The poor 2013 peat harvest was unprecedented in the history of Bord na Móna. Due to extreme summer rainfall the harvest outturn was only 37% of the annual target. This severely impacted the stock position and challenged our supply chain to meet customer supply demands, particularly over the winter months.
The business faces significant future challenges as a result of a number of key market drivers – the ending of the peat fuel supply agreements with power station customers, the Public Service Obligation (PSO) peat support mechanism and the priority dispatch status of the three peat fired power stations. There is the added challenge of the potential impact of carbon tax on briquette sales and peat dilution on retail growing media. Feedstock will be required to transform the business to a lower cost flexible operating model in order to ensure a sustainable future.
Biomass Supply Chain/Peat Dilution
In order to fulfil its peat dilution and co-firing strategy and to support our vision ‘A Contract with Nature’, it is essential that Feedstock creates strategic alliances to establish supply chains of indigenous and imported biomass products, at the right quality and price.