CASH CROPS
FOR THE
st
21 CENTURY
Fintan Conway
IFA Project Team on Alternative Land Use
Farming in the 21 Century
st
• Historically
– Fuel, food & fibre
• Under the CAP
– Food, with increasing emphasis on the
environment
• Future
– Fuel, food & fibre
Search for Sustainable
Alternatives
• Fossil fuel
– Security of supply
– Cost
• Climate change
– Environmental impact
• EU legislation - 9 EU directives
• Renewable electricity, Transport biofuels, GHG
emission allowances, Landfill of waste, IPPC etc.
Short Term – Biofuels &
Biomass
800,000
700,000
600,000
500,000
Biodiesel
400,000
Bioethanol
300,000
200,000
100,000
0
Fra
Ger
Ita
Aust
Spain
Swe
Dk
UK
Longer Term - Bio Based
Economy
• Agricultural feedstocks as new sources of
chemicals and energy
• Biorefining – plant derived raw materials for
diverse end uses
– industrial chemicals
– pharmaceuticals
– biofuels
• Timeframe – 10 to 15 years
Crop Choice ?
– Crop Choice?
• Bioenergy market opportunities for tillage &
grassland farmers
– Liquid biofuels from arable crops: OSR, SB & cereals
– Biomass – arable + grassland farmers
• Profitability & Limitations
–
–
–
–
Crop returns (ROI)
Establishment cost
Crop rotation
Market outlets
Crop Choice ?
• Oil seed rape PPO, biodiesel
• Cereals & cereal byproducts
– Ethanol
– Solid biofuel (oats)
– Straw pellets
• Sugar Beet
– Ethanol
•
•
•
•
Miscanthus – fuel, pellets, 2nd generation biofuels
Willows – wood chip, pellets, bioremediation
Reed canary grass – fuel, 2nd generation biofuels
Hemp –fuel, 2nd generation biofuels, insulation &
fibre
Gross Margins (€ / acre)
Spring
Beans
WOSR
W Wheat
W Oats
Inputs
110
141
190
160
Machinery
105
135
140
128
Total Costs
215
276
330
228
Yield/ac
(dried)
2.0
1.75
3.7
3.2
€ / t (dried)
180
290
210
200
Subs / straw
22
18
35
35
Output value
382
526
812
435
Gross Margin
167
250
482
447
Willows: GM / acre
Sale Price
of
Woodchip
No
Planting
Grant
100%
Planting
Grant
€2,400/ac
No
Planting
Grant 3
Applicatio
ns of
Sludge
Planting
Grant 3
Applicatio
ns of
Sludge
€57/t
-€117
+€54
+€57
+€227
€100/t
+€11
+€170
+€184
+€344
OSR vs Willow / Miscanthus
• OSR
– Crop knowledge
– Little additional
mechanisation
– Complements & enhances
existing crop mix
– Benificial use of SA
– Market opportunity
– Positive margin
• Willow / Miscanthus
– Limited knowledge
– Reliance on contractors &/
or additional investment
– Long term land
commitment (15 yrs)
– Benificial use of SA
– Market opportunity –
emerging
– Margins dependent on
planting grant and gate fees
Crop Fit - Arable
• OSR best fits current cropping mix
• Miscanthus / willows require 100% planting grant +
substantial gate fees.
• Scale & location critical for biomass crops
• Substantial increase needed in energy payment for
all crops
• Market creation through mandatory renewable
offtake
• No energy crop viable without Government action
Government Policies
• Needed to:
Support production of native biofuels
Reduce dependence on fossil fuel imports
Target excise relief at indigenous production
Move to obligatory inclusion for biofuels and biomass to
stimulate the development of an indigenous biofuel & biomass
industry
– Incentivise the production of green energy through the
payment of a premium for green energy (EU €0 - €0.21/kWh)
–
–
–
–
Further Actions Needed
• To stimulate the Raw Material supply side
– Use PSO levy to pay a premium for green electricity
produced from energy crops (Germany 17 – 19 c/Kw/hr)
– Allow farmers to participate financially in delivering
emissions reductions through domestic joint
implementation projects
– Research targeted at reducing establishment costs for
biomass crops, increasing yields through plant breeding,
appropriate varietal selection and improved agronomy.
– The continued development of renewable technologies.
• To increase commercial vaibility of 1 st & 2 nd generation
biofuel production from crops
Potential
• There is the potential for a further 150,000
to 200,000 ha of arable crops to be grown!
– sowings down 147,000 ha over the last 20 years
– A further 30,000ha sugar beet.
– A further 30,000ha of land currently in set-aside
• 150 – 300,000 ha of biomass crop
production
– Depends on returns to growers Biomass Market - ESB
• 3 peat-fired stations
• 3.08 Mt peat = 23.7 PJ/a
• 30% co-firing = 7.9 PJ/a, indicated in Energy White Paper
• 1.1 Mt equivalent of woody biomass material
• Potential Abatement of 1mt of CO2
Power Generation Fuel Costs (Estimates!!)
FUEL TYPE
Gas (£0.51/therm)
Coal ($70/tonne)
Peat (€27/tonne)
Biomass ??? (Variable)
Miscanthus (€90/tonne)
€/GJ
6.89
2.18
3.50
€/MWhr
45.07
22.41
34.12
6.61
62.80
Thinnings (€40/tonne)
Carbon/Peat (€20/
tonne)
5.09
0.63
48.36
5.99
Conclusion
• Irish farmers – pivitol role to play – production of
biomass and biofuels
• Sector development dependent on returns
• Sustainability of Irish arable sector and farming
– enhanced through development of alternative markets in
renewable energies
• Bioenergy production:
– positive for Irish Agriculture
– positive for the environment
• Need to move further up the value added chain
– biorefining
Thank You
Fintan Conway
IFA Project Team on Alternative Land Use