Biomass Action Plan for Scotland

1.1 The aim of the Biomass Action Plan is to set out main limiting factors to the further expansion a coordinated programme for the development of this sector are equipment capital costs and of the biomass sector in Scotland. It summarises the availability of trained professionals and the various existing activities, and provides a accredited installers, while the domestic sector framework under which they will be coordinated has had an additional barrier of lack of local and also supplemented by further actions. pellet production. We are or will be addressing these issues.

1.2 The Scottish Biomass Action Plan has been informed by the EU Biomass Action Plan, and 1.5 The Executive will produce a Renewable Heat shares its aims of promoting economic growth, Strategy, encompassing bioenergy and other commitment to renewables and diversification of technologies, by the end of 2007, including targets supply. for production of renewable heat up to 2020. In addition, action is currently being taken on a

1.3 Studies looking at the potential for electricity number of fronts to develop biomass heat. This generation have suggested that Scotland’s includes: renewable resources could sustain 60GWe of generating capacity, of which 450MWe could • Awareness raising and information be derived from biomass. The Scottish sector provision, including web-based advice is starting to grow, with major developments and the networks of Forestry Commission such as E.ON in Lockerbie (44MWe), Balcas Scotland Woodfuel Information Officers, in Invergordon (8MWe) and UPM in Irvine and SCHRI Development Officers. The (25MWe) all under way now, supported by sector itself provides a focus for industry public funds. The number of smaller heat-only discussion through the Scottish Renewables installations is also increasing. But there is still Forum Bioenergy Network, as well as huge potential to develop the market share of through regional initiatives. Accreditation biomass and maximise its contribution to the of installers is encouraged through various Scottish Climate Change Programme. This measures, but there is clearly a need to development must take account of the range increase this activity; of biomass resources – not only the forestry- derived fuel highlighted in the FREDS (Forum • Regulation and planning, notably the update for Renewable Energy Development Scotland) of Scottish Planning Policy paper SPP6. This report on biomass, but also from agriculture and guidance outlines a strategic framework for waste. Similarly, the demand side comprises not renewables development, and encourages the only electricity use, but heat and transport. identification of sites for new biomass plants through the development plan process;

1.4 Heat energy can be produced very efficiently from biomass and deliver significant carbon savings, • Public procurement. Exemplar projects can and indeed over half of the renewable heat already be found across the public sector, supplied to homes and buildings across Europe but more will need to be done to encourage is from biomass. But in Scotland, while a third investor confidence. of our primary energy consumption is for heat, only a fraction of this comes from biomass. The • Financial support through the Scottish  Community & Householder Renewables • Regional Selective Assistance, the Executive’s Initiative (SCHRI) which has to date assisted main scheme of financial assistance to 20 woodfuel-fired installations at community create and safeguard employment in the scale, and 70 household installations. Other Assisted Areas of Scotland, supported the schemes include the Highlands and Islands establishment of the UK’s first large scale Woodfuel Development Programme, the biodiesel production facility using vegetable Carbon Trust’s Biomass Heat Acceleration oils and animal tallow (Argent Energy), and Project, the Renewables Fuel Poverty Pilot, will help to fund one of Europe’s largest Regional Selective Assistance, demonstrator biodiesel production facilities (INEOS) at projects, and the new Scottish Biomass Grangemouth – with the capacity to meet Support Scheme. some 35% of the UK’s biodiesel needs.

1.6 Electricity from biomass is significant and • Support for biofuel crops will be available contributes to the Executive’s long term targets for under the Land Management Contracts generation from renewables. Indeed electricity to be implemented as part of the Rural generation through co-firing is currently the Development Plan for Scotland in the course largest user of biomass energy in Scotland, of 2007. although the feedstock is principally imported material in the form of pellets. Electricity from • On procurement, the public sector is leading biomass is well supported through a variety the way through the Forestry Commission’s of mechanisms. The main source of financial biofuels programme which now has 120 support is the Renewables Obligation (Scotland) vehicles running on biofuels blends. and the current review of the Obligation will seek to increase biomass use. The Executive 1.8 Biomass supply is a key issue in Scotland. In recognises the benefits of generating heat and Europe, supply chains are well-developed. But power together and is keen to encourage the here there is a need for improved assessment further development of CHP, where we are of available and future resource, and capacity already performing better than the UK average. building; this has been identified as a barrier to growth and development of the sector:

1.7 The transport biofuels industry in the UK as a whole is still very young, but large-scale • In the forestry sector, Forestry Commission production is established and increasing. The Scotland are looking at ways to boost supply main types of biofuel in use in the transport to meet the anticipated demand in the sector are liquid biodiesel and liquid bioethanol, burgeoning biomass sector, with a particular with a much smaller market for biogas. focus on underused materials such as forest residues from brash. Care has to be taken • The key incentive for growth in the biofuels not to displace existing commercial markets, sector is the Renewables Transport Fuels and signposting developers to private Obligation (RTFO) with the UK target for sector supply will be key to meeting future transport biofuel sales of 5% by 2010. The demand. Short rotation coppice (SRC) and Scottish Executive has adopted this target short rotation forestry (SRF) have been slow and supports the introduction of the RTFO. to expand in Scotland but Forest Research  will be addressing this issue in forthcoming biomass for energy will be mitigated through research. Financial support is available to applying best practice in land management, support both conventional forestry planting meeting air quality standards and implementing and SRC. planning regulations. • There is a high level of interest from the 1.10 In conclusion, the Biomass Action Plan for farming sector in the production of Scotland provides a comprehensive picture of energy crops, with oil seed rape being the the activity being undertaken to develop the major biofuel feedstock grown in Scotland. sector here and sets out a framework for future Market confidence should grow further policy and support. Key strategic drivers are with the announcement of two major already in place across the heat, electricity, and biodiesel processing plants in Scotland – at transport sectors. On the heat side in particular, Grangemouth (above) and Rosyth. While the new Scottish Biomass Support Scheme and there is financial support available to farmers the publication by the end of 2007 of a Renewable to grow energy crops (through the Aid for Heat Strategy for Scotland will be important Energy Crops scheme), the main drivers for milestones for development. future growth are expected to be market- led. 1.11 The coordination of biomass policy across the Executive is led by the Renewables and • The waste sector is also an important Consents Policy Unit, part of the Energy and element of supply. Thermal treatment Telecommunications Division within the facilities cover a range of processes including Enterprise, Transport and Lifelong Learning incineration with energy recovery, anaerobic Department. The Interdepartmental Bioenergy digestion, pyrolysis, gasification, and Group, comprising relevant Executive policy landfill gas capture. Under the Renewable areas, will oversee the implementation of the Obligation (Scotland), only waste containing Plan and ensure that biomass policy is developed 90% or more biomass will be eligible to in a way that ensures all diverse interests are receive Renewable Obligation Certificates. considered. However, there is a key role for both (Exceptions to this rule include the biomass public authorities and business in progressing the element of waste treated by advanced overall aims of the plan. The Executive has made conversion technologies or in CHP plants.) a commitment to work closely with Scottish Financial support is focussed on municipal stakeholders to ensure the Plan continues to be solid waste through the Strategic Waste relevant and provides the strategic framework for Fund provided to local authorities. realising the full potential that a vibrant biomass sector can bring to Scotland.

1.9 Maintaining the high quality of our environment is an important element in the development of a sustainable biomass industry, with potential impacts on soil and water quality, air quality, biodiversity, landscape and GHG emissions. Impacts on the environment from the development of the raw material and use of   2. INTRODUCTION AIMS Biomass Technology in Scotland (Scottish Executive, 2005);

2.1 This document sets out the Scottish Executive’s ˙ “Changing Our Ways” - Scotland’s Biomass Action Plan for Scotland. The aim of the Climate Change Programme Plan is to ensure that Scotland’s biomass resource (Scottish Executive, 2006); is properly supported and exploited, and that it delivers additional economic benefits whilst ˙ The Scottish Forestry Strategy making a contribution to the ambitious targets (Scottish Executive, 2006); for emissions reduction set out in “Changing Our Ways” - Scotland’s Climate Change Programme. ˙ Woodfuel for Warmth This Plan, for the first time, sets out a programme (Sustainable Development for the coordinated development of the biomass Commission Scotland, 2005); sector in Scotland. ˙ Environment & Rural Development Committee Inquiry Report into

2.2 Key aims are: Biomass (March 2006); • to provide a summary of the wide range of existing activities, actions and initiatives; • discussions with a wide range of interested groups and key stakeholders both internal • to provide a focus for a strategic coordinated and external to the Executive. approach to developing biomass for energy production across the heat, electricity and transport sectors; STRUCTURE • to identify roles and responsibilities 2.1 The Biomass Action Plan for Scotland reflects for government, industry and public the key themes captured in the EU Biomass stakeholders to develop a vibrant bioenergy Action Plan, whilst recognising Scotland’s industry in Scotland; and unique circumstances. The Plan will consider current and future demands on biomass for • to identify future actions and gaps. heat electricity and biofuel production in a new expanding marketplace. The main sections of the

2.1 The Biomass Action Plan for Scotland has Plan will consider each of these key areas in more been informed by a number of initiatives at an detail: international and national level including: • wider context • the EU Biomass Action plan; • biomass heating • a number of recent reports into the sector, in particular: • electricity from biomass ˙ Promoting and Accelerating • transport biofuels the Market Penetration of  • biomass supply • environmental impact • conclusions

2.1 There are some overlaps across the different sections, this is unavoidable and is a reflection of the various uses to which biomass can be put. A framework outlining all the actions is at Annex A. 10 DEFINITIONS For the purposes of this report the following definitions are used: • Biomass – material from forestry, energy crops (such as short rotation coppice and miscanthus) or agricultural plant and animal waste • Biofuels – any fuel derived from biomass, such as ethanol, biodiesel or methanol • Bioenergy – energy for heat, electricity or transport generated from renewable biomass 11 12 3. WIDER CONTEXT EUROPE SCOTLAND

3.1 Energy is crucial in helping Europe achieve its 3.3 Scotland has the potential to be the renewables objectives for growth, jobs and sustainability. powerhouse of Europe. We have a unique High oil and gas prices put the spotlight on combination of natural assets, with nearly 60GW Europe’s increasing dependency on imported of raw electricity generating potential to draw energy. The union is responding to this challenge upon, including off-shore and on-shore wind, by putting in place a range of measures to help wave and tidal and biomass. In supporting a Europe to reduce dependence on energy imports, diverse mixture of clean energy, our focus is on increase sustainability and stimulate growth and those renewable technologies yet to establish jobs. The key drivers in the EU Biomass Action a significant foothold in Scotland, including Plan can be summarised as: biomass, marine and hydrogen. • the desire for stronger yet sustainable 3.4 The Executive has set ambitious targets to economic growth; generate 18% of Scotland’s electricity from renewable sources (as a proportion of demand) by • the need to reduce energy demand; 2010, rising to 40% by 2020, which we are already well on the way to achieving. The Executive • the commitment to increase use of renewable announced in February 2007 it has met the 2010 energy sources; target early. There are no targets set for the biomass component, however several large-scale • the desire to diversify energy sources, projects including the E-ON project at Lockerbie particularly focussing on domestic and will make a difference and the Executive will sustainable resources; monitor the contribution of biomass to ensure it is not missing out. • the opportunity to enhance international co- operation. 3.5 There is no available data on current renewable heat use in Scotland, although there is around

3.2 Biomass is one component of the measures 177 MWth installed capacity in large-scale needed to achieve these objectives. It is within projects and around 8 MWth in small-medium this wider context of an integrated and coherent scale projects. Targets for heat will be considered energy policy and, in particular, of the promotion as part of the forthcoming Renewable Heat of renewable energy sources that the Commission Strategy. Over the next year, the Executive will presented its Action Plan. In short, it is a first focus on expanding this market through the step towards improving coordination of the development of a Renewable Heat Strategy and bioenergy sector. the implementation of the Scottish Biomass Support Scheme.

3.6 In terms of biomass use, Changing Our Ways: Scotland’s Climate Change Programme (Scottish Executive, 2006) estimates that 750,000 green tonnes of wood will be used by 2010, rising to 13 1,000,000 green tonnes by 2020. Overall, the Learning Department (ETLLD), has the lead report estimates that bioenergy measures will role in coordination of biomass policy across the contribute to removals of an additional 0.12 Executive and beyond. However, depending on MtC per year by 2010, rising to 0.18 MtC per the subject matter other areas of the Executive can year by 2015 and 0.23 MtC per year by 2020. assume a leading role. It is not usual therefore to With projects in development, these target will have a number of policy areas involved in initial be clearly exceeded and there will be increasing discussions on emerging policies and how they competition for timber volume. Expansion of might impact on existing or developing policies the resource is a key aim for the Scottish Forestry elsewhere. Strategy and a Forward Strategy for Agriculture.

