IFA: farmers need competitive rate for bio-energy feedstock

THE price paid for all feedstocks used in alternative energy projects must generate a competitive market return for farmers, the IFA has insisted.

The farm body accepted that anaerobic digestion (AD) can play a major role in addressing energy and climate change policy targets by utilising agricultural side streams such as slurry and crops such as silage as raw materials.

However, the IFA has reiterated that a reasonable price will have to be paid to farmers for all feedstocks.

“Teagasc estimates that silage production costs range from €150/t of DM for first cut to €170/t for second cuts. This equates to €37.50/t to €42.50/t respectively on a fresh weight basis at 25pc DM,” Fintan Conway of the IFA noted.

He accepted that production costs can be mitigated through the use of the digestate as a fertiliser — which could be worth around €8/t — but he said that farmers will still require a competitive market return for AD feedstocks.

Gas Networks Ireland (GNI) recently secured €8m in Government funding to develop a central grid injection point for AD plants in Mitchelstown, Co Cork.

GNI will open a demonstration site at Cush, Co Kildare shortly, but the Mitchelstown site will be five times larger and take feedstock from AD plants within a 50km radius.

Planning

Ian Kilgallon of GNI said the Mitchelstown centre will service east Limerick and Tipperary, as well as north and east Cork, and will be supplied by 18 to 20 AD units.

He said the initiative had attracted interest from around 14 farmers who are assessing the merits of developing digesters.

However, Mr Kilgallon insisted that these were “paper projects” at the moment and planning applications would not be submitted until the full range of Government supports for the AD sector were announced.

Mr Kilgallon said he was confident, however, that the rollout of the network would start in 2020.

GNI intend to initially develop clusters of AD units around three regionally dispersed injection centres, with a view to growing a national network of 18 to 20 in the longer-term.

The siting of the next two injection centres will depend on what Mr Kilgallon described as the “appetite” for the technology in given districts, and the local availability of feedstock material.

He said that the average AD unit would require around 22,000t of grass silage equivalent and around 16,000t of slurry.

It is envisaged that AD units could take up to 5pc of the silage in their catchment areas once they are fully operational.