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Chris Plackett's presentation at NFU Conference 2010

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Chris Plackett's presentation at NFU Conference 2010

  1. 1. Does energy have a role in reducing UK Agriculture’s GHG Emissions ?<br />Chris Plackett<br />Commercial Director<br />Farm Energy<br />
  2. 2. Things we do<br />Energy Services<br />Energy contract finder<br />Energy contract management<br />Electricity supply negotiation<br />Advice & Consultancy<br />Energy audits<br />Project management<br />Near Market R&D<br />Development & field testing of new energy techniques<br />
  3. 3. NFU Energy<br />Farm Energy working on behalf of NFU:<br />Climate Change Levy Discount Scheme for farmers and growers<br />Energy contract advice and brokering<br />Energy advice and efficiency work<br />
  4. 4. GHG Emissions Breakdown<br /><ul><li>“The errors in national inventories of gaseous emissions from agriculture are typically about 30%” 1</li></ul>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<br />
  5. 5. Emissions by Sub – Sector<br />
  6. 6. Why bother about energy?<br />Energy costs<br />Particularly important in the energy intensive sub-sectors<br />Energy taxation<br />Your Carbon Footprint<br />Easy to calculate the effect of energy saving<br />New income potential?<br />Renewable energy systems<br />Energy Feedstocks<br />
  7. 7. Review of energy prices<br />
  8. 8. Future Prices – Gov’t projections<br />
  9. 9. Where should I invest?<br />Use less of it ?<br />or <br />Generate it ?<br />But using less isn’t “sexy...”<br />
  10. 10. The energy efficiency stigma<br />The business case<br />Save it or generate – whatever is cheaper<br />The environmental case <br />Save it or generate– whatever is cheaper<br /> The case is just the same<br />
  11. 11. The effect of energy price<br />At first energy prices favoured energy efficiency<br />Then came ROCs – doubling the return on some technologies<br />Then came FITs<br />Multiplying return by up to 6 x<br />Still based on only 8% ROI<br />Look out for RHI<br />Based on 12% ROI<br />New market for heat sales<br />New market for feedstock sales?<br />
  12. 12. FIT Rates<br />
  13. 13. Pulling it together<br />The winner has always been energy efficiency<br />But returns are limited to a proportion of what you use<br />Law of diminishing returns applies<br />And NOW – the playing field has changed<br />Feed in Tariffs (FIT’s)<br />Renewable Heat Incentive (RHI)<br />
  14. 14. In summary<br />Energy has a role for GHG savings<br />It makes business sense<br />It makes environmental sense<br />Consider both energy saving and renewable generation<br />Be realistic and even handed about all technologies<br />Do your homework and consider whole life costs and returns<br />Think to the future – can energy get cheaper?<br />
  15. 15. Thank you & any questions?<br />