FAIRER pricing for distillery grains has been pushed back up the political agenda, with ScotGov asking farmers, distillers and the bioenergy sector for information about the impacts that renewable heat subsidies had on the market.

In a letter inviting information, rural economy secretary Fergus Ewing and energy minister Paul Wheelhouse have stressed that distillery co-products are an important source of protein and fibre, but noted that the amount used in Scotland as livestock feed has decreased in recent years as prices have increased. Specifically, they ask if UK Government bioenergy incentive schemes have affected competition for these 'bio-resources'.

Replies received will feed into ScotGov's response to a UK-wide consultation on a successor for the Renewable Heat Incentive for biomethane producers. The RHI is due to close to new applicants at the end of March 2021 and the UK Government’s department for Business, Energy and Industrial Strategy (BEIS) is consulting on a successor 'Green Gas Support Scheme'.

"As such, we believe that now is a good time to consider what we might ask BEIS to do to ensure that the administration of this new scheme strikes the correct approach," said the letter. "This is important given the need to understand any impacts that competition for bio-resources has on those reliant upon them for bioenergy projects, or for alternative uses such as livestock feed, and, in addition, to best understand how to promote a fair market for bio-resources."

In July 2019, ScotGov published a study by Scotland’s Rural College which found that the total amount of distillery co-products used as animal feed in Scotland was around 60kt lower in 2019 compared to 2012. It was identified that this may have been attributable to the relative increase in the use of products for bioenergy, not least bionergy projects within distilleries themselves.

But this hinges on the classification of distillery co-products as a 'waste or 'residue' – as the current RHI regulations require that over 50% of the feedstock used in accredited schemes must come from such materials. If distillery co-products did not count towards that 'waste residue' feedstock requirement for accredited biomethane producers, the draff market could look very different.

"Scotland has a long and proud tradition of co-operation and collaboration across its rural economy," said Messrs Ewing and Wheelhouse. "The historic relationship between the Scotch Whisky sector and farmers is an asset which adds value and supports jobs across the country.

"As we work to address the joint challenge of the global climate emergency and rebuilding our economy, it is important now more than ever to ensure that our policies are fair, equitable and just."