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NNFCC market review bioenergy issue one april 2012
1. NNFCC Market Review
Bioenergy Issue One, April 2012
E
ach month we review the latest Despite this setback, last month saw
announcements and news from major bioenergy progress made by
across the bioenergy market. This another of the ‘big six’ energy
service is exclusively for our business companies. E.ON received approval to
members. build a biomass storage facility as part
of its own plans to convert Ironbridge
Foreword power station from coal to biomass. The
company also announced a new
Welcome to the launch issue of our
scheme offering free biomass boilers to
new bioenergy market review. Biomass
local councils in an effort to promote
is growing in importance to renewable
the market and take advantage of the
energy strategies of governments’
UK’s Renewable Heat Incentive.
across the globe.
According to the latest energy statistics Read on to find out more.
from the UK (published in March), plant
biomass capacity in the UK increased Highlights
by 765 MW in 2011. This was thanks
Page 2 Policy News Round-up
mostly to the conversion of RWE Tilbury
B from coal to dedicated biomass – Page 3 Biogas News Round-up
trebling UK biomass plant capacity.
Page 4 Energy from Waste News
However, in February a major fire Round-up
engulfed two biomass storage hoppers
Page 5 Dedicated Biomass News
at Tilbury, which is Europe’s largest
Round-up
biomass power station. The affected
units are likely to remain out of service Page 6 Biomass Boilers News Round-up
until the end of July.
Page 7 Events
NNFCC Market Review, April 2012, Page 1 of 8
2. Policy supporting practical experience in the
design, construction and operation of
commercial scale CCS with £1bn
Planning relaxation for small-scale
capital funding, and additional
renewable energy systems in UK support, subject to affordability,
through low carbon Contracts for
Small-scale energy installations built on Difference;
agricultural or forestry land are now exempt £125m funding for Research and
from planning permission under amendments Development, including a new £13m
to the English Town and Country Planning UK CCS Research Centre;
Order. Planned long-term Contracts for
Difference through Electricity Market
The exemption refers to any works, buildings Reforms to drive investment in
or structures with a ground area below 465 commercial scale CCS in the 2020s
square metres and relates to the following and beyond;
installations: Commitments to working with industry
to address other important areas
Solar and ground source heat pumps including developing skills and the
on or within the land immediately supply chain, storage and assisting the
around a building other than dwelling development of CCS infrastructure;
house and
The erection, extension or alteration of Focus on international engagement,
a building for housing a biomass boiler in particular on learning from other
or an anaerobic digestion system; projects around the world to help
including buildings used for the accelerate cost reduction in the UK,
storage of fuel for, or waste from, that and sharing the knowledge we have
boiler or system; or for housing a generated through our programme.
hydro-turbine
Click here for more information.
Click here for more information.
Wales' recycling targets force council
CCS competition launched as UK to buy in extra wood
government sets out long-term plans
Pembrokeshire council has fitted wood-
Energy and Climate Change Secretary burning biomass boilers in several buildings to
Edward Davey has launched a new cut its carbon footprint. But timber discarded
competition for Carbon Capture and Storage by local residents and businesses is not being
(CCS), a key technology in the Government’s used to fuel those boilers because it would
drive to ensure our future energy security and not count towards recycling targets, said the
reduce emissions. council.
The Department of Energy and Climate The Welsh Government says it will fine any
Change also published the first UK CCS council failing to recycle at least 52 per cent
Roadmap. This sets out the steps that the of its waste from the next financial year.
Government is taking to develop a new Latest figures show Pembrokeshire recycled or
world-leading CCS industry in the 2020s, composted 48 per cent of waste in July to
including: September 2011. It would fall even further
short of target if it sent waste timber to
‘CCS Commercialisation Programme’ biomass boilers.
competition to drive down costs by
NNFCC Market Review, April 2012, Page 2 of 8
3. Each year Pembrokeshire council collects deployment. The report ‘Jobs in the
about 2,900 tonnes of waste timber, which bioenergy sector by 2020’ was written by
goes to a Swansea company for turning into NNFCC for the UK Department of Energy and
woodchips which then go to a chipboard Climate Change, as part of the forthcoming
factory in Wrexham, 200 miles away. The UK Government Bioenergy Strategy.
timber is therefore classed as recycled.
The report is due to be published before the
If only 15 per cent of that wood was suitable end of April. Follow NNFCC on twitter to keep
for burning in biomass boilers, the council up to date with the latest NNFCC news,
could avoid buying pellets made from virgin announcements and publications.
wood – sawmill offcuts – instead.
Click here for more information.
Biogas
UK government announces support for
carbon floor price in annual budget
Of the most significant green policies to
benefit from the budget was support for the
carbon floor price, a mechanism designed to
tackle the UK's most energy-intensive
businesses. The chancellor announced that
the support rate would increase from an
indicative rate published last year of £7.28 to
£9.55 per tonne of carbon dioxide, in
response to the dramatic fall in carbon prices
seen since last summer.
