Tag Archives: green

Panel Discusses Wood Biomass Sustainability, Coming Regulations

By Tim Portz | October 30, 2013 Nigel Burdett, head of environment at Drax Power, addresses the audience at the U.S. Industrial Pellet Association’s 3rd Annual Exporting Pellets conference. Tim Portz. . . Nigel Burdett, head of environment at Drax Power, kicked off a panel discussion at the U.S. Industrial Pellet Association’s 3rd annual Exporting Pellets Conference, by commenting on the role of sustainability in the transition from coal to wood pellets. “We need to be sustainable in order to capture the subsidy and make the business work,” he said. The panel focused on the sustainable attributes of renewable power produced via wood pellet combustion. The subsidies Burdett spoke of are Renewable Obligation Certificates (ROCs) issued by the U.K. Office of Gas and Electricity Markets. These ROCs are financial instruments that power generators can sell on the open market, boosting the economics of generating renewable energy. In September, the U.K. Department of Energy and Climate Change confirmed that biomass would play a significant role in the march toward the de-carbonization of the U.K. energy sector, but that biomass burned by its power generators must come from sustainable sources if those generators expect to receive ROCs. While final rulemaking has yet to be established by the DECC, power generators in the U.K., pellet suppliers in the North America and elsewhere, and the loggers and landowners that supply biomass to pellet facilities are all preparing for the coming legislation. They are also offering their perspective to policymakers on what they feel are realistic, yet adequately stringent, requirements. At the same time, a larger, more expansive effort is underway to frame up for the general public the vital role that biomass-derived power can, and should, play in driving geologic carbon out of the world’s energy mix.  Geologic carbon, the carbon found in fossil fuels and sequestered there for millions of years, is released into the atmosphere when it is combusted for energy. Bob Malmsheimer, professor at the State University of New York College of Environmental Science and Forestry, urged attendees to recognize the inherent differences between geologic carbon and biogenic carbon saying, “When we make products and energy from biogenic carbon instead of geologic carbon, we’ve done something positive for climate change.” Recognizing that the public is continually presented with different studies and models, he continued by stating, “While the timing aspect is debated, the long term benefit is not debatable.” Echoing Malmsheimer’s comments, and diving deeper into an explanation of the science as well as many of the reasons for widespread confusion about the issue, was Martin Junginger, assistant professor at the Copernicus Institute for Sustainability Development at the University of Utrecht. Junginger pointed out that many of the studies that industry critics use to question the sustainability of woody biomass are flawed because they investigate the carbon cycle at a stand level, as opposed to looking at the carbon cycle in the context of a broader forest ecosystem. “Scientists have realized that looking at the landscape of level is the most appropriate,” said Junginger. He explained that if 1 acre of land is converted into biomass feedstocks and burned, there is carbon released into the atmosphere certainly, but that the overall forest system was taking up more carbon as a whole than was being released during the combustion of a percentage of that biomass during energy generation. The panel concluded the discussion by driving home the point that the worst-case scenario for global forests were declining markets for forest products, including woody biomass for pellet production. Repeating an argument that is continually being made by the largest forest owner associations in North America, including the National Alliance of Forest Owners and the Forest Landowners Association, the panel argued that strong markets for all grades and types of forests was the best way to stave off the largest threat to forests, emerging higher economic values for forested acres, including redevelopment. Recognizing that proving the sustainable nature of their supply chains will be a vital aspect of Drax’s business,  Burdett underscored the importance of preparing for the coming feedstock tracking requirements saying, “We are going to see a great deal of data being required of suppliers,” and stressing that non-compliance ultimately would cost Drax the most. “We have canceled contracts because adequate data was not available,” he added. Continue reading

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Farmland For Sale Falls By A Massive 67% – As Prices Rise

By Exeter Express and Echo |  Posted: October 25, 2013 The value of farmland in the South West continues to rise, as the amount coming onto the market goes on falling. In the first nine months of this year the price of prime land in the region rose by 2% to £7,600 an acre – according to data collected for the farmland value survey run by estate agents Savills. Penny Dart, of Savills’ Exeter office, explained: “Across the South West during the first three-quarters of 2013 the volume of farmland publicly marketed decreased by 4% when compared to the same period in 2012. “The South West accounted for 18% of all farmland marketed in England. In the region 15,081 acres of farmland was publicly marketed, compared with 15,745 acres to the end of September in 2012, a decrease of 4%.” Mrs Dart said Somerset recorded the steepest fall in the amount of farmland coming onto the market, a massive 67% down on the year to just 1,492 acres. Devon also recorded a significant drop of 30%, while in Cornwall the drop was just 4%. It was a different picture elsewhere in the South West region, with Gloucestershire almost doubling the amount of land marketed, with an enormous increase of 84% in Dorset and 37% in Wiltshire. But Devon still accounted for nearly a fifth of all the farmland marketed in the region. Wiltshire, with its extensive grain-growing acreage, accounted for nearly a third. Mrs Dart explained that an analysis of the farm transactions carried out by Savills throughout Great Britain in the first half of this year showed that farmer buyers made up half of all purchasers. This was similar to the situation in 2012. “Farm expansion continued to be the prime motive for buying, and was cited by the majority of farmer buyers,” she said. But the proportion of lifestyle buyers rose very considerably, to 40%, the highest level since 2004. She said their primary motive was not income generation from farming. “Of these buyers there was an almost equal split between those who already owned farmland and those who were purchasing for the first time. “Buying for residential or sporting reasons was also a significant motive.” While the average value of prime land was now £7,600, third-grade arable land now averaged £6,150 an acre. The average value of prime dairy land had risen by nearly 2% to £6,690, while third-grade dairy land was £5,760. Poor livestock grazing was £4,600 an acre. Read more: http://www.exeterexpressandecho.co.uk/Farmland-sale-falls-massive-67-8211-prices-rise/story-19984687-detail/story.html#ixzz2ikAHWF7F Continue reading

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Insight Adds To Farmland Flock

Insight adds to farmland flock Sarah Krouse 24 Oct 2013 Insight Investment has added a new farmland investment role to its team of experts in the sector, amid increased investor interest in farm assets. Insight adds to farmland flockThe asset manager has hired the former chief executive of farm investor NZ Farming Systems Uruguay to the newly created role of head of farmland management to help oversee its growing portfolio. David Beca will join later this year and be based out of London. Beca joins an eight-member team that works on farmland investments at Insight and will be responsible for overseeing the on-the-ground management of its farmland assets. The expansion of the investment team comes amid strong returns from rural land in the UK and globally. Beca has worked in a number of markets including Australia, Uruguay and South Africa for farmland investment, consulting and business analysis companies. Insight began its farmland strategy in 2011. The firm’s portfolio of investments includes a New Zealand dairy farm, a cattle station in northern Australia and arable farm assets in Romania. Other members of the team specialise in topics such as livestock and arable land and are based in a number of locations including Australia and Germany. Insight’s expansion of the team comes as it attempts to take advantage of increased investor interest in the asset class. The sector is touted as an attractive option for investors looking to diversify and boasts stronger returns than commercial property. Rural land in the UK, for example, has significantly outperformed commercial property in the country over the last five, 10 and 20 years, according to analytics firm Investment Property Databank. Rural land returned 8.9% compared with 0.7% for all property over five years; 13.2% compared with 6.3% property-wide over 10 years; and 13% compared with 8.9% for all property assets over 20 years. Beca will report to Martin Davies, head of farmland investments at Insight. Within the firm, the farmland investment team sits under specialist investments, a unit led by Reza Vishkai, who joined the firm in 2005. Beca said in a statement: “The development Continue reading

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