SME4Labour, and Melton Renewable Energy Fringe Event: How can sustainable biomass play a role in achieving clean power by 2030?

Panel Highlights and Key Topics

1. Introduction and Biomass Sector Overview:
   • Mark Sewards MP welcomed the panel and audience, setting the stage for a discussion on the future of biomass energy in the UK. The event was supported by Melton Renewable Energy, a company operating the largest biomass-only fuel power stations in the UK, with a capacity of 111 MW of baseload energy.
   • Biomass power generation is currently supported under the Renewable Obligation Certificate (ROC) scheme, which will expire in 2027, creating uncertainty for biomass producers who need long-term policy commitments to continue operations.
2. The Role of Biomass in Rural and Regional Economies:
   • Perran Moon, representing a constituency in Cornwall, emphasized the importance of biomass for rural diversification and economic stability. Cornwall's geography and agricultural sector make it an ideal location for renewable energy diversification, including biomass operations.
   • The local farming community supports biomass as a way to efficiently utilize agricultural waste and diversify energy production, contributing to regional economic resilience.
3. Challenges Facing Biomass Industry Due to Policy Gaps:
   • Eddie Wilkinson, CEO of Melton, provided a detailed account of the challenges faced by biomass producers. Melton produces approximately 780 GWh annually, enough to power a city the size of Liverpool. The company primarily uses sustainable biomass waste products, like poultry litter and straw, rather than felling trees for energy production.
   • Wilkinson warned that the expiration of ROC in 2027 could force the company to cease operations as they would no longer be financially viable without continued support. He emphasized the urgency for policy action, as long-term planning is essential for securing fuel contracts and maintaining operations.
4. Impact on Clean Power Goals and Energy Mix:
   • Both Wilkinson and Noah Law MP discussed the importance of biomass as part of the UK's energy mix. Biomass contributes to baseload power, ensuring energy supply even when solar or wind power is unavailable. They stressed that losing biomass generation capacity would hinder efforts to meet clean power goals by 2030, as gas currently provides a large share of baseload power, which is counter to net-zero targets.
   • Wilkinson highlighted that without sustainable biomass, the gap would need to be filled by other sources like wind, solar, or imports, which could be intermittent and place additional strain on the energy grid.
5. Sustainable Biomass and Environmental Benefits:
   • The panelists underscored the sustainability of biomass energy, emphasizing that it uses agricultural waste materials, which would otherwise lead to environmental issues like uncontrolled land spreading and nitrogen runoff. Wilkinson mentioned that their operations prevent environmental hazards and align with waste management and pollution control.
   • The sector also contributes to reducing greenhouse gas emissions, with potential to go beyond net-zero by utilizing carbon capture technologies in the future.
6. Importance of Policy Support and the Urgency of Action:
   • Wilkinson advocated for transitional support beyond 2027 to prevent loss of jobs, skills, and generation capacity. The workforce at Melton faces uncertainty, and if no policy change is made, critical expertise in biomass energy production could be lost.
   • The ideal timeline for policy renewal would have been 6-12 months prior to the event, considering the lead time required to maintain supply contracts and plan operations.
7. The Role of Biomass in Supporting Net Zero and Grid Stability:
   • Noah Law MP emphasized biomass’s critical role in providing baseload energy, especially to balance the intermittent nature of renewables like wind and solar. He also noted the circular economy opportunities of using byproducts like phosphate fertilizers, which contribute to sustainable agriculture and reduce the need for imports.
   • The MP mentioned that the current demand on the grid and the challenges of meeting the 2030 targets require immediate action to ensure stability and capacity.
8. Q&A and Audience Engagement:
   • Questions from the audience included concerns about biomass licenses, alternative revenue streams if ROCs were not renewed, and the environmental impact of biomass on air quality and carbon emissions.
   • Wilkinson explained that without ROC support, options like the capacity market and other regulatory schemes were explored but were insufficient to bridge the financial gap.
   • Air quality was addressed, with Wilkinson clarifying that Melton’s biomass facilities operate under strict environmental permits, meeting all regulatory standards for emissions, and are committed to continuous improvement.
9. Government's Role and Future Steps:
   • There was a call for the government to actively support the biomass sector as part of the renewable energy mix, given its role in energy security, job creation, and net-zero targets.
   • Noah Law MP suggested that beyond ROCs, there should be a focus on longer-term policy frameworks, including support for carbon capture and storage technologies, to ensure a smooth transition towards a sustainable energy system.

Conclusion The discussion emphasized the critical role of biomass in the UK's renewable energy landscape, highlighting its contribution to baseload power, environmental benefits, and job creation. The panelists called for urgent policy intervention to address the expiration of the ROC scheme in 2027 and to ensure the continued viability of biomass energy. The transition to net zero and the stability of the energy grid are at stake, requiring a collaborative effort between government, industry, and local communities to sustain and grow the sector.

Key Takeaways:

• Biomass energy is an essential part of the UK's clean energy mix, providing baseload power and supporting rural economies.
• The expiration of the ROC scheme in 2027 poses a major risk to biomass producers, and policy action is urgently needed to provide transitional support.
• A sustainable approach to biomass, including carbon capture, can help meet net-zero goals while managing environmental impacts and ensuring grid stability.