Tag: energy policy

Climate change is the biggest challenge of our time

Drax Group CEO Will Gardiner

Climate change is the biggest challenge of our time and Drax has a crucial role in tackling it.

All countries around the world need to reduce carbon emissions while at the same time growing their economies. Creating enough clean, secure energy for industry, transport and people’s daily lives has never been more important.

Drax is at the heart of the UK energy system. Recently the UK government committed to delivering a net-zero carbon emissions by 2050 and Drax is equally committed to helping make that possible.

We’ve recently had some questions about what we’re doing and I’d like to set the record straight.

How is Drax helping the UK reach its climate goals?

At Drax we’re committed to a zero-carbon, lower-cost energy future.

And we’ve accelerated our efforts to help the UK get off coal by converting our power station to using sustainable biomass. And now we’re the largest decarbonisation project in Europe.

We’re exploring how Drax Power Station can become the anchor to enable revolutionary technologies to capture carbon in the North of England.

And we’re creating more energy stability, so that more wind and solar power can come onto the grid.

And finally, we’re helping our customers take control of their energy – so they can use it more efficiently and spend less.

Is Drax the largest carbon polluter in the UK?

No. Since 2012 we’ve reduced our CO2 emissions by 84%. In that time, we moved from being western Europe’s largest polluter to being the home of the largest decarbonisation project in Europe.

And we want to do more.

We’ve expanded our operations to include hydro power, storage and natural gas and we’ve continued to bring coal off the system.

By the mid 2020s, our ambition is to create a power station that both generates electricity and removes carbon from the atmosphere at the same time.

Does building gas power stations mean the UK will be tied into fossil fuels for decades to come?

Our energy system is changing rapidly as we move to use more wind and solar power.

At the same time, we need new technologies that can operate when the wind is not blowing and the sun is not shining.

A new, more efficient gas plant can fill that gap and help make it possible for the UK to come off coal before the government’s deadline of 2025.

Importantly, if we put new gas in place we need to make sure that there’s a route through for making that zero-carbon over time by being able to capture the CO2 or by converting those power plants into hydrogen.

Are forests destroyed when Drax uses biomass and is biomass power a major source of carbon emissions?

No.

Sustainable biomass from healthy managed forests is helping decarbonise the UK’s energy system as well as helping to promote healthy forest growth.

Biomass has been a critical element in the UK’s decarbonisation journey. Helping us get off coal much faster than anyone thought possible.

The biomass that we use comes from sustainably managed forests that supply industries like construction. We use residues, like sawdust and waste wood, that other parts of industry don’t use.

We support healthy forests and biodiversity. The biomass that we use is renewable because the forests are growing and continue to capture more carbon than we emit from the power station.

What’s exciting is that this technology enables us to do more. We are piloting carbon capture with bioenergy at the power station. Which could enable us to become the first carbon-negative power station in the world and also the anchor for new zero-carbon cluster across the Humber and the North.

How do you justify working at Drax?

I took this job because Drax has already done a tremendous amount to help fight climate change in the UK. But I also believe passionately that there is more that we can do.

I want to use all of our capabilities to continue fighting climate change.

I also want to make sure that we listen to what everyone else has to say to ensure that we continue to do the right thing.

What’s next for bioenergy?

Morehouse BioEnergy in Louisiana

Discussions about our future are closely entwined with those of our power. Today, when we talk about electricity, we talk about climate change, about new fuels and about the sustainability of new technologies. They’re all inexplicably linked, and all hold uncertainties for the future.

But in preparing for what’s to come, it helps to have an idea of what may be waiting for us. Researchers at universities across the UK, including the University of Manchester and Imperial College London, have put their heads together to think about this question, and together with the Supergen Bioenergy programme they’ve created a unique graphic novel on bioenergy that outlines three potential future scenarios.

Based on their imagined views of the future there’s plenty to be optimistic about, but it could just as easily go south.

Future one: Failure to act on climate change

Dams on river

In the first scenario, our energy use and reliance on non-renewable fuels like oil, coal and gas continues to grow until we miss our window of opportunity to invest in renewable technology and infrastructure while it’s affordable.

Neither the beginning nor the end of the supply chain divert from their current trends – energy providers produce electricity and end users consume it as they always have. Governments continue to pursue growth at all costs and industrial users make no efforts to reverse their own rates of power consumption. In response, electricity generation with fossil fuels ramps up, which leads to several problems.

Attempts to secure a dwindling stock of non-renewable fuels lead to clashes over remaining sources as nations vie for energy security. As resources run out, attempts to put in place renewable alternatives are hampered by a lack of development and investment in the intervening years. The damages caused by climate change accelerate and at the same time, mobility for most people drops as fuel becomes more expensive.

