NPP PelleTime Tender Description.
PelleTime
Tender Document Orkney and Shetland.
The work in this tender is part of the wider NPP “PelleTime” project. Because the
successful Tender will be expected to carry out the work in a manner that complies
with the requirements of this project the background information below should be
taken into consideration when submitting a tender for the work.
If you require any further information please contact Chris Perkins, Rural
Development Manager, Highland Birchwoods, Munlochy, Ross-Shire. IV8 8NN
Phone (01463) 811611 direct or (01463) 811606 Main Desk.
E mail [email protected].
You must indicate an intention to submit a tender by contacting
[email protected] using the subject line “Intimation of
Tender PelleTime” by 3.00 pm on 7th April 2007.
Background
Recent policy changes at EU and member state level have substantially increased the use
of pulverised wood in co-firing with coal at large scale power plants. The result was a
marked shortfall in wood pellet supplies for smaller scale energy plants, particularly in
central Europe, accompanied by price increases of more than 50% last winter.
Even if pellet production capacity is increased there are still concerns that raw material
supplies will be inadequate, or that in obtaining them the industry will displace timber
supplies to established industries such as panels and paper which have greater added
value potential. It is for this reason that the Woodfuel Task Force has identified wood
fuel harvests from small and unmanaged farm woodlands as a priority.
However pellets are the most appropriate fuel for small scale use and there is
considerable scope for market expansion in peripheral areas where local supply chains
will not compete with large scale markets for raw material.
This market expansion will be dependent on a continuous, secure and economically
viable local raw material supply as the basis for sustainable rural businesses. If these
businesses are to be competitive haulage distances for this raw material must be kept to a
minimum. In most locations this will require expansion of the raw material supply
through integration of existing and new biomass streams, particularly:


Short Rotation Coppice and Short Rotation Forestry
Annual arable crops
It will also require new techniques for small scale pelletising of mixtures of raw material,
and advice and support for SMEs with an interest in entering the market.
1 / 6
NPP PelleTime Tender Description.
The PelleTime project is a Northern Periphery Programme partnership project involving
Scotland, Finland, Sweden and Iceland which aims to address shortfalls in pellet
production by expanding the raw material supply and increasing productive capacity by
encouraging SME participation in this rapidly growing market.
At transnational level this project aims to address raw material and capacity shortages in
the pellet industry by:
a) Using GIS to analyse existing and potential supply and demand, identifying any
local and regional bottlenecks that might constrain market development
b) Conducting growing and pelletising trials on a range of alternative biomass
energy crops to assess yields, technical properties, economic feasibility and
impacts on biodiversity and landscape
c) Developing a suite of Decision Support Tools to facilitate informed decision
making by SMEs considering biomass energy ventures
As such it will make a significant contribution to delivery of EU, national and local
policy targets on renewable energy, climate change mitigation, and alleviation of fuel
poverty through encouraging establishment of sustainable, competitive rural SMEs.
Within Scotland work will focus on aims a) and b) above, while the Decision Support
Tools are developed by the Finnish and Swedish partners, who have significant expertise
in this area. These tools will be fully transferable and will allow the entry and analysis of
local information as a basis for local decision making on supply chain design and scaling.
The main objectives in Scotland will be to:
a) Develop indicative maps of actual and potential biomass energy supply and demand
in the Orkney and Shetland
b) Agronomically test annual biomass crops in Orkney, Shetland to ascertain yields,
economic viability landscape and biodiversity impacts of these crops compared to
improved pasture
c) Investigate options for extension and increased utilisation of farm woodlands and
short rotation woody crops for wood pellets
d) Carry out small scale pelletisation trials
In addition the project will widely disseminate the decision support tools and encourage
their use to design supply chains and develop appropriate business models and it will
raise the profile of Orkney, Shetland and Caithness throughout Northern Europe.
The work in this tender is specifically concerned with objective b) above, and with
demonstration and dissemination of the work in the tender, particularly


Annual workshops in each participating area linked specifically to demonstration sites
and trial activities
Workshops and presentations tied in to the Orkney Science Festival and to other
Scottish and EU biomass events.
2 / 6
NPP PelleTime Tender Description.


Participation in project seminars in Finland and Sweden
Meetings of stakeholders and interested parties such as the council, NGOs and the
farming community about alternative biomass crops in Shetland and Orkney.
Tender Requirements
The basis of the tender will be the work schedule detailed below.
Submitted tenders will be required to:

