Irish renewable company, Biotricity Ltd. signed a memorandum of understanding with the Irish Farmers’ Association covering the purchase and management of straw feedstock for its Rhode, Co. Offaly biomass plant in the Irish midlands which is scheduled to come into production from late 2015.
The agreement covers the feedstock requirements for the company’s first renewable biomass energy plant, which will consume nearly 100,000 tons of straw per year delivering about $9.35 million in revenue to its farmer suppliers and reducing Ireland’s carbon emissions by nearly 85,000 tons of carbon per year.
The agreement includes a framework pricing agreement for straw ‘on the ledge’ which sets a base price of about $40 per ton with bonuses for reduced moisture level. Biotricity will commence initial purchases of straw during 2014 for plant testing and commissioning purposes with full purchasing commencing in 2015.
Construction at Biotricity’s 16 MW Rhode plant will commence towards the end of the First Quarter of 2014 with plant testing and commissioning towards the end of 2015. Full-scale generation will start in 2016. At the peak of construction, 200 jobs will be created with 44 jobs continuing during operations plus an additional 19 jobs in logistical support with over 80 percent of the capital spend going to Irish engineering companies.
Rhode has qualified for the Renewable Feed In Tariff (REFIT) 3 program that provides a government backed 15-year renewable electricity supply contract.