Bioresources market development

Review of progress and findings to date

15th January 2021

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Joining time

Setting the scene (Ofwat)

Environmental update (EA)

Constraints and stakeholder responses (Jacobs)

Break

Breakout session (all)

Next steps (Ofwat)

End of update

(Stay on the call for Q&A on the bioresources data request)

5 minutes

10 minutes

10 minutes

25 minutes

5 minutes

20 minutes

5 minutes

Setting the scene

Alex Whitmarsh

Improving life through water | Gwella bywyd drwy ddŵr | 4

Background to our review

• Bioresources is important in terms of: • affordability;• resilience and the environment; • innovation and customers.

• We will continue to face challenges on all these fronts in the years ahead.

• Markets could help address these issues, along with other measures.

• Ofwat introduced a number of measures to facilitate the bioresources markets in recent years.

• Our market monitoring report highlighted potential concerns.

Environment Agency strategy for safe and sustainable sludge use

Mat Davis, Clive Humphreys,

Environment Agency

Ofwat Bioresources market review meeting:

15th January 2021

Regulation of Sludge Digestion

The reason sewage sludge digesters also require permits

Closing the codigestion gap?

In England

130 sludge digestion facilities require installation permits

Only 20 of these currently have the correct permits

First tranche of applications due by April

Permit for codigestion costs the same as other AD permits

Similar regulatory standards

Water companies can already apply for codigestion permits if they choose to use their sludge treatment assets in this way

Waste water treatment plant

Waste management facility

Sludge (Use in

Agriculture)

Regulations

Environmental

Permitting

Regulations

Recovery to agricultural land

Recovery to land

Waste water.

Other waste water.

Waste in a liquid form.

Sludge (various).

Solid waste.

INPUT TREATMENT USE

The Environment Agency Sludge Strategy

Modernise, clarify and address regulatory inconsistency:

Sludge from septic tank

Waste from producer

Stakeholder responses and market constraints

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Types of market activity in scope

Jacobs’ taskIdentifying the constraints

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Constraining factors

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Regulatory and knowledge

Environmental factors

Industrial Emissions Directive

Biosolids to land

Scientific uncertainty

Farming Rules for Water

Sludge strategy Permitting

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Regulatory and knowledge

Economic factors

Bioresources price control

Type of control

Overheads and shared assets

Long-term contracts/ protection of revenue

Boundary

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Technical and physical

Transportability of sludge

Measurement and control of sludge quality

Transfer of duty of care

Technological uncertainty

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Cultural and organisational

Public perceptionof sludge trades

Synchronisation of investment cycles

Break

Breakout sessions

18 ©Jacobs 2021

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Next steps

• We will consider your views

• Water companies to complete their data request by 21 January 2021

• We will publish our report in the spring, consulting on our proposals

• We may organise future stakeholder events

Thanks for joining us

Please contact the project team this month with further comments:

alex.whitmarsh@ofwat.gov.uk

zac.alexander@jacobs.com / 07716 651836

Stay on the call if you would like to discuss the data request.

20 ©Jacobs 2021

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