3.10 In practice, coordination of policies relating to

3.7 A number of recommendations were made biomass works effectively. An Interdepartmental by the Biomass Energy Group (BEG) of the Bioenergy Group was established to ensure that Forum for Renewable Energy Development all relevant Executive policy areas were apprised in Scotland (FREDS), set up in 2002 to bring of biomass developments and to ensure that together government, industry and academia engagement takes place at an early stage. This to advise how best to break down the barriers group will continue to meet on a regular basis to renewables developments. The group made a and part of its remit will be to monitor the series of recommendations, many of which have progress of the Action Plan, as well as ensuring already been implemented and are discussed biomass policy is developed in a joined up way throughout the Plan. across the Executive and its agencies. This will include the need to ensure that the regulatory Policy co-ordination environment in which the biomass industry operates is developed in a sustainable way. The

3.8 Bioenergy is a cross-cutting topic, bringing Group will produce an Annual Report outlining together a range of policy areas, including its activity including progress with delivering the agriculture, forestry, energy, transport, rural Action Plan. development, and climate change. Each area recognises the importance and benefits of 3.11 The diagram on the page opposite illustrates developing the biomass sector as part of their the wider context in which bioenergy policy is overall policy and this is reflected in existing supported across the Executive. policy documents, including: Securing a Renewable Future: Scotland’s Renewable Energy (2003); Going for green growth: a green jobs strategy for Scotland (2005); The Scottish Forestry Strategy (2006), Changing Our Ways: Scotland’s Climate Change Programme (2006) and A Forward Strategy for Scottish Agriculture: Next Steps (2006).

3.9 The Renewables and Consents Policy Unit, part of the Enterprise, Transport and Lifelong 14 POLICY MAP Changing Our Ways: Scotland’s Scotland’s National Transport ERAD Climate Change Programme Strategy: A Consultation ETLLD Scottish Planning Policy Statement UK Government 10 (NPPG10): Waste DD Sustainable Procurement Action Plan FCSD Scottish Planning Policy Statement 6 DD (SPP6): Renewable Energy CLIMATE CHANGE ENERGY POLICIES Scottish Biodiversity Strategy and Action Plan SNH Renewable Heat Strategy due end 2007 Choosing our Future: Scotland’s Sustainable Development Strategy Going for Green Growth: A Green Jobs Strategy for Scotland Scottish Rural Development Plan OTHER RELATED 2007-2013 RENEWABLE ENERGY Securing a Renewable Future: AREAS Scotland’s Renewable Energy A Forward Strategy for Agriculture, 2006 ERAD ETLLD Renewables Obligation Scotland The Air Quality Limit Values (Scotland) Amendment Regulations Biomass Action Plan National Waste Strategy Scotland: March 2007 The National Waste Plan BIOMASS-SPECIFIC FREDS Biomass Energy Group Non-municipal Waste Framework Report and Action Plan Guidelines for Thermal Treatment SEPA of Municipal Waste Scottish Forestry Strategy FCS SNH Biomass Policy Statement SNH 15 16 4. SCOTLAND’S ROLE IN THE UK BIOMASS STRATEGY BACKGROUND Scotland are summarised as follows: UK Government Renewable energy

4.1 Energy policy is mainly a matter for 4.5 Ministers established the Biomass Energy Group Westminster. The current UK Energy Review (BEG) in 2004, with the task of considering how will have implications for Scotland. However, the biomass, especially forestry products, could promotion of renewable energy and development make a meaningful contribution to Scotland’s of a renewable heat strategy are both devolved to renewable energy mix and thus deliver significant the Executive. environmental and employment benefits. The Scottish Biomass Support Scheme is a first-

4.2 At a UK Government level coordination of step to kick-start the sector to realise the biomass policy is led by the Department for opportunities of carbon benefits, job creation Environment, Food and Rural Affairs (DEFRA) and rural diversification from biomass. or the Department for Trade and Industry (DTI), either individually or jointly depending on the Climate Change wider subject area. Core governmental bodies come together on the Biomass Implementation 4.6 The Executive has committed to ambitious Advisory Group, (the Executive is represented targets for Scotland’s contribution to the UK’s on this group) whose remit is to ensure that commitment to tackle climate change. The all Departments are kept apprised of biomass Scottish Climate Change Programme (SCCP) developments. sets a Scottish target to exceed the Scottish share of UK carbon savings by 1 million tonnes

4.3 Defra and DTI are currently working jointly on of carbon in 2010, totalling 2.7 MtC annually. the development of a UK Biomass Strategy, due The SCCP highlights the key role for renewable for publication during spring 2007. The strategy heat and biomass in helping to meet this target will define for the first time UK Government and expects bioenergy measures to contribute policies on biomass for industry, energy and removals of 0.23MtC of carbon per year by 2020 transport in a single document. The aim of It is currently estimated that in the residential the strategy is to encourage the expansion of sector alone, 80% of energy used goes towards sustainable biomass production and use in the heating and the potential to reduce emissions is UK, in order to help address climate change and significant, which will be taken forward by the a number of other key government objectives, Renewable Heat Strategy for Scotland. such as security of fuel supplies and economic competitiveness. Devolved administrations will Transport input into the strategy. The Biomass Action Plan for Scotland is very much in line with the overall 4.7 The increased use of biofuels is considered aims of the UK Strategy. a realistic way of contributing to the UK Government and the Scottish Executive aims of BENEFITS reducing emissions and reducing EU reliance on external fuel sources. The Renewable Transport

4.4 The key drivers and benefits for biomass in Fuels Obligation (RTFO) and the UK-wide target 17 driving the production of biofuels are discussed regeneration. in more detail in section 7. Agriculture

4.8 Biofuel production currently costs more than conventional transport fuel production. The 4.11 There is a need to treat agriculture as part Chancellor of the Exchequer has therefore set of wider rural development. The increasing a 20p per litre tax incentive to 2010 for biofuel importance of this is recognised in the new production to help stimulate this market, and the EU Rural Development Regulation. Scotland’s development and investment in new techniques farming industry should be a major driver in and processes by transport fuel producers and sustaining rural development, helping rural suppliers. In the longer term, costs should reduce communities prosper and contributing to as new sources and a wider range of material, the growth of the rural economy. In terms of for example lignocellulosic (woody) materials biomass, the sector is responding to the growing like wood and straw and the organic parts of demand for biomass feedstock and has engaged municipal waste, become more widely available positively with the biofuels industry. Animal for processing into biofuel. by-products are already being used at the Argent plant for the production of biodiesel and Forestry agricultural businesses are working to develop biodiesel production from Oil Seed Rape. There

4.9 The Scottish Forestry Strategy and its associated is also significant potential to expand woody implementation plans lay out the forestry biomass production from agricultural land, both sector’s role in supporting the development from forestry, short rotation coppice and short of the bioenergy industry. This ranges from rotation forestry. facilitating the development of an efficient and reliable wood fuel supply chain to the provision Waste of dedicated advice through its network of wood fuel information officers. The forestry 4.12 The amount of waste being produced should be industry is committed to support the delivery minimised wherever possible. Thereafter, the of the Executive’s climate change objectives by most appropriate option in most circumstances increasing wood fuel usage and maximising for waste is recycling. However, there will the rural business diversification benefits of always be residual amounts of wastes that need developing the bioenergy sector. to be managed in other ways including waste disposal. Traditionally in Scotland this has been

4.10 A growing biomass industry has the potential undertaken via landfill. Thermal treatment is to strengthen the economic viability of the an alternative treatment to landfill and is more Scottish forestry sector by providing a market for environmentally preferable according to the lower quality and smaller dimension material. waste hierarchy. Thermal treatment can apply Stimulating this market will encourage active to a number of different practices, for example, management of neglected woodland which incineration with energy recovery, anaerobic will bring environmental and amenity benefits, digestion, pyrolysis, gasification, landfill gas for example, through increased thinning of capture. All waste management technologies woodlands and encouragement of woodland have some impact on climate change but the 18 land-filling of waste containing biodegradable materials is the largest single contributor. Evaluation and Targets

4.13 There is a need to evaluate the contribution biomass makes to the wider aims of the Executive, in terms of, for example, sustainable economic development, rural diversification and tackling climate change. However the diverse range of interests covered in this Action Plan does not easily lend itself to setting useful or manageable targets. It is not the intention to purposely avoid target setting. What we can do is measure progress towards those targets already set in the various Executive policy documents which impact on the biomass sector. This information is already included in the document at the relevant section but the key targets are summarised below: • to generate 18% of Scotland’s electricity from renewable sources by 2010, rising to 40% by 2020; • to exceed the Scottish share of UK carbon savings by 1 million tonnes of carbon in 2010, totalling 2.7 MtC annually; • to increase the percentage of transport fuel from renewable sources to 5% by 2010; • commitment to include targets for production of renewable heat for the period up until 2020 as part of the Renewable Heat Strategy.

4.14 The Interdepartmental Bioenergy Group will consider progress towards targets as part of its remit. 19 SUMMARY Biomass is a cross-cutting topic, as it brings together a range of policy areas, including agriculture, forestry, energy, transport, rural development, and climate change policy. The Renewables and Consents Policy Unit within the Enterprise and Lifelong Learning Department has the lead role in coordinating policy across the Executive and its agencies. Relevant policy areas come together on the Executive’s Interdepartmental Bioenergy Group to ensure that co-ordination of policies relating to biomass works effectively, and to monitor implementation of the Action Plan. In addition, the Executive is linked into the work of UK Government through the UK Biomass Implementation Advisory Group. The benefits from biomass cut across a range of sectors. It is well placed to make a significant contribution to both Scottish and UK renewable targets by 2010. In addition it will help to contribute to targets in Changing Our Ways: Scotland’s Climate Change Programme and the Scottish Forestry Strategy. The progress towards targets will be undertaken as part of the work of the Interdepartmental Bioenergy Group. 20 ACTION TABLE Lead Action Timing Indicator / Output Department Forestry Refine figures for woodfuel availability in 2007 Revised woodfuel Commission Scotland resource estimate Scotland Forestry Examine carbon benefits of alternative 2007 Comparative analysis Commission bioenergy feedstocks and end uses of bioenergy policy Scotland scenarios ETLLD - Co-ordinate policies across the Executive, 2007 Strategic framework for Renewables and UK Government, to ensure a strategic biomass framework exists for its development and growth and that all diverse interests are considered ETLLD - Undertake evaluation of Plan’s contribution 2008 An evaluation report Renewables towards wider Executive aims ETLLD - Review Action Plan on an annual basis December Review report Renewables 2007 21 22 5. BIOMASS HEATING CONTEXT practical alternative to traditional fossil-fuelled systems. The main limiting factor for the growth

5.1 Around a third of Scotland’s primary energy of this domestic market sector (aside from those consumption is for heat and although only a small already listed) is the lack of pellet production percentage is currently generated by biomass this in Scotland. However, the recently announced is a rapidly developing market. Current woodfuel proposal by Balcas to build a wood fuel pellet usage is estimated to be around 300,000 oven manufacturing facility at Invergordon with dried tonnes (odt) per year at the start of 2006, an support from Highlands and Islands Enterprise, increase of 117% over the previous year. However, and several projects in development will help to it should be noted that a large proportion of this provide a Scottish source of pellets in the near usage is imported pellets which are used for co- future. firing to generate electricity. In contrast, of this total, heat production currently uses around SUPPORT MEASURES 121,000 odt per year of virgin wood and recycled timber in larger scale (>1,000 odt per year) 5.4 The Executive is taking action on a number of industrial installations. fronts to develop biomass heat:

5.2 At the start of 2006, around 4,400 odt per year of Renewable Heat Strategy wood fuel were being used in small-medium scale (<1,000 odt per year) installations, an increase 5.5 The Executive has made a commitment to of 9% over the previous year. The number of produce a Renewable Heat Strategy by the end small-medium scale heat only installations of 2007. The overall aims of the strategy will has increased rapidly over recent years with a be: to maximise the potential of the full range total installed capacity of over 8 MWth across of Scotland’s renewable resources; to grow the 42 projects, including 5 operational woodfuel economy; to contribute to Scotland’s Climate district heating schemes. Although the local Change Programme; and to strengthen energy heat only sector comprises only around 2% of supply security by ensuring a vibrant market is the current biomass use, it has the potential developed for renewable heat in Scotland. The for significant expansion and brings many local strategy will lay down targets for production of rural diversification benefits. The main limiting renewable heat for the period until 2020 and factors to the further expansion of this sector are explain how progress towards these targets will equipment capital costs and the availability of be monitored. trained professionals and accredited installers. Information Provision

5.3 Forestry Commission Scotland estimate that around 50,000 odt of traditional wood fuel in 5.6 Awareness-raising and promotion of the benefits the form of logs are used in domestic properties of biomass are essential to create a flourishing for traditional fires or log burners. However, biomass industry. The Executive is supporting this sector is also modernising its demands and the provision of information at all levels from efficiencies through the use of new, automated public awareness to professional training through systems to provide clean and convenient domestic a range of measures. heating. Wood fuel pellets also offer a clean and 23

5.7 The Executive recently launched a one-stop focus for industry discussion and lobbying on shop website for woodfuel information (at www. biomass. The Executive supports a post to co- usewoodfuel.co.uk) which contains a range ordinate the work of the BEN. of information for domestic, commercial and industrial users of woodfuel. The website is Regional View also developing a series of case studies to share experiences and best practice. This website links 5.12 Regional level advice and support is available into the DEFRA Biomass Energy Centre website from a number of sources, although it varies (www.biomassenergycentre.org.uk). considerably between regions:

5.8 Advice and support on biomass is available from a • in Argyll, ALIenergy has developed a high range of sources. Forestry Commission Scotland level of expertise in biomass through hands- has a network of Woodfuel Information Officers on involvement in a number of projects; who are providing advice and information to a range of organisations and individuals on • the Lanarkshire Biomass Group provides installations and supply. The network (full contact local advice and support, promoting and details at Annex E) has been extended with the disseminating information to build on the appointment of an officer in South Scotland, to North Lanarkshire biomass projects; and share best practice and experience across the whole of the country. • Highland Birchwoods has developed a considerable knowledge base through

5.9 In May 2006, the Executive published an Annex projects such as the Northern Woodheat to Planning Note (PAN) 45 on microrenewables. and North Sea Bioenergy projects, both This document helped increase awareness of the EU funded with a number of European various technologies available and paragraph partners. 6 provides advice to developers, planners and communities on micro biomass schemes. This 5.13 The Enterprise Networks are actively involved supplemented the earlier advice in PAN 45 on in supporting the biomass sector, examples other larger scale biomass technologies. include:

5.10 The network of Scottish Community and 5.14 Lanarkshire Biomass Project, which is a Householder Renewables Initiative (SCHRI) public sector partnership created to develop a Development Officers (full contact details at commercial biomass project based on burning Annex E) is a useful source of information wood chips to create renewable energy. Partners and advice for a whole range of renewable are North Lanarkshire Council, Central Scotland technologies, including biomass. The network Forest Trust, Scottish Natural Heritage, Scottish covers the whole of Scotland. Enterprise and Forward Scotland.

