Scottish Biofuel, part of the Scottish Resources Group that produces more than 3.5 million tonnes of coal annually, is seeking farmers prepared to grow willow as short-rotation coppice.
The market is driven by legislation that makes it a requirement that 25% of any wood fuel used must come from an energy crop by 2009 in order to receive a renewable obligation certificate for coal-fired electricity generators. That requirement rises to 75% by 2011.
Scottish Biofuel intends to build a processing plant at Westfield in Fife by 2010. It is adjacent to a proposed power station that will be fuelled by wood. The processing plant will also produce wood pellets for the domestic heating market. Elsewhere the willow will be blended with coal for burning in traditional coal-fired generators.
Energy cropping on previous grass fields is now a reality. The market signals could hardly be better, with long-term government policy to develop renewable fuels and local planning authorities strongly favouring new developments involving sustainable fuel sources.
Short-rotation coppice-based willow is recognised as the most suited for Scottish soils.
The farmer provides land that has been prepared for planting and makes a contract with a suitable energy company such as Scottish Biofuel. That ensures a guaranteed market for at least 10 years that can be extended to 25 years or more to cover the lifetime of the crop. Sewage sludge can be profitably incorporated into the seedbed at this stage. A planting grant of £1000 per hectare is available which, along with the contributions of the energy company ensures that the farmer has little or no outlay after the field cultivation.
During the first year the crop will grow up to two metres and is then cut back to ground level to encourage coppicing that is akin to tillering in grass and cereals. Thereafter the crop should grow at rates of two metres or more per year to be ready for harvesting every three years.
Scottish Biofuel arranges all the contract harvesting and typical yields of 45 tonnes per hectare can be expected giving a gross output of about £700 per hectare every three years.
There are little or no variable costs associated with the crop after the establishment year so the average annual gross margin should be around £240 per hectare, comparing well with many grassland-based enterprises.
The main attraction for many will be the low level of overheads. With the harvesting operation handled by Scottish Biofuel, there is no need for buildings, machinery or labour.
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