The Biogas Business Opportunities for the North East

Transcription

1 The Biogas Business Opportunities for the North East Northern Rural Network 26 Nov Gunter Woltron SRG Energy Parks

2 Anaerobic Digestion Anaerobic digestion (AD) is a natural biological process whereby various types of bacteria metabolize ( digest ) the carbon of organic materials in an oxygen free ( anaerobic ) environment. The bacteria in manure, for example, behave as in a cow s stomach, but in the controlled and enhanced environment of an AD plant. The outcomes of this process are biogas and a nutrient-rich digestate.

3 History Mumbai, 1859: start of modern industrialisation of AD Cumbria, 1871: biogas combustion from animal fats Exeter, 1895: biogas extraction from sewage Currently: A few millions of village ADPs in China, India, A few 1000s of high tech ADPs in Germany, Denmark, Austria, Switzerland Installed capacity ranges from 15kW (India) to 2MW (Germany)

4 Some AD Benefits An AD plant (ADP) delivers on: Corporate carbon management strategy Sustainable development and CSR Legislative need for renewable energy Waste diversion from landfill or incineration Benefits to agricultural sector (fertilizer, pathogen) Additional business: Coops, ESCOs, supply chain

5 Primary Products Biogas consists of ca 60% methane (CH4), ca 40% carbon dioxide (CO2) and traces of hydrogen sulphide (H2S), moisture and ammonia. It is also known as sewage gas, syngas, marsh or mine gas. The digestate has a neutral ph-value and no caustic action when applied to plants. Nitrogen can be assimilated directly by the plant as it is mainly in the form of ammonia (NH4) and not organically bound. The odour of digested slurry is significantly reduced compared to the original material.

6 Decide on your Business Model Gate fees R&D Electricity sales (grid, private wire, ESCO) Heat sales (industrial estate, eco town, ESCO) Digestate (fibre, liquids) Biofuel (= cleaned, compressed biogas) Water, steam Add-ons (grain drying, glasshouses, hydroponics)

7 Input Material Any manure, straw muck, slurry Grass silage, green cuttings, energy crops, Any diary products and by-products Any CAT 2 or 3 waste (with adequate pre-treatment) Vegetable waste, potato starch, brewer s grain Any industrial food waste BMT waste (with adequate pre-treatment) Note: yield hierarchy: carbohydrates > fats > proteins

8 Design Issues Digestion stages: single, double, multiple phased Procedure: continuous or batch system Tanks: vertical or horizontal; steel or concrete Location: under or over ground Input feeding system Stirring system Pipe & pumping system Heating system CHP unit Scalability: upfront or later

9 Operating Parameters Operating temperature Thermophilic (ca C): faster digestion, less storage, more volatile, more management intensive, higher gas output Mesophilic (ca C): longer retention time, larger tanks, more stable, more solids in digestate, lower output Moisture content (wet dry: >15%DM) Acidity: ph-value (ideal 6.8 8,0) Retention time Carbon nitrogen ratio balance (30:1)

10 Improving Yield Combination of thermo- and mesophilic digestion Retention time calculations Gas collection at every phase/stage Identify maintenance intensive components (pumps) Intelligent agitators, stirrers Cleaning and scrubbing (H2S) technology Constant, but little supply, only gradual changes CHP philosophy Icing on the cake: straw, glycerol

11 Input Material Risks Inorganic bedding materials (sand) removal? Inert waste (glass, stone, plastics, metal) removal? Feed additives, cleaning agents, vaccines inhibits and kills bacteria Chicken litter in measure, or it ruins biology Dirt, soil removal? Bones, feathers removal issue or extra bacteria Note: the main risk factor is the operator

12 AD Plant Types By input material: agricultural (FYM, silage, vegetable waste) ABP, food waste (domestic, commercial, industrial) wastewater sludge treatment By energy user (incl. private wire or district heating): agri businesses industrial estates, eco towns, hospitals, villages By structure: Agri based: Farm vs CAD (Centralised or Cooperative AD) Waste centre based (MSW, sewage)

