Biomass boiler plant at the University of Bradford Association of University Engineers NE regional meeting April 2008

1. Biomass boiler plant at the University of Bradford Association of University Engineers NE regional meeting April 2008 Adrian Davison Regional Director, PB Energy Solutions

2. PB Energy Solutions part in Bradford University’s500kWth biomass boiler project Planning Grant Feasibility study Business Case Application Permission Operate Built by Promech Fuel Contract 12m Review PB – Putting the pieces together

3. Why bother with renewables? • Environmental credentials have an increasing“value” to your customers decision making • They are cheaper than fossil fuels, with less volatile prices • Organisations who are continuously reducing their emissions will benefit from the CRC league tableThe 500kW woodchip boiler will reduce carbon purchases by 4% • Government instruction is for regulated bodies to lead by example • Grant schemes are used to “pump prime” activities, and are removed when momentum is established – early adopters win (if they take care)

4. Initial feasibility & design study • PB examined the feasibility of operating a biomass boiler to supply the JB Priestley library and communal building – a floor area of almost 17,000m2 • The scope included: • Validating heating demands supplied by existing gas boiler plant • Undertaking a sizing calculation for biomass boiler plant • - Exploring the options for locating the biomass plant and fuel stores • Undertaking a whole life costing exercise based upon supplier quotes • Examining the potential for CO2 and financial savings from installing the boiler

5. Map of site showing constraints Biomass boiler and fuel store location proposed by PB Main vehicle access Buried water course Biomass boiler house and fuel store Restricted vehicle access Existing boiler house

6. The Bio-energy Capital Grants Scheme Round 3 • PB submitted an application to round three of the bio-energy capital grand scheme using the output of the feasibility study • The scheme provides funding for upto 40% of the cost of eligible assets, which include: • Biomass boiler • Fuel supply equipment • Directly related ancillary plant • The total eligible costs were estimated to be £378k • Bradford University was awarded £143k (40% of eligible costs) in August 2007

7. Frohling Boiler Installed by Promech • Grant funding imposed time constraints and prevented going to competitive tender for the design and installation of boiler • PB provided technical support during the design process • PB produced a basis of design that contained the preferred specification based upon the output of the feasibility study • PB were involved with the project team meetings, providing technical support where required. • PB are to be involved with auditing the plant through its commissioning and the next 12 months to validate the CO2 savings.

8. Issues with setting up a woodchip supply contract • A supplier who is willing to work with you(as ever) is essential as all sites are different • Buy Heat (from the heat meter) not tonnes of woodchip(the supplier then can balance delivery costs vs % dryness) • Woodchip is a low energy density fuel so transport distances are important, and impact on your CO2 savings • Biofuel systems operate for less hours per year than fossil fuels • There is no “British Standard” for woodchip (yet) • The university expects to use over 500 T/yr • Drying the wood takes the supplier >12 months

9. Issues with setting up a woodchip supply contract (cont’d) • Customers want predictable prices, pay less asthey use more, and have multi year contracts • Suppliers want volume certainty to manage their risk in drying • Customers want to pay as they use the fuel (like natural gas) • Woodchip supply contracts are in their infancy with few suppliers • Most suppliers do not have well developed terms and conditions • Consequences of irregular woodchips needs to be covered • Financial consequences of taking more / less than predicted volumes • Supplying the fuel delivery systems (2 x 35m3 hook lift bins) was made part of the fuel supply arrangements.

10. Review of performance • The university is required to demonstrate that the installed biomass boiler is delivering the CO2 savings that were advised in the grant application. • Heat meters monitored by the TREND system will automatically log the proportion of heat supplied from the biomass boiler and allow calculation of the reduced gas consumption. • The university is keen to disseminate their experiences of installing and operating the biomass boiler. It is planned to follow up this meeting with operational data and lessons learned when available

11. The BIG question? • Would Bradford University install another onelike it again? (Yes – 400-500kW in the School of Management Resource Centre !) • Lessons learned about procuring without going to tender… • Immature market, suppliers in this market need to learn from other similar markets, un-competitive practices? • Lack of competition of plant suppliers, difficult to ensure fair price. • The availability of good quality managed fuel supplies is critical • Close to (but better than) the business case.

12. Contact details Parsons Brinckerhoff Adrian Davison NW Regional Director, Energy Solutions Tel: 0161 2005064 Mobile: 07733 151513 Email: davisonad@pbworld.com