1.1.1
Eco2 Limited (“Eco2”) is a
UK-owned business based in Cardiff. The company was set up in
November 2002 and has already enjoyed considerable success with
projects in a wide range of technologies from onshore wind,
landfill gas and biomass. Eco2 is also a shareholder in Tidal
Energy Ltd, a company that is developing a tidal energy
technology.
1.1.2
Our approach recognises the need to balance commercial issues with
the environmental benefits deriving from renewable energy
projects. This balance needs to be demonstrated at both
strategic and local levels. Eco2 works closely with all key
stakeholders, including local authorities, local community groups,
planners, environmental groups and government departments.
Eco2 always aims to engage with these stakeholders at a very early stage.
1.2
Renewables Experience
1.2.1
Eco2 is led by a team that already had an established track record
in the development, construction and operation of a broad range of
renewable technologies including onshore wind, biomass, landfill
gas, small scale hydro and marine. In particular the team has
extensive experience of biomass development with over 310MW of
biomass power projects throughout the world over the last fifteen
years.
1.2.2
When Eco2 was established in November 2002 its core focus was the
development onshore wind projects in the UK. Whilst the company did
have some significant success in developing onshore wind the
difficulty and unpredictable nature of obtaining planning consent
resulted in the company broadening its development activities into
other areas such as landfill gas and more recently biomass.
1.2.3
In 2006 Eco2 made the strategic decision to concentrate its efforts
mainly in the development of biomass projects. Eco2 is
currently developing a portfolio of 10 biomass plants, generally
straw or wood-fired. These projects are located mainly across the
UK and Spain.
1.2.4
Specific biomass experience includes:
(a)
Western Wood Energy Plant, 14MWe wood fired (see Section 3.1)
(b)
Sleaford Renewable Energy Plant, 40MWe straw fired (see Section
3.3)
Question:
What are the implications for Wales if responsibility for
consenting major onshore and offshore energy infrastructure
projects remains a matter that is reserved by the UK
Government?
2.1.1
It need not be the case that this is a disadvantage for Wales
because England and Scotland have a much higher success rate in the
planning process than decisions made in Wales. Renewables UK
statistics show that the average determination period in Wales is
over double that of England and Scotland and the success rate is
half. Eco2’s view is that this stems from an inefficient
consultative process and an inability to make objective decisions
at the end of it. Unless the fundamental reasons why Wales is poor
at making positive decisions in a timely manner is addressed there
is a danger that in transferring such decisions to the Welsh
Government that the success rate of major onshore and offshore
energy infrastructure projects will actually fall.
Question:
How does this affect achievement of the Welsh Government’s
aspirations for various forms of renewable and low carbon energy as
set out in the Energy Policy Statement?
2.2.1
Clearly decisions being made outside of Wales partially remove
Welsh Government’s ability to determine projects.
However, any objection from Welsh Government or the host local
authority would result in public inquiry in any event.
It could be an advantage that difficult decisions which
historically have been shown to be more difficult to make in Wales
continue to be made in Westminster.
Question:
How does this affect delivery of the Welsh Government’s
target for a 3% reduction in Green House Gas emissions per annum
from 2011?
2.3.1
Eco2’s view is that the Welsh Government is more likely to
achieve its Greenhouse Gas emissions target from 2011 with the
present system unless radical changes are made to the consultative
process in Wales.
Question:
What will be the impact if consenting decisions on major
infrastructure projects and associated development are not all
taken in accordance with Welsh planning policy?
2.4.1
Whereas there is a small chance that projects which would have been
rejected at Wales level will gain consent, there is a far higher
chance that projects which are desirable to the Welsh Government
will not get consented in a timely manner.
Question:
[What comments can be added regarding] the two petitions about
Welsh Government planning guidance as it relates to onshore wind
energy and the impact on local communities and infrastructure?
2.5.1
The situation regarding the two petitions was entirely predictable
and stems from a flawed sieving exercise in the establishment of
the Tan 8 areas. Too high a priority was given to forestry
areas and too little to grid and road infrastructure. Had the
original exercise taken into consideration these issues far more of
the Tan 8 areas would have been close to industrialised areas.
2.6.1
The one agency not mentioned is the Countryside Council for
Wales. Our experience is that they are very difficult to deal
with and inevitably end up in objecting to windfarm
applications.
3.1.1
As stated above when Eco2 was formed in 2002 the business strategy
was centred on onshore wind. Eco2 concentrated its efforts on
projects in Wales and Scotland on the basis that Eco2 had local
contacts in both countries, the prospects of receiving planning
permission in Scotland were very good and the Welsh Government were
just about to release its strategy to promote the development of
onshore wind in Wales.
3.1.2
Eco2’s Scottish onshore wind development experience is:
(a)
Dummuie
The Dummuie project
was the first project submitted for planning by Eco2. Although the
initial planning application was turned down at committee the
project was successful in obtaining permission following a written
representation inquiry with the Scottish Executive. The project was
awarded planning in September 2004; the whole planning process took
twelve months from original application. The project was built in
2005 and has been operating well.
