chris plackett's presentation at nfu conference 2010
TRANSCRIPT
‹#› NFU Conference, 24th February 2010
Does energy have a role in reducing UK Agriculture’s GHG
Emissions ?
Chris PlackettCommercial Director
Farm Energy
‹#› NFU Conference, 24th February 2010
Things we do
• Energy Services
– Energy contract finder
– Energy contract management
– Electricity supply negotiation
• Advice & Consultancy
– Energy audits
– Project management
• Near Market R&D
– Development & field testing of new energy techniques
‹#› NFU Conference, 24th February 2010
NFU Energy
• Farm Energy working on behalf of NFU:
– Climate Change Levy Discount Scheme for farmers and growers
– Energy contract advice and brokering
– Energy advice and efficiency work
‹#› NFU Conference, 24th February 2010
GHG Emissions Breakdown
CO2, 9%
Methane, 38%
Nitrous Oxide, 53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1
Relative Importance of Emissions from Agriculture
“The errors in national inventories of gaseous emissions from agriculture are typically about 30%” 1
1 Williams, A.G., Audsley, E. and Sandars, D.L. (2006) Determining the environmental burdens and resource use in the production of agricultural and horticultural
commodities. Main Report. Defra Research Project IS0205. Bedford: Cranfield University and Defra
‹#› NFU Conference, 24th February 2010
Emissions by Sub – Sector
0%10%20%30%40%50%60%70%80%90%
100%
Greenhouse gas equivalent CO2 emissions
CH4
N2O
C02
‹#› NFU Conference, 24th February 2010
Why bother about energy?
• Energy costs– Particularly important in the energy intensive sub-
sectors
• Energy taxation
• Your Carbon Footprint– Easy to calculate the effect of energy saving
• New income potential?– Renewable energy systems
– Energy Feedstocks
‹#› NFU Conference, 24th February 2010
Review of energy prices
‹#› NFU Conference, 24th February 2010
Future Prices – Gov’t projections
‹#› NFU Conference, 24th February 2010
Where should I invest?
Use less of it ?or
Generate it ?
But using less isn’t “sexy...”
‹#› NFU Conference, 24th February 2010
The energy efficiency stigma
• The business case
– Save it or generate – whatever is cheaper
• The environmental case
– Save it or generate– whatever is cheaper
• The case is just the same
‹#› NFU Conference, 24th February 2010
• At first energy prices favoured energy efficiency
• Then came ROCs – doubling the return on some technologies
• Then came FITs– Multiplying return by up to 6 x– Still based on only 8% ROI
• Look out for RHI– Based on 12% ROI– New market for heat sales– New market for feedstock sales?
The effect of energy price
‹#› NFU Conference, 24th February 2010
FIT Rates
‹#› NFU Conference, 24th February 2010
Pulling it together
• The winner has always been energy efficiency
– But returns are limited to a proportion of what you use
– Law of diminishing returns applies
• And NOW – the playing field has changed
– Feed in Tariffs (FIT’s)
– Renewable Heat Incentive (RHI)
‹#› NFU Conference, 24th February 2010
In summary
• Energy has a role for GHG savings– It makes business sense
– It makes environmental sense
• Consider both energy saving and renewable generation– Be realistic and even handed about all
technologies
– Do your homework and consider whole life costs and returns
• Think to the future – can energy get cheaper?
‹#› NFU Conference, 24th February 2010
Thank you & any questions?