Irish renewable company, Biotricity Ltd, has signed a Memorandum of Understanding (MOU) 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 MOU was signed by IFA President, John Bryan, and Biotricity Operations Director, Briain Smyth, and covers the feedstock requirements for Ireland's first renewable biomass electricity plant which will consume just over 90,000 tonnes of straw per annum delivering approximately €7 million/$9.35 million in revenue to its farmer suppliers and reducing Ireland's carbon emissions by circa 77,000 tonnes of carbon per annum.

The MOU includes a framework pricing agreement for straw 'on the ledge' which sets a base price of €30/$40 per tonne with bonuses for reduced moisture level plus a €2/$2.7 per tonne straw conditioning bonus for material conditioned by the supplier combined with a guaranteed index linked upward only price review every year. Biotricity will commence initial purchases of straw during 2014 for plant testing and commissioning purposes with full purchasing commencing in 2015.

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Commenting, IFA President, John Bryan, said: "The linkages between farming and the production of renewable energy are becoming clearer and include opportunities for farmers to develop sustainable business relationships with the energy sector that provide incomes for farmers plus energy security and low carbon power for Ireland. Biotricity has been to the forefront in developing these relationships and working with farmers to secure the type and quantity of feedstock they need for their Biotricity Rhode biomass plant. IFA sees this as a model for closer co-operation in how we use land to simultaneously grow food and generate renewable energy from crop residues thus boosting farm incomes and benefiting wider society."

Biotricity CEO, Declan Kennedy, added: "This is an Irish success story. 80% of the project cost will be paid out to Irish engineering companies, with approximately €14 million/$18million per annum going into the local economy to include salaries (€2 million/$2.7million), straw (€7 million/$9.35million) and other solid biofuels for drying (€5 million/$6.7million)."

(CD/MH)