Hampshire County Council

Executive Member - Recreation and Heritage Item 4

17 November 2005

Proposed Installation of a Wood Fired Boiler at

Queen Elizabeth Country Park

Report by the Director of Recreation and Heritage

How the conclusion in this report fits with the Corporate Strategy

This scheme will impact on the delivery of the following Corporate Aims

Aim 2 - stewardship of the environment - by introducing an initiative to promote the use of renewable energy.

Aim 3 - achieving economic prosperity - by providing a market for locally produced wood fuel.

1

Summary

1.1

This report recommends that consideration be given to the installation of a "pilot" wood fired plant at Queen Elizabeth Country Park. Such a project is in line with both Central Government policy to promote the use of renewable energy and Aims 2 and 3 of Hampshire County Council Corporate Strategy. In common with many such alternative energy schemes such a project is not always currently viable from a conventional financial point of view but becomes so if other sustainability criteria are taken into account.

2

Background

2.1

This report draws upon a paper presented to the Buildings, Land and Procurement Panel on 16 July 2004, since when significant efforts have been made by Recreation and Heritage staff to develop a suitable scheme.

2.2

Since then a revised specification has been developed, the price of gas has doubled and extensive external grant aid has been secured. (See Appendix 1 - budget breakdown). The cost of the project has been reduced from £140,000 to £118,000 and essential partner support has been strongly re-affirmed (see Appendix 3 - letter from the Forestry Commission).

2.1

For many years now Central Government has promulgated a policy to both develop and increase the use of "renewable" energy sources. The main forms of which are wind, solar, tidal, geothermal and biomass. Of these the two which are most appropriate for applications to the Built Estate are solar and biomass but these have hitherto been rejected on the grounds of conventional "financial payback" criteria.

2.2

However, the application of biomass has benefits not only for climate change as the fuel is "carbon neutral" but also offers development opportunities for the agriculture and forestry industries of Hampshire. Furthermore the installation of a "pilot scheme" would bring not only considerable educational benefits but also demonstrate Hampshire County Council as a national leader on this issue by:

· Contributing to renewable energy targets

· Creating and sustaining rural businesses and jobs

· Promoting sustainable woodland and countryside management

2.3

Following visits to a number of operational sites in England and Austria it is considered that the technical issues previously associated with biomass boilers have now been resolved and these are described in Section 4 below.

3.

The case for wood firing

3.1

In `simple payback' terms the cost of a wood firing installation would not meet conventional criteria as without supporting grants the "payback period" would, in this case be approximately 50 years. It is therefore generally accepted in the UK that the justification for such schemes has to be based on criteria other than purely financial.

3.2

The non-financial arguments for wood firing are as follows:

(i) The installation would reduce carbon dioxide emissions by approximately 600 tonnes (wood fuel is carbon neutral) over the design life of the boiler. Also it will save 15,000 cubic metres of gas per annum (approximately the volume of six full hot air balloons). The price of gas has doubled in the last 12 months alone.

(ii) By not having to remove timber from site to other users savings could be made, albeit in this case the saving would accrue to the Forestry Commission and not Hampshire County Council who are a partner in the management of the Queen Elizabeth Country Park.

(iii) Contribute to national and regional renewable energy targets

(iv) Hampshire County Council would be taking a lead locally on a "sustainability" issue demonstrating renewable energy generation appropriate to a protected landscape. It would also be in direct support of the County Council's Corporate Sustainability Strategy.

(v) A secure source of fuel supply at agreed cost.

(vii) The significant "Public Relations" and education advantage to this site, which receives around 270,000 visitors each year (including 9,000 formal visits from school children). The site is also on the South Downs Way National Trail which it is estimated has 330,000 walkers per annum. This gives an enormous "shop window" opportunity for the County Council and its key partner, the Forestry Commission.

(viii) This "pilot" project would provide a sound basis on which future decisions on the use of wood fired boilers could be made for other Hampshire County Council properties and other potential local wood fuel users. It is also likely to encourage District Councils and other organisations to proceed with similar projects.

(ix) Present opportunities in the medium term for the agriculture and forestry industries of Hampshire by establishing a local market for wood fuel

4.

4.1

The following issues have been researched in detail and are now considered resolved:

· "Back-up" conventional plant - this is not a problem as the current gas fired boiler can be arranged to operate in parallel with the new wood fired plant.

· Manual attention to plant - normally this would be an issue but staff at Queen Elizabeth Country Park have confirmed that they are able to undertake the following tasks at no additional cost:

o Filling of local wood store

o De-ashing of boiler

o "Running repairs" to screw feeder plant

5.

Financial Issues

5.1

The total capital cost of the scheme is £118,000 of which £38,000 is for the boiler plant and associated automatic fuel feed. Wood fired boilers are approximately five times more expensive than equivalent gas ones. The remaining cost is to construct the new boiler house and fuel bunker and access for wood fuel delivery.

5.2

The County Council has been successful in attracting external grant support amounting to £74,000, as shown in Appendix 2. This level of grant support had not been confirmed at the time of the earlier report in July 2004 and is valid for the current financial year.

5.3

Even with the maximum grant available and assuming a differential rate of price increase between wood and natural gas fuels the "payback" period is in excess of 20 years which equates to the anticipated life of the boiler. Thus, in the best case scenario taken over 20 years, the scheme is financially "neutral" on conventional grounds.

6.

Impact Assessment

6.1

This project will not have an adverse impact upon any customer or members of the community and will have a strong educational and awareness raising role available to all visitors.

7.

Legal Implications

7.1

This project will be subject to the need to attain planning consent from the local planning authority and this process is well underway.

8.

Crime Prevention

8.1

Not applicable.

9.

Conclusion

9.1

On a purely technical and financial basis there is no case for wood firing. However, in recognition of the "sustainability" merits of the project it is recommended that the Executive Member for Recreation and Heritage considers a wood fired boiler plant at Queen Elizabeth Country Park at a cost of £118,000.

Recommendation(s)

That the Executive Member for Recreation and Heritage approves the installation of a pilot wood fired project at Queen Elizabeth Country Park, subject to appropriate consents and a maximum project budget of £120,000.

1.

Building works including minor landscape

38,500

2.

Boiler and fuel delivery system

38,000

3.

Pipe work modifications and ancillary equipment

14,000

4.

Water and electrical supply

1,500

5.

Alterations to heating system in existing building

8,000

6.

Educational/interpretation material and staffing costs

10,000

7.

Professional fees including planning

5,000

8.

Contingency

3,000

118,000

Hampshire County Council

Property, Business & Regulatory Services

£40,000

Environment

£4,000

South East England Development Agency

£10,000

Forestry Commission

£1,000

Plus 2 years free timber

Natural Light Partnership

£500

EDF - Green Fund

£25,000

Bio-Energy Capital Grant

(Contractor)

£21,500

East Hampshire Area of Outstanding Natural Beauty Sustainable Development Fund

£16,000

Total

£118,000