organics capital grant programme vi advice and guidance workshop – scotland claire kneller louise...
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Organics Capital Grant Programme VI
Advice and Guidance Workshop – Scotland
Claire KnellerLouise McGregor
AgendaWelcome & introduction Louise McGregor
Supply & Scotland Programme Manager
WRAP Organics Programme Louise McGregor - aims & objectives
WRAP Grant Funding Process Claire Kneller Project Manager -
Organics
How to apply Louise McGregor & Claire Kneller
Questions
Lunch at 12.30
Confidential One-to-One sessions (1pm onwards)
Welcome & Introduction
Louise McGregorSupply & Scotland Programme Manager - Organics
WRAP and WRAP Scotland
WRAP helps individuals, businesses and local authorities to reduce waste and recycle more, make better use of resources and to tackle climate change
WRAP Scotland has been created to support the Zero Waste agenda of the Scottish Government, in three priority areas:• Landfill diversion• Carbon reduction• Economic impact
WRAP Organics Programme
Louise McGregorSupply & Scotland Programme Manager - Organics
Organics Programme – PurposeFood waste is the main source of BMW remaining in residual waste and a significant component of the C&I waste.
Minimisation, collection & diversion into compost or digestate are key themes, to help meet the 2010 and 2013 Landfill Directive targets.
The Organics Programme aims to make a significant contribution to this by:
Increasing the capacity for composting and anaerobic digestion of source-segregated food-included organic waste (particularly municipal);
Growing demand for quality compost (BSI PAS100) and AD outputs (proposed BSI PAS110) in existing markets; and
Opening new markets.
Organics Programme - Proposed business plan targets for Scotland
Ensure an additional 125,000 tonnes annual processing capacity for source-segregated food-included organic waste is operational by March 2011
Increase the sales of compost or the outputs from AD into the added value markets of agriculture, field horticulture, landscaping and brownfield site regeneration by 50,000 tonnes annually
Scottish Capital Grant Activities to date 12 projects supported
Facility types:– 2 new windrow facilities – 5 new or extensions to in-vessel facilities – 4 extensions to existing windrow facilities– 1 involved with blending compost into top
dressings
Total WRAP investment = £2.7M
Total programme investment = £11M
Overall approximately 162,000 tonnes additional treatment capacity
Grant funding process
Claire KnellerProject Manager - Organics
Why may we use grant funding?
Strategic interventions not on-going subsidy or ad hoc
Consultation with governments and stakeholders
When a specific need in a particular sector is identified.Some past examples:– need to increase UK composting capacity– Need to develop alternative markets for UK glass– Need to encourage adoption of innovative
technology in plastics
How do we award capital grant funding? Governed by rules on policy and State Aid
Always through an open competition
Awards are made against well defined evaluation criteria for applications
Applications are assessed by a panel which includes external, independent individuals with expertise in relevant areas
Formal contract put in place to manage delivery
Capital Grants - Process Launch competition – trade press, WRAP website,
trade association
Application packs to clarify exactly what is required of projects
12 weeks to prepare written proposal
Advice available from Organics Capital Grants team
Competition closes
Set assessment period – rigorously assessed by a panel
Capital Grants – Process (2) Proposals which best meet the criteria to deliver
WRAP’s objectives for the individual competition are proposed as preferred bidders
Finite budgets – select the best relative projects
Inform all applicants & offer feedback on proposals
Formal contract in place
Project monitor appointed
Payments made against agreed milestones & in line with project spend profile
Guarantor
– All funding contracts require a guarantor– Guarantor signs contract with recipient
– Needed to safeguard public money– Indemnity for the value of WRAP support over
construction and 5 years of operation
– Options, (in order of preference):– Parent or Holding Company– Bank bond– First charge of assets– Personal
Other Issues WRAP reserves the right to not assess any applicant
who fails to meet published scope of competition
EU funding limits can have an impact on percentage of support provided – up to 30% of eligible costs– Implications for double ROCs under consideration
by Scottish Government
Will try and support other good projects through other forms of Business Support
Organics capital timeline
Launch
4 Apr 08
Deadline
13.30 30th Jun 08
Panel assessment
Environmental, H&S and financial assessment
Inform applicants
1 Aug 08
Draft contracts
On site Environmental Audit
Contracts signed
1 Mar 09
Project build
????????
FACILITY COMMISSIONED
By 31 December 2010
12 Wks
4 Wks
Organics Capital Grant Requirements
Louise McGregorSupply & Scotland Programme Manager – Organics
Organics Capital Grants
Aims and scope
Priorities and exclusions
Requirements
Evaluation criteria
Capital Grant ProgrammeAims: Increase the annual processing capacity for source-
segregated food-included organic waste and manufacture added value products
Target: 125,000 tonnes new and sustained processing capacity capable of processing food waste into a product
Programme Scope: Approx £6M in Scotland (a separate programme for England
& N.I.)
Any size of business
Source segregated food-included municipal, commercial and industrial organic waste
Up to 30% funding
What we do and don’t want
Priorities:
Source-segregated food waste Processing municipal and commercial / industrial food
waste in one facility ABPR compliance Beneficial use of recycled products – compost and
digestate
Exclusions:
Mixed waste streams Manufacture of a fuel or renewable energy only C&I waste from one company 100% C&I waste for 5 years of operation
RequirementsYour project must meet the following requirements:
A capital investment (not revenue) to create new or expand existing food waste processing capacity, compliant with ABPR, and manufacturing a product
Located in Scotland
Commissioned by 31st December 2010
Demonstrate the need for support (project viability reliant on WRAP funding)
Requirements (2)
Your project must meet the following requirements:
Be commercially sustainable
Have clearly defined and, where possible, secured added-value end markets
Use proven technology – already in commercial operation elsewhere
Use source-segregated biodegradable municipal, commercial and or industrial food waste that would otherwise go to landfill
Evaluation Criteria
Overall Value for money
Technical
Financial
Project Management
Evaluation Criteria
Value for money (for all criteria)
Overall performance against all criteria £/t evaluation
– £ of WRAP Support– 5 year total additional tonnage of BMW and C&I
food-included organic waste diverted from landfill
– £7.50 for in-vessel– AD ?
