Biomass Insurance

What is it?
Biomass is a term for materials that originated from recently living/living organisms; things such as animal manure, plants, egg shells. The main materials that produce biomass are in four different categories: trees, energy crops, agriculture and waste and residues. These are renewable products as plants can be replanted and produced again and well, no one misses waste. Even landfill sites can produce Biomass gases which can be used. Biomass energy can be converted via combustion (heat) or it can be converted into biofuel as a liquid or gas.

What are the benefits of biomass?
In terms of both installation and running costs, biomass has the lowest capital cost of all renewable energy technologies. Wood fuel is also can make a significant contribution to meeting the UK’s commitment to reducing CO2 emissions, as it a carbon neutral source.

The biomass production in the simplest of terms:

Collected > Produced > Converted >Used

The Government Published the UK Biomass Strategy in 2007 to promote the use of biomass energy and to enhance all other renewable energy policies that were already in play.

The government and various green organisations for biomass and renewable energy are providing funding and incentives to promote the use of renewable energy.

The Climate Change Levy is a tax on the use of energy in industry, commerce and the public sector. It was put in place as an incentive to use renewable energy to generate electricity. As electricity produced by renewable energy and quality CHP schemes (combined heat and power schemes- usually gas/steam turbines) are exempt.

Feed-in tariffs are an incentive to encourage the use of renewable electricity technologies. This is where through the FITs scheme you could get paid by your energy supplier if you decide to install a piece of technology that generates electricity with renewable or low-carbon sources.

So what are the insurance requirements for companies operating in the biomass sector?
Dependent on whether you are a manufacturer &/or installer of biomass plant or just an operator of biomass plant insurance falls in the following categories:-

Manufacturers of biomass plant or producers of bio char will require product liability insurance.

Installers and operators of biomass plant require insurance to cover damage and breakdown of the plant which can be extended to include of income. Public liability insurance is required for biomass plant should a member of the public suffer injury or property damage during installation or operation.

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