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!