Cheap as Woodchips
New Initiative to help firms invest in Sustainable Energy
20th August 2007
Every one of us is aware of the revolution taking place in the energy industry - with rising fuel costs, the threat of climate change and fears over future power supplies, new solutions for energy saving and renewables are on the agenda. Many of us would like to invest in sustainable energy, but the initial capital costs often prevent us from making the most of the economic fuels and technologies that are available. Now, North East businesses are being given a great, hassle-free opportunity to invest in sustainable energy over the long term.
NaREC is launching a brand new initiative to help companies and organisations who are seeking alternative, low cost and low carbon energy supplies but who cannot afford the initial costs of investing in renewable technologies. "Sustainable Energy Northeast" will be run by NaREC in partnership with the Engineering Support Partnership, Groundwork South Tyneside & Newcastle, and the Wood Energy Group.
Available across the North East, Sustainable Energy Northeast is an Energy Supply Company (ESCO) which will assess, design, procure, operate and finance new heating schemes on behalf of its customers. The scheme will use biomass boilers powered by wood chip, since wood chip is a low cost, low carbon, local energy resource.
Off-grid heating systems could play a major role in achieving a sustainable and mixed energy supply. As a result, many local authorities and housing associations are looking to ESCOs, as a way in which alternative energy sources can be brought into play in an attempt to relieve pressures on the transmission and distribution networks.
Customers signed up to Sustainable Energy Northeast will pay the scheme directly for their heating by the kW, generated from the wood-chip boiler, rather than buying energy from a Utility company. The scheme will make the most of the excellent, well established local supply chain in the region for wood-chip - which is essential in making biomass feasible.
How it Works
Customers enter into a heating contract with Sustainable Energy Northeast for a fixed period, during which time Sustainable Energy Northeast will install, maintain and fuel the wood chip boiler. At the end of the period the customer has paid for the boiler through the monthly contract payments. At the end of the contract, the customer can take over the maintenance and fuel supply contract, or let Sustainable Energy Northeast carry on managing these on behalf of the customer.
The scheme is ideally suited to community heating schemes, schools, hospitals, commercial enterprise and also large living quarters with a shared heating system - such as student accommodation. Indeed, Biomass can prove a viable alternative for any organisation which uses heat either in the form of heated air, hot water or steam. Being able to regulate and pay directly for their own heating system will help to mitigate against the risks of future rising energy costs.
Paul Mclean, Initiator of the scheme said, "Other Biomass Economies - in places such as Barnsley, have allowed the communities there to replace coal with sustainable wood fuels, saving nearly 3000 tonnes of carbon emissions every year, and in many cases, cutting their heating bills by half. Sustainable Energy Northeast will give north east businesses and organisations a way of getting low-cost heat from Biomass now, without having to save up to pay for the new boiler."
Ben Tansey, Northeast Business Development Manager for Wood Energy Limited added, "Wood chip is more efficient than coal, a quarter of the price of gas, and is virtually maintenance free. Biomass is an excellent carbon-neutral alternative to fossil fuels."
The launch of Sustainable Energy Northeast follows the recent successful installation of the Northeast's largest biomass demonstrator programme at NaREC's electrical laboratory in Hebburn. NaREC's High Voltage Testing Facilities at Hebburn, formerly part of VA TECH Reyrolle, have run for over thirty years using a conventional gas boiler to provide heating for the large 40m high test facility. This led to annual energy bills of up to £60,000 a year. With the support of ONE Northeast, NaREC has recently installed its own biomass demonstrator programme at the laboratory. The newly installed Biomass Heating System will allow NaREC's Laboratory to accrue up to £25,000 each year in energy savings.
NaREC's own biomass system will be open later this year to visitors and other organisations seeking to find out more about Biomass and its application.
For further information, please contact Paul Mclean, NaREC 01670 359 555. paul.mclean@narec.co.uk
High Resolution Photography is available.
Regional Notes:
For more information on the partner organisations, please visit their websites:
http://www.woodenergyltd.co.uk/
http://www.groundwork-stan.org.uk/
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Editors Notes
The New and Renewable Energy Centre (NaREC) was established in 2002 as a Centre for Excellence for new and renewable energy technologies. Part of One NorthEast's ‘Strategy for Success' it drives the development of the Energy Pillar and works along with the four other regional Centres of Excellence to help create wealth by raising productivity and to place renewables at the heart of the Region's economy.
Based in Blyth, Northumberland, NaREC is working to enable the move towards a low carbon economy on a National and International scale by assisting the development and market growth of new energy technologies.
NaREC encompasses a range of research, testing and development facilities across the spectrum of energy industries. A specialised team of technical and engineering consultants with a wide range of practical experience work to support the development and testing facilities at NaREC, helping to bridge the gap between innovation and realisation.
NaREC's unique world-class facilities offer testing and development of large wind turbine blades, marine renewables, offshore and subsea equipment, micro-renewables and High Voltage electrical equipment. NaREC also has facilities and consultancy expertise for the development and integration of large and small-scale renewables into the energy mix including assistance with small scale embedded generation and power systems analysis. NaREC also runs the UK's only Independent Photovoltaic R&D Laboratory, combining small scale manufacturing and solar cell process development.
The New and Renewable Energy Centre Limited is a self-standing but not for profit organisation (a company limited by guarantee).
Contact:
Louise Harrison
Marketing Co-ordinator
New and Renewable Energy Centre
Eddie Ferguson House
Ridley Street
Blyth
Northumberland
NE24 3AG
Direct: 01670 357 621
Switchboard: 01670 359 666
