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(F) AGE recommendations 24. As with hydropower, but unlike most other Renewables, the present conventional use of existing wood and waste resources for fuel is largely without the help of subsidies. In some situations it is competitive with oil, in those rural areas where wood residues are available nearby and can be burned in small, decentralised plants; in other situations with oil and gas, in urban areas where the combustion of commercial and municipal wastes saves the costs of transport to and disposal in scarce landfill sites. As a result there is already a wide range of well-developed equipment available and a variety of supply chains in use. AGE sees little contribution which EU-wide R&D can make to increase this ‘conventional’ use, though manufacturers will doubtless continue to improve boilers, fuel/feed systems etc and should be encouraged in the usual ways, via tax relief on R & D etc. In particular, municipal waste burning will become more widely attractive when all the problems of flue-gas pollutants, heavy-metal wastes and boiler corrosion are clearly and reliably dealt with in commercial equipment. Projects demonstrating advanced technologies or supply chain concepts could accelerate progress down the learning curve. Also, gasification followed by combustion and/or a variety of co-firing options need to be demonstrated and evaluated. 25. An effective way to increase the use of wood or wastes would be to level the economic playing field, recognising the benefits of biomass energy to global warming by introducing across the EU a realistic carbon tax on fossil fuels burned without CO2 sequestration. This is already done in Denmark, where the basic cost of energy from natural gas is about 3.3 €/GJ compared with 4.6 €/GJ for wood chips, but taxes are used to increase the cost of gas to consumers to 10 €/GJ. 87PDF Image | Economic Perspectives of Renewable Energy Systems
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