Future two: Growing a stable, centralised bioenergy

Rows of saplings ready for planting

A future of dwindling resources and increasing tension isn’t the only way forward. Bioenergy is likely to play a prominent role in the energy mix of the future. In fact, nearly all scenarios where global temperature rise remains within the two degrees Celsius margin (recommended by the Paris Agreement) rely on widespread bioenergy use with carbon capture and storage (BECCS). But how far could the implementation of bioenergy go?

A second scenario sees governments around the world invest significantly in biomass energy systems which then become major, centralised features in global energy networks. This limits the effects of a warming climate, particularly as CCS technology matures and more carbon can be sequestered safely underground.

This has knock-on effects for the rest of the world. Large tracts of land are turned over to forestry to support the need for biomass, creating new jobs for those involved in managing the working forests. In industry, large-scale CCS systems are installed at sizeable factories and manufacturing plants to limit emissions even further.

Future 3: The right mix bioenergy

Modern house with wind turbine

A third scenario takes a combined approach – one in which technology jumps ahead and consumption is controlled. Instead of relying on a few concentrated hubs of BECCS energy, renewables and bioenergy are woven more intimately around our everyday lives. This relies on the advance of a few key technologies.

Widespread adoption of advanced battery technology sees wind and solar implemented at scale, providing the main source of electricity for cities and other large communities. These communities are also responsible for generating biomass fuel from domestic waste products, which includes wood offcuts from timber that makes up a larger proportion of building materials as wooden buildings grow more common.

Whether future three – or any of the above scenarios – will unfold like this is uncertain. These are just three possible futures from an infinite range of scenarios, but they demonstrate just how wide the range of futures is. It’s up to us all – not just governments but businesses, individuals and academics such as those behind this research project too – to to make the best choices to ensure the future we want.

Sustainability, certified

Drax Morehouse woodchip truck

Of all the changes to Drax Power Station over the last decade, perhaps the biggest is one you can’t see. Since converting three of its six generating units from coal to run primarily on compressed wood pellets, Drax has reduced those units’ greenhouse gas (GHG) emissions by over 80%.

And while this is a huge improvement, it would mean nothing if the biomass with which those reductions are achieved isn’t sustainably sourced.

For this reason, Drax works with internationally-recognised certification programmes that ensure suppliers manage their forests according to environmental, social and economic criteria.

Thanks to these certification programmes, Drax can be confident it is not only reducing GHG emissions, but supporting responsible forestry from wherever wood fibre is sourced.

Sustainability certifications

The compressed wood pellets used at Drax Power Station come from various locations around the world, so Drax relies on a number of different forest certification programmes, the three main ones being the Sustainable Forest Initiative (SFI), Forest Stewardship Council® (FSC®)1 and the Programme for the Endorsement of Forest Certification (PEFC).

The programmes share a common goal of demonstrating responsible forest management, but adoption rates vary by region. European landowners and regulators are most familiar with the FSC and national PEFC standards, while North American landowners generally prefer SFI and American Tree Farm System (also members of the PEFC family). In instances in which Drax sources wood pellets carrying these certifications, or in instances in which Drax purchase pellets sourced from certified forests, these certifications offer an additional degree of assurance that the pellets are sustainable.

Over 50% of the pellets used at Drax Power Station come from the southern USA, where SFI and American Tree Farm System are the most widely implemented certification programmes. Overall adoption levels in this region are relatively modest. However, the SFI offers an additional level of certification that can be implemented by wood-procuring entities, such as sawmills, pulp mills and pellet mills.

This programme is referred to as SFI Fiber Sourcing, and to obtain it, participants must demonstrate that the raw material in their supply chains come from legal and responsible sources. These sources may or may not include certified forests. The programme also includes requirements related to biodiversity, water quality, landowner outreach and use of forest management and harvesting professionals. Together, these certification systems have long contributed to the improvement of forest management practices in a region that provides Drax with a significant proportion of its pellets.

And since the SFI and ATFS programmes are endorsed by PEFC, North American suppliers have a pathway for their region’s sustainable forest management practices to be recognised by European stakeholders.

These certification programmes have been in use for many years. But with recent growth in the market for wood pellets, a new certification system has emerged to deal specifically with woody biomass.

Trees locked up in a bundle

New kid on the block

The Sustainable Biomass Program (SBP) was set up in 2013 as a certification system to provide assurance that woody biomass is sourced from legal and sustainable sources. But rather than replacing any previous forest certification programmes, it builds on them.

For example, SBP recognises the evidence of sustainable forest management practices gathered under these other programmes. However, the PEFC, SFI and FSC programmes do not include requirements for reporting GHG emissions, a critical gap for biomass generators as they are obligated to report these emissions to European regulators. SBP fills this gap by creating a framework for suppliers to report their emissions to the generators that purchase their pellets.

When a new entity, such as a wood pellet manufacturer, first seeks certification under SBP, that entity is required to assess its supply base.