13 Planning Considerations Prepare a mitigation strategy for the key impacts: Noise CHP unit, vehicle movements Odour delivery, storage Transport on-site, off-site Fire/Explosion ExZones, H&S Visual impact (partially) below ground Spillage risk bunding etc. Contamination (water, disease) H&S

14 Considerations for CAD Centralised/Cooperative AD faces unique challenges: Complex legal structures Increased Transport Supply chain control Additional administrative staff and staff facilities Tight digestate distribution management Strict biosecurity measurements Longer opening hours

15 Challenges for AD using ABP/CAT 3 Plant layout: clean and dirty zones, traffic scheme Weighing bridge, bunding zones, vehicle cleaning Additional space: reception, pasteurisation, storage Pre-treatments: shredding/mashing, blending, pasteurisation Regulations: Animal Health, H&S, Water Odour retention (biofilter), on-site laboratory Hazard Analysis Critical Control Points (HACCP) Skilled staff

16 Financial Support Mechanisms Renewable Obligation Climate Change Levy Renewable Transport Fuel Obligation and Excise Duty for biofuels Landfill Tax Landfill Allowance Trading Scheme Energy Crop Scheme Nitrates Directive

17 Supply Chain Opportunities Planning and permitting consultant CDM coordinator, HACCP consultant Food waste collection and processing Design, construction, M&E, O&M R&D, IT solutions (SCADA), ROC agent Skills provider, certification provider Biological-chemical support and testing Manufacturing: CHP, hardware Fertilizer, pellets production and distribution

18 A bit of Myth Busting Things you hear on conferences and some believe it: AD is not economical AD is smelly Large tanks don t work Small tanks don t work AD based on grass silage only does not work XY cannot be digested Farmer is better off with sheep than supplying AD

19 And the North East? On the upside: Waste streams: food at Teesside, crops in rural fringe O&M and process engineering skills in the area Renewables R&D: CPI, CREEL, NaREC, Universities On the downside: Little planning and no permitting experience so far Grid constraints and no DNO renewables support Delay of the digestate accreditation (PAS110)

20 Biogas-Hochreiter the Company Leading technology provider with 800+ installations 25 years of AD-experience (food waste and FYM) Design, manufacturing, sales and maintenance of a variety of AD equipment (biogas-chp, stirrers, etc.) AD range from 35kW - 2MW of installed capacity Pioneering the concentric ring-in-ring design in 1999 Partners in Europe, India, South America Total flexibility with owners/investors

21 Biogas-Hochreiter the Technology Core Technology Characteristics: CSTR - continuous stirred tank reactor Integrated thermophilic and mesophilic digestion Maintenance-friendly ring-in-ring built below ground Only 5% of parasitic energy use compared to 20% 99% of technical availability of process run-time has been achieved Robust acceptance of varied input streams Remote control by Siemens and Hochreiter

22 Below Ground Level 150kW biogas plant (digester and secondary digester) entirely below ground, mitigating visual impact

23 Recommended Reading The Nitrate Pollution Prevention Regulations 2008 PAS110 (draft) for digestate accreditation, 2008 Biogas from manure and waste products, Swedish case studies, 2008 Economic Assessment of AD Technology, Andersons Centre, 2008 Environmental Permitting (England and Wales) Regulations 2007 UK Biomass Strategy, 2007 The Animals By-Products Regulations 2005 PPS 7: Sustainable Development in Rural Areas, 2004 PPS 22: Renewable Energy, 2004 An Introduction to AD of Organic Wastes, Remade Scotland, 2003 Waste and Emissions Trading Act (2003) The Landfill (England and Wales) Regulations 2002 (as amended) The Water Code, 1998 BS :1993 Buildings and structures for agriculture

24 Contact Details SRG Energy Parks (UK) Ltd Correspondence: 58 Beach Road, Tynemouth, Tyne & Wear, NE30 2QT Dr Mike Rule, T: , E: Gunter Woltron, T: , E: