The UK’s National Centre for Biorenewable Energy, Fuels and Materials
NNFCC
Expanding Biogas Markets The potential for anaerobic digestion in the UK
Lucy Hopwood
Head of Biomass & Biogas
November 2011
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
UK Renewable Energy Targets
• Renewable Energy Strategy (RES)
– UK RED delivery plan
– 15% renewable energy by 2020
10% transport fuels
14% heat
32% electricity
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
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
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Biogas Contribution
- present
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Anaerobic Digestion: Key Facts
The UK has 214 anaerobic digestion plants, as of 30th September 2011
Processing capacity of >5 million tonnes per annum
Installed capacity of >170MWe
Two biomethane injection plants
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
www.biogas-info.co.uk
Biogas Map
= 24 Farm-Fed plants
+ c.54 plants with planning consent
Last updated 04 November 2011
= 44 Waste-Fed plants
+ c.64 plants with planning consent
Last updated 04 November 2011
Plus 146 existing sewage treatment facilities
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Biogas Contribution
- future
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Resource Availability
Food Waste ≈ 16 Mt/y
≈ 8.3 Mt/y household
≈ 6.3 Mt/y commercial & industrial
≈ 1.3 Mt/y food service & retail
Agricultural Waste ≈ 90 Mt/y
≈ 13 million cattle
≈ 33 million sheep
≈ 4 million pigs
≈ 166 million chickens
Sewage Sludge ≈ 1.73 Mt/yr
Purpose Grown Crops…
“…Government policy is to deliver an
increase in energy from waste through AD.”
“We recognise that at farm-scale, some
energy crops may be required…and that
such crops can be grown as part of the
normal agricultural rotation. Furthermore,
there is land available which is not suitable
for the production of food crops but which
may, therefore, be used to supply energy-
crop only AD plants.”
“It is not our policy…to encourage energy
crops-based AD, particularly where these are
grown to the exclusion of food producing
crops.”
!
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Build Rates for AD – UK
Source: ARUP, 2011
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
AD Potential – UK to 2030
Source: ARUP, 2011
=1.8TWh
=5.6TWh
=3.0TWh
“…AD could deliver between 3–5 TWh of electricity by 2020”
AD Strategy & Action Plan, 2011
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Current Government Support
- Policies & Incentives
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Coalition Agreement
Treasury, May 2010:
• “We will introduce measures to promote
a huge increase in energy from waste
through anaerobic digestion”
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Renewables Obligation
The Renewables Obligation (RO) for large-scale (generally >5MW) renewable electricity
projects.
ROCs issued to accredited generators for renewable electricity.
Introduced in April 2002
Banded from April 2009
Double ROCs for Anaerobic Digestion
• ROC value c. £44 – 50 per MWh
Banding Review due 2013, consultation open now.
– Proposing 2 ROCs in 2013 – 14
– Degression of 0.1 ROC per year thereafter
EMR post-2017, details yet to be published
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Feed-In-Tariff
Feed-in Tariffs (FITs) provide a guaranteed price for a fixed period to small-scale (< 5MW)
electricity producers;
– Generation Tariff – the generator is paid for every kWh of electricity generated.
– Export tariff – for electricity exported onto the National Electricity Grid.
[Generators can opt in or on an annual basis, deciding whether to claim this or
the market value for the electricity.]
06th April 2010:
FITs Launched
07th Feb 2011:
Fast-track review announced
09th June 2011:
Fast-track review complete
30th Sept 2011:
Revised rates apply
End-2011:
Comprehensive review consultation
April 2012:
First review rates implemented
April 2015:
Second full review scheduled
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Capacity Original Tariff – from
April 2010 RPI Adjusted Tariff –
from April 2011 New Tariff – from September 2011
<250 kWe
11.5 p/kWh 12.1 p/kWh
14.0 p/kWh
250 – 500 kWe 13.0 p/kWh
>500 kWe 9.0 p/kWh 9.4 p/kWh 9.4 p/kWh
For Comparison:
PV (<50* – 100kW) 31.4 32.9 19.0 (12.9 *)
PV (<100* – 5MW) 29.3 30.7 15.0 – 8.5 *
Wind (100 – 500kW) 18.8 19.7 19.7
Feed-in-Tariff (FIT)
* Proposed banding differs – aggregated here for comparison only.
An
aero
bic
Dig
esti
on
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Impact of Feed-In-Tariff (2010 – 2011)
Source: Ofgem – Feed in Tariff Newsletter, September 2011
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Renewable Heat Incentive
• The Renewable Heat Incentive is intended to provide financial support to encourage
a switch from fossil fuel heating to renewable sources.
• England, Wales and Scotland
• Two-phase approach:
2011: non-domestic sector e.g. from large-scale industrial heating to SMEs and
community heating projects.
2012: domestic sector and perhaps additional technologies (bioliquids, air-source
heat pumps, etc)
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
RHI Structure
• Tariff levels are intended to provide a rate of return of 12% on the additional capital
cost of renewables over conventional heat systems.
• Opened for applications Monday 28th November 2011 (delayed since 30th September)
• Payment period is guaranteed for 20 years from installation.
• Payments will be made quarterly.
• A review of tariffs is scheduled every four years, from 2014;
– Interim adjustments will take into account inflation –RPI linked annually
– Degression will apply
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Technology Size (kWth) Tariff (p/kWh)
Biogas combustion Biogas combustion (excl. landfill)
< 200 6.8
Biomethane Biomethane injection All scales 6.8
For Comparison:
Small Biomass
Solid Biomass; Municipal Solid Waste (incl. CHP)
< 200 Tier 1: 7.6 Tier 2: 1.9
Medium Biomass 200 – 1,000
Tier 1: 4.7 Tier 2: 1.9
Large Biomass ≥ 1,000 1.0 (2.6)
Solar thermal Solar thermal < 200 8.5
Small ground source Ground-source heat pumps; water-source heat pumps; deep geothermal
< 100 4.3
Large ground source ≥ 100 3.0
RHI Tariffs
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
AD Strategy & Action Plan
CREATION
DELIVERY
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Availability of finance
Perceived technology issues
Cost of energy crops
Security of incentives
Planning
Permitting
Health & Safety
Gas Quality Standards
Food waste collections
Markets for digestate
Skills & training
Food vs. Fuel conflict
Small-scale technology
Waste segregation
Biogas upgrading
Biomethane for Transport
KEY ACTIONS
Social Regulatory
Technical Economic
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Official AD Information Portal
www.biogas-info.co.uk
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
Conclusion
• The UK has come a long way in just a few years,
• But, barriers to development remain in place.
• To see a “huge increase” in AD we need;
Long-term security
- Policy
- Incentives
- Feedstock supply
Confidence
Investment
Strategy & planning
Regulatory framework
NNFCC
The UK’s National Centre for Biorenewable Energy, Fuels and Materials
The NNFCC provides high quality, industry leading consultancy
for more information contact us
Email - [email protected]
Twitter - @NNFCC
+44 (0) 1904 435182
• Future Market Analysis
• Feedstock Logistics Planning
• Sustainability Strategy
Development
• Technology evaluation & associated
due diligence
• Project feasibility assessment
• Policy and regulatory support
Top Related