(b)
Hatton
The project was
submitted for planning in November 2006 and was awarded planning in
July 2007. The first turbine was erected in November 2011 and is
now operating. Total time for determination 8 months.
(c)
Bogenlea
The project
planning application was submitted in May 2009 and was awarded at
committee in December 2009. The project construction will commence
this year. Total time for determination 7 months.
3.1.3
Eco2’s Welsh onshore wind development experience
is:
(a)
Betws
The project was
started in 2003 and after extensive consultation all associated
parties the planning application was formally submitted in May
2005. Following and extended planning process was awarded planning
permission by Carmarthen CBC in June 2007. Despite no objection
from CCW during the planning process CCW requested that the Welsh
Government call the in the project and this was done in October
2007. A two week public enquiry was held in September 08 and the
Inspectors report was provided to the Welsh Government in November
2008. The Welsh Government issued its formal decision was issued in
June 2009. Total time for determination 49 months.
(b)
Pendragon Fach
An application for
four turbines was submitted in July 2006. The project was
originally much bigger as the site resource is excellent and it was
expected that this area would be the TAN8 area for east Wales. The
smaller application was structured to comply with TAN8 policy. The
project was determined by Blaenau Gwent CBC in January 2009. The
project was recommended for approval by the planning officer but
was subsequently turned down at committee. A two week public
inquiry was held in April 2010 and the project was eventually
issued with a refusal notice in July 2010. Total time for
determination 48 months.
(c)
Glyncorrwg
The planning
application was submitted for this project in May 2007 and was
turned down at planning committee in December 2007. It was
Eco2’s intention to appeal this decision as the project was
situated in a Tan 8 area and it was felt that the planning issues
that resulted in the refusal could have been addressed. However,
the TAN8 tender process resulted in all Forestry Commission access
rights being controlled by the developer of Pen y Cymoedd project.
Eco2 has therefore been unable to secure and access agreement for
the Glyncorrwg project and it is not possible to justify the costs
of re-submission until these arrangements can be agreed.
(d)
Fochriw
This project was
approved by Caerphilly CBC within 11 months of submitting the
application. Eco2 is currently working on constructing this
project.
3.2
Western Wood Energy Plant
3.2.1
The Western Wood Energy Plant is Wales’ first commercial
scale biomass project and generates 14MWe by burning forestry wood
and clean wood processing residues in a state-of-the-art combustion
plant. The power station situated in Margam, South Wales is now
fully operational following a successful two year construction
period. With high load factors it is one of the best performing
biomass sites in the UK. It also took the honours in the category
of Sustainability at the LABC Building Excellence Awards
2009.
3.2.2
The plant is owned by Western Bioenergy Ltd. Good Energies (UK) LLP
is the principal shareholder and local company, the Western Log
Group owns the minority interest.
3.2.3
The Western Wood Energy Project was first envisaged by the Western
Log Group which has been involved in the timber industry for many
years.
3.2.4
Eco2 joined the project in 2004 as a joint venture partner,
bringing with it the expertise necessary to put together a suite of
construction and finance contracts. Eco2 now manages the fuel
logistics and administration at the site.
3.2.5
Good Energies (UK) LLP, a leading global investor in the renewable
energy and energy efficiency industries, provided the equity and
secured debt finance from the Bank of Tokyo Mitsubishi to allow the
construction to commence. The project’s renewable energy
credentials also allowed it to secure substantial grants from the
Welsh European Funding Office and the DTI Bioenergy Capital Grant
Scheme.
3.2.6
Construction commenced in October 2006 for the two year build
phase, the first electricity was generated in July 2008 and the
plant became fully operational and was handed over to Western
Bioenergy Ltd in November 2008. The plant is operated by the
Western Biomass Operating Company Ltd, a subsidiary of the build
consortium who won a five year operating concession in open
tender.
3.2.7
The Forestry Commission is the largest single fuel supplier to the
plant and is one of a number of companies who have entered into
long term supply agreements with Western Bioenergy Ltd. The
majority of the fuel is sourced from the Welsh forests and timber
industries.
3.2.8
The Plant is designed to only use clean wood as fuel; no
contaminated material (for example, treated or painted timber) is
accepted under the terms of the operating permit. By burning this
sustainable fuel, some 47,000 tonnes per year of carbon dioxide
from fossil fuel are avoided.
3.3.1
The Sleaford Renewable Energy Plant is a straw-fired power station
to be located in Lincolnshire, in the heart of the "bread basket"
of England.
3.3.2
The project was granted planning permission in November 2008 and
will generate 38MWe using proven, efficient technology specifically
designed for the clean combustion of straw.
3.3.3
In December 2011, Eco2 successfully sold the Sleaford project to
specialist investment fund BNP Paribas Clean Energy Partners, in a
landmark £170million deal.
