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Wood Could Bring Power To Those Without Electricity
05 SEP 2013 SIPHO KINGS Biomass energy could be the answer for the two-million rural households that are not connected to the electricity grid. The largest renewable source of energy being used in South Africa is one that has been used for millennia – wood. More than 10% of households use this as their primary source of energy supply, with 80% of these relying on firewood and charcoal to cook and warm their houses. A fifth of urban households and half of rural households are still not connected to the grid. This equates to over three-million households. The two million in rural areas are especially problematic because they are far from the main grid so connecting them is very expensive. The white paper on renewable energy identified biomass as an important source of renewable energy. It would rank alongside the more sophisticated sources like wind, solar and hydro in supplying a third of all energy by 2030. This is also the target set by the department of energy. But the problem is that biomass is currently collected in an unsustainable manner – mostly from people chopping down whatever trees at nearest for firewood. Several reports have investigated the pros and cons of biomass as a source of energy. One of these, written for the non-profit Trade and Industry Policy Studies in 2008, said South Africa should become a world leader in renewable energy technologies. Together all the renewable options could supply half of the country’s energy needs by 2050. It did however warn, “Biomass is a renewable resource only if production is sustainable.” If crops were planted specifically for bioenergy, which includes conversion to biofuels, the impact on food and water security would have to be monitored. But the sector had the potential to be a big driver of jobs, given how labour intensive agriculture is. Continue reading
UK Power Stations To Carry On Burning Wood, Spelling Uncertainty For Emissions
06 Sep 2013, 12:10 Robin Webster The government hasn’t turned away from plans to generate increasing amounts of electricity by burning biomass, despite introducing new restrictions to its subsidies. Burning plants, trees and crops in power stations instead of coal or gas is an important part of the government’s plans to switch to greener sources of electricity. In 2011, it suggested the sector could grow by nine per cent a year, accounting for about one-fifth of the total amount of renewable power the country sources by 2020. Controversy recently blew up after NGOs claimed that far from being a renewable source of power, burning trees in power stations could even more carbon-polluting than coal. The renewables industry hit back, accusing green groups of ” scaremongering ” on the issue. But then government put in place new limits on subsidies for biomass power stations. It also introduced sustainability criteria for biomass, under which biomass burnt in power stations should emit 72 per cent fewer greenhouse gas emissions than the grid average by the end of the decade. So does this mean the government’s lost enthusiasm for bioenergy? Not really. Subsidies still good First up, the subsidy cut is pretty limited in scale. Specifically, the government has set a 400 megawatt cap on the amount of new biomass plants it is prepared to subsidise under its old subsidy system, known as Renewables Obligation Certificates . Under its new system – Contracts for Difference – it says it won’t subsidise new-build biomass at all, unless it also puts in place a combined heat and power system (CHP) as well. But the subsidy cut doesn’t apply to coal-fired power stations – like Drax power station , Eggborough , Ironbridge or Alcan Lynemouth – that want to convert to burn biomass instead. The government has promised it will keep subsidising these power stations up until 2027. Figures from a Department for Energy and Climate Change (DECC) report indicate converted power stations could be burning between 15 and 25 million tonnes of biomass by 2017. Industry group Back Biomass told us in May it expects Drax power station to burn seven million tonnes of biomass and Eggborough around eight million every year. The comparable figure for the UK’s annual wood harvest is five million tonnes , so that would mean burning a lot of wood. Back Biomass told Carbon Brief this week: “The biomass industry has enjoyed a strong underpinning in legislation, regulatory measures and Government support. DECC has reassured stakeholders recently that it remains committed to biomass in the energy mix.” It says the government’s promise to continue to subsidise biomass conversions has given “much needed confidence” to investors in the sector. DECC tells us it will be publishing a new renewable energy roadmap this Autumn, which will include revised projections for how much energy it expects to get from different sources. Maybe it will contain surprises, but there seem to be few grounds for assuming a big reduction in biomass power. Greenhouse gas emissions and the mystery of the missing calculator If biomass is going to retain a significant stake in the UK energy mix, questions will continue about whether or not it can be counted as a low carbon fuel source. Some research indicates that because it takes such a long time for trees to grow back, burning whole trees could release even more greenhouse gas emissions than coal. A draft ‘carbon calculator’, developed by DECC and leaked by NGOs in March , appeared to agree. The preliminary results suggested biomass generation produces more emissions than burning coal in five out of the twelve scenarios tested. The NGOs were criticised for leaking the calculator. Back Biomass pointed out that the calculator was still in development phase and would change. And