Future Investments in Biogas: UK

Transcription

1 Future Investments in Biogas: UK Lucy Hopwood Head of Biomass & Biogas : The Bioeconomy Consultants

2 Introduction Consultancy Market, technical, policy & sustainability expertise Advisory Strategic guidance and briefings, meeting support Membership Standard & business membership packages Specialising in bioenergy, biofuels and bio-based products, with an unparalleled knowledge of bio-based supply chains. : The Bioeconomy Consultants

3 UK Policy Context to deliver a huge increase in energy from waste through AD 3 5TWh by 2020 : The Bioeconomy Consultants

4 Current Status Non-waste: 29 operational plants 12MWe installed capacity 63 planned plants 59MWe consented capacity water treatment plants Waste: 48 operational plants 67MWe installed capacity 84 planned plants 149MWe consented capacity : The Bioeconomy Consultants

5 : The Bioeconomy Consultants

6 Landfill gas : The Bioeconomy Sewage gas Other biogas Consultants

7 Biogas Use Biogas Biomethane Heat Only Power Only CHP Gas Grid Transport Fuel : The Bioeconomy Consultants

8 Heat Electricity Financial Incentives - Options Combined Heat & Power (CHP) OR Biomethane to Grid (BtG) Generation Tariff Feed-In-Tariff OR Renewables Obligation Export Tariff or Market Value Renewables Obligation Certificates (ROCs) Market Value Market Value for Gas Renewable Heat Incentive Biogas Combustion tariff (<200kWth) Market Value Biomethane Injection : The Bioeconomy Consultants

9 Feed-In-Tariff (FIT) 11.5p/kWh p/kwh April 2010: Introduced 14.7p/kWh 13.6p/kWh p/kwh March 2011: Fast-Track Review Sept 2011: Tariff increase 14.7p/kWh 13.6p/kWh p/kwh Feb 2012: Comprehensive review Dec 2012: New tariffs apply Apr 2014: Degression commences : The Bioeconomy Consultants

10 Impact of Feed-In-Tariff ( ) : The Bioeconomy Consultants Source: Ofgem Feed in Tariff Newsletter, June 2012

11 Renewables Obligation (RO) Anaerobic Digestion 2 ROCs/MWh April 2015: Degression commences 0.1 ROC per year March 2017: RO closes April 2002: Introduced Anaerobic 2 ROCs/MWh April 2009: Banding Introduced July 2012: Banding Review response Sept 2012: Sustainability consultation April 2014: EMR opens Awaiting consultation on minimum scale : The Bioeconomy Consultants

12 Renewable Heat Incentive (RHI) Medium and large scale biogas combustion 5.9p and 2.2p/kWh) 2014 & 2017: Scheduled tariff reviews Biogas combustion (<200kWth) and Biomethane 7.1p/kWh March 2012: Heat Strategy July 2012: Consultation cost control & sustainability Sept 2012: Consultation on extension & domestic Summer 2013: New tariffs enforced Nov 2011: Introduced for non-domestic : The Bioeconomy Consultants

13 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 larger waste-linked facilities : The Bioeconomy Consultants

14 Biogas Potential...NFU vision for AD 1,000 farm-based anaerobic digestion plants by 2020, alongside larger waste-linked facilities c. 2billion m 3 of biogas per year could be captured, equivalent to 12TWh; Estimated c. 1,050 plants : The Bioeconomy Consultants

15 AD Potential UK to 2030 =5.6TWh AD could deliver between 3 5 TWh of electricity by 2020 AD Strategy & Action Plan, 2011 =3.0TWh =1.8TWh Source: ARUP, 2011 : The Bioeconomy Consultants

16 AD Strategy & Action Plan 1. Feedstock & technology CREATION 2. Confidence and security 3. Education and awareness DELIVERY : The Bioeconomy Consultants

17 Official AD Information Portal: : The Bioeconomy Consultants

18 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) enquires@nnfcc.co.uk Connect and follow us on Twitter and LinkedIn : The Bioeconomy Consultants