheme, whereby we would pay the generator for the quantity of gas that
they inject into the national grid, and we would claim the associated
GHG emissions benefit resulting from the displaced volume of natural
gas. We burn gas on site to generate electricity and steam, which is
distributed to all process and facilities users across the St. James’s
Gate site.”
Diageo’s sustainability focus cuts across all aspects
of the business, including its new €169 million brewhouse. Its CHP
plant, the “first of that scale in the world”, adds excess power to the
electricity grid. Zero waste goes to landfill. A natural gas vehicle
delivers malted barley from its facility in Athy to St James’s Gate,
producing 20 per cent less CO2 emissions than its diesel-powered
equivalent.
The main source of carbon emissions in Dairygold’s
business is natural gas, ie fossil fuels from the national grid, which
supplies almost 90 per cent of the energy it uses. It has been at the
forefront of energy and emissions management for many years, according
to Dave FitzGerald, Dairygold’s group head of sustainability.
“In the 1990s we were the first dairy processor in
Ireland to install CHP, a clean and highly carbon-efficient way of
generating electricity and steam for our processes from natural gas,” he
adds. “Through recent investments in processing capacity we have
incorporated energy efficient technologies to reduce our energy demand.”
In 2012 Dairygold installed an AD at its Mitchelstown complex.
“The technology used was a first for the dairy
industry and it is the largest above ground digester of its type in the
world. The digester generates biogas from dairy processing waste water.
The biogas is burned in boilers and supplies up to 6 per cent of the
heat demand for the production site. This displaces natural gas use and
saves over 3,000 tonnes of greenhouse gas emissions annually.”
Tiered payments
They are exploring ways to further reduce its processing carbon footprint through renewable fuels.
“Currently the options for large scale renewable heat
in Ireland are limited and do not work with our energy infrastructure.
Based on our positive experience with self-generated biogas, we support
the inclusion of AD and biomethane (upgraded biogas) grid injection in
the proposed RHI.”
FitzGerald adds: This is essential to kick-start the
biogas industry in Ireland. The GNI initiative to support biomethane
grid injection will provide an option to further reduce our processing
carbon emissions.”
Relying on HGV transport for milk collection and
haulage of farm inputs, it sees potential in a move to biomethane to
further reduce emissions.
“As a co-operative, we are keenly interested in the
potential for AD at farm level to reduce farm emissions, provide an
alternative income stream for farmers and improve nutrient management.”
Minister for Climate Action and the Environment Denis
Naughten is committed to a RHI: “It will create new commercial
opportunities for farmers in heat technologies including biomass boiler
installations and new opportunities for foresters. It will also help us
to meet our EU renewable energy targets.”
The proposal he is bringing to Government will
include “anaerobic digestion which will encompass biogas boilers and
biomethane injection into the natural gas grid”.
Tiered payments will apply to each technology. Payments will decrease with increasing scheme size and economies of scale.
“This will provide a balance between ensuring
suitable incentives for investment and value for money for the
Exchequer. It is vital the scheme has sufficient budgetary safeguards.
The experience from other jurisdictions provides important lessons for
implementation of the RHI in Ireland,” he flagged last week. The package
is due to be signed off by Cabinet shortly.
Those in the emerging biogas sector hope it gets its
fair share; enough to scale up a proven energy industry – what’s needed,
they underline, is a lot less than those threatened EU fines arising
from missed renewable energy targets.
Q&A panel:
What is renewable gas, also known as biogas or green gas?
It’s gas produced from renewable sources. While
conventional gas supply is procured by extracting fossil fuels from the
earth, it is created by extracting methane from feedstocks such as
animal waste (manure/slurry); municipal waste, food waste and energy
crops ie grass/silage/grains.
How is it generated?
It is not high-tech. Source material is placed in an
oxygen-free container known as an anaerobic digester (AD). A bacteria is
introduced and the material breaks down releasing methane gas identical
to natural gas obtained from drilling and exploration.
Environmental benefits?
Gas is a cost-effective flexible and low emission
energy option – biogas even more so; it is indigenous, sustainable and
“carbon neutral”.
Other benefits?
Its flexibility for use in a variety of
circumstances: it is easily upgraded to natural gas quality and injected
into the national grid, or used for transport. It is usually used as
fuel for heating or electricity generation. This is achieved using
sustainable feedstocks without the need for dedicated energy crops or
permanent land use change.
What are the Paris climate change targets to be met?
By 2020, 16 per cent of Irish energy must come from
renewable sources, with individual targets for heating, transport,
electricity generation and associated greenhouse gas emissions. By 2020,
12 per cent of Ireland’s heat must come from renewable sources. At
present, we are well short of this target. Failure will result in heavy
EU fines – it is estimated that fines of €240 million per annum for each
percentage point targets are missed by.
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