5.11 The renewables sector has also worked on 5.15 Perthshire Biomass Partnership, which is strengthening the presence of the biomass a network to encourage the development industry in Scotland. The Scottish Renewables of the local wood fuel market consisting of Forum Bioenergy Network (BEN) provides a representatives from Scottish Enterprise Tayside, 24 Forestry Commission Scotland and Perth and an effective and coordinated accredited training Kinross Council. The project has sought to programme. promote developments in the use of wood fuel for heating at the same time as establishing the 5.19 For the first time, it provides a list of woodfuel local wood fuel supply chain. suppliers which now covers the whole of Scotland. There is however the need to develop standards

5.16 Scottish Enterprise are working with the for woodfuel quality and allow users to identify Scottish Forest Industries Cluster, a group suppliers who apply best practice in terms of which includes all stakeholders in the sector, to environmental and quality standards. develop knowledge, new products and markets, strengthen links with the wider community, all 5.20 Consumers can also refer to approved appliance collaborating to their mutual benefit. listings on the Energy Technology List (via www.eca.gov.uk) to ensure the equipment

5.17 While there are good examples of regions they install meets the minimum emissions taking a lead in developing the biomass sector, standards. Consumers in Smoke Control Areas more needs to be done to ensure all regions of must also refer to the exempt appliance list (at Scotland can benefit. There is a need to identify www.smokecontrolareas.co.uk). The number of priority areas across Scotland that offer the best appliances is currently limited and equipment opportunity to exploit the bioenergy sector, be suppliers are encouraged to register their that heat, electricity or both. This would allow equipment. for better targeting of support from the various stakeholders involved in the sector. REGULATION AND PLANNING Accreditation

5.21 In 2006, the Executive consulted on proposed

5.18 Consumer confidence in equipment and revised planning policies for renewable energy installation is supported by the accreditation of developments. The proposals in draft, Scottish installers through the Clear Skies programme Planning Policy 6: Renewable Energy set out (www.clear-skies.org). However, the number how the development plan process can best of accredited biomass installers is limited and support the continued growth of all renewable there is a need to build capacity in the sector energy technologies, including biomass, so that to provide greater choice and confidence in the development takes place in the context of a long- market for consumers. The IGNITE training term and inclusive vision. Responses to the public course run by Rural Development Initiatives consultation exercise on the Executive’s draft has provided a basis for capacity building in the proposals are still being considered. Finalised woodfuel sector and the Northern Woodheat guidance should be in place by March 2007. training course run by Highland Birchwoods provides technical training for professionals in 5.22 Draft policies indicated that planning authorities designing and commissioning woodfuel systems. should consider the extent to which there are The Executive is encouraging development of opportunities through development plan policies training for designers, engineers and installers of to identify sites appropriate for new biomass woodfuel equipment and will provide support for plants in those areas where there are either 25 existing long-term secure resources or new of sustainable public procurement. opportunities available to harness local resources. This does not rule out development applications 5.26 The Executive already promotes best practice outwith these areas so long as they satisfactorily across the public sector, and provide advice and address specified broad criteria. In all cases, support by: plans should confirm that the development of new biomass energy plants will be supported • maintaining a website; subject to local landscape, built and cultural heritage, amenity (including public health and • issuing guidance and advice to public sector safety), environmental and transportation issues procurement officials; being satisfactorily addressed. • working with other public bodies;

5.23 SEPA has now issued clear guidance entitled “Is it waste – understanding the definition of waste” • providing specific training to the Executive’s (www.sepa.org.uk/pdf/guidance/waste/is_it_ procurement staff on how to incorporate waste v2.pdf. ). The guidance advises that biofuel sustainable development issues into from timber and other crops is not waste, nor procurement. are forestry residues or material produced by the timber processing industry from virgin timber 5.27 Once the UK Government has responded to the likely to be considered waste. The guidance UK Sustainable Task Force report, the Executive provides clear advice on a range of biomass will produce a Scottish Sustainable Procurement sources and the key message is that the concept Action Plan that will build on progress already of waste can not be interpreted restrictively, but made in Scotland and take into account the must ensure that the environment and human work of the UK Task force. The Action Plan will health are safeguarded. also identify key performance indicators and benchmarking opportunities to deliver on the

5.24 A draft Scottish Planning Policy (SPP)10 Planning Executive’s ambition to be a leader in this field. for Waste Management was issued in August 2006 and responses are now being analysed for 5.28 A number of public organisations are now planned completion of a finalised SPP in spring considering biomass as an alternative source of 2007. The SPP recognises that in rural areas, heating. Exemplar projects can be found at the farmland or forests may determine the best offices of Scottish Natural Heritage in Aviemore locations for thermal treatment plants designed and in three Forestry Commission Scotland offices for biomass. at Huntly, Dingwall and Inverness where small biomass heating systems have been installed. PUBLIC PROCUREMENT In the local authority arena, North Lanarkshire Council have led the way, with installations in

5.25 As highlighted in “Changing Our Ways” Scotland’s four council premises and Argyll & Bute Council Climate Change Programme the public sector has installed a woodfuel systems in the new across the UK buys £125 billion worth of goods Aqualibrium Centre in Campbeltown. Several and services each year. The Executive has a role other local authorities have projects (both PPP to play in demonstrating leadership in all aspects and conventional) in development including 26 Highland Council, Perth & Kinross Council, Nearly £250,000 of grants have been allocated Moray Council and Aberdeenshire Council. to householders for the installation of biomass boilers.

5.29 The procurement of PPP initiatives is 5.33 The Executive is also supporting the Carbon strictly regulated by European Directives Trust’s Biomass Heat Acceleration Project and implementing regulations in the United (BHAP) in Scotland. The aim of the project is Kingdom such as the Public Works Directive (93 to accelerate the development of the biomass- / 37 / EEC) and the Public Services Directive (93 for-heating market in Scotland by focussing on / 50 / EEC). However, the Executive recognises reducing costs and supply chain risks. In the first the need to build confidence in the biomass phase, the BHAP is currently working with 10 sector at this early stage. As mentioned above, existing installations in Scotland. a number of demonstration projects in Scotland have received public support, which will provide 5.34 Renewables Fuel Poverty Pilot. The Executive a excellent source of information that can be is undertaking a renewables heating pilot which disseminated to organisations looking to install will run over 2006-08 to look at the potential similar systems. The Executive will use these for including renewable technologies in the fuel exemplars to develop bespoke information and poverty programmes in the future. One million case studies. pounds will be allocated over the two years to install renewable technologies in a variety of FINANCIAL SUPPORT house types and geographic conditions across Scotland.

5.30 Current support for heating with biomass is available through a number of schemes, targeted 5.35 Scottish Biomass Support Scheme. A key new at particular groups. support measure is the Executive’s Scottish Biomass Support Scheme. The £7.5 million

5.31 The Scottish Community & Householder funding package will support projects across Renewables Initiative (SCHRI) is funded by the a range of scales, from both public and private Executive and managed by the Energy Saving organisations. The Scheme will support both Trust and Highlands and Islands Community supply chain infrastructure and installations. Energy Company. It provides funding towards Its key aims are: strategic transformation of the the development and capital costs of renewables biomass sector, maximising of carbon savings, projects for communities, as well as assisting maximising support for local economy by technical assessments of project feasibility. To creating sustainable green jobs and contributing date, support worth over £1.4 million has been to renewable energy targets. allocated to more than 30 wood-fired community projects, including district heating schemes, 5.36 Regional Selective Assistance (RSA). The schools and community centres. Executive’s main scheme of financial assistance to create and safeguard jobs in the Assisted Areas

5.32 At the domestic scale, the SCHRI provides of Scotland can also offer support to bioenergy support for the installation of a range of projects. household renewable energy technologies, including automated woodfuel heating systems. 5.37 Demonstration projects. Prior to the Biomass 27 Support Scheme, the Executive has supported a number of demonstration projects in Scotland that offer excellent examples of the benefits of biomass energy, and encourage others to follow suit: • Queen Margaret University College - grant funding of £400,000 to support the installation of a biomass plant. • Perth and Kinross PPP School Projects - grant funding of £400,000 to support the installation of biomass heating systems in 6 schools to be build under PPP. • Pilot Biomass Grant Scheme in Highlands and Islands - grant funding of £430,000 to develop 12 biomass installation projects.

5.38 Rates Relief. The Scottish Executive will be consulting shortly on providing preferential rating treatment for renewable energy generators. The aim is to incentivise and increase the level of renewable energy generation in Scotland.

5.39 UK Support. Additional support for renewable energy is available through a range of UK wide programmes including: • Enhanced Capital Allowances (www.eca.gov.uk) • Low Carbon Buildings Programme (www.lcbp.org.uk) 28 SUMMARY Scotland has the capacity to become a major player in renewable heat from biomass and this is an area that the Executive will focus on in the coming year. The key initiatives over that period will be the production of a Renewable Heat Strategy and the introduction of a Biomass Support Scheme. Along with Executive support for industry-led development of major biomass heat and power plants, these initiatives will help support the transformation of the biomass sector in Scotland. In addition, we will also ensure that planning regulations and procurement policy offers a supportive environment for renewables projects to develop and grow. Key areas which will be addressed through the Renewable Heat Strategy to strengthen the biomass heating industry and build public confidence in the sector include: • advice and support; • sharing best practice; • information and training for professionals and installers; • specifications for equipment; and • clear and consistent standards for fuel supply. 29 ACTION TABLE Lead Action Timing Indicators/Outputs Department ETLLD - Implement Scottish Biomass Support Scheme Jan 07 Installed thermal capacity Renewables CHP capacity Carbon savings Number of district heating schemes Forestry Review uptake and outcomes from IGNITE and Jan 07 Number of accredited Commission Northern Woodheat training programmes suppliers Scotland ETLLD - Develop training courses for professionals and June 07 Number of accredited Renewables installers training courses Number of accredited installers Forestry Work with industry to encourage use of recognised Dec 07 Industry standards for Commission biomass standards biomass supply Scotland Forestry Liaise with relevant Executive departments and ongoing Update Woodenergy website Commission external stakeholders to develop information Study into commercial Scotland provision on range of biomass viability of alternative crops and biomass ETLLD - Develop a Renewable Heat Strategy Dec 07 Renewable Heat Strategy Renewables ETLLD - Represent Scottish interests within a ongoing Input to UK Heat Strategy Renewables comprehensive UK Biomass Steering Group Forestry Monitor installations and share best practice ongoing Sectoral report Commission Scotland FCSD - Local Consult on rates relief for renewable energy 2007 Increase take-up by business Taxation generation of renewable sources of energy ETLLD - Identify biomass potential on a regional basis 2007 Growth of local bioenergy Renewables sector in Scotland 30 31 32 6. ELECTRICITY FROM BIOMASS INTRODUCTION from the Energy Review conclusions announced in the summer 2006. The key considerations

6.1 Scotland has enormous renewable electricity include ROC banding, essentially the ability generation capacity, with biomass one of a to award more or less support to different number of potential sources alongside wind, technologies or biomass feedstocks depending wave, tidal and our existing hydro resource. on their carbon benefits and costs, plus changes We are currently on course to meet our target to the rules on co-firing. Any changes ultimately for 18% renewable electricity generation by arising from these proposals, coupled with more 2010. However, Ministers are also determined recent changes to the Obligation rules regarding to support the development of as wide a range the eligibility of waste could have a significant of renewable technologies as possible. Biomass effect on the development of biomass generation can help increase that diversity with the added capacity in Scotland. value that generation can provide a controllable baseload, enhancing security of supply. 6.5 The progress of the debate on banding is being followed closely by the Executive; subject to

6.2 Electricity generation through co-firing is agreement on the scope and nature of the currently the largest user of biomass in Scotland, required changes, we intend that banding will be although the feedstock is mainly imported introduced to the ROS at the same time as to the material in the form of pellets. Co-firing in other UK Obligations. Scotland is currently taking place at Cockenzie and Longannet. Consultation on changes to Co-firing the co-firing rules under the UK Renewables Obligations closed on 5 January 2007. 6.6 As mentioned above, changes to the current co- firing rules are being considered as part of the

6.3 Proposals for purpose-built biomass plants are ongoing consultation on banding. Under the also in development and the first large-scale current Obligation rules, the maximum demand biomass power station is now under construction for co-firing across the UK is 2.03 TWh, only a by E.ON at Steven’s Croft, Lockerbie. As discussed small proportion of which is in Scotland. below, the Executive also recognises the benefits of combined heat and power generation where 6.7 The current consultation looks at the possibility practicable and will work with developers to of removing the cap on co-fired ROCs while identify opportunities to promote this form of reducing the support available by banding co- biomass use. fired ROCs at a lower rate. This could have the effect of increasing the demand for biomass RENEWABLES OBLIGATION material for co-firing without flooding the market with ROCs and thus reducing the value of the

6.4 The biomass electricity market is driven by the Obligation to other technologies. Other changes Renewables Obligation (Scotland), or ROS, which being considered include a requirement for co- is aligned with almost identical instruments firers to provide an annual report to Ofgem on in England and Wales and (more recently) the biomass they have used, its origins and how in Northern Ireland. A major review of the they have addressed any relevant sustainability Obligations is currently underway, following on issues. 33 PLANNING

6.8 The consultation also asks for views on retaining a higher banding for co-firing using energy 6.12 The Executive works closely with colleagues in crops, recognising the benefits to farmers of the Ofgem, National Grid Company and transmission opportunities for farm diversification and the companies to ensure that its renewable policy development of a biomass resource. The Executive is taken fully into account in the planning and however recognises the potential impact on operation of the electricity network in Scotland. existing industries and the development of purpose-built biomass plants and will consider 6.13 Alongside that the Executive wants to see the the issue in detail to ensure the best approach for planning system make a positive provision for Scotland. renewable energy developments - as stated earlier in the document, biomass is highlighted COMBINED HEAT AND POWER to ensure a supportive framework is in place to (CHP) help the sector to grow to its full potential.

