RENEWABLES IN SEVERN TRENT WM Public Sector Sustainability & Energy Network

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1 RENEWABLES IN SEVERN TRENT WM Public Sector Sustainability & Energy Network Waste Management Workshop 14/6/16 Neil Liddell-Young Renewables Strategy and Commercial Development

2 WE GENERATE FROM WATER, WIND AND SUN As well as sewage, food waste and contaminated crops. Sewage sludge Solar Wind Crops We generate more than any other combined water and waste water company in the UK Food waste Biogas to Grid Hydro 1

3 /MWh /MWh WHY DO WE INVEST IN RENEWABLES? We produce and supply over 2 billion litres of drinking water each day We collect and treat sewage from 8.5m customers Our annual electricity consumption is 890 GWh (equivalent to 250,000 homes) 2nd highest operating cost 71% of our carbon emissions Continued upward pressure from growth and treatment standards Average Indicative S14 & W14 (14/15) Wholesale Electricity Prices Wholesale price forward hedge Volatility continues Carbon Floor Low Carbon Incentives Transmission & Distribution Generation 50% Increase in real terms to the retail cost of energy by 2020 Off set Carbon emissions 2

4 WE HAVE GROWN RENEWABLES THROUGH RESPONDING WITH PACE TO NEW TARIFFS AND BROADENING FROM CORE EXPERTISE 3

5 SEVERN TRENT PLC IS MAINLY KNOWN FOR ITS REGULATED WATER AND WASTE WATER BUSINESS BUT WE ALSO OPERATE NON REGULATED BUSINESSES AND OUR RENEWABLES ASSETS ARE SPLIT BETWEEN 4

6 SEVERN TRENT WATER As one of the largest of the 10 regulated water and sewerage companies in England and Wales, we provide high quality services to more than 4.3million households and businesses in the Midlands and mid-wales. We have maintained lowest average customer bills in England and Wales for 5 years running, a position we intend to continue until at least % Renewables 5

7 OVER 60 YEARS OF RENEWABLE ELECTRICITY AND HEAT SEWAGE 1050 Sites Export 195 GWh Electrical Power Host Site 160,000 tds Indigenous Sewage Sludge 74,000 tds Imported Sewage Sludge 60% Methane & 40% CO 2 34 AD Sites Sewage at 37 o C for 14 days Biogas Thermal Power Bio-fertiliser 6

8 National Gird Lts 65% AND THEN FIRST TO INJECT SEWAGE GAS INTO NATIONAL GRID IN 2014 Biogas 35% 1200m3/h Sewage Sludge Boosters Chillers GAC Water Wash Odour Management Propane Addition Odorant & Meters Compression (19 Bar) GAC 7

9 OUR FIRST NON REGULATED RENEWABLES IN USING CROPS FROM CONTAMINATED LAND 22 GWh electricity 55,000 t maize, wheat, beet Dedicated land 8

10 IN LATE 2014 WE OPENED OUR FIRST FOOD WASTE AD PLANT AT COLESHILL 9

11 We have the largest fleet of digesters in the UK c.40 sites CONTINUING OUR GROWTH OF AD Our history and strength is in the design, build and operation of AD from managing the biology through to energy conversion and digestate recycling. AD plants still require renewable energy incentive support for financial viability. Tariffs for electricity generation are being phased out as UK grid approaches 30% renewables but bio-methane support has been assured to 2020 and there is the further possibility of vehicle fuel subsidy. Our second food waste AD site is in construction at Stourbridge and we are developing 3 further sites in Derby, Leicester and Stoke on Trent. All our new plants will all be bio-methane and need to be constructed within 3 years to lock in this tariff. These plants will need source segregated domestic waste as well as industrial/ commercial to operate efficiently and I would encourage you to explore options 10

12 INDUSTRY AND LOCAL AUTHORITIES COLLABORATE TO INCREASE FOOD WASTE CAPTURE RATES POSTED: 8 JUNE, WRITTEN BY REA NEWS Previous concerns around UK-wide separate food waste collections have focused on the need for more collaboration between industry and local authorities Renewable Energy Association (REA) and the Local Authority Recycling Advisory Committee (LARAC) release joint statement The Renewable Energy Association (REA) and Local Authority Recycling Advisory Committee (LARAC) have released a joint statement communicating a need for collaboration and action to boost recycling rates and food waste capture rates. This is following the release of the REA s report The Real Economic Benefit of Separate Food Waste Collections. Jeremy Jacobs, Technical Director at the REA said: Increasing the volume of food waste that is collected separately is critical to meet our legally binding recycling target of 50 per cent by There is an urgent need for new policy; collaboration and consensus are the strongest tools we have available to achieve it. The renewables industry is sensitive to the tight budgetary constraints that most local authorities face and we are open to working with them to deliver workable solutions and innovative funding models Andrew Bird, Chair at LARAC said: Local authorities are under extraordinary pressure at the moment and for the foreseeable future, and each faces their own difficult budgetary choices. We know that the REA understands this, and we see the point of their report- that there are potential savings to be made with separate food waste treatment compared to residual waste disposal, and this can help offset additional collection costs. We look forward to working with them, and with Government, to find solutions to the UK s recycling and sustainability needs. 11

13 THANK-YOU 2013 Award for best initiative by a large business 2012 International green heroes award 2011 East Midlands large project merit award 2011 Award for environmental best practice 2011 National Industry Award (Edmund Hambly medal) Bio energy award 2010 Best carbon reduction initiative 2015 Overall Winner & Best carbon reduction initiative

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