Biotricity secures feedstock supply biomass plant
Biotricity, an Irish renewable company, has signed a memorandum of understanding (MoU) for the supply of feedstock to its biomass-fired power plant, which is currently under construction and expected to enter service by the end of 2015.
Under the MoU, the Irish Farmers' Association (IFA) will purchase and manage straw feedstock for the Rhode, Co. Offaly biomass plant. The new facility will consume just over 90,000 tonnes of straw a year to generate 16MW of renewable energy, in addition to reducing Ireland's carbon emissions by 77,000 tonnes a year.
Biotricity will begin initial purchases of straw during 2014 for plant testing and commissioning purposes with full purchasing commencing in 2015.
The MoU includes a framework pricing agreement for the 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 the material conditioned by the supplier combined with a guaranteed index linked upward only price review every year.
IFA president John Bryan says: '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.'
Ground will break on the plant at the beginning of next year, with plant testing and commissioning expected towards the end of 2015. Full-scale generation will begin in 2016.