NNFCC Market Review, October 2013, Page 1 of 8

Bioenergy

NNFCC Market Review Issue Nineteen, October 2013

ach month we review the latest

announcements and news from

across the bioenergy market. This

service is exclusively for our members.

Foreword

Welcome to the October issue of our

bioenergy market review. This month, the UK

Government announced the launch of the

On Farm AD fund, a finance program

designed to support the development of the

small scale (<250 kWe) anaerobic digestion

(AD) industry in England.

The £3 million initiative will be administered by

WRAP and will allow farmers to apply for a

grant of up to £10,000 to investigate the

feasibility of building on-site AD facilities and a

loan of up to £400,000 to fund the capital cost

of a plant.

While the mid-scale ( 250-500 kWe) AD sector

in the UK has seen substantial deployment

over the last couple of years, very few AD

plants below 250 kWe have been developed.

This is largely due to very similar feed-in-tariffs

existing for these bandings and economies of

scale playing a large role in the estimated

return on investment.

However, many farmers do not have access

to sufficient feedstock volumes to justify

installation of a 500 kWe plant. With AD

technologies still having a high capital cost

and access to finance difficult, deployment

of the small scale sector has consequently

been affected. However, it is hoped the new

scheme will help stimulate development of

the on-farm AD industry across the UK.

Development of a robust business case is

critical for assessing the viability of on-farm AD

projects. The business grant announced as

the first phase of the scheme will help farmers

afford access to greater resources during this

process.

The NNFCC is well-positioned to contribute to

business case development for on-farm AD

having previously developed the AD cost

calculator, undertaken numerous AD

feasibility studies and having maintained a

strong relationship with the UK agricultural

community.

Read on for the latest market news.

E

Highlights

Page 2 Policy

Page 2 Biomass

Page 4 Biogas

Page 6 Energy-from-waste

Page 7 Events

Page 8 ROC price

NNFCC Market Review, October 2013, Page 2 of 8

Policy

On Farm AD fund launched

Farmers will be able to obtain funding to set

up small anaerobic digestion (AD) plants

under a government-funded loan scheme

which opened this month.

The £3 million initiative will allow farmers to

apply for up to £400,000 from the On Farm AD

Loan Fund to help them finance an on-site

AD plant with a capacity up to 250 kWe.

The fund, which will be administered by

WRAP, is split into two phases. Farmers can

apply for a business plant grant of up to

£10,000 to investigate the environmental and

economic potential of building an AD plant

on the farm. They can then apply for a loan

of up to £400,000 to fund up to 50 per cent of

the overall costs of the AD plant.

Liz Goodwin, CEO of WRAP, said:

“The use of small-scale anaerobic digestion

on farms to treat manures and slurries has a

number of economic and environmental

benefits and is an excellent example of the

circular economy in action.”

“However, access to finance for on-farm AD

has been difficult, especially for small scale

operations. Currently there is no targeted

financial support available to increase this

capacity. The On Farm AD Fund has been

designed to both attract funding into the

sector, and to provide support and materials

for farmers to help them access finance in the

future.”

Click here for more information.

Biomass

Green Investment Bank invests in

Wales biomass plant

Western Wood Energy Plant; Source: Eco2

With completion of a new, long-term

feedstock contract and an investment by the

UK Green Investment Bank, Western Wood

Energy Plant in Port Talbot, Wales, is set to

undergo a refurbishment in summer 2014 that

is expected to improve operational

efficiency, reduce operational risk, and allow

the plant to accept more “Grade A” or

clean, recycled wood as fuel.

Having been operational since 2007, the 14.7

MW biomass facility was the first commercial-

scale power station of its kind in Wales, built at

a cost of £33 million ($53.5 million).

Since the plant began operating, the Forestry

Commission Wales has supplied the bulk of its

feedstock through a 12-year supply

agreement. Via a new, 15-year contract that

will serve the plant for its lifetime, Stobart

Biomass will supply approximately 150,000

metric tons of biomass fuel per year.

The Green Investment Bank is a cornerstone

investor in the UK Green and Sustainable

Waste and Energy Investment Limited

Partnership, which is investing £11 million to

hold a minority stake in the plant. Co-

investments were sourced from Signia Wealth

Management and Stobart, which has

invested £800,000 to acquire a small stake in

the equity and debt of the project.

Click here for more information.

