Download - Anaerobic Digestion UK Market Status

NNFCC: The Bioeconomy Consultants

NNFCC

Lucy Hopwood

Head of Biomass & Biogas

Understanding the AD landscape: UK and

Europe

NNFCC

NNFCC: The Bioeconomy Consultants © NNFCC © NNFCC

Specialising in bioenergy, biofuels and bio-based products, with an

unparalleled knowledge of bio-based supply chains.

Consultancy

• Market, technical, policy & sustainability expertise

Advisory

• Strategic guidance and briefings, meeting support

Membership

• Standard & business membership packages

Introduction

NNFCC


UK Policy Context

“…to deliver a huge increase in energy from

waste through AD” “…3 – 5TWh by 2020”

© NNFCC

NNFCC

NNFCC: The Bioeconomy Consultants © NNFCC

Current Status

Non-waste:

29 operational plants

12MWe installed

capacity

63 planned plants

59MWe consented

capacity

Waste:

48 operational plants

67MWe installed

capacity

84 planned plants

149MWe consented

capacity

+ 146 water treatment plants

NNFCC


NNFCC


Landfill gas Sewage gas Other biogas

NNFCC


Biogas

Heat Only Power Only

CHP

Biomethane

Gas Grid Transport

Fuel

Biogas Use

NNFCC


Biomethane to Grid (BtG)

Combined Heat & Power (CHP)

Financial Incentives - Options

Feed-In-Tariff

Renewables Obligation

Renewable Heat Incentive

Generation Tariff

Export Tariff or Market Value

Biogas Combustion tariff (<200kWth)

Biomethane Injection

OR Renewables Obligation

Certificates (ROCs)

Market Value

Elec

tric

ity

Hea

t

OR

Market Value for Gas

Market Value

NNFCC


Feed-In-Tariff (FIT)

April 2010: Introduced

March 2011: Fast-Track Review

Sept 2011: Tariff increase

Feb 2012: Comprehensive review

Dec 2012: New tariffs apply

Apr 2014: Degression commences

0 - 500kWe @ 11.5p/kWh

500 – 5MWe @ 9 p/kWh

0 - 250kWe @ 14.7p/kWh

250 - 500kWe @ 13.6p/kWh

500 – 5MWe @ 9.9 p/kWh

0 - 250kWe @ 14.7p/kWh

250 - 500kWe @ 13.6p/kWh

500 – 5MWe @ 8.96 p/kWh

NNFCC


Impact of Feed-In-Tariff (2010 – 2012)

Source: Ofgem – Feed in Tariff Newsletter, June 2012

NNFCC


Renewables Obligation (RO)

April 2002: Introduced

April 2009: Banding Introduced

July 2012: Banding Review response

Sept 2012: Sustainability consultation

April 2014: EMR opens

March 2017: RO closes

April 2015: Degression commences

Anaerobic Digestion @ 2 ROCs/MWh

Anaerobic Digestion remains @ 2 ROCs/MWh

AD @ 0.1 ROC per year

Awaiting consultation on minimum scale

NNFCC


Renewable Heat Incentive (RHI)

Nov 2011: Introduced for non-domestic

March 2012: Heat Strategy

July 2012: Consultation cost control & sustainability

Sept 2012: Consultation on extension & domestic

Summer 2013: New tariffs enforced

Biogas combustion (<200kWth) and Biomethane Injection

@ 7.1p/kWh

Medium and large scale biogas combustion (proposed @ 5.9p and 2.2p/kWh)

2014 & 2017: Scheduled tariff reviews

NNFCC


Resource Availability

Food Waste ≈ 16 Mt/y

≈ 8.3 Mt/y household

≈ 6.3 Mt/y commercial & industrial

≈ 1.3 Mt/y food service & retail

Agricultural Waste ≈ 90 Mt/y

≈ 13 million cattle

≈ 33 million sheep

≈ 4 million pigs

≈ 166 million chickens

“…Government policy is to deliver an increase

in energy from waste through AD.”

“We recognise that at farm-scale, some

energy crops may be required…and that such

crops can be grown as part of the normal

agricultural rotation. Furthermore, there is

land available which is not suitable for the

production of food crops but which may,

therefore, be used to supply energy-crop only

AD plants.”

“It is not our policy…to encourage energy

crops-based AD, particularly where these are

grown to the exclusion of food producing

crops.”

“...NFU vision for AD…1,000 farm-based anaerobic digestion plants by

2020, alongside 100 - 200 larger waste-linked facilities…”

NNFCC


Biogas Potential

• c. 2billion m3 of biogas per year could be captured, equivalent to 12TWh;

• Estimated c. 1,050 plants

“...NFU vision for AD…1,000 farm-based

anaerobic digestion plants by 2020, alongside

100 - 200 larger waste-linked facilities…”

NNFCC


AD Potential – UK to 2030

Source: ARUP, 2011

=1.8TWh

=5.6TWh

=3.0TWh

“…AD could deliver between 3–5 TWh of electricity by 2020”

AD Strategy & Action Plan, 2011

NNFCC


AD Strategy & Action Plan

CREATION

DELIVERY

2. Confidence and

security

1. Feedstock &

technology 3. Education and

awareness

NNFCC


Official AD Information Portal:

www.biogas-info.co.uk

NNFCC


NNFCC Consultancy Services :

Future market analysis

Resource planning

Feedstock sustainability appraisal

Technology evaluation and due diligence

Project feasibility assessment

Business to business introductions

Investor to developer introductions

Policy and regulatory support

Contact details:

+44 (0) 1904 435182

[email protected]

www.nnfcc.co.uk

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Download - Anaerobic Digestion UK Market Status

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