6.9 The Executive recognises that combined heat and power (CHP) generation can make more efficient use of biomass resources and contribute towards the Scottish Share of the UK’s carbon emissions. CHP plants can be fired by any fuel, including coal, gas or biomass. Scotland is performing better on introduction of CHP than the UK average with installed capacity in Scotland of around 743 MWe (around 16 per cent of UK CHP capacity).

6.10 CHP is a key component of UK and EU biomass policy. Key support measures include: • Renewables Obligation Scotland (support for good quality mixed biomass and waste CHP systems) • Scottish Biomass Support Scheme • Enhanced Capital Allowances

6.11 There are several proposals for biomass CHP in development, and the Executive has awarded funding to support projects by Balcas in Invergordon, UPM Kymmene in Irvine and the Wick District Heating Scheme. 34 SUMMARY Electricity from biomass is well supported by the Executive through a variety of mechanisms. The main source of financial support is the Renewables Obligation (Scotland) and the current review will seek to increase biomass use through the RO(S). The Executive recognises the benefits of generating heat and power together and is keen to further encourage the development of CHP, where we are currently already performing better than the UK average. ACTION TABLE Lead Department Action Timing Indicators/Outputs ETLLD - To contribute to the RO consultation to ensure Jan 07 Increased demand for Renewables Scotland’s interests are represented biomass materials ETLLD - To continue to encourage CHP growth 2007 Increase Scotland’s CHP Renewables installed capacity from current baseline of 743 MWe ETLLD - To increase Scotland’s renewable electricity 18% by 2010, Increase in energy Renewables generation capacity 40% by 2020 generated from renewables sources, in particular biomass 35 36 7. TRANSPORT BIOFUELS INTRODUCTION the catalyst for action by the UK Government and devolved administrations. In response to

7.1 The Scottish Climate Change Programme and the Directive, the UK Government undertook a National Transport Strategy provide the context feasibility study and consultation on the proposal for reducing emissions in the transport sector for an RTFO as a mechanism to meet the biofuels in Scotland. The Executive is committed to this target and promote the biofuels market. The reduction and transport biofuels are considered study set out to establish the cost-effectiveness, a realistic component in the range of sustainable administrative feasibility, regulatory burdens transport measures being developed – from and compatibility of the RTFO with other UK SMART measures, through to use of low carbon Government objectives. vehicles and alternative transport fuels.

7.5 The RTFO Scheme is reserved, and the

7.2 The biofuel industry in the UK as a whole is still Department for Transport has lead responsibility very young, but large scale production is already for overseeing the establishment of the established and increasing as more producers scheme. This is in consultation with devolved are gearing toward future production. The main administrations and other key stakeholders, and types of biofuels in use in the transport sector the Executive is a member of the RTFO Project are liquid biodiesel and liquid bioethanol, with a Board. much smaller market for biogas. The key driver for biofuels in Scotland and the UK as a whole 7.6 The UK-wide target for biofuel sales has been is the Renewables Transport Fuels Obligation set at 5% by 2010 and the Executive has adopted (RTFO) and the UK-wide target for transport this target and supports the introduction of the biofuel sales of 5% by 2010. RTFO. The UK Government has committed to meet the 2010 target and to introduce the RTFO

7.3 The largest proportion of vehicle sales is the Scheme and administrator of the obligation from second hand market and the average age for April 2008. The primary legislation for the RTFO all licensed vehicles in Scotland is 13 years. scheme is in chapter 5, part 2 of the Energy Act Manufacturers are therefore reluctant to warrant 2004. engines beyond a 5% biofuel level and biofuels will primarily appear as a blended fuel with 7.7 The Executive supports the aims of the RTFO conventional fossil and mineral fuels for sale at which will require transport fuel suppliers to forecourts. The UK Government has nevertheless ensure that a percentage of their sales are from signalled that the target may be reviewed post a renewable source, intended to deliver carbon 2010 with the aim of increasing the target beyond savings in the transport sector, and provide a 5%. sound platform for private sector investment in renewable fuels infrastructure and technology. RENEWABLE TRANSPORT FUEL OBLIGATION (RTFO) PROCUREMENT

7.8 The public transport fleet is leading the way in

7.4 EU Directive 2003/30/EC aims to reduce procurement of biofuels through the Forestry transport emissions across Europe and provided Commission’s biofuels programme which now 37 has 120 vehicles running on biofuel blends. In A £9 million RSA grant has been offered to Scotland, trials are being carried out with 100% INEOS Enterprises, who will establish Europe’s biofuel blends from biodiesel and processed used largest single biodiesel production facility at its cooking oil (UCO). The EU are looking to bring Grangemouth site in 2008 and will have capacity forward recommendations on the proportion of to meet 35% of the UK biodiesel needs. the public transport fleet running on green fuels in summer 2007. Support for biomass production for biofuel SECOND GENERATION 7.11 Proposals for supporting investment in small scale BIOFUELS renewable energy capacity, including biofuel, are included under Land Management Contracts

7.9 Second generation biofuels can be derived from a (LMCs). These will be implemented as part of the number of sources including non-food biomass, new Rural Development Plan for Scotland to be dedicated energy crops and biomass resources approved by the European Commission in 2007. currently viewed as residue such as straw and Support for production of biomass is discussed forestry thinnings. Advantages include the further in Section 8. potential for significant “well to wheel” reductions in greenhouse gas (GHG) emissions and reduced land use requirements as most biomass can be used as a feedstock. Second generation biofuels should also avoid some of the technical problems associated with first generation biofuels such as degradation and material incompatibility associated with first generation biofuels. The first demonstration plants are now beginning to appear in Europe. In the EU Biomass Action Plan, the Commission commits to substantially increasing its support for the development of second generation biofuels through its research budgets. FINANCIAL SUPPORT Support for biofuels plants

7.10 The Executive supports the aims of the RTFO and in Scotland, Regional Selective Assistance (RSA) grant has been offered to create and safeguard jobs in biofuel production. £1.2 million of RSA was provided to Argent Energy which established the UK’s first large scale biodiesel production facility using vegetable oils and animal tallow. 38 SUMMARY The biofuel industry in the UK is still relatively young. The key driver for developing the market is the RTFO and the Executive supports its aims. In Scotland support is available through RSA grant for biofuel plant and the new Land Management Contracts will support biofuel crops. ACTION TABLE Lead Department Action Timing Indicators/Outputs ETLLD - Transport Publish National Transport Strategy Dec 06 National Transport Strategy ETLLD - Transport Engage with the UK’s work on the Powering ongoing Market shift towards lower Future Vehicles Strategy carbon vehicles ETLLD - Transport Introduction of RTFO, to increase 2010 UK biofuel sales 5% by 2010 percentage of transport fuel from renewable sources ERAD - Agriculture Support for biofuel crops under the Land 2007 Increase in farmers growing Management Contracts biofuel crops ETLLD - RSA Continue to support projects from biofuel ongoing Increase in biofuels plants in companies where they create and safeguard Scotland jobs. 39 40 8. BIOMASS SUPPLY INTRODUCTION value. Woodfuel products include logs, bales of residues from the forest; wood chip from sawmills

8.1 In Europe, supply chains are well-developed. or arboriculture, and pellets and briquettes made Some countries have developed standards, and from sawdust. The drier the product the greater the EU has recently published draft standards the energy content and the more value it has as to facilitate trade, develop markets and increase a fuel product. Moisture content can vary from consumer confidence. In Scotland there is a freshly felled wood at 50-60%; air dried at around need for improved assessments of resource and 20-30% and oven dried at less than 5%. capacity building and this has been identified as a barrier to growth and development of the sector. 8.6 The most recent production forecast for Scotland’s forests estimated available volumes of FORESTRY 6.9 million m3, peaking at 8.9 million m3 in 2017- 2021. Whilst much of this material is currently

8.2 Forestry is already an extremely important part contracted to other markets, there are also other of Scotland’s economy – forests currently cover underused materials, such as forest residues around 17% of our land area and produce around from brash which could be available as biomass. 7 million m3 of timber a year, with this production Therefore it is currently estimated that the set to increase over the coming decade. total potentially available volume of, so called, virgin biomass (i.e. wood plus brash) taking into

8.3 Climate change is one of 7 key themes identified account other markets is approximately 323,000 in the recently published Scottish Forestry odt (roughly 650,000 m3) however, this volume Strategy (SFS). The SFS identifies the key role estimate is subject to constant revision depending that forestry can play in mitigating climate on new forecast data and price changes due to change through development of a strong biomass the relative demand for this material from the market. A large number of forests are located in different wood using sectors. There is also a need rural areas where using wood as a local source of to ensure that the level of residue removal does energy can provide new local markets for timber, not lead to a loss of long term fertility. generate sustainable employment as well as reducing timber haulage distances. Energy crops 8.7 The timber industry has a strong industrial (such as short rotation coppice or short rotation presence in Scotland and a substantial amount of forestry) can also provide local opportunities for sawmill conversion products are also currently rural diversification. used for industrial on-site heat production. Much of this product has an existing market in

8.4 Between 2001 and 2005, 38,000 hectares of new the form of industries such as the wood panel planting has been achieved. Forestry Commission sector. However, it is estimated that some might Scotland is currently looking at ways to boost be available for energy production. these planting rates.

8.8 Short rotation coppice (SRC) and short rotation

8.5 Wood can be used as a fuel simply as logs but forestry (SRF) have been slow to expand in more commonly it is now processed into a range Scotland, with only around 200 ha planted to of fuel products. The greater the uniformity date, spread geographically from the Borders to and energy density of the product, the higher its Orkney. Proposals for around 5 times that area 41 are currently in the pipeline, although it will be 3 have a supply contract with an end user, such as a to 5 years before a harvest can be achieved. The power generating company. currently available harvest is estimated at around 600 odt. Although limited data is available AGRICULTURE on Short Rotation Forestry at present, Forest Research are developing a programme to look at 8.13 The agricultural sector is experiencing a high the potential for developing this resource. level of interest in the production of energy crops as an alternative market outlet for farmers

8.9 SEERAD’s Analysis of Greenhouse Gas Life who can utilise existing agronomy skills. In the Cycle Emissions, Air Pollution Impacts and medium term, uptake of energy crops has so far Economics of Biomass estimates that around been limited but there is significant potential for 50,000 to 90,0000 ha of land would be suitable increase in SRC on agricultural land as demand for SRC planting, although uptake will depend increases, as discussed above. on incentives and relative values of crops.

8.14 Oil Seed Rape (OSR) will be the major biofuel

8.10 Given the restricted availability of suitable land feedstock crop grown in Scotland. It is most in Scotland for growing certain bespoke energy appropriate for biodiesel production in Scotland. crops and the fact that, in some instances, It is already widely grown and yields are good. crops could compete for the same ground A total area of c. 35,000 ha of OSR was planted there is a clearly established need to undertake in Scotland in 2005 producing 124,000 tonnes, a comparative analysis of the suitability, GHG of which 9,000 ha was planted as non-food impacts and economic benefits of specific set aside and energy crop. However, it is a biomass and biofuel crops for available sites. relatively expensive feedstock for biodiesel production. Used vegetable oil is the cheapest Financial Support feedstock at present, but supplies are limited. As a consequence, little OSR is currently used to

8.11 The Scottish Forestry Grants Scheme (SFGS), produce biodiesel in the UK. introduced in 2000, provides grants for the planting, restructuring and management of 8.15 Market confidence is building with recent existing woodlands. Most grants available under announcement of two major biofuel processing the SFGS closed in August 2006, and will be plants in Scotland at Grangemouth and Rosyth. superseded by new Land Management Contracts RTFO 5% biofuel inclusion by 2010 will continue (LMCs) in 2007. Under the LMCs forestry demand. options will be available alongside other generic land management and agricultural measures. 8.16 Other agricultural material currently used for bioenergy includes animal tallow used in the

8.12 On 12 September 2005 the Scottish Executive’s Argent biodiesel production plant in Motherwell. grant aid for farmers to establish SRC willow or A biomass power station using poultry litter poplar as an energy crop was brought into line has also been operational for several years at with the equivalent grant in England. The new Westfield in Fife. There is also some interest in grant now pays an all-inclusive, flat rate of £1,000 the use of agricultural by-products such as straw, a hectare. Payments will be made to farmers who however, as there is already a significant market 42 in Scotland for straw as animal bedding and feed and it seems unlikely at present that straw Financial support would be a competitive feedstock material for combustion to produce energy. In the long term, 8.19 Aid is available to farmers through the Aid for second generation biofuels derived from straw Energy Crops for areas sown under energy crops may be another potential market. Other Scottish at a flat rate of €45 per hectare. Any agricultural companies are progressing the installation of raw materials (except sugar beet) may be grown energy recovery facilities that use processed on areas qualifying for aid provided that they are animal by-products, such as meat and bone meal, intended primarily for use in the manufacture as the primary feedstock. of either biofuels or electric and thermal energy produced from biomass. The current position in

8.17 The Executive supports the sector in a number Scotland is that the crop grown is exclusively Oil of ways. A Forward Strategy for Agriculture Seed Rape destined for biofuel manufacture. (Scotland Executive, 2006) gives a commitment to make business information on emerging and WASTE other opportunities (including energy crops and biomass) widely available to farm businesses. 8.20 It is widely recognised that despite our best efforts to recycle as much waste as possible,

8.18 The future of biomass supply from the agricultural there will always be some residual waste. All sector is likely to follow a pattern of development waste management technologies have some where: impact on climate change. Recycling materials generally uses far less energy (therefore emitting • the main drivers will come from the market less greenhouse gases) than the extraction and and will require a great deal of effort in processing of virgin materials and is ahead of building and maintaining healthy and incineration or landfill in the waste hierarchy. profitable supply chains; The National Waste Plan advocates that only residual waste i.e. that which is left after as much • the sector will need to look at different recyclable / compostable material as possible is scales of production to encourage energy self extracted should be used for energy recovery. sufficiency;

8.21 There are an estimated 4.3 to 5.2 million tonnes • developments will need to take a regional of waste biomass generated each year in Scotland. view; Current developments are principally aimed at the domestic sector (subject to recycling and • production of energy crops is more suited landfill diversion targets), accounting for around to the arable areas of Scotland and the 0.8 to 1.6 million tonnes, leaving commercial reduction in transport costs by having the and industrial sectors (3.6 to 4.4 million tonnes) processing capacity within Scotland will be largely underdeveloped. important;

8.22 The term Thermal Treatment can apply to a • support for small scale (on farm) production number of different practices e.g. recycling of of energy through the new LMCs. construction and demolition waste wood as a 43 fuel source, incineration with energy recovery, potential in waste biomass in Scotland and the anaerobic digestion, pyrolysis, gasification, second, part funded by SNIFFER, to review the landfill gas capture and co-combustion of waste available policy instruments to maximise the derived fuels in power plants and industrial recovery of value from waste biomass contained facilities. Thermal treatment is widely practiced in residual commercial and industrial waste in Europe for the treatment of residual wastes. In streams. Scotland SEPA has published Thermal Treatment Guidelines which indicate that for MSW thermal 8.25 The current infrastructure for the production of treatment is a viable option only where it forms energy from waste includes: part of an integrated approach and is used in such a way as not to impede waste prevention, re-use • 77,844 tonnes (2.3%) of municipal waste was and recycling. The guidelines also offer strong incinerated in Scotland in 2005-06 at two support for the efficient capture of the energy plants – one in Shetland and one in Dundee. embedded in waste. Any new thermal treatment The Shetland plant serves a district heating facilities would be expected to be as efficient as scheme but does not generate any electricity. possible e.g. Combined Heat and Power. Thermal The Dundee plant generates electricity for the treatment facilities for waste are regulated under national grid although plans are underway the Waste Incineration (Scotland) Regulations to investigate the potential for heat use from 2003. this facility.

8.23 The type of feedstock used for thermal treatment • Using the Strategic Waste Fund, Comhairle facilities varies and therefore so do the CO2 nan Eilean Siar (Western Isles Council) has emissions and calorific values. Waste may recently built an Anaerobic Digestion plant often include a percentage of biomass i.e. plant which treats source separated household and animal matter but may also include non- bio-waste. This produces a bio-gas which renewable elements such as plastics. Under the fuels a 290kW Combined Heat and Power Renewables Obligation (Scotland) Order 2006 engine. One is also under construction in only waste containing 90% or more biomass Moray which will use animal waste. will be eligible to receive Renewable Obligation Certificates. Exceptions to this rule include the • Seven on-farm digesters dealing with cattle biomass element of waste treated by advanced slurries as part of diffuse pollution reduction. conversion technologies such as gasification or All generate biogas for internal use (not in combined heat and power plants. Mechanical connected to the grid). and Biological Treatment (MBT) processes can produce refuse derived fuel (RDF) but a clear • Over 90 composting plants mostly treating market for rdf is yet to emerge. green waste but increasingly animal and food waste are being considered. Biomass

8.24 SEPA Project R50090/PUR Analysis Of Current treatment by composting currently is in Waste Biomass Arising And Treatment the order of 500,000 tonnes from all sectors Methodologies In Scotland details the potential (domestic, commercial and industrial). for expansion. SEPA are currently commissioning two further studies, the first to evaluate the energy • Scottish Power are currently in the 44 process of developing a 21.2 MWe waste Infrastructure Scheme. Through these schemes, incineration directive compliant biomass funding of over £750,000 has been awarded to power station at Longannet which will come 18 businesses for supply chain infrastructure to into full commercial operation in 2010. local woodfuel markets and to large-scale CHP Once operational this plant will require and power projects. approximately 135,000 tonnes of biomass per annum comprising approximately 60,000 8.28 The new Scottish Biomass Support Scheme tonnes of wood waste (e.g. chemically treated will extend this funding support for further timber, plywood, chipboard, demolition development of the supply chain for biomass waste etc.) and 75,000 tonnes of sewage across Scotland. sludge pellets.

8.29 It is vitally important for customer confidence to Financial support have fuel which is fit for purpose and delivered to a quality standard and specification. This

8.26 The Strategic Waste Fund (SWF) is the main has been demonstrated time and time again source of funding for local authorities wanting internationally. Clear technical specifications are to develop infrastructure to treat residual waste. needed which can be incorporated into supply SWF funding is only available for municipal contracts. The European Union has developed solid waste treatment in line with the National specifications and standards: CEN TC335 for Waste Plan. Bids (Strategic Outline Cases) to the solid biofuels and CEN TC343 for solid recovered Strategic Waste Fund have been received from fuels. local authorities for the treatment of residual waste. Many of these bids include proposals 8.30 There is a need to build capacity in the supply for Energy from Waste facilities and these are chain and the Executive is supporting skills currently being considered by Ministers. The development through the IGNITE training Waste and Resources Action Programme (www. programme run by the Rural Development wrap.org.uk) can advise on business opportunities Initiative. In 2006, the Programme has assisted arising from recycling and composting, including around 50 businesses to gain accredited training occasional capital grant schemes to support in woodfuel. However there is a role for industry recycling and composting infrastructure, which to lead on accreditation. can include support for Anaerobic Digestion. INFORMATION PROVISION SUPPLY CHAIN

8.31 Forestry Commission Scotland (FCS) publishes

8.27 Local small-scale woodfuel supply chains are a wide range of information for growers of well-developed in a number of areas, particularly biomass. The Scottish Forestry Strategy has laid in the Highlands & Islands where assistance has out a vision for the future of Scotland’s forests and been available through the Highlands & Islands biomass production is an important component Woodfuel Development Programme. Supply of that vision. chain development has also been supported by grant awards through the SFGS Developing 8.32 FCS has a network of Woodfuel Information Farm Woodland Energy and DEFRA Bioenergy Officers providing advice and support to business, 45 funded in partnership with the Scottish Executive, EU, Scottish Enterprise and Scottish Borders Woodland Partnership. FCS has also developed the Woodenergy website (www.usewoodfuel. co.uk) to make information on woodfuel widely available. In addition, numerous seminars and workshops have been held across Scotland to promote biomass to a range of audiences.

8.33 FCS is undertaking a variety of research activities to improve data on biomass including an annual woodfuel usage survey, a market intelligence briefing on biofuels and a report to assess current installations. FCS also liaises at a UK level to promote sharing experiences and dissemination of best practice.

8.34 The Executive is committed through its Forward Strategy for Scottish Agriculture to provide farm businesses with information on emerging opportunities for energy crops and biomass. FCS is also working with the National Farmers Union Scotland to promote fuel biomass within the farming community.

8.35 The forestry and agricultural industries also have a key role to play in developing the biomass sector. The Scottish Forest Industries Cluster has developed a range of publications and briefings on woodenergy and industry groups such as Scottish Renewables and CONFOR are engaging in market development.

8.36 WRAP provides advice, which can include financial support on anaerobic digestion and the use of compost to grow energy crops such as short rotation coppice. 46 SUMMARY Development of the biomass sector will require an improved assessment of the available resource. FCS are looking at ways to boost planting rates and how to utilise underused materials from forest residues to facilitate the development of the woodfuel sector. Significant potential exists to increase short rotation coppice on agricultural land to meet growing demand and provide an alternative market outlet for farmers. Alongside that, market confidence is building for oil seed rape, assisted by the support announced for biofuel processing plants and implementation of the RTFO. Given the existing potential of Scotland’s forest, this is a key area to focus on in developing the biomass sector. In addition, there are significant biomass resources in the agricultural sector, such as energy crops and tallow, and also in the waste sector. Ongoing financial support, supply chain development and information provision are critical to the development of the biomass resource across all these sectors. 47 ACTION TABLE Lead Department Action Timing Indicators/Outputs ERAD - Agriculture Continue to provide targeted grant aid for the 2007 Implementation of Land establishment and management of bespoke Management Contracts energy crops ETLLD - Renewables Ensure biomass forms part of a Renewable Heat 2007 Renewable Heat Strategy Strategy Forestry Commission Support biomass use for renewable energy by ongoing Number of biomass supply Scotland facilitating development of an efficient and businesses reliable wood fuel supply chain Volume of biomass Forestry Commission Encourage increased wood fuel usage to help ongoing Volume of biomass used Scotland achieve the Climate Change Programme targets Woodfuel Usage Forestry Commission Continue to monitor woodfuel usage ongoing Woodfuel Usage Survey Scotland ERAD - Agriculture Provide advice and information to landowners Jan 07 Study into commercial on planting, growing, managing and marketing viability of alternative crops energy crops and biomass ERAD - Waste Strategic Waste Fund - evaluation of Strategic ongoing Infrastructure for treating Outline Cases residual and biodegradable municipal waste ERAD - Waste Offer support via WRAP Organics Capital closing date Recycling and composting Support Programme for Scotland, for for capital infrastructure (including composting and anaerobic digestion programme anaerobic digestion for 6 Feb 07 processing biodegradable waste) ERAD - Waste Encourage, through the framework of the ongoing Increase in thermal National Waste Plan, partnership working, treatment plans covering particularly between neighbouring local more that one local authorities, and/or others, to jointly develop authority area appropriate thermal treatment plants where this has been identified as Best Practicable Environmental Option (BPEO) SEPA Evaluate the energy potential in waste biomass June 2007 Report on energy potential in Scotland and review available policy of waste biomass and policy instruments to maximise the recovery of options for the management value from waste biomass in commercial and of residual commercial and industrial waste streams. industrial wastes 48 49 50 9. ENVIRONMENTAL IMPACTS INTRODUCTION UK Forestry Standard and associated guidance such as the Forestry Commission’s Forest and

9.1 Maintaining the high quality of our environment Soil Conservation Guidelines (1998). These are is an important element in the development currently under revision and are due to go to of a sustainable biomass industry. There are consultation in 2007/08. Under CAP reform, to a number of potential environmental impacts receive the Single Farm Payment, farmers must associated with the development of the raw comply with the requirements of the Good materials and use of biomass for energy. How Agricultural Environmental Conditions (GAEC) significant these impacts are will depend on covering soil erosion, maintenance of soil organic a number of factors, which can be mitigated matter levels, maintenance of soil structure, against in many cases through the use of best minimum levels of maintenance and avoidance practice in land management and adherence to of deterioration of habitats. air quality standards and planning regulations. Some of the general principles are touched on 9.4 Potential impacts on water quality are closely below. Those issues relating to natural heritage linked to effects on the soil and are covered are also developed in more detail in Scottish by the Forest Water Guidelines and the Water Natural Heritage’s “Biomass Energy & The Environment (Controlled Activities Scotland) Natural Heritage” Policy Statement, due to be Regulations 2005 and General Binding Rules published shortly. for Controlling Diffuse Pollution due for publication in Spring 2007. Certain biomass PRODUCTION OF THE RAW feedstocks, particularly willow SRC, have high water demands and care should be taken to avoid MATERIALS depletion of the water table in areas with low water availability. However, compliance with the

9.2 The impacts on the environment from the UK Forestry Standard should mitigate against development of a biomass feedstock will depend any potential problems. The UK Woodland on the land use the biomass crop is replacing, Assurance Standard additionally provides a the choice of crop and the way it is managed. voluntary certification process for forest owners. However all public incentives supporting the Furthermore, compliance with Forest Nature establishment of such crops must follow general Conservation Guidelines (1990) and the revision consultative arrangements provided for under due out in 2007 will ensure plantations are not the relevant grant scheme and this process will established in areas of conservation value. It is help to address environmental considerations. worth noting that taking land out of agricultural For woody biomass, the UK Forestry Standard use and into forestry in nitrate vulnerable zones covers the sustainable basis of all forestry practice (NVZs) will have beneficial implications for in the UK. water quality in these areas. For agricultural crops, farmers within NVZs must comply with Soil & Water Quality the requirements in the Action Programme for Nitrate Vulnerable Zones (Scotland) Regulations

9.3 Potential impacts on the soil quality from the 2003. growth and harvesting of wood biomass feedstocks are largely addressed through compliance with the 51 Waste UK Forestry Standard, and associated Forests and Nature Conservation Guidelines, lay out

9.5 By using residual waste from the waste appropriate standards for in-forest retention of management stream which would otherwise go deadwood and old trees as part of the woodland to landfill, thermal treatment facilities have the ecosystem. potential to reduce risks of leachate and soil and water contamination. It also avoids the 9.9 Soil biodiversity and freshwater ecosystems production in landfill sites of methane which is could be negatively affected by an increase in powerful climate change gas. fertiliser application. Conversion to forestry is unlikely to increase fertiliser use compared Biodiversity to agricultural practice and compliance with the Forestry Commission’s Forest and Soil

9.6 In the development of domestic biomass Conservation Guidelines (1998) should mitigate feedstocks, it is likely that set aside will be any potential problem. The application of sewage extensively used for the growth of energy crops. sludge, where considered, is controlled by the This has the potential to have a significant positive Waste Management Licensing Amendment impact on biodiversity, the nature and extent of (Scotland) Acts 2003, 2004 and must conform to which will depend on the environmental quality current guidance which will prevent toxic build- of the set aside and the type of crop it is replaced up and bio-hazards (see Forestry Commission’s by. On marginal land with low biodiversity SRC Information Note: “Use of sewage sludges and could benefit biodiversity, and could also have composts in forestry” published 2006). The a role as a corridor between isolated habitats, current Controlled Activities Regulations and though buffer zones may be required to preserve the imminent Diffuse Pollution General Binding edge habitats and open spaces in some areas to Rules (see Water Environment and Water allow for species movements. Services (Scotland) Act 2005) provide further statutory regulation.

