IFA sign deal to supply straw to plant in Midlands

roosterman71

Farmers in the midlands of Ireland could be in for a windfall of potentially €7m a year in additional revenue after renewable energy firm Biotricity signed a memorandum of understanding with the Irish Farmers Association covering the supply of straw for a new biomass plant in Offaly.

The memorandum of understanding (MoU) covers the feedstock requirements for Ireland’s first renewable biomass electricity plant which will consume over 90,000 tonnes of straw per annum.

This will deliver €7m in revenue to farmer suppliers and will reduce Ireland’s carbon emissions by around 77,000 tonnes of carbon per annum.

The MoU includes a framework pricing agreement for straw ‘on the ledge’ which sets a base price of €30 per tonne with bonuses for reduced moisture level plus a €2 per tonne straw conditioning bonus for material conditioned by the supplier combined with a guaranteed index linked upward only price review every year .

Biotricity will commence initial purchases of straw during 2014 for plant testing and commissioning purposes with full purchasing commencing in 2015.

A new dawn
The MoU was signed by IFA president, John Bryan, and Biotricity operations director Briain Smyth.

“The linkages between farming and the production of renewable energy are becoming clearer and include opportunities for farmers to develop sustainable business relationships with the energy sector that provide incomes for farmers plus energy security and low carbon power for Ireland,” Bryan explained.

“Biotricity has been to the forefront in developing these relationships and working with farmers to secure the type and quantity of feedstock they need for their Biotricity Rhode biomass plant. IFA sees this as a model for closer co-operation in how we use land to simultaneously grow food and generate renewable energy from crop residues thus boosting farm incomes and benefiting wider society.”

Biotricity CEO Declan Kennedy said that construction at Biotricity’s 16 megawatt plant in Rhode, County Offaly, will commence towards the end of the first quarter of 2014.

“This is an Irish success story,” Kennedy said. “80pc of the project cost will be paid out to Irish engineering companies, with approximately €14m per annum going into the local economy to include salaries (€2m), straw (€7m) and other solid biofuels for drying (€5m).”

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Dampintheattic

roosterman71 wrote: »

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Tough sheet on the suckler farmers in the west in that case. Straw goes from expensive to downright uneconomic.

Marooned75

Long sighted decision again made by the IFA,

Conmaicne Mara

Yup straw consumers will probably pay higher prices on the back of it. Also the soil will have more slurry and less FYM to look forward to, not good IMO.

Lambofdave

When did the IFA get involved in providing farm produce to companies? And is this now only going to be open to IFA members and Farmers in the Midlands?
Oh and what % is the IFA getting to source the straw?

And where is this 90,000 tones coming from? Considering tillage farmers will be hit worst by the cap reform I can only see tillage acres getting smaller.

pakalasa

"Memorandum of understanding (MoU)" .
The IFA now undertand that the company want straw.

Bizzum

It's the small local suckers farmers I feel sorry for. :-)

kevthegaff

will there not be a shortage if thats the case??

Sharpshooter82

could be outwintering everything

dzer2

Id worry about it when it happens I know a neighbour that has miscanthus baled and stored for the last 2 yrs they never paid for the crop they got the first yr and he wont send in the other crops

paddysdream

Think I heard talk of this last year where a company (unsure if it was the same one) was trying to get contracts signed by farmers to supply straw for energy production.That fell flat at the first hurdle .From what I heard the terms and conditions were a bit of a joke from the farmers point of view.

This is like the elephant grass white elephant scheme.How on earth could it pay to grow, harvest and store this stuff and haul it 60 or more miles to a power plant?Even with the 50% establishment grant(a joke by the greens i assume )it aint an economic runner for farmers.Haulage costs on bulky light materials is also uneconomic.

What tillage farmer in his right mind would contract sell all his straw to a company with moisture, payment ,storage ,etc etc, conditions when he can flog it off the field 9 years out of 10 no problem (hear talk of this folding money stuff being looked for and got for it at times but maybe thats just pub talk!)

