Bio Energy

The East of England region is particularly well placed to exploit the natural resource endowment inherent in its landscape with a varied agricultural industry base producing a wide range of bio-energy resources.

Biomass energy from organic materials such as wood, crops and waste can be used to generate electricity and/or heat or in the production of liquid transportation fuels such as bioethanol or biodiesel.

Biofuels are the only short-term option to reduce reliance on transportation oil. The market is expanding rapidly, from a current £10 billion to reach about £24 billion in 2010. Major oil companies are developing their interests in the sector and private investment into companies active in biofuels has surged in the last year. The UK should see tremendous growth in the short-term as the EU directive on biofuels has set a target of 5.75% in 2010, an ambitious target as the EU missed its 2% in 2005

Combustion of biomass for power generation alone accounts for around 0.9% of world electricity production, primarily in Northern America and Western Europe. Main producers worldwide are the US, Brazil and Finland. Current global installed capacity growth is over 10% per annum. The main applications are medium-scale CHP plants where energy production is optimised through district heating and manageable quantities of supplies at short-distance from the power plant. Co-firing with coal is also taking-off. The market for power generation from biomass should reach around £1.6 billion in 2010 from £1.1 billion currently.

Biomass energy is heavily reliant on low cost sources of biomass - good infrastructure and short-distances are a prerequisite. Long term commitments are needed, both to the biofuel tax rebate and renewable transport fuel obligation, as well as sensible regulation and planning rules that encourage renewable developments. Also needed are effective grant schemes throughout the supply chain and a sustainable return to farmers. The government's use of obligations has helped biomass for electricity and transport fuels, but has not offered the same incentives for biomass for heat. Further support to the ROC to lower the break-even period  would enable the development of a small-scale wood-CHP fuel supply chain.

The East of England has very strong potential with much agricultural and forestry land for which biomass offers an opportunity for improved rural income. Three biomass plants currently operate in the region: Ely, which at 38 MW is the largest straw burning power station in the world; the 12.7 MW Eye power station which was the first poultry litter fuelled plant in the world; and the 38.5 MW Thetford power station which is the largest poultry litter fuelled plant in the world. All three plants are operated by Energy Power Resources.

*Taken from the EEEGR business plan 2007-2010

(Image - Energy Power Resources - Thetford facility)