biomass

Biotricity, secures agreement on feedstock supplies for biomass plant in Irish midlands

Irish renewable company, Biotricity Ltd. has signed a Memorandum of Understanding with the Irish Farmers' Association covering the purchase and management of straw feedstock for its Rhode, Co. Offaly biomass plant in the Irish midlands.
Biotricity, secures agreement on feedstock supplies for biomass plant in Irish midlands

The plant, Ireland's first biomass electricity facility, is scheduled to come into production in late 2015. However, initial purchases of straw under the contract will occur in 2014, with the material being used for plant testing and commissioning purposes.

The agreement was signed by IFA President John Bryan and Briain Smyth, Biotricity's operations director, and covers the all of feedstock requirements for the plant.

The new facility is expected to consume about 90,000 tonnes of straw a year, delivering approximately €7 million ($9.35 million) in revenue to its farmer suppliers and reducing Ireland's carbon emissions by roughly 77,000 tons of carbon annually.

The MOU includes a framework pricing agreement for straw 'on the ledge' which sets a base price of €30 ($40) per ton with bonuses for reduced moisture level plus a €2 ($2.7) per tonne straw conditioning bonus for material conditioned by the supplier combined with a guaranteed index linked upward only price review every year.

"The linkages between farming and the production of renewable energy are becoming clearer and include opportunities for farmers to develop sustainable business relationships with the energy sector," Bryan said. "Biotricity has been to the forefront in developing these relationships and working with farmers to secure the type and quantity of feedstock they need for their Biotricity Rhode biomass plant.

he added, "IFA sees this as a model for closer co-operation in how we use land to simultaneously grow food and generate renewable energy from crop residues thus boosting farm incomes and benefiting wider society."

According to Smyth of Biotricity, "We are at the break of a new dawn where farmers and their stewardship of the land will play an increasingly important role in energy policy and how we produce electricity in a sustainable way.

"Farmers have the insights and the practical skills to provide valuable feedstocks for energy generation," he continued. "I am confident that Biotricity's Rhode plant will provide solid revenues and earn the support of its feedstock suppliers and make a valuable contribution to the farming economy in Ireland."

"This is an Irish success story," declared Biotricity CEO Declan Kennedy. "Eighty percent of the project cost will be paid out to Irish engineering companies, with approximately €14 million ($18 million) per annum going into the local economy to include salaries €2 million ($2.7million), straw €7 million ($9.35million) and other solid bio-fuels for drying €5 million ($6.7million).

The plant has qualified for the Renewable Feed In Tariff (REFIT) 3 programme which provides a government backed 15-year renewable electricity supply contract.

For additional information:

Biotricity Ltd.

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