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www.hwenergy.co.uk
Biomass Heating and the
Renewable Heat Incentive
www.hwenergy.co.uk
About us• Headquarters in Fort William• Staff located across Scotland• Currently employing 30+ staff• Design, Build, Operate, Fuel and Own biomass systems
www.hwenergy.co.uk
130 Projects across Scotland
www.hwenergy.co.uk
The Renewable Heat Incentive• What is it?
– “A transformation in the way we heat our country”– Greg Barker, Minister of State, DECC, 10th March 2011
• Why?• Good News:
– Annual, guaranteed payment for switching to renewables. Payable for 20 years and inflation uplifted.
– Relatively simple to understand– An attractive financial return to encourage investment, particularly
against oil– Applies to groups of buildings and individual non-domestic buildings– Any installation completed after 15th July 2009 is eligible.
• Not so Good News– No domestic RHI until 2012 and details not confirmed
www.hwenergy.co.uk
Types of Projects: Rural
Rural Property Sector• Large buildings and
groups of buildings• Produce own fuel• Project Type
– 50,000 litres of oil = 130 tonnes CO2
– 300kw boiler– £250,000 investment– Oil saving @ 60p per litre =
£18,000• RHI impact = £20,000 per
annum for 20 years.
www.hwenergy.co.uk
Projects and RHI: SmallB&B or Small Guest
House• Purchase boiler and pellet
fuel• Project Type
– 4,000 litres of oil = 8 tonnes of CO2
– 30kw Boiler– £25,000 investment– Oil saving @ 60p per litre =
£800• RHI impact = £3,000 per annum
for 20 years.
www.hwenergy.co.uk
Projects and RHI: MidMid size community sector• Heat Supply Contract• Project Nature
– 35,000 litres of oil– 150kw boiler– £200,000 investment– Oil saving @ 60p per litre = £4,000
• RHI impact = £15,000 per annum for 20 years.
www.hwenergy.co.uk
Projects and RHI: LargeLarge Hotel• Heat Supply Contract• Project Type
– 120,000 litres of oil = 300 tonnes CO2
– 600kw – 1MW boiler– £450,000 investment– Oil saving @ 60p per litre =
£25,000• RHI impact = £45,000 per
annum for 20 years.
www.hwenergy.co.uk
Projects and RHI: Very LargeIndustrial Sector• Heat Supply Contract• Project Type
– 3,000,000 kWh per annum+– 1MW boiler +– £500,000+ cap ex– Oil saving @ 60p per litre =
£120,000+– Bulk delivery of chip via artic
• RHI impact = £80,000 per annum + for 20 years.
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ESCO Contracts• Not everyone has the capital to invest• RHI allows for others to own the heating equipment
and the RHI payment and sell renewable “heat”• This allows cost and carbon savings to be achieved
without capital outlay. • Offer significant immediate savings against oil (circa
50%) and some savings against mains gas.
www.hwenergy.co.uk
“Soft” Loans• “Green Bank” – details & remit still uncertain.• Scottish Government have allocated £2.5m interest
free loan fund to district heating schemes – now open for expressions of interest
• Carbon Trust have partnered with Siemens to develop a £540m loan fund – commercial rates, accessed via partner companies
• Other commercial solutions are available: the co-op bank are the leading provider.
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Conclusions• RHI is a long awaited announcement that will
revolutionise our heating sector.• Offers a financial incentive to do the right thing• Particularly attractive to people currently heated by oil• Great opportunity for Scotland and Rural Scotland to
both benefit from affordable heating and the supply chain opportunities.
For more information: [email protected]
Tel. 01397 70 6412
