Welcome to Turning up the heat on wood fuel
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1 Welcome to Turning up the heat on wood fuel
2 Dairy Crest - Davidstow Making Biomass A Reality Ashley Malin Head Of Sales Project Development 24 th November 2010 The Art Of The Possible
3 Contents Who are Dalkia Dalkia in the UK Dalkia renewable offer Dalkia in the biomass supply chain Dalkia & Dairy Crest Davidstow project Project Approach The Journey So Far Where does it fit on site? Dalkia energy management scope From vision to reality The technology adopted Conclusions & Questions Making You More Competitive 3
4 Dalkia a Veolia Company 4 areas of activity World leader 12.5bn euros 93,500 staff 64 countries European leader 7.5bn euros 52,800 staff 41 countries Worldwide reference 10.1bn euros 105,000 staff 32 countries European leader 6bn euros 83,700 staff 28 countries 4
5 Dalkia UK - Capabilities Supply of industrial utilities CHP Solutions Design, Build, Own, Operate Construction of energy plant Energy management Environmental compliance Wood procurement Biomass fuel supply District heating Green energy Packaged solutions CHP Solutions Stand by generation Green energy Off balance sheet solutions Making Biomass A Reality 5
6 Dalkia Renewable Offer Grade A wood pellet production and supply Energy scheme design and build Long term operation and maintenance Renewable heat and electricity supply Distribution networks (steam, heat, power, cooling) All heat, steam metering and billing as required Full compliance Environmental, Legislation, HSE etc Making Biomass A Reality 6
7 Dalkia In The Biomass Supply Chain Industry CO 2 emissions from energy use District heating CO 2 is absorbed by trees during their life Biomass fuel supply Healthcare Carbon neutral heat and electricity Commercial / public sectors Wood is used for manufacture After primary use wood is recycled as a fuel source providing renewable energy and avoiding landfill Power generation 7
8 Davidstow Project Approach Dalkia selected by Dairy Crest as Preferred Partner to develop feasibility early in the process (2008) Project Development Agreement signed once project is agreed as feasible (July 2009) Both parties agreed solution based on a well balanced commercial and technical approach Regular Steering Group Meetings at least monthly before and after agreement signature! Agreement signed April
9 The Journey So Far - Where Does It Fit? Making Biomass A Reality 9
10 Dalkia Energy Management Scope Guaranteed volumes of biomass derived steam Supply of fuel for agreed duration Design & Build of all mechanical and electrical equipment Full operation, maintenance all plant and life cycle risk on all new equipment All thermal combustion efficiency risk Dalkia sells steam not pellets or oil, steam price linked to pellet / CFO price Compliance with Environmental Permit Making Biomass A Reality 10
11 The Journey So Far Vision to Reality The Vision The Reality (So Far) 11
12 The Technology Adopted Dalkia selected packages of proven technology into a consolidated solution 2 x Byworth Yorkshireman 7 Te/hr 21 Barg steam boilers 2 x James Proctor chain grate stokers 2 x Free Standing flue gas economiser 1 x Biomass fuel reception hopper 2 x Fuel storage silos 1 x CTM fuel conveyor system 1 x Free standing twin core chimney 1 x Plant management system All connections and full integration to existing steam / condensate system All equipment manufactured to Dalkia / Dairy Crest standards 12
13 Conclusions / Question Biomass is unlikely to yield any fiscal benefits to industrial or commercial users who have access to gas Talk to potential supply partners early and develop solution with them Essential part of meeting planning requirements commercial residential projects Talk to external stakeholders as early as possible and take them on the journey with you Don t underestimate the upfront development costs and time to achieve permitting and planning Know what the rules are (EUETS, CRC, ROC s, EA, Planning DEFRA, DECC etc ) 13
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