Energy crop specialist Terravesta has launched a unique scheme to encourage UK farmers to grow their own biomass. Officially launched at the Great Yorkshire Show, the Grower Fuel Loop (GFL) offers guaranteed returns and secure heat prices for the next 10 years.
GFL is designed to allow miscanthus growers to meet their own on-farm heat requirements sustainably and cost-effectively by burning the energy crop in pellet form. Through the GFL, any farmer with a Terravesta growing contract can buy back miscanthus as heat from up to 50 per cent of their planted area. These 6mm, 100 per cent miscanthus pellets, with a net calorific value of 4,444kWh/t, are supplied at a heavily discounted price on a separate energy supply contract, and can be burned on site using a biomass boiler.
Miscanthus grower and Terravesta chairman, William Cracroft-Eley, said that as a farmer himself, he’d used his own experience of successfully growing miscanthus and burning it on site to develop the Grower Fuel Loop.
“The scheme gives UK farmers an unprecedented opportunity to profit not only from the best-ever returns of growing miscanthus, but to reap the benefits of a truly homegrown, future-proof heat source,” he said. “In a volatile energy market with soaring prices, farmers with substantial heat requirements – be these on-farm, domestic or for a separate commercial enterprise – are under increasing pressure. Sourcing miscanthus pellets through the GFL provides them with a reliable, sustainable and cost-effective alternative to oil and solid fuel – all through a long-term, index-linked energy supply contract.
“This means contracted growers can rest assured that their biomass supply is backed by fixed pricing and real energy security for a whole decade.”
By providing two separate 10-year, RPI-linked contracts, Terravesta offers farmers lasting confidence and guaranteed returns. With miscanthus prices at an all-time high, not only do they benefit from the clear pricing and lucrative profits of a growing contract, they can also rely on a stable, long-term heat tariff through their energy supply contract.
The GFL is available from the first day of planting, meaning farmers can enjoy the financial savings of using a sustainable, home-grown energy source straight away. Incorporating biomass into their energy mix means growers could also be rewarded for reducing their carbon footprint through payments under the government’s Renewable Heat Incentive.
“As we move towards a more sustainable future for farming and for the UK in general, miscanthus is set to play a huge role – and the GFL has been developed to help farmers make the most of the enormous opportunity,” Mr Cracroft-Eley added. “It’s part of Terravesta’s commitment to pioneering Miscanthus as the UK’s home-grown sustainable heat resource: locally grown and locally burnt.
“Across the UK there’s potential for a massive 350,000ha of suitable planting land, which would produce about five million tonnes of miscanthus. A yield of this size could generate enough sustainable energy to meet 24 per cent of the heat demand currently being fulfilled using oil and solid fuel in the UK, all at no detriment to food supply. The launch of the GFL gives farmers an even stronger reason to make the most of homegrown heat – today and in the years to come.”
For more information visit: www.terravesta.com.