Feedstock which has already been certified by another established certification programme (SFI, FSC®, PEFC or PEFC approved schemes) is considered SBP-compliant.

All other feedstock must be evaluated against SBP criteria, and the wood pellet manufacturer must carry out a risk assessment to identify the risk of compliance against each of the 38 SBP indicators.

If during the process a specific risk is identified, for example to the forest ecosystem, the wood pellet manufacturer must put in place mitigation measures to manage the risk, such that it can be considered to be effectively controlled or excluded.

These assessments are audited by independent, third party certification bodies and scrutinised by an independent technical committee.

In conducting the risk assessment, the wood pellet manufacturer must consult with a range of stakeholders and provide a public summary of the assessment for transparency purposes.

Sustainable energy for the UK

Counting major energy companies including DONG Energy, E.ON and Drax as members, the SBP has quickly become an authoritative voice in the industry. At the end of 2016, the SBP had 74 certificate holders across 14 countries – including Drax’s pellet manufacturing arm, Drax Biomass, in Mississippi and Louisiana.

It’s a positive step towards providing the right level of certification for woody biomass, and together with the existing forestry certifications it provides Drax with the assurance that it is powering the UK using biomass from legal and sustainable sources.

Like the fast-reducing carbon dioxide emissions of Britain’s power generation sector, it’s a change you can’t see, but one that is making a big difference.

Read the Drax principles for sustainable sourcing.

1 Drax Power Ltd FSC License Code: FSC® – C119787

The 4 most common myths about renewables

Renewables make up more of the world’s energy mix than ever before. And yet, misconceptions about these new or alternative technologies – such as biomass, solar and wind – are common.

Some of these concerns are – for the time being – partly justified, some completely subjective, and some are demonstrably wrong. Here’s a closer look at the most pervasive myths and what truth there is behind them.

Renewables are unpredictable

An oft-repeated misconception is that renewables aren’t a full-time solution to our power needs. It’s true that solar isn’t generated at night and wind turbines don’t operate in still weather, but the canon of renewables is bigger than its two most well-known technologies.

Tidal power still depends on environmental factors, but tides are much more predictable than wind or sunlight. For countries lucky enough to have ready access, geothermal power – which uses heat from the earth’s core to power generators – is even more reliable.

Biomass solutions, such as compressed wood pellets, are a fuel-based power source, meaning they are flexible so can be used to generate electricity on demand and operate as a base-load power option, much like coal or gas. At Drax Power Station renewable electricity is generated on demand using compressed wood pellets and delivered to the National Grid 24-hours-a-day.

Now, thanks to advances in weather forecasting, the National Grid can plan ahead to balance the system with other renewable and low carbon technologies when the sun isn’t shining and the wind isn’t blowing. Just a few years ago the primary fall back was relying on coal power stations to pick up any slack.

It might not be possible to power the world entirely with one renewable source, but the right mix of technologies could provide an answer to the question of how to ensure a stable and secure low carbon energy supply.

Heavenly Scene Stormy Skies

Renewables are expensive

There is some truth in this, but it’s important to note that these costs are falling. Many of the high costs associated with renewables have been down to a lack of infrastructure investment.

A number of the components required in construction of structures like wind turbines and solar panels are expensive. And, as many renewable facilities need to be located in different areas to existing traditional facilities, extensive power grid extension is often needed. But these are problems that once set up, should bring down the costs of renewables such as solar and wind.

Setting up biomass-powered facilities is considerably cheaper. Compressed wood pellets can be used in upgraded coal power stations, so there’s no need for expensive new connections to the high-voltage electricity transmission system.

There are even ways renewables could bring about cheaper power for consumers. Research commissioned by Drax and published by NERA Economic Consulting and Imperial College London found that, if the same government support offered to some renewable technologies (i.e. wind and solar) were open to all (such as biomass), consumers could see potential savings of £2 billion on their energy bills.

Renewables are ugly

While this isn’t necessarily an opinion shared by everyone, it is one that is often cited. Onshore wind farms often draw the most ire, but they aren’t alone. Large investments are being made in offshore wind farms, which are both more discrete and better positioned to take advantage of stronger offshore currents.

And hydropower projects like dams and tidal barrages can in the long term create whole new habitats, ecosystems and leisure facilities in the form of artificial lakes and surrounding forests.

Nobody uses renewables

In 2015, 99% of Costa Rica’s electricity came from renewable sources, including hydro, geothermal, wind, biomass and solar. Closer to home, Sweden draws more than 50% of its electricity from renewable sources, including 22% from bioenergy – 90% of which comes from forestry.

In the UK, renewables use is steady and rising, accounting for 25% of all electricity generated domestically in 2015. In the first half of 2016, 20% of the UK’s renewable power was supplied by Drax. Contrast those figures against coal, which in the UK declined from supplying 30.8% of UK power needs in Q1 2015 to just 15.8% in Q1 2016, and our increasing use of renewables is even more evident.

