Diversification on the mind at energy show

The annual Energy and Farm Diversification Show took place last week at Gurteen College in Tipperary. Aside from a morning protest organised by the IFA and Grain Growers in response to the minister’s decision to suspend the Straw Incorporation Measure for 2024, the focus of the day was on energy, diversification and meeting our climate goals.

The Irish Farmers Journal team were partners for the event. As always, the event served as a good opportunity to gauge the general mood among farmers and their attitudes toward renewables.

My conversations throughout the day spanned seasoned renewable energy enthusiasts, developers and farmers looking to expand their knowledge.

However, notably, many of the 2,000 strong attendees were eager to learn about diversification options in renewable energy for their farm, with anaerobic digestion and solar PV proving particularly popular.

Given the current pressures on agriculture, the mood of many farmer attendees was notably subdued.

Solar PV

Many of these farmers came to the event seeking answers to alternatives to conventional farming. Indeed, the food vs fuel argument reared its head a number of times throughout the day.

However, the consensus among panellists in the energy sector was clear, it’s the farmer’s choice whether they want to use their land to produce meat, milk and grain, or energy.

The solar PV demonstration drew significant interest, with Teagasc’s Barry Caslin engaging with industry experts and suppliers to discuss the technology. Many of the attendees at this demonstration wanted to learn how solar PV would complement and improve the viability of their farm.

Although a 60% grant is available to farmers, challenges remain for the widespread adoption of this technology on farms. Delays in the approval of NC7 applications by the ESB are causing unnecessary hold-ups. More critically, the availability of suitable grid connections remains a major issue, leaving many farmers disappointed with the size of the solar PV system they are allowed to install.

In terms of payback, solar PV systems can still achieve payback periods of around three years on energy-intensive farms, even despite recent reductions in energy prices. Even on farms with lower energy demands, payback periods of five-six years are achievable, especially when the farmhouse demand is included.

Land lease options for large solar farms were also discussed throughout the day. Indeed many of the conversations I had with attendees focused on this. Solar farms are going through a boom period and there is no sign of this slowing down. However, farmers need to be willing to negotiate hard with developers, as variations in lease values and terms are becoming common.

AD model

A major focus of the panel discussion and demonstration session was on exploring the future of the anaerobic digestion (AD) industry in Ireland, specifically, the typical size of plants and their business models.

The average AD plant planned for Ireland will have an output of approximately 40 gigawatt hours (GWh) of biomethane. To put this in perspective, this is comparable to a two megawatt (MW) AD plant which produces electricity. This is four times larger than a typical farm-scale plant in Northern Ireland. Such a plant will require around 2,000 acres of grass silage and approximately 25,000 tonnes of slurry, sourced from 200-300 farmers.

The estimated construction cost of an AD plant of this scale is around €15 million, with some funding to be supplied by a capital grant from the Government. So far, 46 applications for the first round of funding have been received.

The biomethane produced will be purchased by companies obligated under a new scheme, which imposes penalties on those who fail to meet their requirement to purchase renewable alternatives to natural gas, such as biomethane.

Most plants aim to connect to the national gas grid, with the first connection expected next year. Plants which are too far away from the gas grid will be able to transport biomethane via specialised trailers to a new injection facility in Mitchelstown.

AD challenges

One significant challenge highlighted during the day was the shortage of trained and skilled personnel to build and operate AD plants. If the industry were to construct 200 plants this decade, as is the Government’s plan, there would not be enough qualified staff to manage them. Securing planning permission and educating local authority planners about AD were also emphasised as critical issues.

Feedstock

Feedstock supply was another key topic. Most farmers who get involved in AD will provide crops and slurry. James Staines of Staines Law stressed the importance of having a legally sound feedstock supply arrangement in place. He suggested that farmers might benefit from forming cooperatives to supply feedstock to AD plants, although care is needed when developing arrangements.

Graeme Lochhead of Nephin Renewable Gas outlined their plans to develop 15-20 plants and collaborate with farmers to grow grass, cereals and supply slurry. They are seeking long-term feedstock arrangements with growers and currently have one plant in planning, with another five in development.

A major new Tipperary–based project which aims to develop a new biomethane development office and anaerobic digestion plant was also launched at the event.

Co-funded by the EU Just Transition Fund Programme, the Biomethane for Carbon and Community Project will support Tipperary and its hinterland in the development of biomethane.

The office will be located in in the National Bioeconomy Campus at Lisheen, Thurles, Co Tipperary and they are currently recruiting staff.

Partners

Seamus Hoyne of Technological University of the Shannon launched the project at the event. Other project partners include Tipperary County Council, the Irish Bioeconomy Foundation and the Tipperary Energy Agency.

As well as providing information and guidance and a communication campaign on biomethane, the project will also carry out a feasibility study and prepare the ground work for the planning, construction and delivery of a biomethane facility.

Employment

The office will, in the short term, create six jobs. There could be another 16 indirect jobs created in further project phases if they build a 40GWh AD plant, which would require an investment of €10–€15m. It is envisaged that 250–300 farmers would be needed to supply the plant.