Evaluation Criteria
Technical
Quality of Design and Infrastructure of the project The suitability and quality of the technology and
operational process Quality and security of arrangements for sourcing the
input material Quality and security of arrangements for marketing
and use of the outputs
Evaluation Criteria
Financial
Financial robustness of the proposal – Review of cashflow forecasts, including
assumptions and throughputs– Demonstration of need for WRAP funding
Financial standing of the applicant– Includes ability to raise co-funding
Evaluation Criteria
Project Management
Applicant’s ability to deliver the project and operate the facility
Corporate environmental commitment and overall environmental impact of the new facility
Corporate commitment to Health & Safety
How to apply
Claire Kneller and Louise McGregor
How to Apply
Max 25 pages (double-sided) plus Appendices:
Executive Summary
Section 1 - Technical
Section 2 - Financial
Section 3 – Project Management
Section 4 - Organisational
Appendices
Section 1 - Technical
T1 - Quality of Design & Infrastructure of Project
– type of infrastructure & equipment to be installed– works to be undertaken
– location
– technology and process to be used
– schematic of site layout, including process description
– maintenance regimes
– planning conditions or other restrictions
Section 1 - Technical
T2 – Technical Scope and Operational Process
– Detailed description of each processing stage– ABPR compliance, de-packaging, watering,
porosity, aeration, retention, odour control, gas storage etc
– Demonstration of suitability of chosen design & technology for waste types
– Process flow diagrams & mass / energy balances
– Evidence of track record of chosen technology
Section 1 - Technical
T3 – Quality & Security of Arrangements for
sourcing inputs
– Nature, location and quality of supply over 5 years– Anticipated tonnage over 5 years and justification
for facility size– Suppliers
– Security of Supply
– Details of other processing operations in the vicinity
Section 1 - Technical
T4 – Quality & Security of Arrangements for
marketing and use of outputs
– Full description of all outputs and rationale for each
– Assurance of compliance with relevant product specifications, e.g. PAS100, PAS110
– Details of each end market and customer– Tonnage estimates per market / customer
– Estimated selling price
– Marketing & sales plans
– Prior marketing and sales experience
Section 2 - Financial
F1 – Financial Robustness of application (1)
Full cost breakdown – Total project costs, fully itemised, with and without
VAT, in £s– Total WRAP support requested – in £ and as % of
eligible costs– Full justification for all costs, particularly if they
exceed market rates– Eligible costs calculations
Section 2 - Financial
F1 – Financial Robustness of application (2)
Viability of Investment – Must demonstrate that project viability is dependent
on WRAP support. Do not assume 30%
– Cash flow forecasts for 5 & 10 years, with & without support– include payback, net present value, internal rate of
return & hurdle rates– Single ROCs only for AD applications
– State and explain ALL assumptions
– Spreadsheets on WRAP website
Section 2 - Financial
F2 – Financial standing of applicant
Project Financing – How will you finance your project?– Who, how much and when?– Extent to which financing is secure
Identification of Guarantor– Letter of support / evidence
Standing of Applicant and Guarantor– 3 years audited accounts
Section 3 - Project Management P1 – Applicants ability to deliver the project and
operate the facility (1)
– Full and detailed project plan– What will happen when– Gantt chart indicating key milestones
– ordering, delivery, installation, commissioning & operation of plant
– planning & licensing / permitting– first delivery of input material & processing– processing at full capacity– justification
Section 3 - Project Management
P1 – Applicants ability to deliver the project and
operate the facility (2)
– Full and detailed information relating to planning– Stage reached– Evidence of discussions– Likely issues
– Full and detailed information relating to other regulatory requirements
– Assurance from technology provider
Section 3 - Project Management
P1 – Applicants ability to deliver the project and
operate the facility (3)
– Project team who will manage and deliver the project– who & what are their roles (for the project &
organisation) – specific skills & experience, especially those relevant
to project– demonstrate
– Technical and operational track record of applicant and technology provider– Examples of previous sites / operations
– Training
Section 3 - Project Management
P1 – Applicants ability to deliver the project and
operate the facility (4)
– External consultants experts to be used– who & what are their roles (for the project &
organisation) – specific skills & experience, especially those
relevant to project– demonstrate
– Details of Quality Assurance or Quality Management Systems in place
Section 3 - Project Management
P2 – Corporate environmental commitment and
overall environmental impact of the new facility
– Environmental Policy
– Environmental Impact Statement– Construction and operation– What are the impacts (+ & -) ?– E.g. noise, odour, leachate ….
– Mitigation Plans– How will you minimise the negative impacts?
– Environmental Commitment and track record
Section 3 - Project Management
P3 – Corporate commitment to health and
safety
– Brief description of project H&S Plans
– For existing organisations – current H&S policy
– Site H&S records over 5 years
– Assurance of ABPR compliance
Section 4 - Organisational Information Registered Address
Status & structure of your company
Board approval
Insurance
Site ownership / status
Previous grant funding information
Your Guarantor
Top Tips! Read the application pack & section 4 ‘How to apply’
carefully
Back up the statements you make – give evidence where you can
Get someone else to read it through before submitting
If in doubt – provide more not less information – assume no prior knowledge
Remember Value for Money is key
If you have questions call the organics capital grants team