DECC’s chief scientist, David Mackay, wrote to green groups to protest at the release of the findings before they were finalised. Meanwhile, the calculator’s official launch has been delayed. What’s more, according to the NGOs, the government’s new sustainability standards fail to take the findings of DECC’s calculator into account – because they don’t factor in the carbon emissions associated with burning trees. Kenneth Richter from environmental campaign group Friends of the Earth says: “The government’s sustainability criteria are near-meaningless as they ignore the most critical issue: The carbon methodology fails to distinguish between those biomass pathways that result in real emission savings and those that result in higher emissions than fossil fuels as DECC’s own research has shown.” The government says it won’t make any further changes to its carbon accounting methodology until 2027. So if there are any problems with it, it’s going to be a while before they get changed. We put these points to DECC, but didn’t get a response. How much biomass will the UK burn in the future? Arguments over burning biomass and greenhouse gas emissions are complicated . The analysis that biomass could be ‘more polluting than coal’ is based on the assumption that whole trees are burnt in power stations. But the biomass industry argues this is an unrealistic option . It says by-products from forestry like sawdust, bark and thinnings will be used instead, which would be much less polluting. Campaigners disagree. Last week NGOs in the USA released a report arguing demand for biomass in Europe is driving deforestation in North Carolina. Whatever the truth, it appears we’re still planning to burn quite a lot of biomass – a good deal of it wood – in power stations over the next few years. And quite what that means for greenhouse gas emissions remains an important, and unanswered, question. Continue reading
Farmland Price Growth Flattens Across Mid-South And Southeast In Second Quarter; Outlook Is Stable
The pace of farmland price appreciation across the Mid-South and Southeast U.S. continued to flatten in the second quarter, according to the latest Farmland Market Survey released today by Farmland Investor Letter. Madison, WI, September 06, 2013 –( PR.com )– The pace of farmland price appreciation across the Mid-South and Southeast U.S. continued to flatten in the second quarter, according to the latest Farmland Market Survey released today by Farmland Investor Letter. Non-irrigated cropland values rose at an estimated 6.3% year-over-year pace, down from 7% in the first quarter. Irrigated tracts increased at an 8.2% annual pace, unchanged from the previous quarter. Pasture values were up 2.4% from a year ago, also virtually even from the 2.5% 12-month rate through the first quarter. The survey, conducted from June 15, 2013 through August 14, 2013 was based on 102 responses from appraisers, property managers, lenders, real estate brokers and landowners located in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri and Tennessee. Farmers and investors expect cropland values to remain stable through the third quarter, despite declining crop commodity prices. Low interest rates continue to support land values. However, with the Federal Reserve expected to begin tapering 10-year Treasury note purchases in coming months, mortgage rates are already starting to notch up. A sustained increase in interest rates would put pressure on further land price appreciation. In addition, strong returns from the stock market—the S&P 500 Index has generated an 18.3% total return year to date—continue to compete for the attention of investors. Farmland Values Survey participants estimated that non-irrigated cropland across the region was worth an average $3,141 per acre in the second quarter of 2013. Irrigated cropland values averaged $4,477 per acre. Pasture values averaged $2,239 per acre. On an individual state basis, non-irrigated cropland values ranged from a high of $4,925 per acre in Missouri to a low of $2,479 per acre in Georgia. Irrigated cropland values ranged from a high of $6,833 per acre in Missouri to $3,556 per acre in Alabama. Pasture values ranged from a high of $2,900 per acre in Florida to $1,771 per acre in Arkansas. Cash Rents Cash rent increases for cropland and pasture continue to lag land price inflation across the region. Rents on non-irrigated cropland averaged $114 per acre, ranging from an average $69 per acre in Georgia to $213 per acre in Missouri. Irrigated cash rents averaged $199 per acre across the region, and ranged from an average $135 per acre in Alabama to $328 per acre in Florida. Pasture rents averaged $36 per acre, ranging from $24 per acre in Florida to $78 per acre in Tennessee. Rent income yields, which are calculated by dividing gross cash rent by land value, offers insights into the relative pricing of land tracts regionally. Across the Mid-South/Southeast, non-irrigated tracts are estimated to be generating a 3.6% rent income yield; irrigated tracts 4.4% and pasture 1.6%. Market Outlook With farm crop prices continuing to contract, survey panelists remain cautious in their outlook for both cropland and pasture values, forecasting that prices would remain stable though the third quarter. Respondents are most optimistic for irrigated cropland tracts, where 35% expect prices to increase, while 64% look for no change. Buyer demand for irrigated tracts appears strongest in Missouri and Louisiana where 67% and 60%, respectively, of respondents look for irrigated land values to continue rising. Interest in non-irrigated tracts appears strongest in Missouri, where 80% of respondents forecast higher prices. Contact Information Mercator Research LLC Michael Fritz 312-725-0559 Contact www.farmlandinvestorcenter.com Continue reading