Scottish Coal Jobs Secured By Move into Renewables

Jun 09 - Scotsman, The

SCOTTISH Coal, the UK's second largest coal producer, is to diversify into renewable energy in a move which will protect hundreds of jobs and secure the long-term viability of the Alloa- based open-cast mining firm.

Although still producing over four million tonnes of coal a year from mines in Lanarkshire, Ayrshire and Fife, the firm plans to utilise its land assets with commercial developments of hydro, wind farm, waste recycling and biomass energy.

Since privatisation ten years ago, the firm, which now employs 950 staff, needed to adapt to survive. Producing "biomass" fuels, a hybrid of willow trees and coal, has led to its successful introduction at power stations across the country. With the environmental benefit of being "carbon neutral", willow also grows in harsh environments, has a harvesting cycle of three years and once planted, will continue to produce a crop for 25 years.

Dacre Purchase, Scottish Coal's development director, said it is hoping Scottish farmers will diversify and grow the crop. Grants are available, funded by the Forestry Commission, but so far the take- up has been slow.

Purchase said: "There are discrepancies because in England and Wales the energy crops grant scheme can pay GBP 1,600 a hectare but in Scotland you only get GBP 600. I'm encouraged that the Executive and the Forestry Commission are trying to find a solution but it is prejudicing Scotland's ability to drive forward the biomass agenda."

Last year, Scottish Coal planted over 1.5 million willow trees at nurseries in Midlothian, Fife and East Ayrshire.

Under European renewable energy obligations, energy producers are required to create 18 per cent of their electricity from renewable sources by 2010. By late 2006, combi-fuel must be made up of at least 75 per cent biomass to qualify as a renewable energy source.

Purchase added: "We need to compete and the excitement around the renewable energy agenda means our business, with our investment already in place for state of the art equipment, is well placed to deliver the required levels. Biomass products, unlike solar, windfarm or tidal energy, does not rely on mother nature to work. Willow is an essential part of Scotland's effort to develop a market for renewable fuels, and will create thousands of jobs as well as benefiting the environment."

The firm is also pursuing small-scale hydroelectric schemes and is awaiting planning approval for a wind farm in South Lanarkshire.

Purchase added: "Scotland has several years' worth of coal reserves, but we're conscious that this is a finite resource, which will decline as renewables such as willow and wind power become more established."