NNFCC Market Review, October 2013, Page 3 of 8

IEA Task40: Biomass provides 10

percent of global energy use

Biomass energy uses in top consuming countries;

Source: IEA

A new report from the International Energy

Agency takes a global overview of biomass

use in the industrial and transport sectors,

identifying leading countries and the top 15

production companies in each sector.

The IEA’s Bioenergy Task40 report, Large

Industrial Users of Energy Biomass, found that

biomass accounts for approximately 10

percent of the global energy supply, of which

two-thirds is used in developing countries for

cooking and heating. Meanwhile, about 13

percent of biomass use was consumed for

heat and power generation, 15 percent

consumed by the industrial sector and 4

percent used in transportation.

Excluding residential use, the top countries

utilizing all sources of biomass for energy were

Brazil, the US and India.

In Brazil, 21 percent of the energy used in

industry came from sugarcane bagasse in

2010, with the food and beverage sector

getting 75 percent of its energy from

bagasse. The industrial sector in Brazil gets a

significant amount of energy from wood as

well. In the US, most of the biomass used in

the industrial sector is derived from forest

materials, and more than half of this is black

liquor from paper mills.

In reviewing the top plants utilizing biomass

resources, the pulp and paper industry

accounts for nearly a quarter of global

industrial use of biomass for energy. Globally,

there are about 630 recovery boilers in use in

chemical wood pulp mills.

Click here for more information.

DOE audit report recommends

improvements to bioenergy funding

The US Department of Energy’s (DOE) Office

of Inspector General has published an audit

report analysing the $603 million in financial

assistance the DOE has provided to

biorefinery projects over the past seven years.

The DOE’s Bioenergy Technologies Office

supports the development of biofuel,

bioproducts and biopower projects via

financial assistance for the development of

pilot-, demonstration- and commercial-scale

projects.

The audit report notes that the Bioenergy

Technologies Office issued three funding

opportunity announcements (FOAs) in 2006,

2007 and 2009, selecting a total of 29 projects

to fund. As of March 2013, the report

estimates $929 million has been obligated to

those projects, with 65 percent or $603 million

expended to date. A significant portion, $561

million, of the obligated funding came from

the American Recovery and Reinvestment

Act of 2009.

NNFCC Market Review, October 2013, Page 4 of 8

The report also specifies that the DOE’s goal

was to demonstrate the operation of three

integrated biorefineries by 2012, and validate

annual production capacity of 100 million

gallons of advanced biofuels by 2014, which

was to be derived from 10 demonstration-

and commercial-scale facilities. These goals

have not yet been met.

The report lists poor market and financial

conditions as factors contributing to the

inability to achieve program goals.

Click here for more information.

EBRI events to help West Midlands

farm-businesses and landowners

The European Bioenergy Research Institute

(EBRI) at Aston University will partner with rural

sustainability consultants Greenwatt

Technology this Autumn, to run a programme

of free workshops designed to help West

Midlands farmers and landowners make the

most of bioenergy opportunities within the

region.

The workshops will focus on the applications

of bioenergy technologies for farm enterprises

and land-based businesses in the West

Midlands. Workshops will cover technologies

including anaerobic digestion, biomass,

biofuels and will also investigate local

bioenergy distribution options. They will also

provide solutions to common barriers such as

planning restrictions, project finance and grid

connectivity.

Click here for more information.

Biogas

Agraferm Technologies sign contract

for its tenth AD plant in the UK

Agraferm Technologies AG has signed the

contract to build its tenth AD plant in the UK.

The facility, which is expected to cost around

€4 million, will be built in Holkham, Norfolk.

Agraferm Technologies AG, based in

Pfaffenhofen in Bavaria, is one of the leading

manufacturers of AD plants in the UK with a

total output of around 70 million cubic meters

of raw biogas per year from its plants, which is

equivalent to an electricity output of around

20 MW annually.

This new plant adds to Agraferm’s existing UK

portfolio which includes the Poundbury AD

plant in Dorset, the first ever agriculture-based

plant in Great Britain to feed biomethane into

the national grid.

Click here for more information.

UTS unveils new containerized solution

for cost effective biogas plants

The ProCon biogas process container;

Source: UTS

UTS Biogas Ltd (UTS), the UK arm of UTS

Biogastechnik, unveiled its new “ProCon”

containerised solution for Biogas Plants at

EBEC this month. UTS is currently constructing

several ProCon projects in central Europe and

has 5 such projects on its UK books, utilising a

wide variety of crops and agricultural wastes.