Consumers have been buying 100% renewable electricity tariffs from companies such as Good Energy for more than a decade. Businesses are increasingly getting in on the act too. Two thirds of the power generated by Drax in the first half of 2016 was sold directly to companies via Drax Group’s business electricity supplier, Haven Power.

And with campaigns such as RE100 challenging the world’s biggest firms to commit to renewable-only power, household brands such as Ikea, M&S and Google are either already 100% renewable or only a few years away.

Misconceptions about renewables will remain as long as we’re still in the transition out of fossil fuel use. But the industry has made huge strides from where it was just 10 years ago.

Thanks to better, more affordable technology, an increasingly friendly corporate sector, and a greater awareness of environmental issues at large, these products and services will continue to improve, grow and increasingly becoming more mainstream.

How does Europe use biomass?

Family on summer Senja coast (Norway, polar day)

At the heart of Norse folklore is a figure called Yggdrasil that connects its nine worlds and gods. It’s an immensely important and holy icon, but it is not a god itself – it is an ash tree.

That the central figure of mythical Scandinavian cosmology should be something as humble as a tree is no surprise, Scandinavia is a heavily forested region. Sweden, the largest country in the area, is more than 68% forest. Wood is an inherent part of life there. For thousands of years it’s been used as a resource and a fuel, and today is no different.

Throughout much of Europe the same is true. But, while historically wood was used only for cooking, heating and light, today its use as a form of energy also includes generating electricity and heat when formed into compressed wood pellets.

Europe and wood pellets

Nearly 22 million tonnes (Mt) of wood pellets were used in the European Union in 2015, making the region the leading wood pellet consumer in the world. It is also the world’s leading producer, creating roughly half of the world’s global output – largely from European trees.

A report from the Standing Forestry Committee, set up to represent the forestry industries in EU countries, found that just 4% of the woody biomass used in the EU was imported.

Of the 22Mt used across Europe, 10.5Mt was used for heating, while 11.5Mt was used for industrial uses like fueling power plants. But in the UK, the level of wood used for fuel falls some way behind EU averages. Thanks in large part to Drax and its transition from coal to renewable wood pellet-powered electricity generation, that’s changing, but the UK still has a way to go to catch the continental average.

Where is the UK falling behind and how is wood being used to power the rest of the continent? Here, we look at some of the largest consumers and producers of biomass in Europe and how it’s being used.

Sweden

Sweden is the third highest consumer of wood as a source of energy in Europe, trailing only Finland and Latvia in its use. A key use of biomass in Sweden is powering district heating systems. In a district heating system, rather than each building or home having its own boiler, whole areas of cities are heated through a single central plant distributing heat to buildings. These plants can be powered by a variety of fuels, but many run on wood pellets or distribute the waste heat captured at power plants.

rax_europe_biomass_sweden

Germany

In 1713, an accountant and mining administrator, Hans Carl von Carlowitz, published what is considered the first ever book to look in depth at forestry management, effectively kickstarting the modern idea of sustainable forestry. In the 300 years that have passed, Germany has embraced the cultivation of wood and has made wood and biomass a fixed part of its energy makeup.

More recently, the Renewable Energy Heating Act and Market Incentive Programme was passed in 2009, which requires new building owners to provide a percentage of their heat from renewable sources, including wood-fired boilers. The aim is to increase the country’s share of renewable heat to 14% by 2020.

Europe, Biomass, Germany

Finland

Nearly three quarters of Finland is forestland, making it one of the most forested countries in the world, let alone Europe. As a result, wood plays a large part in Finnish culture. Stora Enso, one of the world’s leading paper and packaging manufacturers is Finnish and more than 20% of the country’s exports are from wood and wood products. Coupled with a strong focus generating much of its energy from renewables, energy derived from wood and products made from wood is high.

drax_europe_biomass_finland

United Kingdom

In 2013, less than 10% of all energy used in the UK was generated from wood and wood products. This places it some way behind countries like Germany and Sweden, in part owing to a lack of infrastructure for providing heating derived from wood and wood biomass.

This could change if the government continues to back technologies equally in initiatives like the Renewable Heat Incentive (RHI). Available to homeowners, landlords and commercial customers, RHI provides incentives for installing generators of renewable heat such as wood pellet boilers.

To reach climate goals, the then Department of Energy and Climate Change noted that both biomass-driven electricity generation and heating should continue to increase in the UK. And with the upgrade of Drax and Lynemouth power stations from coal to compressed wood pellets, there are positive signs the UK can catch up to the European biomass average. In doing so, renewable biomass electricity generation can also help increase wind and solar power generation in the UK, and help create a more sustainable energy future.

drax_europe_biomass_united_kingdom