9.7 To prevent any significant environmental impacts, all woodland creation, including SRC, falls within 9.10 The current and growing demand for biofuels the potential scope of the Environmental Impact is also leading to a global market for biofuels Assessment Regulations. Any public support for feedstock. The Executive will consider how woodland creation requires adherence to the UK imports of biofuels or their raw materials can Forestry Standard and associated guidelines, and be quality assured to guarantee they are derived is subject to statutory consultation. This ensures from sustainable sources. that priority open habitats are protected, and that woodland creation proposals take full account of Landscape biodiversity considerations.

9.11 For woody biomass, the Scottish Forestry

9.8 Growing demand for woody biomass could Strategy recognises the importance of forestry encourage active management of neglected in the landscape. Although SRC is usually woodland which can bring environmental managed on 3 to 5 years rotations, it has some and amenity benefits, for example through physical characteristics of woodland and grows encouragement of woodland regeneration. The tall enough to create a three dimensional mass 52 in the landscape. Establishing and managing SRC in currently open arable landscapes will result Mitigation in potential impacts on landscape character and visual amenity, which requires careful 9.13 The development of good management practices consideration. These impacts can be mitigated has the potential to address many of these through adherence to guidance in the Forestry possible impacts. This can include thinning Commission Guideline Note: Short rotation practices to promote biodiversity, appropriate coppice in the landscape (2001), which is an management of native broadleaved woodlands expansion of the essential forest and woodland as a biomass resource, correct choice of felling design advice for such arable landscapes and extraction systems and the sequencing of contained in the Lowland Landscape Design harvesting, multi-species coppicing to enhance Guidelines (1992). biodiversity, improving long term soil fertility and providing biological resistance to pests. The Greenhouse Gas balances application of the UK Forestry Standard and its associated guidelines, coupled with the expansion

9.12 Greenhouse Gas (GHG) emissions can depend of certification schemes, would ensure that good on a variety of factors such as crop choice and practice is widely adopted, and this should apply variety; soil type; how it is managed; distance of to domestic feedstocks and imports. processing plant from source and others. It is important that the net GHG emissions reductions USE OF BIOMASS FOR ENERGY from all stages in feedstock production, from land management to biomass use for energy Air Quality are considered. For example carbon savings from fossil-fuel substitution, or the carbon 9.14 All local authorities, under the Environment sequestration functions of forests, should not Act 1995, are required to review and assess air be lost through inappropriate forestry practices quality in their area against a set of health based disturbing organic soils. This is addressed objectives for certain pollutants. These objectives through sustainable forest management are outlined in the Air Quality Strategy (AQS) for principles set out in the UK Forestry Standard. England, Scotland, Wales and Northern Ireland. A comprehensive study of the factors affecting If this work suggests that any objective will GHG balance of biomass feedstocks, Review not be achieved by the required date, the local of Greenhouse Gas Life Cycle Emissions, Air authority concerned must declare an Air Quality Pollution Impacts and Economics of Biomass Management Area and produce an action plan Production and Consumption in Scotland, has outlining how it intends to tackle the issues been published by SEERAD. This highlights that identified. the greatest carbon savings are likely to be derived from wood for heat. Combined heat and power 9.15 Most of the air quality problems identified to date (CHP) generation offers particular opportunities have been in large urban areas and are caused by for maximising the energy generation capacity of vehicle emissions. Industrial emissions are less biomass. Although carbon savings from biofuels of an issue than in the past helped by the fact are typically much lower, they replace fossil fuels that SEPA regulates large industrial installations where few alternatives currently exist. in line with the requirements of the relevant 53 legislation.

9.16 Any moves towards increased emissions from industrial or domestic actives involving biomass will be looked at cautiously by both SEPA and local authorities.

9.17 First impressions are that the effects will be minimal in the short term, given that any initiatives are probably going to be small scale, and any larger ones will be regulated by SEPA as described above.

9.18 Government approved biomass technology is listed on the Energy Technology List (www.eca. gov.uk), which meets the minimum emissions standards. In Smoke Control Areas, installation must also comply with the exempt appliance list (www.smokecontrolareas.co.uk). The number of appliances is currently limited and equipment suppliers should be encouraged to register their equipment.

9.19 Existing measures to ensure the continued high quality of our environment include the Air Quality Strategy, the Smoke Control Regime and regulation by SEPA of plants over 0.4 MW or which plan to utilise waste as a feedstock. Future measures include regular reviews of the Air Quality Strategy and Smoke Control Regimes, including lists of approved appliances. 54 ACTION TABLE Lead Action Timing Indicators/Outputs Department Forestry Implementation of the relevant Forest ongoing SFS Implementation Plan Commission Guidelines & UK Forestry Standard Scotland Forestry Encourage the forestry sector to take part in ongoing SFS Implementation Plan Commission the Scottish Executive’s National Waste Plan Scotland ERAD - Continue to implement the Scottish ongoing Growth of biomass industry is Biodiversity Biodiversity Strategy developed in a sustainable way ERAD - Climate Examine ways to secure compliance with ongoing Growth of biomass industry is Change environmental legislation without imposing developed in a sustainable way undue costs or constraints on farm businesses ERAD - Climate Ensure grant conditions for the Scottish ongoing Growth of biomass industry is Change Biomass Support Scheme promote best developed in a sustainable way environmental practice ERAD - Climate Regularly review AQS and Smoke Control ongoing List of approved appliances Change regime, including list of approved appliances 55 56 10. CONCLUSIONS

10.1 The Biomass Action Plan for Scotland for the opportunities for growth, jobs and sustainability first time pulls together a comprehensive picture offered by the expansion of a biomass sector. It of the breadth of initiatives and actions being sets out a framework to take forward and expand taken forward by the public and private sectors the supply and use of biomass for heat, electricity to develop the bioenergy industry in Scotland. and transport. Given the cross-cutting nature The wealth of activities and range of stakeholders of biomass policy, future development will be demonstrates the considerable momentum influenced by key developments such as the towards a vibrant bioenergy industry Scotland, incentives available through LMCs, Air Quality offering benefits of economic development, Standards and environmental policy initiatives. jobs, energy security and helping meet our commitments under “Changing Our Ways” - the 10.4 The Action Plan also identifies actions being taken Scottish Climate Change Programme. The aim of across planning, procurement and regulation by the Biomass Action Plan is to ensure development the Scottish public sector to provide a positive takes place in a strategic and coordinated way. framework for the development of biomass while ensuring we maintain our commitment to high

10.2 Key strategic developments are already in place standards of environmental quality and meeting across the heat, electricity and transport sectors. commitments on public procurement. Public Support for electricity generation is already in procurement is a key driver for development. place and the Executive will be contributing to A number of public sector organisations have the UK Energy Review to ensure biomass can already installed biomass equipment and taken a contribute to our targets. The construction of lead in the use of biofuels. the first purpose-built biomass plant in Scotland by E.ON is a first step in building up a large- 10.5 The Interdepartmental Bioenergy Group, scale biomass industry. Development of the comprising relevant Executive policy areas, will heat market both for heat-only and CHP is a key oversee the implementation of the Action Plan to objective and will be a focus for the Executive ensure that biomass policy is developed in a way over the coming year. This is demonstrated by the that considers all diverse interests and ensures a support provided for two new key developments, strategic approach is adopted. the proposals for CHP by Balcas at Invergordon and UPM Caledonian Paper at Irvine which mark 10.6 In addition, the Executive will continue to a giant leap forward in biomass development. engage external stakeholders to ensure we The Renewable Heat Strategy and the Scottish collectively move the sector forward. Biomass Support Scheme will strengthen this sector and mark a step-change in the development of the industry. For transport, the Renewables Transport Fuels Obligation and the National Transport Strategy to be published next year also demonstrate our commitment to supporting this sector.