For many tillage farmers straw is the bonus bit of readies in a good year and a few extra bob for the missus in many other years.

moy83

Now in fairness it will be no harm of a boost for the boys growing cereals . Do they always have sale for all their straw ? It might even help shift the bales of rushes on done deal
7 million worth of straw and 5 million for other biofuels . What are the other biofuels they will be using

drive it

Hopefully it's rushes could make a dent in the 5million all by myself:D

Sharpshooter82

drive it wrote: »

Hopefully it's rushes could make a dent in the 5million all by myself:D

Thats the style

blue5000

I don't understand how it is going to reduce Ireland's carbon emissions by 77,000 tonnes. It has been illegal to burn straw since about 2000. If all this straw is burnt instead of being recycled into soil as dung how is that going to reduce emissions? Never mind burning Diesel hauling straw to Rhode, AFAIK there isn't an awful lot of tillage around Rhode.

Sharpshooter82

blue5000 wrote: »

I don't understand how it is going to reduce Ireland's carbon emissions by 77,000 tonnes. It has been illegal to burn straw since about 2000. If all this straw is burnt instead of being recycled into soil as dung how is that going to reduce emissions? Never mind burning Diesel hauling straw to Rhode, AFAIK there isn't an awful lot of tillage around Rhode.

Mullingar and surronding areas would be the main place for the tillage

blue5000

How far is that?

Sharpshooter82

Roughly 20 miles or so, thats the main tillage area. There could be other fields nearby but not many

paddysdream

In a year that there is an oversupply of straw then a lot chop it back in.Supposedly worth 40 or so an acre as fertiliser and additional organic material.Nearly all rape straw is chopped .Only drawback on chopping is that its a pig on diesel for the combine

bob charles

pakalasa wrote: »

"Memorandum of understanding (MoU)" .
The IFA now undertand that the company want straw.

I was going to say the same, means jack frost

Muckit

drive it wrote: »

Hopefully it's rushes could make a dent in the 5million all by myself:D

I know you jest, but it mightn't be such a bad idea!

moy83

Muckit wrote: »

I know you jest, but it mightn't be such a bad idea!

Was'nt there a baler out a few years ago that was chopping and baling furze bushes for these plants aswell

Bizzum

blue5000 wrote: »

, AFAIK there isn't an awful lot of tillage around Rhode.

There is a couple of big enough operators (1000+ acres), and a couple of smaller lads.
A good bit of bog around over towards Rochfordbridge, and Daingean, and towards Clonbullogue.
Tullamore would have a decent bit of tillage, an nice bits back around Castlejordan and Kinnegad.
But on the whole it would be mote mixed grazing than arable.
On a positive note there would be a decent tradition of skilled labour about, from the days of ESB and BnM.

Sharpshooter82

Bizzum wrote: »

There is a couple of big enough operators (1000+ acres), and a couple of smaller lads.
A good bit of bog around over towards Rochfordbridge, and Daingean, and towards Clonbullogue.
Tullamore would have a decent bit of tillage, an nice bits back around Castlejordan and Kinnegad.
But on the whole it would be mote mixed grazing than arable.
On a positive note there would be a decent tradition of skilled labour about, from the days of ESB and BnM.

the main operaters would all be roughly 15 - 20 miles away tho

rancher

Sharpshooter82 wrote: »

the main operaters would all be roughly 15 - 20 miles away tho

A lot of big farmers within 50 miles, especially kidare laois meath and westmeath

Bizzum

Sharpshooter82 wrote: »

the main operaters would all be roughly 15 - 20 miles away tho

I suppose, but the 2 1000+ acre lads are very local.
I wonder how many acres are needed per year to supply such a contract?

Sharpshooter82

well the closest main operaters i mean

Sharpshooter82

Bizzum wrote: »

I suppose, but the 2 1000+ acre lads are very local.
I wonder how many acres are needed per year to supply such a contract?

and i believe the last time this was on the table they wanted only 8x4x4 bales and all at a certain % aswell so that will be hard to judge. Arrive at the plant and turned away at the gate

Birdnuts

blue5000 wrote: »

I don't understand how it is going to reduce Ireland's carbon emissions by 77,000 tonnes. It has been illegal to burn straw since about 2000. If all this straw is burnt instead of being recycled into soil as dung how is that going to reduce emissions? Never mind burning Diesel hauling straw to Rhode, AFAIK there isn't an awful lot of tillage around Rhode.