The ProCon is a ‘plug and play’ containerised

solution for projects up to 1 MW that includes

pumping and mixing technology, gas analysis

systems, desulfurisation, heat distribution,

water distribution and system control.

The benefits of the container is that there is a

reduction in construction time, a reduction of

installation and construction costs and an

NNFCC Market Review, October 2013, Page 5 of 8

assured quality standard because of factory

acceptance tests. In terms of numbers the

savings in assembly costs are around 50%

compared to a fully kitted-out conventional

building. Using a ProCon can save at least

25% of project construction time.

Visit Click here for more information.

Clarke Energy & Agri-gen creating

renewable energy from waste heat

Clarke Energy’s GE clean cycle heat to

power generator; Source: Clarke Energy

Clarke Energy has secured its first order for a

novel technology that creates electricity from

waste heat. Agri-gen, a developer of

anaerobic digestion plants, has signed an

order with Clarke Energy to supply the system

to its Rendlesham anaerobic digester in

Ipswich.

In early 2013 Clarke Energy supplied and

commissioned a 3MW biogas engine at Agri-

gen’s Rendlesham AD plant at Bentwater

Park, Ipswich.

The jacket water from the gas engine was

used to heat the anaerobic digesters;

however there was no immediate local use

for the heat in the exhaust of the engine

which was vented to atmosphere.

Agri-gen recognised the potential value of

this waste heat as a driver for additional

renewable electricity and in September 2013

has contracted with Clarke Energy to supply

two Clean Cycle units.

Under the local conditions the units will initially

generate a total of 228kW for export to the

local grid, raising the electrical efficiency of

the gas to power plant from 43.0 to 46.2%.

Under the current feed in tariff of 9.24p/kW

hour the units will generate in excess of

£160,000 per year for the plant from waste

heat alone, in addition to the revenues from

the original biogas engine.

Click here for more information.

Tamar Energy expand UK operations

Tamar Energy’s plans for a nationwide

network of anaerobic digestion (AD) plants

continues apace with the announcement this

month of its next wave of four plants for

development in the UK.

The new facilities are:

Bromley, Greater London: A 2 MWe plant

with a capacity of around 46,000 tonnes

per annum.

Hoddesdon, Hertfordshire: A 3 MWe plant

which will process commercial and

industrial food waste. Work will start in the

coming weeks and the site will be

operational in late 2014.

Ramsbottom, Greater Manchester: A 2

MWe site with a capacity of 45,000 tonnes

per annum on part of the Fletcher Bank

Quarry site.

Wardley, Gateshead: A 3 MWe plant with

a capacity of 70,000 tonnes per year on

the site of the former UK Coal Disposal

Point at Wardley Colliery.

These sites are in various advanced stages of

development and, should planning

permission be granted, all four AD plants will

be generating electricity by the end of 2014.

Click here for more information.

NNFCC Market Review, October 2013, Page 6 of 8

Energy-from-waste

Biffa announces the acquisition of

Shanks’ UK solid waste business

Waste collection vehicle, Source: Biffa

Biffa Group (“Biffa”) has announced an

agreement to acquire the majority of Shanks’

UK Solid Waste business for £9.5 million. The

transaction, which is subject to regulatory

approvals, is due to complete by the end of

the year.

The Shanks UK Solid Waste business will be

complementary to Biffa’s portfolio, growing its

market share and enabling it to enhance

services and realise profitable synergies.

The increased volume will enable Biffa to

consolidate more waste into recycling and

energy-from-waste facilities, leading to

growth in its energy and processing

operations.

Ian Wakelin, CEO of Biffa, said:

“This acquisition will enable us to leverage our

national infrastructure, grow our market share

and enhance our leading industrial and

commercial services. It is a progressive move

for Biffa in line with industry trends towards

consolidation to match waste volume levels.

Biffa has a strong platform for growth based

on its reputation for excellent customer

service and its infrastructure. We are pleased

to be able to continue to invest in the

business and enhance our position at the

forefront of the evolving waste management

industry.”

Click here for more information.