10.3 The Action Plan will provide a focus for the public sector, industry and individuals to maximise the 57 58 ANNEX A - Framework for action The framework outlined over the next few pages identifies roles and responsibilities for taking forward the various actions identified in the Action Plan. This will provide the focus for monitoring the delivery of the Plan. The Executive has made a commitment to work closely with Scottish stakeholders to ensure the Plan continues to be relevant and provides the strategic framework for realising the full potential that a vibrant biomass sector can bring to Scotland. The following abbreviations are used: AFSFSA A Forward Strategy for Scottish Agriculture BAPfS Biomass Action Plan for Scotland DD Development Department, Scottish Executive ERAD Environment and Rural Affairs Department, Scottish Executive ETLLD Enterprise, Transport & Lifelong Learning Department, Scottish Executive FCS Forestry Commission (Scotland) FCSD Finance and Central Services Department, Scottish Executive HIE Highlands and Islands Enterprise NTS National Transport Strategy NWS National Waste Strategy R&CPU Renewables & Consents Policy Unit, ETLLD, Scottish Executive RHS Renewable Heat Strategy ROS Renewables Obligation (Scotland) Order RSA Regional Selective Assistance SCCP Scottish Climate Change Programme SEPA Scottish Environment Protection Agency SFS Scottish Forestry Strategy SNH Scottish Natural Heritage 59 Contributor SCOTTISH EXECUTIVE 60 • Lead role • FCS FCSD SNH SEPA ETLLD - RSA ERAD - Waste Procurement HIE network Local authorities ETLLD - R&CPU ETLLD - Transport ERAD - Agriculture ERAD - Climate Change DD Planning & Building Scottish Enterprise Business and Industry STRATEGIC Policy Drivers Refine figures for woodfuel availability in Scotland SFS • Evaluate BAPfS contribution to wider Executive’s targets BAPfS • • • • • • • • • • • • • Examine carbon benefits of alternative bioenergy feedstocks and end uses BAPfS • • • • Coordinate policies across the Executive that impact on biomass to ensure a BAPfS • • • • • • • strategic framework exists for its development and growth • • • Work with stakeholders to deliver plan BAPfS • • • • • • • • • • • • • • • • Review Action Plan on an annual basis BAPfS • • Work with UK Government Departments to ensure Scotland’s position is taken BAPfS • • • into account when UK policies are being developed • • HEAT Policy Drivers Implement Scottish Biomass Support Scheme BAPfS • • Review uptake and outcomes from IGNITE and Northern Woodheat training BAPfS programmes • • Develop training courses for professionals and installers BAPfS • • • • • Work with industry to encourage use of recognised biomass standards BAPfS • • • • • Liaise with relevant Executive departments and external stakeholders to develop BAPfS • • • • information provision on range of biomass • • Develop a Renewable Heat Strategy BAPfS, SCCP • • • • • Represent Scottish interests within a comprehensive UK Biomass Steering BAPfS • • • • Group • • Monitor installations and share best practice BAPfS • Consult on rates relief for renewable energy generation Local Taxation • • Identify biomass potential on a regional basis BAPfS • • • • • • Contributor SCOTTISH EXECUTIVE • Lead role • FCS FCSD SNH SEPA ERAD - Waste Procurement HIE network Local authorities Scottish Enterprise ETLLD - RSA ETLLD - Transport ERAD - Climate Change DD Planning & Building Business and Industry ETLLD - R&CPU ERAD - Agriculture ELECTRICITY Policy Drivers Increase Scotland’s renewable electricity generation capacity RO(S) • • UK Energy Contribute to the RO consultation to ensure Scotland’s interests are represented • Review • SCCP, RHS, To continue to encourage CHP growth • • • BAPfS • • TRANSPORT Policy Drivers Publish National Transport Strategy NTS • Engage with the UK’s work on the Powering Future Vehicles Strategy NTS • Introduction of RTFO to increase percentage of transport fuel from renewable NTS • sources • Support for biofuel crops under the Land Management Contracts AFSFSA • Continue to support projects from biofuel companies where they create and RSA safeguard jobs • 61 Contributor SCOTTISH EXECUTIVE 62 • Lead role • FCS FCSD SNH SEPA ERAD - Waste Procurement HIE network Local authorities Scottish Enterprise ETLLD - RSA ETLLD - Transport ERAD - Climate Change DD Planning & Building Business and Industry ETLLD - R&CPU ERAD - Agriculture BIOMASS SUPPLY CHAIN Policy Drivers Continue to provide targeted grant aid for the establishment and management AFSFSA of bespoke energy crops • SFS, BAPfS, Ensure biomass forms part of a Renewable Heat Strategy SCCP • • Support biomass use for renewable energy, facilitating development of an SFS, SCCP efficient and reliable wood fuel supply chain, to help achieve SCCP targets • • Continue to monitor woodfuel usage SFS • Provide advice and information to landowners on planting, growing, managing AFSFSA and marketing energy crops • Strategic Waste Fund - evaluation of Strategic Outline Cases NWS • • Offer support via WRAP Organics Capital Support Programme for Scotland, for NWS • composting and anaerobic digestion • Encourage, through the framework of the National Waste Plan, partnership working, particularly between neighbouring local authorities, and/or others, NWS • to jointly develop appropriate thermal treatment plants where this has been • identified as Best Practicable Environmental Option (BPEO) Evaluate the energy potential in waste biomass in Scotland and review available policy instruments to maximise the recovery of value from waste biomass in NWS • commercial and industrial waste streams. • ENVIRONMENTAL Policy Drivers Ensure implementation of the relevant Forest Guidelines & UK Forestry Standard SFS • Encourage the forestry sector to take part in the Scottish Executive’s National SFS Waste Plan • Continue to implement the Scottish Biodiversity Strategy AFSFSA • Examine ways to secure compliance with environmental legislation without AFSFSA • imposing undue costs or constraints on farm businesses • SFS, AFSFSA, Ensure grant conditions promote best environmental practice • BAPfS, SCCP • Regularly review AQS and Smoke Control regime, including list of approved SCCP • appliances • ANNEX B - Related policy documents SCOTTISH POLICY DOCUMENTS A Forward Strategy for Scottish Agriculture, 2005. www.scotland.gov.uk/Topics/Agriculture/Agricultural-Policy/17289/7902 A Forward Strategy for Scottish Agriculture: Next Steps, 2006. www.scotland.gov.uk/Topics/Agriculture/Agricultural-Policy/17289/7902 Choosing our Future: Scotland’s Sustainable Development Strategy www.scotland.gov.uk/Publications/2005/12/1493902/39032 Draft Scottish Planning Policy statement 6 (NPPG 6) www.scotland.gov.uk/Publications/2006/07/10150621/0 FREDS Biomass Energy Group report: Promoting and Accelerating the Market Penetration of Biomass Technology in Scotland, 2005 www.scotland.gov.uk/Topics/Business-Industry/infrastructure/19185/17883 Going for green growth: a green jobs strategy for Scotland, 2005 www.scotland.gov.uk/Topics/Business-Industry/Enterprise/18320/13232 Non-municipal Waste Framework and Action Plan Scottish Biodiversity Strategy and Action Plan www.biodiversityscotland.gov.uk/pageType1.php?id=2&type=1&navID=27 Scottish Climate Change Programme, 2006 www.scotland.gov.uk/Topics/Environment/Climate-Change/16327/4825 Scottish Executive response to ERDC biomass enquiry, 2006. Scottish Forestry Strategy, 2006 www.forestry.gov.uk/forestry/INFD-6AGGZW Scottish National Waste Plan, 2003 www.sepa.org.uk/nws Scottish National Waste Strategy, 1999 www.sepa.org.uk/nws Scottish Parliament ERDC: Inquiry into developments in the biomass industry, 2006 www.scottish.parliament.uk/business/committees/environment/reports-06/rar06-04-Vol01.htm www.scottish.parliament.uk/business/committees/environment/documents/ Execresponsetobiomassinquiryreport25.5.06.pdf Scottish Planning Policy statement 10 – waste www.scotland.gov.uk/Publications/2006/08/11100231/0 Scottish Rural Development Plan 2000-2006 www.scotland.gov.uk/Publications/2005/06/17151608/16110 Scottish Rural Development Plan 2007-2013 www.scotland.gov.uk/Topics/Rural/RDR/Intro Securing a renewable future: Scotland’s Renewable Energy, 2003 www.scotland.gov.uk/Publications/2003/03/16850/20554 White Paper: Scotland’s Transport Future, 2004. www.scotland.gov.uk/Publications/2004/06/stfwp/0 63 UK Policy Documents Biomass Task Force report, 2006. www.defra.gov.uk/farm/crops/industrial/energy/biomass-taskforce/index.htm Government response to Biomass Task Force report, 2006. www.defra.gov.uk/farm/crops/industrial/energy/biomass- taskforce/index.htm Power from the People: UK Microgeneration Strategy. www.dti.gov.uk/energy/sources/sustainable/microgeneration/ strategy/page27594.html Recommendations of the Sustainable Procurement Task Force. www.sustainable-development.gov.uk/government/ task-forces/procurement/index.htm Securing the Future: UK Government Sustainable Development Strategy. www.sustainable-development.gov.uk/ publications/uk-strategy/index.htm UK biofuels strategy, . www.dft.gov.uk/stellent/groups/dft_roads/documents/divisionhomepage/037864.hcsp UK Climate Change Programme 2006. www.defra.gov.uk/environment/climatechange/uk/ukccp/index.htm UK Energy Review, 2006. www.dti.gov.uk/energy/review/page31995.html UK Energy White Paper, 2003. www.dti.gov.uk/energy/policy-strategy/energy-white-paper/page21223.html UK National non-food crops strategy, .www.defra.gov.uk/farm/crops/industrial/non-food/index.htm UK Sustainable Development Action Plans. www.defra.gov.uk/environment/sustainable/action-plan.htm UK Parliament EFRA committee bioenergy inquiry. www.parliament.uk/parliamentary_committees/environment__ food_and_rural_affairs/efra_climate_change__bioenergy.cfm UK Air Quality Strategy. www.defra.gov.uk/environment/airquality/strategy/pdf/foreword.pdf Clean Air Act 1993. www.opsi.gov.uk/acts/acts1993/Ukpga_19930011_en_1.htm Waste Incineration Directive, 2000. www.netregs.gov.uk/netregs/275207/1108823/?lang=_e EU policy documents An EU Strategy for Biofuels, 2006. COM 2006/34. www.managenergy.net/products/R1247.htm Biomass Action Plan Impact Assessment, 2005. SEC 2005/1573. ec.europa.eu/energy/res/biomass_action_plan/doc/ sec_2005_1573_impact_assessment_en.pdf Biomass Action Plan, 2005. COM 2005/628/EC. www.managenergy.net/products/R876.htm Community guidelines on State aid for environmental protection, 2001. OJ 2001/C 37/03. Directive on the Promotion of Biofuels for Transport, 2003. COM 2003/30/EC. www.managenergy.net/products/R219. htm Directive on the promotion of cogeneration, 2004. CO 2004/8. www.managenergy.net/products/R81.htm Doing more with Less, Green Paper on Energy Efficiency, 2005. COM 2005/265. ec.europa.eu/energy/efficiency/ index_en.htm Electricity from Renewable Energy Sources, 2001. COM 2001/77/EC. www.managenergy.net/products/R80.htm EU Energy Performance of Buildings Directive, 2002. COM 2002/91/EC.www.managenergy.net/products/R210.htm europa.eu.int/eur-lex/en/com/cnc/2001/com2001_0069en01.pdf europa.eu.int/eur-lex/pri/en/oj/dat/2001/c_037/c_03720010203en00030015.pdf Fuel Quality Directive, 1998. COM 98/70. ec.europa.eu/environment/air/transport.htm#2 Green Paper: A European Strategy for Sustainable, Competitive and Secure Energy, 2006. COM 2006/105. ec.europa. eu/energy/green-paper-energy/index_en.htm 64 Guidelines on National Regional Aid for 2007-2013, 2006. OJ 2006/C 54/08. ec.europa.eu/comm/competition/state_ aid/regional/rag_en.pdf How much biomass can Europe use without harming its environment?, 2005. EEA 2/2005. reports.eea.europa.eu/ briefing_2005_2/en Implementation of the Community Strategy and Action Plan on Renewable Energy Sources (1998 – 2000), 2001. COM 2001/69/EC Restructuring the Community framework for the taxation of energy products and electricity, 2003. COM 2003/96. The share of Renewable Energy in the EU, 2005. COM 2004/366/EC. www.managenergy.net/products/R608.htm White Paper: Energy for the future – renewable sources of energy, 1997. COM 97/599/EC. www.managenergy.net/ products/R26.htm www.managenergy.net/products/R538.htm Other references Carbon Trust, 2006. Biomass Sector Review for the Carbon Trust. www.carbontrust.co.uk/publications/publicationd etail?productid=CTC512 CONFOR, 2006. Supply and demand of wood fibre in Scotland. www.confor.org.uk DfT, 2005. UK report to the commission on biofuels 2005. www.dft.gov.uk/stellent/groups/dft_roads/documents/pdf/ dft_roads_pdf_038897.pdf DTI, 200?. Renewable Heat and Heat from Combined Heat and Power Plants - Study and Analysis. www.dti.gov.uk/ energy/sources/renewables/policy/renewable-heat/page15963.html DTI, 2004. Renewable Supply Chain Gap Analysis. www.dti.gov.uk/files/file15401.pdf DTI, 2004. Renewables Innovation Review. www.dti.gov.uk/energy/sources/renewables/policy/government-renewable- energy-policy/renewables-innovation-review/page15308.html DTI, 2005. Proposals for introducing a Code for Sustainable Homes. A consultation paper. www.dti.gov.uk/sectors/ construction/sustainability/codesushomes/page13697.html FREDS, 2005. Scotland’s Renewable Energy Potential: Realising the 2020 Target - Future Generation Group Report. www.scotland.gov.uk/Publications/2005/09/09144010/40120 IEA, 2004. Biofuels for Transport: an International Perspective. www.iea.org/textbase/nppdf/free/2004/biofuels2004. pdf RCEP, 200?. Special Report - Biomass as a Renewable Energy Source. www.rcep.org.uk/bioreport.htm Remade Scotland, 2002. Wood Waste Arisings in Scotland: Assessment of Available Data on Scottish Woodwaste Arisings wood arisings study. www.remade.org.uk/Wood/wood_documents/wood_waste_arisings_scotland. pdf Royal Society of Edinburgh, 2006. Energy Issues for Scotland. www.royalsoced.org.uk/enquiries/energy/index.htm SAC, 2005. Economic Evaluation of Biodiesel Production from Oilseed Rape grown in North and East Scotland. www. angus.gov.uk/ac/documents/sacreport.pdf Scottish Enterprise, 2005. Scoping Study: The Commercial Opportunities of Wood Fuel Heating in Scotland. www. forestryscotland.com/pages/download.asp?file=Econergy Woodheat Final report.pdf Scottish Executive, 2001. Scotland’s Renewable Resource. www.scotland.gov.uk/Publications/2003/09/18270/27258 Scottish Executive, 2006. Scottish Energy Study. www.scotland.gov.uk/News/Releases/2006/01/26143524 Scottish Executive, 2006. SPICE Briefing: Biomass, 2006. www.scottish.parliament.uk/business/research/briefings-06/ 65 SB06-13.pdf Scottish Renewables Forum, 2005. Delivering the New Generation of Energy: Route Map to Scotland’s Renewable Future www.scottishrenewables.com/data/reports/SRF%20Route%20Map.pdf SDC, 2005. Wood Fuel for Warmth. www.sd-commission.org.uk/publications/downloads/050626-SDC-Wood-Fuel- for-Warmth.pdf SEERAD, 2006. Review of Greenhouse Gas Life Cycle Emissions, Air Pollution Impacts and Economics of Biomass Production and Consumption in Scotland. www.scotland.gov.uk/Publications/2006/09/22094104/0 SEPA, 2004. Guidelines for the Thermal Treatment of Municipal Waste.www.sepa.org.uk/nws/guidance/index.htm SEPA, 2006. Analysis of Current Biowaste Arisings and Treatment Methodologies in Scotland. www.sepa.org.uk/pdf/ nws/research/biowaste_in_Scotland_Aug06.pdf SEPA, 2006. Is it waste? Is it