UK and European Biomass Power Activity July 2012 · 2016-04-18 · UK and European Biomass Power...

The Bioeconomy Consultants

NNFCC

UK and European Biomass Power

Activity – July 2012

Lucy Hopwood

Head of Biomass & Biogas

NNFCC


Providing high quality, leading technical consultancy enabling the

exploitation of technologies and opportunities the bioeconomy.

Specialising in bioenergy, biofuels and bio-based products, with

an unparalleled knowledge of bio-based supply chains.

Consultancy

• Market, technical, policy & sustainability expertise

Advisory

• Strategic guidance and briefings, meeting support

Membership

• Standard & business membership packages

Introduction

NNFCC


Renewable Energy Directive (RED)

• RED (EU27):

– 20% renewable energy in total

energy mix by 2020

• Renewable Energy Strategy (RES)

– UK RED delivery plan

– 15% renewable energy by 2020

32% electricity

14% heat

10% fuels

= 108 TWh/y

= 126 TWh/y

NNFCC


Renewable energy consumption – EU27

Gross inland consumption of renewable energy (1995-2008) in EU27 (Mtoe)

NNFCC


• Bioenergy balance in 2008

Figure 3.3 Bioenergy balance in 2008 (ktoe) and AEBIOM targets for 2020 (Mtoe)

NNFCC


CHP generation, 2008 (% gross electricity generation)

UK poor due to absence of district heating

systems and disconnect from suitable heat users

NNFCC


UK Progress to Date

0 5 10 15 20 25 30 35

Electricity

Heat

Transport

Energy contribution (%)

UK Energy Production vs. 2020 Targets

2006

2010

2020

= 10% by 2020

= 14% by 2020

= 32% by 2020

= 3.8% TOTAL Renewable Energy

© NNFCC

NNFCC


Renewables Obligation

• Open to new generation to 2017;

scheme closes 2037

Technology Current Band (ROCs) Proposed Band (ROCs)

Biomass conversion 1.5 1

Co-firing of biomass (enhanced)

0.5 0.5 (1)

Co-firing of biomass with CHP 1 1

Co-firing of energy crops (with CHP)

1 (1.5) 1 (1.5)

Dedicated biomass (with CHP)

1.5 (2) 1.5 (2) to 31 March 2016, 1.4 after

Dedicated energy crops (with CHP)

2 (2) 2 (2) in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17

NNFCC


Renewable Heat Incentive

Tariff name Eligible technology

Eligible sizes Tier

Previous tariff (pence / kWth) up to 31 March

2012

New rounded tariff (pence / kWth) from 1

April 2012

Small commercial biomass

Solid biomass including solid biomass contained in municipal solid waste (incl. CHP)

Less than 200 kWth

Tier 1 7.9 8.3

Tier 2 2 2.1

Medium commercial biomass

200 kWth and above; less than 1,000 kWth

Tier 1 4.9 5.1

Tier 2 2 2.1

Large commercial biomass

1,000 kWth and above

N/A 1 1

Tier 1 applies annually up to the Tier Break, Tier 2 above the Tier Break. The Tier Break is:

installed capacity x 1,314 peak load hours, i.e.: kWth x 1,314

NNFCC


Biopower plant capacity (MWe)

5450

1319

16

20

1110 237

269

896

8758

32

15

1179

2230

237

1000

898

8983

3465

1094

2256

246

239

16

65

9381

4304

205

1980

256

238

16

56

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Jun-11

Nov-11

Feb-12

Jul-12

Awaiting Government response to RO Banding Review

© NNFCC

NNFCC


July 2011

341

555

750

0

100

200

300

400

500

600

700

800

Dedicated biomasscombustion

Co-firing Conversion

inst

alle

d c

apac

ity

MW

e

Installed capacity and technology split of operational plant

RWE Tilbury

© NNFCC

NNFCC


July 2012

4,181

805

4,235

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Dedicated biomasscombustion

Co-firing Conversion

inst

alle

d c

apac

ity

MW

e

Installed capacity and technology split of all projects, inc planned

Has dropped by c. 1GWe since February over

fears in securing biomass in competition

with co-firing/conversion

Eligible for 1.5 ROC’s

Eligible for 0.5 ROC’s proposed 1 ROC for ‘Enhanced’

Eligible for 1.5 ROC’s

now, 1 ROC Proposed

(new band)

© NNFCC

NNFCC


0

2,000

4,000

6,000

8,000

10,000

12,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Inst

alle

d c

apac

ity

MW

e

Capacity projections by year (as at July 2012)

Capacity projections by year (as at July 2012)

© NNFCC

NNFCC


Progress against RED targets

0

2

4

6

8

10

12

14

16

2005 2007 2009 2011 2013 2015 2017 2019 2021

% o

f fi

nal

en

erg

y d

em

and

© NNFCC

NNFCC


Biopower Pipeline Feedstock Requirement - Feb 2012

TOTAL requirement of c. 50 million tonnes if all planned plant goes ahead

© NNFCC

© NNFCC

NNFCC


Biomass Supply Estimates

A wide range of scenarios from many models give very different supply estimates because of differing assumptions

Source: DECC

NNFCC


European Approach

• European Commission reported in February 2010 on the requirement for

sustainability criteria for solid biomass & biogas used for heat, electricity &

cooling

• EC did not mandate EU-wide sustainability criteria for solid and gaseous

biomass, instead member states can choose whether – or not – to introduce

criteria

• But where members states do introduce criteria – the Commission recommends that they: “ensure that these in almost all respects are the

same as those laid down in the Renewable Energy Directive. This would

ensure greater consistency and avoid unwarranted discrimination in the use

of raw materials.”

• Further report due on effectiveness imminently

http://ec.europa.eu/energy/renewables/transparency_platform/transparency_platform_en.htm







NNFCC


UK progress so far (electricity)

• In April 2011 the UK introduced criteria under the Renewables Obligation for

solid biomass & biogas used for electricity:

– Minimum 60% GHG lifecycle emission saving: relative to EU fossil fuel electricity average (≤ 285.12 kg CO2eq per MWh)

– Land criteria: General restrictions on use of raw materials from land

important on carbon or biodiversity grounds e.g. primary forest,

wetlands and peatlands (all meanings as in RED Directive)

• First reports on performance were due in May 2012

covering April 2011 - March 2012

• Biomass GHG tool launched September 2011

• Consultation on Ofgem’s Draft Biomass & Biogas

Sustainability Guidance

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Now and from 2013

• Use of wastes is excluded from these sustainability criteria

• Waste is sewage gas, landfill gas and generally those materials considered

to be waste under the EU Revised Waste Framework Directive (WFD), e.g.

municipal solid waste

• DECC intend, from April 2013, biomass & biogas generators of 1MWe

capacity or above, must meet the criteria to receive support (i.e. for the

biomass power to be eligible for RO certificates)

• Generators below 1MWe will only need to continue to factually report on

performance, they will not risk losing financial support should any biomass consignment fail to meet the criteria.

NNFCC


Issues

• RO Banding Review

– Delayed: Uncertainty and future security

• Transition to EMR (2017)

– Future uncertainty

• EU Sustainability Criteria

– Unknown, potentially different to UK-own criteria

• Lack of ports and transport infrastructure

– For handing, storing and transporting feedstocks

• Lack of security for international feedstock suppliers

– Not attracting inward investment and supply

• Lack of district heating networks

– Little potential for heat use; site specific

© Woodland Trust

NNFCC


Contact details

+44 (0) 1904 435182

[email protected]

www.nnfcc.co.uk

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UK and European Biomass Power Activity July 2012 · 2016-04-18 · UK and European Biomass Power...

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