Duncan Brewer Associate Director

Savills

Renewable Heat Incentive Scheme

Renewable Heat Incentive Scheme

• Start end November 2011

• Non-domestic only (Domestic 2012)

• Systems eligible from 15th July 2009

Biomass for combustion

• Wood

– Logs

– Pellets

– Chip

• Energy crops

– SRC (Short rotational coppice)

– Miscanthus

• Agricultural residues

– Straw

– Chicken litter

Biomass heating

Security of supply

Plant space

Flue

Buffer tanks (heat stores)

Ash disposal

Fuel volume

Fuel Volume p.a. in m3

Typical detached house

Natural gas 2,096

(45m x 45m x 45m)

Domestic heating oil 2

~2,000 ltrs

Wood chip 23

(2.8m x 2.8m x 2.8m)

Wood pellet 6.5

Fuel production

• Logs

• No brush and branches

• Drying for at least a year

• Fuel handling

Fuel quality

Fuel storage

• Space

• Fuel feed

• Not fit and forget

Small scale district heating

• Estate houses

• Ideally building in close proximity

• Need to maintain supply

• Back-up

Combustion - electricity generation

•Lockerbie plant 44 MWe 220,000 t per annum wood chip and SRC

Costs and Returns

Tax

Insurance

Feasibility study

Planning

Professional fees

Operating

Maintenance

Construction

Ancillary equipment

Fuel

Boiler examples

Size 15 kW 60 kW 360 kW

Fuel type Pellet Pellet Wood chip

Boiler capital cost £6,500 £16,500 £101,500

Fuel production / handling / delivery /

storage controls

£3,000 £18,500 £211,500

Total £9,500 £35,000 £313,000

RHI Phase 1 15% capacity income

for 20 yr / pa

£1,500 £6,000 £22,000

Oil saving / pa £400 £1,700 £21,800

Payback 5-13 Years

Equivalent return on investment 5-15%

Summary

• Site specific

• Dependent on heat use

• Fuel supply

• O & M

• Reliability

• Ancillary costs

• Model the worst and best case

• Suppliers are there to sell!

Duncan Brewer

Tel. 01865 269133

Mob. 07968 550448 dbrewer@savills.com