Heating Oil Prices Lincolnshire - PowerPoint

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					                   Dr. Jonathan Scurlock, National Farmers’ Union


        Can we reduce our arable carbon
        footprint and market the benefit?
                                           JVFG Conference
                                                5 February 2008




1   The NFU champions British farming, and provides professional representation and services to its farmer and grower members
      Energy security, food and climate change

    • Climate change - are you getting tired
          of never-ending media coverage?
          Was it 2006 or 2007, or do we face
          an entire “decade of climate change”?
    • Oil prices and energy security:
           1981 and all that
    • Rising food prices (at last!)
          due to worldwide structural
          change, globalisation and
          new markets (biofuels)
    • Climate change, energy and food security
          are all driving policy at international,
                        national and regional level
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                 Why this is important for farmers

    • climate change is driving policy on reducing GHG
      emissions at international, national, regional level
    • challenging EU and UK targets for renewable energy –
      for electricity, transport fuels (but not yet for heating)
                                                                                                            Agriculture

    • agriculture is part of the solution to a
          public problem – CC Task Force
                                                                                                                                 Energy industries




    • private sector may also become
          an important driver – demand
          for “low-carbon” food and
          other products

                                                                                                                                      Manufacturing
                                                                                                                                      and construction

                                                                                                                          Transport




3     The NFU champions British farming, and provides professional representation and services to its farmer and grower members
               Climate Change Task Force

    • joint NFU / CLA / AIC activity on climate change
    • science-based report launched Dec 07, setting out what
      farmers and growers can do (and are already doing) to
      combat climate change
    • demonstrate responsibility within agricultural sector,
      anticipate future needs, promote change
    • high uncertainties surround estimates of GHG
      emissions from agriculture – improvements need to be
      measurable, without pollution swapping or export
    • emerging recommendations include nutrient
      management, feed changes to livestock productivity,
      sustainable energy – continue existing trends

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      How should farmers respond to this?

    ADAPT - water storage (winter reservoirs), flood
     management, animal weather shelter
    MITIGATE – Step 1: keep energy records, reduce input
     costs and GHG emissions through energy efficiency
    • Step 2: on-site renewable energy – what technology fits
      your farm?
    • Step 3: consider supplying renewable energy services
      to others
    Soil carbon management? - minimum/conservation tillage
     not yet proven to reduce GHG emissions overall


5
    Energy use in UK agriculture (HRI/FEC, 2007)

    • mostly electricity and petroleum (>1/3 each of delivered energy –
      HRI/FEC suggests even higher oil use)
    • modest CO2 emissions (0.72% of total) compared to other sectors
      and food chain as a whole
    • heating (40%), field ops (30%), ventilation (15%) are largest energy
      uses
    • ag buildings insulation (esp hort) and biomass have greatest
      potential for reducing energy/CO2 emissions
    • renewables only 0.1% but potential for zero carbon – or even
      carbon negative!
    • Renewable energy within the supply chain can offset agriculture’s
      non-CO2 emissions
    • NFU aspiration “every farmer should have the opportunity to
      diversify by exporting energy services”

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           Greenhouse gas basket of mixed fruit




                                                      CO2               CH4                       N2O
                     -CO2




    • agricultural GHG emissions are dominated by non-energy use
    • the fruit in the basket are fundamentally different types
    • we need to lighten the basket with some “negative blackcurrants”



7    The NFU champions British farming, and provides professional representation and services to its farmer and grower members
                                        Opportunities for low-carbon agricultural products
                                         (e.g. litre of milk, kg of chicken). IGD working
                                         group, BSI/Carbon Trust PAS 2050 standard
        40 kW on-site   340 kW    300 kW export

                                                                                       Ecotricity,
    on-site processing       AD                                                        Good Energy




                                                                          transport
        N fertiliser

                                                                   dairy/abattoir/cutting plant


                        concentrates


                                           GHG from fertiliser and field ops.
                                                                                      supermarket



    Carbon / GHG footprinting (dairy/beef)
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                       arable farming for food, feed or biofuels


                                                                        supermarket
                           land use change / soil C?   biofuel
                                                                 food distribution
     GHG from fertilisers/other inputs

                                                       processing / baking, etc.
               GHG from field
               operations
               (fuel use)                                   transport



            GHG from crop drying
                                                                           feed




    GHG footprinting (arable farm)
9
                            Product branding




             Stonegate / Asda test marketing of low-carbon eggs from Lincolnshire
         (50% reduction claimed, fed on locally-milled wheat, wind and solar power, etc.)



     From Chris Brown, Asda – in stores Summer 2007
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     Perennial energy crops – a new sub-sector

     • SRC willow (harvested every three years) and
       miscanthus (harvested annually)
     • Solid biomass fuel, together with environmental
       services (high biodiversity, low inputs, low run-off)
     • However - loss of flexibility in marketing, cannot be
       diverted back to food uses like food-based feedstocks




            Short rotation coppice willow   Miscanthus

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       Small-scale biofuel production

     • HM Revenue and Customs – simplification of regulations from
       Summer 2007, allow 2500 litres/year without registration or
       payment of fuel excise duty (EA allows 5000 litres without PPC)




       home-made biodiesel processor      commercial processor     small oil press
     2500 litres/year is the fuel consumption of one small commercial vehicle doing 11000
        miles at 20 mpg - or one or more diesel cars totalling 25,000 miles at 45 mpg
     e.g. www.vegoilservices.co.uk (Yorks.)   www.greendragonfuel.co.uk (Notts.)



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     Farm-based business examples (biofuels)




 www.greendragonfuel.co.uk (Notts.)
 www.oilseedpress.co.uk (Northumberland)
 www.vegoilservices.co.uk (Yorkshire)




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        Is this
        Easy?
     Commercial or non-
       commercial production?
     SVO or biodiesel?
     Vehicle compatibility?
     High-pressure common-
        rail? Often determined
        by injector pumps and
        injector system
        configuration
     Fendt, Deutz-Fahr (also
       Same, Lamborghini and
       Hurlimann with Deutz
       engines) – all OK
     For road vehicles only or
        low-carbon field
        operations as well?




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       Conclusions – the low-carbon economy

     • Farmers can make a significant contribution to energy supply,
       climate change mitigation and sustainable development
     • Agriculture represents many substantial natural energy resources
     • Government policy and consumer pressure  those who invest
       now will be rewarded – with stable energy costs and added value in
       a marketplace that increasingly demands low-carbon products
                              Dr Jonathan Scurlock
                              Chief Policy Adviser, Renewable
                               Energy and Climate Change
                               National Farmers’ Union
                                 Stoneleigh Park
                                 Warwicks CV8 2TZ
                              jonathan.scurlock@nfu.org.uk




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