Biogas in the UK The Anaerobic Digestion and Biogas Association (ADBA)
Session overview State of the UK Market Drivers behind growth Strategic value Barriers to delivery & current issues
UK Industry Growth 140 AD growth over time 120 100 80 60 Waste-fed Farm-fed 40 20 0 1979 1989 1990 1991 1994 2000 2002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EU comparison
Types of biogas plants in the UK 125 plants outside water sector (36% increase in last 12 months) Over 200 in planning system 150 plants in water sector 54 71 Waste feedstock Farm Feedstock Industrial feedstock
Operational biogas plants by size 4001-5000 3001-4000 2001-3000 1501-2000 Size of plant (kw) 1001-1500 751-1000 501-750 401-500 301-400 201-300 101-200 0-100 0 2 4 6 8 10 12 14 16 18 20 Number of plants July 2013
AD plants with planning permission >5 >3-5 Size of plant >1-3 >750-1MW >500-750 >250-500 <250 0 5 10 15 20 25 30 35 40 Number of plants
Operational Performance 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Average Operational Performance 51% 57% All Facilities 54% 67% Excluding Residual Waste 74% 80% 2011 2012 Upper Source: Quartile ROC Register/GIB - Green Investment Bank measured performance by average load factor - Improving performance, but some low performance due to plants commissioning & building up to full operation
Drivers behind growth
Financial Incentives 2009 Following launch of Renewables Obligation in 2002, AD qualifies for double ROCs 2010 - Feed-in-Tariff introduced for small scale AD (<5MW) 2012 - Renewable Heat Incentive introduced for biomethane injection (at all levels) and biogas combustion (up to 200kwth) FIT: 250 kw = 15.16p/kWh >250-500 = 14.02 >500-5000 = 9.24 RHI: Biogas combustion (up to 200kWth)& biomethane injection (at all levels) = 7.3p/kWh RO: Electrical generation (at all levels) = 2 ROCs/MWh ~9p/kWh
Government recognition The Coalition pledged to support a huge increase in energy from waste through anaerobic digestion (Coalition Agreement, 2010) AD Strategy and Action Plan, 2011
Best treatment for organic waste AD recognised as giving the greatest environmental benefit of any food waste treatment (Defra, Waste Review, 2011) Treatment Option Avoids Waste to Landfill Generates Renewable Energy Preserves and recycles critical resources Landfill x x Composting x Gasification x Incineration? x Anaerobic Digestion
Strategic value for the UK
Biomethane injection into the gas grid Strategic importance of green gas (80% of UK homes heated with gas) UK been net importer of gas since 2004 rising bills & energy security 5 operational gas-to-grid projects in UK so far Didcot first demonstration project in 2009 First commercial scale project opened at Poundbury in late 2012 Anticipated 20-30 projects in pipeline for 2014
Transport Big demand for biomethane from HGV fleet operators few other options to decarbonise sector Traffic air pollution responsible for 5,000 premature deaths each year - twice as many as traffic accidents. UK facing 300m European air pollution fine 20% of UK transport emissions come from HGVs and buses biomethane vehicles cut PM emissions by 97% Coca-Cola trial PM emissions reduced by 97% Fuel costs cut by nearly 13% Leeds Council 2 biomethane refuse collection vehicles Lifecycle CO2 saving of 49% compared to diesel
On farm AD Recycles important nutrients (eg phosphorus) back to land in form of biofertiliser Growth of break crops for AD improves crop yields & soil quality Cuts cost of slurry treatment Can meet on-site heat & power requirements Defra announced fund in 2013 farm projects below 250kW can receive grant of up to 10,000 to create a business plan & loan of up to 400,000, or 50% of the project costs, to help build plant
UK biogas potential Source Dry tpa Mtpa Biogas 10 6 m 3 /year CH 4 % CH 4 10 6 m 3 /year Energy TWh MSW 2.2 1,522 62 944 9.4 C&I 3.2 2,240 62 1,389 13.9 60% Slurries 1.0 500 62 310 3.1 Crops 3.2 1,920 55 1,056 10.4 26% Sewage 1.6 560 65 364 3.6 Total 11.2 6,742-4,063 40.4
Key barriers to delivery Food waste collections Bioenergy sustainability criteria Stable financial incentives
Current Status: Financial Incentives Jan 14: Gov to review FIT levels, with aim of avoiding 20% reduction for <500kW projects Spring 2014: RHI support for biogas combustion above 200kWth in place Summer 2014: Revised <500kW FIT tariffs hopefully in place 2014: Full review of RHI scheme 2014/15: Support for biomethane in transport potentially increases to 4 RTFCs as negotiations over RED continue at EU level 2017: RO to be replaced by Contracts for Difference mechanism (for new generation)
End of waste criteria PAS 110 Redrafting of UK standard currently underway Revision of stability test limit according to pig slurry PTE concentrations & physical contaminant limits in digestate set on a fresh weight basis Potential extension of scope for onfarm AD plants to transfer waste materials to common plant for processing without need for a pasteurisation step EC JRC criteria Final report published by JRC in Jan 2014 Now subject to Commission Regulations & Member State approval Sewage sludge and MBT are excluded from permitted input materials, but manure included Requirement for independent sampling and PAH measurement remain, and are likely to add greatest cost
Sustainability of Crop AD Concerns from government around food vs fuel, land rental prices, ILUC Rotational benefits of introducing break crops, improving soil quality, reduce pests ADBA producing Crop Best Practice demonstrates how farmers can achieve positive environmental outcomes from growing crops for AD
Find out more with ADBA... Join ADBA: Regular up to date information on the UK market, regulations and incentives Access to AD experts and the best technology providers from the AD industry Access to the most innovative and forward thinking waste management professionals in the UK Advice, information and support from ADBA s policy team and working groups NEC, Birmingham, 2-3 July 2014 270 exhibitors : 3,000 visitors 24 free seminars, Awards dinner & free advice clinics