Progetto Fuoco: regulations and incentives for pellets

Tax allowances for energy re-qualification, future limits for emissions from production plants, pellet market situation in Italy. These were just some of the topics debated during the meeting organized by Progetto Fuoco (www.progettofuoco.com) – the biennial international exhibition of plants and materials for wood-fired heating – in cooperation with Aiel (the Italian association of agroforestry energy) and with the University of Trento. Over one hundred leading manufacturers of fireplaces, stoves, wood-fueled boilers and pellets took part to the meeting on new regulations, tax allowances and pellet market in view of the next edition of the exhibition (which will be held at Veronafiere next February 24-28).
The academic world invited stove and wood-fueled plant manufacturers to produce solutions with more advanced environmental friendly features, exceeding the standard levels required by European regulations. Paolo Baggio – professor of environmental technical physics at the department of civil and environmental engineering of the University of Trento – explained that Europe is going to adopt stricter and stricter regulations: “For this reason, although no emission limits exist for plants below 35 kW in Italy, corrective measures are likely to be adopted soon at European level”. Energy saving is causing the “death” of open fireplaces, because they have low thermal efficiency: in few years they will be no longer produced (as it already happens in Switzerland).
Annalisa Paniz, a cooperator of Aiel, took part to the event reminding that, in 2008 in Italy, 700 thousand tons of pellets were produced (70 percent in Veneto, Friuli and Lombardy). Production covers only 53 percent of domestic consumption, that is 1 million and 200 thousand tons, and this forces Italy to import pellets (especially from Austria). “Production expectations for 2009 are similar to last year, thus during the next winter we will have some problems in terms of supplies. In this scenario, there are also some national methane gas distributors who have understood the importance of this new growing market and are starting to make investments in the industry”. Italy is number one in Europe for pellet stoves with 740 thousand units in 2007, out of a total installation of 4 million and 400 thousand stoves and fireplaces, versus 15 million methane and oil boilers, 86 percent of which are old and highly polluting. Between 2007 and 2008, sales of pellet boilers (a few thousand in Italy today) increased by 60 percent, and that is why some national methane gas distributors decided to invest in the production of this special biomass.
The meeting held in Verona provided the opportunity to present also the manual “Wood and chips” published by Aiel for Progetto Fuoco. It is basically a technical support guide for the operators of the renewable energy industry, explaining how to organize production and business in general, reminding that even the best plant in the world would not work correctly if the biomass is not suitable or not controlled. For this reason, producers are asked to delivers biofuels with certain features, that match the requirements of the heating equipment for which they will be used.
Recalling that wood is the main renewable energy source in the world, Marino Berton, president of Aiel, focused on tax allowances for the installation of biomass heat generators. The Italian law relating to tax allowances of 55 percent for energy re-qualification is really not clear: it talks about generators, without specifying if this means boilers for big environments or also stoves, fireplaces, thermo-kitchen sets. Of course, continued Berton, allowances apply only to those who replace oil boilers with biomass boilers between 2009 and 2010 (engineer and labor costs included), provided that the yearly allowance does not exceed the total taxes paid.