Nuclear power 'facing costs burn-out'
NUCLEAR power will probably be uncompetitive in the long run, as alternative technologies become cheaper and the costs of security and nuclear waste disposal rise.
Stefan Edman, who headed a Swedish government commission on reducing oil dependence, said in Dublin that conservation, along with fuels made from trees, plants and waste, holds the key to reducing consumption of oil and gas.
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"There is scope for growing sugar, rapeseed and hemp for bio-fuels, especially with so much land being set aside under EU rules. There is already a grant of €45 per hectare but more financial support is needed," Mr Edman said.
He told a meeting of the Institute of European Affairs that Sweden has a target of increasing energy efficiency by 20pc over the next 14 years. Only a third of Sweden's energy comes from oil, compared with 60pc in Ireland, but the government wants to reduce that further.
Energy costs and rate rises rattle consumers
HIGHER energy costs and interest rates were blamed for knocking back consumer confidence during August, as consumers took a more cautious approach to spending.
The results of the IIB Bank/ESRI Consumer Sentiment Index reveal a sharp decline between July, when the index stood at 90.9 and August, when it fell to 84.8.
"The weakening in consumer sentiment is not surprising in the light of increases in borrowing costs and oil prices seen during early August," said IIB Bank economist Austin Hughes.
Biomass is only an economic proposition if . . .
UNLESS the environmental benefits of biomass are taken into account in the price paid to farmers, production of biomass crops is not an economic proposition, Professor Jimmy Burke of Teagasc told the ASA conference.
Grant-aid to help defray the substantial costs involved in establishing a crop of willow or miscanthus was also essential if these crops were to become financially viable.
"At present, with no establishment grants or environmental price premium, a crop of miscanthus or willow will leave an annual loss to the grower of €200/ha after six years. After 15 years, the crop will be generating a profit of just €100/ha (€40/ac). Financial support in establishing the crop as well as a price that reflects the environmental benefits would radically change the economics and interest among farmers in growing biomass," said Professor Burke.
Grants 'too small' for energy crops
MINISTER for Agriculture Mary Coughlan has admitted that the current rate of grant aid of €45/ha is not an adequate incentive to encourage farmers to grow energy crops.
"I have called on the EU Commission some time ago to review the premium and a review is under way. We need to send encouraging signals to farmers if we are really serious about developing this sector," she said.
Producing energy crops was still a relatively new field in Ireland and market forces on their own would not be enough to drive the market.
"What is needed in my opinion are fiscal incentives to kick-start the industry," she said.
Brazil has the edge on EU in production of bio-fuel
A LEADING international expert told the conference that bio-fuel production is impossible in many developed countries without significant government support.
Dr Martin von Lampe of the OECD in Paris said countries such as Brazil had huge cost advantages in the production of bio-fuels from crops such as oilseed rape, sugar beet or cereals compared to the EU. At present, bio-fuels accounted for around 1pc of transport fuel needs in the EU; in Brazil, the figure was well over 20pc.
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"In the EU, it would take around 45pc of total land area to produce a 10pc share of transport fuel in bio-fuel. In Brazil, it would take a mere 3pc of land area to produce a 10pc share in bio-fuel," he said.
Dr Von Lampe said the future lay in advanced bio-fuel crops that had higher yields and lower production costs. Using cellulose-based products and other biomass materials would also be necessary.



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