waste? - Understanding the definition of waste. www.sepa.org.uk/guidance/waste/is_it_ waste.htm WRAP, 2006. Environmental Benefits of recycling: An international review of life cycle comparisons for key materials in the UK recycling sector. www.wrap.org.uk/wrap_corporate/about_wrap/environmental.html 66 Description Energy use & fuel targeted Target sector Status Further information SBSS: Scottish Biomass Support Scheme Installations: Heat, electricity Public and www.scotland.gov.uk/ Launched Capital grants for biomass installations and woody private (excludes Topics/Business-Industry/ Jan 2007 biomass supply chain infrastructure Supply: biomass householders) infrastructure/19185/ BioSupport/BioSupportIntro Ongoing Renewables Obligation (Scotland) Electricity Electricity – parallel generators consultation Scottish Community and Householder Renewables Initiative (SCHRI) Domestic and www.est.org.uk/schri/ Heat, electricity Ongoing Grants for community and domestic community microgeneration installations. Installations: heat Highlands and Islands Wood Fuel Development www.forestry.gov. Programme SMEs Closed 2006 uk/newsrele.nsf/ Supply: woody biomass Grants for wood fuel suppliers and end users. web-allbysubject/ Scottish Forestry Grant Scheme www.forestry.gov.uk/ Grant funding for forestry and woodland Woody biomass Forestry sector Closed 2006 forestry/infd-5zgl3p management. Strategic Timber Transport Fund Available Aims to facilitate the Forestry and www.forestry.gov.uk/ Woody biomass until April sustainable transport of timber in rural areas of timber industry forestry/infd-6a6lxt 2008 Scotland. East of Scotland & West of Scotland Woodfuel All – biomass www.usewoodfuel.co.uk/ Development Programmes Woody biomass supply and Ongoing ContactUs.stm Provide expert, local assistance to people or demand businesses looking to use or supply wood fuel. Farm and Agricultural Business Development www.sac.ac.uk/consultancy/ Schemes Both close in All Agricultural sector farmdiversification/aboutfd/ Assistance towards farm diversification, including 2006 grantinfo/ bioenergy. Fuel Poverty and renewables pilot scheme www.est.org.uk/schri/ Pilot scheme to assess the potential for using Heat Domestic community/view.cfm?article renewable energy to tackle fuel poverty. id=444&archive=1 www.est.org.uk/ Loan Action Scotland housingbuildings/ Interest-free loans to SMEs for projects to reduce All SMEs funding/scottishbusiness/ energy costs – can include biomass. financialassistance/ ANNEX C - Support measures in Scotland 67 Description Energy use & fuel targeted Target sector Status Further information 68 Strategic Waste Fund Funding for local authorities to develop Supply: Waste Local Authorities infrastructure to treat municipal solid waste. Scottish Executive Business Support www.scotland.gov.uk/ All (not focused on Funding available from a number of sources. Business Ongoing Topics/Business-Industry/ biomass) Could be used to support biomass activities. support/16879/6780 Scottish Enterprise All Business HIE All Business www.carbontrust. Biomass Heat Acceleration Project All – biomass Launched co.uk/technology/ Reduce costs and address supply chain risks in Heat supply and October technologyaccelerator/ biomass heat market. Assistance available for demand 2005 biomass.htm existing and new projects & suppliers. IGNITE Scotland www.ruraldevelopment. Training for businesses operating in the wood Woody biomass Biomass supply Ongoing org.uk/content.asp?id=75 fuel industry www.wrap.org.uk/ WRAP businesses/support_for_ Funding available for biomass waste energy All (waste) All Ongoing recycling_businesses/ schemes. investment/capital_grant. html Enhanced Capital Allowances Encourages businesses to invest in low carbon Heat, electricity Business Ongoing www.eca.gov.uk technologies, including biomass boilers. Regional Selective Assistance Main scheme of financial assistance to create All Business ongoing www.rsascotland.gov.uk and safeguard jobs in the assisted areas of Scotland EU support measures Description Energy use & fuel targeted Target sector Status Further information Ongoing. www.defra.gov. EU emissions trading scheme Large industrial Phase 2 runs uk/environment/ EU-wide scheme for large CO2 emitting plant. Electricity, heat emitters from 2008- climatechange/trading/eu/ Emissions are capped and quotas can be traded. 2012. index.htm EU Intelligent Energy Programme Call for europa.eu.int/comm/ Promotes energy efficiency All – biomass proposals energy/intelligent/index_ (SAVE), the increased use of renewable energy All supply and ended Oct en.html resources (ALTENER), and sustainable energy in demand 06. Next in transport (STEER) Spring 07. European Structural Funds, 2007-2013 www.scotland.gov.uk/ Under Regional assistance available for economic All All Topics/Business-Industry/ consultation development, including biomass projects support/17404/8392 EU 7th RTD Framework Programme Launch due Funding for research and technical development. All Research cordis.europa.eu/fp7 January 07 Includes a focus on biomass energy. www.defra.gov.uk/ EU LIFE programme environment/life/index.htm Finances projects that address community All (not focused on biomass) All Closed environmental interests ec.europa.eu/environment/ life/news/futureoflife.htm European Investment Bank All (not focused on biomass) All Ongoing www.eib.europa.eu Funding is available for renewable energy projects www.scottish-enterprise. EU support for SMEs Support targeted on SMEs is com/euroinfocentre available from a number of EU sources. Follow the All (not focused on biomass) Business Ongoing links provided for further advice. www.euro-info.co.uk/ 69 ANNEX D - Glossary ACRONYMS AND OTHER ABBREVIATIONS AD Anaerobic Digestion BEG FREDS Biomass Energy Group BEN Scottish Renewables Forum Bioenergy Network BHAP Carbon Trust Biomass Heat Acceleration Programme CAP Common Agricultural Policy CHP Combined Heat and Power CO2 Carbon dioxide CONFOR Confederation of Forest Industries COSLA Convention of Scottish Local Authorities DEFRA Department for Environment, Food and Rural Affairs DTI Department of Trade and Industry EC European Council/European Commission EEAC Energy Efficiency Advice Centre EPBD Energy Performance of Buildings Directive ERDC Environment and Rural Development Committee EST Energy Saving Trust ECA Enhanced Capital Allowances ETS Emissions Trading Scheme EU European Union EU ETS European Union Emissions Trading Scheme FCS Forestry Commission Scotland FREDS The Forum for Renewable Energy Development in Scotland GAEC Good Agricultural and Environmental Condition GHG Greenhouse gases GW Gigawatt (unit of power) kWh Kilowatt hours LCBP Low Carbon Building Programme LMCs Land Management Contracts MBT Mechanical and Biological Treatment (of waste) MSW Municipal Solid Waste MW Megawatt (unit of power) MWe Megawatt electrical capacity MWth Megawatt thermal capacity MtC Million tonnes of carbon Netcen National Environmental Technology Centre NFUS National Farmers Union Scotland NPPG National Planning Policy Guideline NTS National Transport Strategy NVZ Nitrate Vulnerable Zone NWP National Waste Plan 70 Odt Oven dried tonnes (in relation to wood fuel) Ofgem The Office of Gas and Electricity Markets. OSR Oil Seed Rape PAN Planning Advice Note PEPFAA The Prevention of Environmental Pollution from Agricultural Activity PPC Pollution Prevention and Control PPP Public Private Partnership RDR Rural Development Regulations ROC Renewables Obligation Certificate ROS The Renewables Obligation (Scotland) RSA Regional Selective Assistance RTFO Renewable Transport Fuel Obligation SBSA Scottish Building Standards Agency SBSS Scottish Biomass Support Scheme SCHRI Scottish Community and Household Renewables Initiative SCCP Scottish Climate Change Programme SEA Strategic Environmental Assessment SEFCSD Scottish Executive Finance and Central Services Department SEPA Scottish Environment Protection Agency SEETLLD Scottish Executive Enterprise Transport and Lifelong Learning Department SEERAD Scottish Executive Environment and Rural Affairs Department SFGS Scottish Forestry Grants Scheme SNH Scottish Natural Heritage SMEs Small and Medium sized Enterprises SNH Scottish Natural Heritage SNIFFER Scotland and Northern Ireland Forum for Environmental Research SPP Scottish Planning Policy SRC Short Rotation Coppice SRF Short Rotation Forestry SWF Strategic Waste Fund TWh Terawatt hours UKCCP UK Climate Change Programme UKCIP UK Climate Impacts Programme UKWAS UK Woodland Assurance Scheme WEWS The Water Environment and Water Services WRAP The Waste and Resources Action Programme 71 DEFINITIONS Anaerobic digestion is the breakdown of organic matter by bacteria in the absence of oxygen. This process is used to generate energy (electricity or heat). Biodiversity is the existence of a wide range of different types of organisms in a given place at a given time. Bioenergy is energy from heat, electricity and transport generated from renewable biomass. Biofuel is any fuel derived from biomass, such as ethanol, biodiesel and methanol Biomass is biological material which can be derived from forestry, energy crops (such as short rotation coppice and miscanthus) agricultural plant and animal waste. Brash is the branch-wood and leaf material that is generally too small in diameter to be considered part of the timber product from a harvesting site. Carbon emissions a term generally used to describe the level of carbon, usually in the form of carbon dioxide, exhausted into the atmosphere by a process. Carbon neutral (low carbon) a term used to describe processes that have a zero or very low contribution to atmospheric carbon. Using woodfuel for heat and power can be described as carbon neutral because the carbon emitted during combustion is equal to the carbon absorbed by the trees when they were growing. CHP a term used to describe systems that derive and utilise both thermal and electricity energy from a given fuel source. Combustion is the process of converting fuel into heat energy. Coppice is the practice of harvesting the above ground part of a tree for timber and allowing the new shoots to re-grow in a cycle normally extending over a number of years. District heating scheme a system by which heat is distributed via underground pipe-work from a single centralised boiler to a number of individual users, usually domestic dwellings. Energy crop typically a crop of trees, woody plants or grasses grown for the purpose of providing biomass for energy. Enhanced Capital Allowances enable businesses to claim 100% first year capital allowances on investments in energy saving technologies and products. Fossil fuels are fossilised fuel such as coal, mineral oil and natural gas. When burnt fossil fuel releases carbon into the atmosphere that has been trapped beneath the earth’s surface for millions of years. Thus fossil fuel use can contribute to an increase in current atmospheric greenhouse gases and lead to global warming. 72 Gasification is conversion of solid material such as woodchip into a gas for use as a fuel. GHG or greenhouse gases are gaseous components of the atmosphere that contribute to the greenhouse effect. LMC or Land Management Contracts are the mechanism for delivering support to rural Scotland. Miscanthus is a grass often planted as an energy crop. Moisture content (mc%) is the percentage by weight of water in a material. Oven dry tonne (odt) – 1 tonne of material (woodfuel) at 0% moisture content. Pellets are small diameter cylindrical section of compressed sawdust formed by passing dry sawdust under high pressure through a dye. Usually between 6-8mm in diameter and 10 to 30mm in length. Pyrolysis is the chemical decomposition of woodchips by the action of heat to produce a liquid fuel. Renewable energy is energy that has been obtained from a potentially infinite resource such as wood, sunshine or the wind. Renewable fuel is fuel that is considered to be an infinite resource if its source is sustainably managed. Examples can include woodfuel, miscanthus or the wind. Short rotation coppice is the practice of growing and harvesting the above ground part of a crop, usually of willow, for biomass and then allowing new shoots to regrow from the harvested stumps (also known as stools) in a short cycle (3 to 5 years). Short rotation forestry is the practice of growing a specific crop of trees, usually poplar, for biomass over a relatively short rotation (usually no more than 15 years). Solid fuel is fuel in solid form, typically wood or coal, often used in stoves, open fires and some boilers. Sustainable is meeting the needs of the present without compromising the ability of future generations to meet their needs. Sustainable forest management is the process of managing forests to provide goods and services without degradation of the site quality, and without a decline in the yield of goods and services over time. These goods and services can be disparate and may include, for example, timber, amenity value, inherent biodiversity, landscape value (see ‘sustainable’). Woodchips are small fragments of timber sliced from a larger log or piece of timber by a chipper, usually to a specified size. 73 ANNEX E - List of contacts WOODFUEL INFORMATION SCHRI DEVELOPMENT OFFICERS OFFICERS Aberdeen and North East Trevor Blackburn Alan Beedie Central Scotland Conservancy SCARF Bothwell House 1 Cotton Street Hamilton Business Park Aberdeen Caird Park AB11 5EE Hamilton ML3 0QA Argyll and the Islands Paul Phare Rebecca Carr Real Alternatives Highland Conservancy Barrahormaid Farm House Woodlands Lochgilphead Fodderty Way Argyll Dingwall PA31 8PQ Ross-shire IV15 9XB Inverness, Nairn, Moray, Badenoch and Strathspey Eric Dodd Dan Gates Highlands and Islands Community Energy Company Perth and Argyll Conservancy Earl Thorfinn House Algo Business Centre 6 Druimchat View Glenearn Road Dingwall Perth Ross-shire PH2 0NJ IV15 9XL David Rogers Lochaber, Skye and Lochalsh South Scotland Conservancy Robert Lees North Wheatlands Mill Lochaber Enterprise Wheatlands Road St Mary House Galashiels Gordon Square TD1 2HQ Fort William PA34 4PF Lothian, Edinburgh, Fife and Borders Jason Leon Changeworks 36 Newhaven Road Edinburgh EH6 5PY 74 North and West Highlands Western Isles Jon Priddy Mo Cloonan Caithness and Sutherland Enterprise Western Isles Enterprise Office Station Road James Square Golspie Stornoway Sutherland Isle of Lewis KW10 6SN HS1 2QN Orkney and Shetland Sam Harcus Heat and Power Ltd White Pow Westray Orkney South West Scotland Joe Ferguson Energy Agency Donald Hendrie Building Auchincruive Ayr KA6 5HW Strathclyde and Central Scotland Neil Philips Strathclyde & Central EEACs The Wise Group 1212 Edinburgh Road Glasgow G33 4EJ Tayside Elaine Morrison SCARF Ridgeway House Balgray Place Dundee DD3 8SH 75 BIOMASS ACTION PLAN FOR SCOTLAND © Crown copyright 2007 This document is also available on the Scottish Executive website: www.scotland.gov.uk RR DONNELLEY B50725 03/07 Further copies are available from Blackwell’s Bookshop 53 South Bridge Edinburgh EH1 1YS Telephone orders and enquiries 0131 622 8283 or 0131 622 8258 Fax orders 0131 557 8149 Email orders business.edinburgh@blackwell.co.uk   w w w . s c o t l a n d . g o v . u k