You've highlighted some of the shortcomings of many so-called biofuels. Its a big issue ATM at EU level with biofuel targets being reviewed in light of their impacts on food prices and the destruction of natural habitats outside the EU to grow biofuels like palm oil, sugar cane etc. which actually release even more CO2 when rainforests etc. are cleared to grow them.

tabby aspreme

Wheaten straw for 8*4*4 costing €25 /bale this year that's working out around €100 /acre , could be a bad year to get lads to sign a contract,

Sharpshooter82

tabby aspreme wrote: »

Wheaten straw for 8*4*4 costing €25 /bale this year that's working out around €100 /acre , could be a bad year to get lads to sign a contract,

Lads around here want 40 euro a bale for a 8x4x4

Farmer Pudsey

Just to get a handle on the price being paid. 30/ton on the ledge +2/ton for conditioned is this that it will be rowed for balers and a moisture bonus. How many round bales to a ton 4? 5? 6?. If they are baling how long will you have to wait, if it rain in the meantime how are you fixed. I presume that they load and transport.

Cannot see straw being cheap in the short to medium term.

keep going

I take a round bale of straw to be between150 and 180kilos so say 6 bales to ton minus 30 euros for baling means that it is the same money as selling to farmers .am I right

nashmach

This was a major talking point during spring 2012 in Wexford with several large meetings held.

I'm just surprised that it has taken so long to come to an agreement or is this a different company.

There are a few plants in England burning straw but are located in large tillage counties. The location here sounds ridiculous and a sure way if diverting even more money on haulage.

I'm not sure why IFA are involved given their own electricity is through Airtricity I believe but it is probably to give some prominance to the idea.

It will be interesting to see how this goes over the next few years but unfortunately the ship may have sailed a few years ago.

manjou

keep going wrote: »

I take a round bale of straw to be between150 and 180kilos so say 6 bales to ton minus 30 euros for baling means that it is the same money as selling to farmers .am I right

By these calculations and getting 10 bales per acre you would need at least 45000 acres to supply 90000 tonnes of straw. Alot of competion then for straw between farmers mushroom boys and now this will make very expensive. Daft idea as would have same problems as miscanthus etc with moisture content.

rancher

nashmach wrote: »

This was a major talking point during spring 2012 in Wexford with several large meetings held.

I'm just surprised that it has taken so long to come to an agreement or is this a different company.

There are a few plants in England burning straw but are located in large tillage counties. The location here sounds ridiculous and a sure way if diverting even more money on haulage.

I'm not sure why IFA are involved given their own electricity is through Airtricity I believe but it is probably to give some prominance to the idea.

It will be interesting to see how this goes over the next few years but unfortunately the ship may have sailed a few years ago.

Grain committee would always be very interested in alternative markets for straw, especially now the way they're being hammered on the price of grain.
When making decisions on all the commitees, there is no regard given to where funding comes from, our primary aim is to improve farm income, etc etc. We have staff to worry about funding

Farmer Pudsey

I wonder will there be a levy like in the meat factories for the IFA maybe 30 cent/ton. Then again this would only be pocket money compared to the 2ish million the factory levy brings in

Dampintheattic

I wonder, what the calorific value of rushes is compared to straw:cool:
I'm having visions of getting out of cows, and harvesting rushes all year long:o

manjou

Dampintheattic wrote: »

I wonder, what the calorific value of rushes is compared to straw:cool:
I'm having visions of getting out of cows, and harvesting rushes all year long:o

Dont laugh but have a few bales of rushes in shed might take out one and see will it burn as would have no problem growing large amount of them and could easily get 20 bales to acre

Sharpshooter82

The tillage men will be more interested in the straw than in the grain shortly

Jonblack

Nice bit fj about biofuel crops boosting rural economies in the US.