I thank the committee for the invitation to appear before it. I will try to be brief in outlining the potential for wood energy in Ireland.
There is a question as to whether Ireland is facing an energy crisis because of the rising energy costs here. Does Ireland have an Achilles' heel in its development as a nation because of its dependency on outside energy? The country imports €7 billion worth of fossil fuels annually. The country is haemorrhaging billions of euro because of its addiction to fossil fuels. This is a non-renewable form of energy that is not very clean. With oil prices hitting record highs this week, wood energy is something that can replace these fossil fuels. Wood energy is a renewable and clean form of energy. A smoking ban has been introduced and it would be good to bring in a fossil fuel ban. That will be a long time in the future.
Wood energy initiatives are evident in Scandinavia. Denmark and Austria brought in wood energy development associations during the oil crisis in the 1970s. That kick-started the industry in those countries, which have a proven track record of best practice and price. Finland is currently producing 20% of its energy from wood. This will increase to 30% by 2010, five years from now. Ireland could follow best practice in Europe.
I will discuss the benefits of wood energy. Forests already exist in Ireland and a promotional forestry programme will add perhaps 500,000 hectares of forestry up to 2030. A good and established afforestation programme is already evident. Farmers want to diversify into forestry as an energy crop that is environmentally friendly.
When thinnings are extracted from forests, best practice is being followed for managing the crop, and value is being added. Crops can be pruned and shaped. The I-beam of the ceiling of the new security gates at Leinster House show the changes that can come about, with beams of timber being used instead of steel beams. Steel rose 60% in price last year in Ireland. Much energy is expended to produce it. Timber as a low energy crop can be used for manufacturing and for wood energy. It has a very low cost and is friendly to the environment. Producing timber leaves a small environmental footprint. Many positives exist with timber.
Ireland has the best growth rate of timber in Europe. I met an Irish man working for an Austrian forestry company who believed that Irish forestry has growth rates that can only be dreamed about in Austria. This is a national asset. The characteristics, strengths, know-how and technology exist in Ireland, but a more aggressive afforestation programme is needed. A strategy for wood energy is also needed.
On climate change, with the introduction of the Kyoto Protocol, everybody knows the fines that the country could face. Growing the country's own timber means there would be security of supply. A mosaic of farmed forest will exist throughout Ireland. Timber supply would be local and easily accessed by end users.
With regard to rural development, people would work in the forests, extracting and chipping the material. The farmers and communities can form producer groups. The end product is employment. If an oil tanker is brought in, a money is paid to the oil company and little employment or import substitution is created.
Farmers have a raw material to extract. The first or second thinnings are low value and can be transformed into wood energy. A market exists in Ireland and will persist as long as energy prices rise. I have a map detailing the different sawmills and processing plants in Ireland. An alternate market exists for small diameter timber. This will encourage better forest management. If a forest is opened and the first and second thinnings are extracted, good quality end product is then within reach. Many energy-producing areas in Ireland lack mills and incentives should be put in place for these. Timber should be used at source, either for wood energy or added value, rather than hauling it long distances. As much timber is being produced, huge potential exists for creating more jobs in rural Ireland with native material.
With regard to wood as an energy source, farm forestry can be used on a small scale in stoves, boilers, etc. A member of the IFA is currently installing a wood gasifier. He is harvesting his first thinnings, leaving them to sit on the edge of the wood to dry for a few months and he will then bring them in bulk into a boiler that works from gas and heat emissions. He intends to heat his new bed and breakfast premises and two other houses through this one system. The boiler is loaded once a week and is functioning well. The IFA has not visited the system yet but it intends to organise field trips to it. Wood energy will develop in this manner.
On the medium scale, much potential exists for Government buildings, schools, hotels and offices to be supplied with wood chip. On a large scale, combined heating power plants are ideally suited for sawmills. Residue can be used to dry timber and for combined heat and power. A possibility exists of including forestry material to burn alongside peat in peat power stations. Timber is a more environmentally friendly product than peat.
Tradition is one of the barriers to wood energy. Ireland's forest cover decreased at one point to 1% but is now up to 10%. The country has lost much tradition and culture regarding timber, but best practice abroad can be looked at. There are currently between 10,000 and 12,000 farm foresters in Ireland. Every year, groups of these farmers take study trips throughout Europe, paying their own way to study best practice in other countries. Farm foresters are willing to grow the industry and a belief exists in it.
More policy and structure is needed. Government policy has failed with regard to the amount spent on renewable energy. The country has high potential to use wind power and there are great growth rates for timber, but the percentage of energy use taken up by renewables is not good. On a scale of one to ten, the country would score very low. A more aggressive stance must be taken on wood energy. Bord na Móna could open its peat-burning stations for co-firing along with timber, providing a huge market for the product. Financial support is needed to start this for a few years. This has happened in Scandinavia and there is no reason it cannot happen here.
With regard to the use of renewable energy, some people in positions of power are slow to switch to this energy. I participated in the Donegal energy forum two years ago and although most of the people involved talked about renewable energy, there were not enough representatives from the main energy users, such as the ESB, the oil companies, etc. Representatives from these users should be included in discussion about a renewable wood energy policy for Ireland.
Clear targets need to be set for wood energy. Within the IFA, many members wish to diversify into forestry. A huge land bank is not being used productively. An aggressive afforestation programme must come about, as well as an aggressive wood energy programme. This would be a clean, green home-grown source of energy. Tax incentives or rebates are needed for domestic users. Capital grants are needed for medium scale installations such as hotels, guesthouses, hospitals, Government buildings, etc. As far as capital grants for harvesting are concerned, we need people who can convert our first or second thinnings into woodchip and who are able to supply the large co-firing plants.
I thank the members for their attention. We have strengths in this country which are not being harnessed sufficiently. As I stated earlier, we need an aggressive afforestation programme and a wood energy strategy. It must be put in place quickly and must be done on a planned basis. We know our forest output over the years. To date, our renewable record is not good.
