Bord na Móna - Source Issue 8 - (Page 16)
Change
Feedstock has created a Future business model called a “Vision For 2030”. in order to achieVe this Vision, Fundamental change is necessary
is afoot
F
eedstock is a key part of the bord na móna group of business units. it supplies peat and biomass materials for electricity generation in the company-owned power station at edenderry and to the esb power stations at West offaly Power (WoP) and lough ree Power (lrP). its key internal customers receive peat for briquette manufacture, growing media and peat filtration for clean water products. Feedstock’s peat markets are facing severe threats. in the electricity market, the Public service obligation (Pso) peat support subsidy is due to expire for edenderry in 2015 and at WoP and lrP in 2019. “this Pso support is currently under review by the government and there is no guarantee it will be left in place until those dates. this could lead to significant and immediate reduction in the price of peat for electricity production,” said Paul riordan, head of Feedstock.currently, the three peat-fired power stations get running priority over cheaper, cleaner gas stations. this “must run” status also expires in 2015/2019 but there is significant industry and consumer pressure to remove that status before then. if so, the peat stations would only run at times when the price of electricity from them was less than competing stations in the all ireland market. Furthermore, the loss in 2013 to the power plants of the free carbon emission allowances will increase the cost of electricity from peat, adding to the pressure to reduce peat prices or eliminate peat from the fuel mix. in the briquettes business, because of increasing competition from private turf and other cheaper fuels, it has been necessary to reduce the supply price of peat. this trend is expected to continue with the reduction in carbon emission allowances and the introduction of carbon tax increasing the pressure on sales of briquettes. in the growing media/horticultural business, increasing competition from low-cost irish and foreign peat suppliers, peat dilution requirements in the uk and increasing freight transport costs have also led to a reduction in the supply price of peat from Feedstock. the Feedstock business Vision for 2030 is to innovate and change across all operational areas
feedstoCk in figures
• Peat production and transport 3,900kt • biomass supply 160kt • turnover €126m • Peak employment
1,200
16 | Source Winter 2011
Table of Contents for the Digital Edition of Bord na Móna - Source Issue 8
Bord na Móna - Source Issue 8
Table of Contents
Business Round-up
King of the Bogs
New Divisions
Going Digital
Water, Water Everywhere
Focused Growth
Change is Afoot
Cool Running
Project Update
Heritage Corner
Nationwide
Bord na Móna - Source Issue 8
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