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THE PARLIAMENTARY REVIEW Highlighting best practice 22 | TERRAVESTA As a perennial, Miscanthus produces consistent annual yields for low annual cost, which, with a long-term contract with upwards-only index-linked annual price reviews, provides stability that is almost unmatched in increasingly volatile agricultural commodity markets. It will not match incomes from high-yielding land in strong commodity price years, but in low price years it will probably be the most profitable enterprise on the farm, currently reliably capable of a net margin in excess of £500/ha. In 2006, William Cracroft-Eley planted Miscanthus on the worst 10% of my farm – high-risk land, expensive weed control. As a result, the actual crop output on the remaining arable land increased by around 12% (1 tonne/ha on wheat) due to timeliness and greater management focus – a practical example of sustainable intensification. Difference in total arable output was minimal, making this an opportunity for 'food and fuel' rather than 'food versus fuel'. Defining the product and delivering it Committing to an annual increase in feedstock price might seem a risky strategy, but without it who would commit their land for 10 years? Actually, it is a great fit with the end user requirement. Whether the project is small-scale district heat, a major power station or a cost-cutting local authority, certainty of fuel supply and price are essential for accurate budgeting, and raising and allocating funds. So what is the product? » Sustainable renewable energy – priced by the gigajoule (GJ) or kilowatt hour (KW h). » Sustainably sourced, sustainably priced, underwritten by long-term contracts. » Renewable – annual harvest cycle and 6-month growing season means CO 2 reabsorption within a year of burning, as well as carbon sequestration in soil. Product identification, promotion and delivery are areas where co-founder George Robinson's brand and supply-chain career experience are invaluable. What does this involve? Fundamentally, it is about ensuring that both the product and the service really work, are available in sufficient quantity, and are absolutely consistent in quality. Above all, delivering this involves the inclusion of all the parties as a single team, with open communication channels both ways to ensure that neither end is asking the impossible of the other in terms of sustainability, specification, quality or price. This combination creates a highly credible and attractive opportunity to attract new growers and end users alike. » A perennial energy crop. » A commercial crop lifespan of 12–20 years. » First harvest after the second or third year; annual harvest thereafter. » Harvested, naturally air dried and baled into 600 kg bales. » Crop 15-year average net margin £528/ha. » Field-to-pellet carbon 1.2 g CO 2 eq. C per MJ. » M I S C A N T H U S g CO 2 eq. C per MJ – the emission of greenhouse gas per megajoule of energy produced by burning a fuel, including carbon dioxide, nitrous oxide and methane, expressed as the weight of carbon dioxide in grams that would produce the same atmospheric greenhouse gas effect as the actual mixture of gasses emitted. TW h – terrawatt hours. 22 TW h = 22,000,000,000 kilowatt hours (KW h), enough to heat 1.33 million medium-sized homes. (Source: Ofgem) A mature Miscanthus crop will grow to over 3 metres every year without fertiliser