Chris Plackett's presentation at NFU Conference 2010

‹#› NFU Conference, 24th February 2010

Does energy have a role in reducing UK Agriculture’s GHG

Emissions ?

Chris PlackettCommercial Director

Farm Energy


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 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


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


Emissions by Sub – Sector

0%10%20%30%40%50%60%70%80%90%

100%

Greenhouse gas equivalent CO2 emissions

CH4

N2O

C02


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


Review of energy prices


Future Prices – Gov’t projections


Where should I invest?

Use less of it ?or

Generate it ?

But using less isn’t “sexy...”


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


• 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


FIT Rates


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)


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?


Thank you & any questions?

Technology

Chris Plackett's presentation at NFU Conference 2010