Produce an effective methodology for the work

Meets the physical requirements to supply biomass for pelletising

Constructively address the wider issues outlined in the tender document

Outline a coherent demonstration and dissemination strategy

Include both detailed costings and a payment schedule
Highland Birchwoods reserves the right to request clarification or changes to the
methodology in order to comply with the required outputs of the NPP application.
Revised tender costs may be submitted where changes to the methodology are requested.
The tender will not necessarily be awarded to the tender with the lowest cost. The
expected budget for the work will be in the order of £100, 000 or €130,000 The tender
process will comply with all appropriate procurement procedures including those of
Highland Birchwoods.
We would welcome tenders quoting costs in Euros rather than pounds Sterling. You must
state which currency is being used in the tables below.
A copy of the draft terms and conditions that, subject to legal advice, will be attached to
the final contract and will be forwarded to all parties indicating an intention to tender.
You must indicate an intention to submit a tender by contacting
[email protected] using the subject line “Intimation of Tender
PelleTime by 3.00 pm on 7th April 2007.
Completed Tenders must be delivered to Highland Birchwoods, Littleburn, Munlochy,
Ross-shire IV8 8NN in sealed envelopes that are clearly marked “Pelletime Crop Trial
Tender” not later than 3pm on 14th April 2008
3 / 6
NPP PelleTime Tender Description.
Work Programme
TASK 1) Establishing and harvesting crop trials.
The main outputs from this section will be the production of a biomass crop suitable for
conversion to pellets for burning in standard pellet boilers; and, an agronomic study of
the crop production process.
It is expected that individual trials will be on a one hectare site with a full suite of species
on each trial site. It should be assumed that three sites will be used, one on Shetland and
two on Orkney.
Costs should be given on a ‘per ha’ basis for each species in each year although some of
the selected species will only be grown in year one.
a) Choice of Crop Trial Sites
Local knowledge should be used to select the sites. The Shetland site should be
representative of the land capable of supporting the trial crops and the Orkney sites
should represent different characteristics of soil, exposure, aspect and /or moisture regime
found on Orkney.
Full and free access for establishment, monitoring, harvesting and demonstration
purposes must be included in agreements with the landholders.
It is intended that one legacy of this work will be opportunities for the land holders to
diversify their future agricultural outputs.
b) Choice of Species
The tender should identify the trial species and justify their selection. Suggested species
are: Switch Grass, Wheat/Barley straw, Reed Canary Grass, Miscanthus and Grass. Short
Rotation Coppice Willow will be included in the materials to be tested for pelletising.
The project time span does not allow for the establishment of willow which should be
sourced from existing sites on Orkney.
Attention must be paid to the risk of any species introduction becoming an invasive pest
species
c) Establishment and harvesting
Three annual crops will be grown and harvested. Any deviation from this regime must be
justified. The tender should clearly identify which species will be grown in which years,
and should give approximate establishment and harvesting months for each crop/year.
The following outline timetable is included for information but construcvtive alternative
proposals which add value to the outcomes of the work are welcomed
Year 1
4 / 6
NPP PelleTime Tender Description.
A broad spectrum of species will be grown. These will be analysed for suitability for
biomass crops.
Year 2
A narrow selection of the most promising species from year 1 will be grown. Selection
will be based on the outcome of pelletising trials. Highland Birchwoods will be involved
in the selection of species for year 2 trials. Species selected may be site specific. It is not
assumed that the same matrix of year 2 species will be grown on all three sites.
Year 3
Crop Species from year 2 will be grown. This work will refine the findings of the year 2
trials. Individual species will be stratified to determine the impact of different input
regimes on yield and different management regimes.
d) Agronomic Study
The trials are expected to test the potential of biomass crops as a viable diversification for
landholders. All establishment and management inputs, and harvested outputs will be
recorded as part of trials. The tender should indicate what data will be gathered the
frequency of measurements. It should also detail a methodology for data analysis and
incorporation into a report format which allows landholders to make an appropriate
assessment of the viability of diversification in the future. The data will be fed into the
Economic Appraisal (8) below.
TASK 2) Drying and Storage
You will be required do dry and store the crops and 1m3 willow in a way that avoids
significant levels of biodegradation and ensures that they are fit for purpose when
transported to Sweden for pelletising trials. As pelletising trials form an integral part of
the PelleTime work programme any failure to ensure that the material is fit for purpose
will be treated as a breach of contract.
TASK 3) Transport to Sweden for pelletising trials
X tonnes (dry weight) of the produce from each species specific crop trial each year,
together with a similar weight of chipped Orkney grown SRC willow must be packaged
and shipped to SLU Umea to arrive in October each year.
Responsibility for the delivery of the material in satisfactory condition for use in
pelletising trials lies with the successful tenderer. Any failure in this respect will be
treated as a breach of contract.
TASK 4) Pelletising on Orkney and Shetland.
A pelletising trial will take place on Orkney and Shetland in 2010. Provision should be
made to supply 50% of the year 3 (2010) crop for pelletising. An appropriate site with
5 / 6
NPP PelleTime Tender Description.
three phase electricity should be chosen. The successful tenderer will be responsible for
the organisation of the site and the transport of materials to the site.
TASK 5) Biodiversity impacts study This will assess the biodiversity impacts of the
species grown, and of SRC willow grown on Orkney. The tender should indicate what
data will be gathered the frequency of measurements. At a minimum these should
quantify impacts on birds, insects, plants, plant dispersal and hydrology impact. Attention
must be paid to the risk of any species introduction becoming an invasive pest species
and investigate heritage and archaeological impacts.
Please indicate the methodology for data analysis and incorporation into a report format
which allows land managers and local policy makers to assess the biodiversity
implications of wider use of the trialled crops.
Annual progress reports should be submitted in the first two years and the findings
incorporated into a full report in year 3 which should include policy recommendations
and best practice management guidance
TASK 6) Geography Information System (GIS) Assessment.
A GIS assessment of the islands will be carried out to determine the potential for
expansion of the process on both Orkney and Shetland. This will be based on
Agricultural Land Classification (ALC) and take local statutory, economic and social
constraints into account.
TASK 7) Landscape impacts study
A Landscape impact study will be submitted assessing the landscape impact of the crop
trial as well as addressing the issue of the potential impact of the process being expanded
across Orkney and Shetland. The final written report will be support by photomontage
and landscape visualisation software generated images and will take into account
potential impacts for differing rates of utilisation of the available land identified in the
GIS assessment
TASK 8) Demonstration and information dissemination
Effective dissemination of outputs to all potential stakeholders is essential to the success
of the PelleTime project. The tender should include a costed strategy for ensuring this,
which, as a minimum will include:
 One demonstration event annually on Orkney and Shetland
 Workshops and poster displays at the Orkney Science Festivals
 Development of a stakeholder groups in Orkney & Shetland that meet twice yearly
 Promotion of the project through the press in Orkney and Shetland.
Presentations at annual PelleTime conferences in Finland, Scotland and Sweden
6 / 6