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Arable Energy Coppice

This information is from a past project and whilst it is outdated it may still be a viable diversification option under the correct circumstances.

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General

Fast growing species, such as poplar and willow, grown as close spacing and on short rotations of 3-5 years, can be coppiced to produce fuel wood bundles or chips, that can then be burns to produce both heat and power.

Chipped products could also find niches in smaller higher value markets such as surfacing and mulching, or even to larger chipboard markets.

In the future (10-15 years) this crop could become a major use of set-aside on marginal farm land. Market potential could be quite large.

Please remember that special consideration must be given to the VAT aspects of diversification as the new activity may not be treated the same as the existing farm business from a VAT standpoint.

Market

The markets for utilisation of arable energy coppice is only just presently being developed and as yet there are very few large-scale users.

Large-scale chipwood burners are common in Scandinavia and under the present Non-Fossil Fuel Obligation (NFFO) to buy power created by renewable resources at premium prices, the potential in this country is building.

It is feasible that some very large markets may be created in the very near future from which local growers could benefit. Present growers are mostly considering using the chipwood for their own heat and power needs. Niche markets tend to be small and localised, but when developed can pay premium prices.

Physical Requirements

Land:
This crop is grown like any other farm crop and land needs to be relatively well drained and accessible to tractors throughout most of the year. Harvesting has to take place in winter.

The selection of the right species for the given site is essential, a large number of willow and poplar clones are available.

Marginal arable land or land in set-aside will generally be the most common site type.

Buildings & Machinery:
Existing storage or drier buildings could be used prior to use or transportation. The growing of the crop will need either farm adapted or specialist planting machines.

Normal farm spray and fertiliser equipment can be used. Specialist harvesting machines are still being developed and adapted for this country.

Unless this crop is grown on a very large scale, these machines would be hired on contract.

Costs

The following costing information is general and current prices should be sought for budgeting purposes.

Capital Costs

Cost of cuttings (10,000+/ha @ 5-15p); Ground preparation and planting (£300-£500/ha).

Fencing (if required) - rabbit £1,80-£2.50/m; Deer £4,00-£6.00/m; Weed control £60.00-£100/ha.

It is quite possible to cover the cost of first year establishment within grant payments. Capital costs can be reduced in subsequent years by utilising cuttings supplied from existing planting.

Running Costs

Weed control in years 1 and 2 (£60-£100/ha); cutting back of crop in year 1 to encourage coppicing and higher yields. General management and maintenance (including replacement of failures).

Returns

No real information, this crop has only recently started to be grown commercially and no site is yet into production.

As yet, no-one has set a market price for woodchip as a fuel, although the Centre for Agricultural Strategy Unit at Reading has suggested gross margins of around £250/ha.

In addition, small local niche markets such as mulches may prove much higher returns.

Constraints

  • Lack of developed markets and marketing systems.
  • present uncertainty of best husbandry systems to use.
  • Crop flexibility is less than other arable crops. Takes 4 yeas to reach production stage.
  • Current competition from other fuel sources is fierce and without NFFO, crops may not be economically viable.

Training

The Energy Technology Support Unit (ETSU B156 Harwell Laboratory, Oxfordshire) holds various grower meetings and conferences.

Grants

Through the Scottish Rural Development Programme (SRDP) 2007-2013 funding is now available for rural businesses throughout Scotland for diversification and renewable energy projects.

Specifically, support is delivered through Rural Development Contracts – Rural Priorities which was launched in April 2008.

For further information about what support is available see the Section on Rural Development Contracts – Rural Priorities.

Further Information

Publications

ETSU leaflets, newsletters and research publications. Farm Development Review Vol 13, No. 4; Renewable energy: Government consultation paper.