Business Review - ENERGY

Bord na Móna’s Energy business consists of the production and supply of milled peat and power generation. In 2008/2009, three million tonnes of milled peat was provided for delivery to three peat-fired power plants, the ESB owned Shannonbridge (Co. Offaly), and Lanesboro (Co. Longford) and the company owned Edenderry Power Limited (Co. Offaly). Additional peat was supplied for the manufacture of peat briquettes. Horticultural grade peat was harvested for the production of a range of quality growing media products that were marketed throughout Europe.
The inclement weather in summer 2008 impaired the production of milled peat stock but was not detrimental to the overall turnover or the sales of the business.
In the power generation sector, both the peat-fired Edenderry Power plant and the wind farm in Bellacorrick, Co. Mayo had a successful year with availability of 95% excluding scheduled outages. A programme to co-fuel the Edenderry plant with carbon-neutral fuels such as wood biomass commenced with a view to achieving 30% co-fuelling by 2016. The Energy business also plans to establish a mixed portfolio of over 1,000 MW of additional power generation with a strong emphasis on renewable sources.

Using biomass in 2008 was a very significant step and, now, the BUSINESS has supply contracts for substantial quantities of sawmill residue and forest harvesting over the next five years.
Q. What is the future for Bord na MÓna Energy?
The key drivers behind Bord na Móna’s Energy strategy are (a) the non-sustainable
nature of peat as a resource and (b) the need to provide a substantially
improved carbon model. Therefore we are committed to reducing the amount
of milled peat for power generation and determined to develop an ever increasing
portfolio of alternative sustainable energy generation solutions.
Q. How will you reduce peat as a resource in the existing peat fired plants?
Biomass is currently supplied to Edenderry Power. At 30% co-fuelling, the
requirement will be 300,000 tonnes per year. The first step is to establish
a reliable market that suppliers trust. Using biomass in 2008/2009 was
a very significant step and, now, the business has supply contracts for
substantial quantities of sawmill residue and forest harvesting over the
next five years. As the market evolves and prices and logistics stabilise,
there will also be a requirement for energy crops such as willow and miscanthus.
Q. Will your wind strategy face environmental challenge?
Bord na Móna proposes to develop wind farms on cutaway bogs where the peat
has already been extracted. This is a core element of the Group’s after-use
management programme. Utilising this resource to harness the prevailing
wind regime is a very rational and responsible use of the asset. The cutaway
bogs are very large land banks in relatively remote areas, which make them
ideal for this type of development. Bord na Móna is the recognised expert
in bog management and the Group shall ensure that the environmental impact
of its wind farms will be minimised. Biodiversity and wind farms can easily
co-exist in the same locations.
Q. Have you any plans to further develop fossil fuel plants?
The national RES-E Target 2020 is to have 40% renewable electricity on the
system in 2020. This renewable electricity will be predominantly wind generated
and will require a back-up supply in the form of open-cycle peaking plants
with rapid response time to complement the variable nature of wind-generated
power. The national electricity portfolio will have a mixed fuel supply
which is predominantly renewable but robust in nature for security of supply.
Bord na Móna’s portfolio will mirror that mixed requirement, which is strategically
and commercially prudent both for Ireland and for Bord na Móna.