Waste2Tricity raises £1 million to

support international growth strategy

Waste2Tricity (W2T) has successfully

completed a £1 million round of fundraising

from new investors from the UK, Europe,

Thailand, Australia, UAE and Israel together

with current shareholders and board

directors.

These interim funds give W2T on-going

working capital for its current plans and allow

the company to pursue its aggressive strategy

to create a large opportunity for early

deployment of the AFC Energy fuel cell

technology, positioned to achieve

commercial roll out by 2016.

It is the primary goal of W2T to be one of the

first large scale operators of AFC Energy fuel

cells which will give the net output of any

waste-to-energy plant up to 50% more

electricity output than any other competing

system. Currently W2T is in discussion with Thai

companies that have aggregated waste

streams in excess of 10,000 tons per day that

would, in the fullness of time, provide

sufficient hydrogen to power close to 1000

MW of fuel cells within the next 5 years.

Click here for more information.

Fisia Babcock Environment secures

major orders in Scandanavia

Gärstadverket waste incineration plant;

Source: Avfall Sverige

NNFCC Market Review, October 2013, Page 7 of 8

Fisia Babcock Environment (FBE) has

succeeded in securing two major orders in

Finland and Sweden with a total value of

almost €90 million.

In the Swedish city of Linköping, FBE will carry

out the engineering, construction and supply

of the new KV 62 boiler on behalf of Tekniska

verken i Linköping AB (TvAB), one of the

largest municipal energy suppliers in Sweden.

The boiler is the core of the new incineration

line, which is set to go into operation in 2016

as an extension to the existing Gärstadverket

waste incineration plant with an incineration

capacity of 260,000 tons per year.

FBE is also set to erect a thermal incineration

plant in Tampere, Finland's third-largest city.

FBE is responsible for the complete boiler

system including firing and ancillary works. The

plant, with an incineration capacity of

180,000 tons per year, is scheduled to go into

operation in 2015 and is specially designed for

the incineration of a broad spectrum of

waste.

Click here for more information.

Events

SuperGen Bioenergy Hub on 23 Oct

2013 at University of Newcastle, UK

The workshop will provide the opportunity to

hear from leading European experts on their

practical experience of biomass/waste

gasification and to discuss with them key

challenges in the areas of gasification

systems, gas cleaning and conditioning.

Attendance at the workshop is free of charge

to all participants who complete the

SUPERGEN Bioenergy Hub’s two short surveys

in advance.

To register to attend or for further information

please contact Dr Bea Jefferson

(bea.jefferson@manchester.ac.uk).

Gasification 2013 on 6th-7th Nov 2013

in London, UK

www.wplgroup.com/aci/conferences/eu-

ecg3.asp

ACI’s 3rd Annual Gasification Summit will

comprise two days of formal presentations,

interactive roundtable discussions and

excellent networking opportunities, providing

an ideal setting to convene with your peers to

discuss both current operational & future

planned gasification plants, end product

markets, potential barriers & support policies

as well as project economics & finance.

NNFCC members get 15% discount on the

registration fee, please email

enquiries@nnfcc.co.uk for the discount code.

ADBA R&D forum on 6 Nov 2013 in

Bristol, UK

www.adbiogas.co.uk/events/adba-rd-forum This autumn’s research and development

forum will focus on finalising a 10-year R&D

strategy outlining what the anaerobic

digestion (AD) industry needs from R&D in

order to ensure that it realises its full potential.

NNFCC Market Review, October 2013, Page 8 of 8

Renewable Obligation Certificate (ROC) Price

The scheduled e-ROC monthly auction took

place on Monday 30th September 2013 and

72,582 ROCs were sold. This is almost 14,000

up on the month before.

An average price of £43.29 per ROC was

reached, an increase of 55p on that

achieved in the August auction.

The date of the next e-ROC monthly auctions

is Thursday 24th October

Click here for more information.

Credits and Disclaimer NNFCC Market Review is edited by Dr Michael Goldsworthy for NNFCC members. Feedback is

welcome. The Review has been compiled in good faith and NNFCC does not accept responsibility

for any inaccuracies or the products or services shown.

NNFCC The Bioeconomy Consultants

NNFCC, Biocentre, Phone: +44 (0)1904 435182

York Science Park, Fax: +44 (0)1904 435345

Innovation Way, E: enquiries@nnfcc.co.uk

Heslington, York, Web: www.nnfcc.co.uk

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