Source: BiogenGreenfinch
The Carbon Floor Price is being developed as
part of the Electricity Market Reform (EMR). BiogenGreenfinch to build first local
NNFCC are supporting DECC with their work authority food waste to biogas plant in
on the EMR, focussing initially on the Feed-in
Wales
Tariffs with Contracts for Difference (FiT CfD)
which will eventually replace the Renewables
In a first for Wales, BiogenGreenfinch have
Obligation as the leading incentive for
been appointed by Gwynedd Council as the
renewable energy from 2016/17.
preferred bidder for the construction of a new
green energy plant which will take council
Click here for more information.
collected food waste and turn it into
renewable energy.
NNFCC to publish bioenergy jobs
report The new anaerobic digestion plant will
process around 11,000 tonnes of food waste
NNFCC is set to publish a comprehensive each year; converting it into renewable
report on the potential jobs that bioenergy electricity for nearly 700 homes and
could deliver in the UK by 2020. biofertiliser for use on nearby farmland.
The report will highlight the significant Click here for more information.
opportunities for bioenergy in the UK, and
explore the likely economic benefits of this
NNFCC Market Review, April 2012, Page 3 of 8
4. Controversial AD plant approved in Apple to invest in biogas fuel cell
Powys technology at US data centre
Environment Agency Wales has granted an Electronics giant Apple has filed plans to
environmental permit for a proposed on-farm- construct a 24 fuel cell system to help power
based anaerobic digestion waste treatment its new iDataCentre in North Carolina, which
plant at the centre of considerable local was built to support its iCloud online data
opposition. The plant is the first to obtain storage system and SIRI voice-recognition
planning permission within the Brecon software.
Beacons National Park. The permit outlines
how the GP Biotech Ltd facility is expected to But unlike traditional fuel cells, Apple plans to
meet the highest possible environmental use biogas made from the anaerobic
standards that will protect the local digestion of landfill waste as the fuel source.
community and environment.
The company have said that the new 5MW
Biogas produced from the plant will be used system could begin generating electricity as
to generate electricity destined for the early as June and will be fully operational by
National Grid. Among the permit conditions is November.
the stipulation that at least 50 per cent of the
waste going through the plant must be Click here for more information.
sourced from Great Porthamel and that the
total amount of waste that can be acquired
must not exceed 35,000 tonnes per year.
Energy from Waste
Click here for more information.
ETI seeks partners for £13m energy
Biffa helps Birds Eye close in on ‘zero
from waste demonstrator
waste’
The ETI is seeking partners for a new £13 million
A partnership with waste management
project to design and build a next generation
company, Biffa has enabled frozen food
energy from waste demonstrator plant.
manufacturer, Birds Eye to reduce the
amount of waste sent to landfill by 21 per
The project aims to produce energy at
cent in the last 12 months. According to the
efficiencies higher than previously produced.
food manufacturer, the initiative forms part of
It is hoped the plant could be designed by
a waste improvement plan which it hopes will
2014 and operational by 2016.
enable it to reach its goal of sending zero
waste to landfill by 2014.
The ETI issued a request for proposals for
interested parties. The deadline for
Birds Eye's food waste, including animal by
notification of intention to submit a proposal is
product waste, is sent to Biffa's flagship
Thursday 7th June 2012 with the closing date
anaerobic digestion facility in Cannock,
for submissions Monday 2nd July.
Staffordshire. Opened in June last year the
facility can process up to 120,000 tonnes of
Click here for more information.
food waste each year and generate enough
energy to power 10,000 homes.
Click here for more information.
NNFCC Market Review, April 2012, Page 4 of 8
5. Waste2Tricity acquires exclusive rights for every year that the plant is operating, to
to AFC Energy’s energy-from-waste support charitable and/or educational
community projects and a further £75,000 will
technology in £1m deal
be allocated to trial green buses and improve
cycle routes in the local area.
Waste2Tricity has exercised its right to
exclusively represent AFC Energy in the UK for
The 150MWe plant will be fuelled by
applications involving the integration of the
sustainably sourced wood biomass; mostly
company's fuel cell products with hydrogen
imported virgin wood, dedicated energy
derived from the gasification of municipal
crops like Miscanthus and locally sourced
solid waste to generate clean energy in a £1
waste wood.
million deal.
Click here for more information.
The agreement also grants Waste2Tricity a
right of first refusal regarding the supply of
Immingham granted planning
AFC Energy's fuel cells to further territories in
Europe and North America for use in projects permission for biomass power plant
where hydrogen is derived from the
gasification of municipal solid waste. AFC North East Lincolnshire Council has granted
Energy and Waste2Tricity will continue to work planning permission for a new £130m biomass
together to target and develop waste-to- plant to be built by Real Ventures at the Port
energy opportunities as they arise. of Immingham. The "Reality Energy Centre" is
due to start producing power in 2015 and
Click here for more information. have a lifespan of around 25 years.
The scheme is expected to create 35 long
term jobs, in addition to 250 construction jobs,
and provide enough energy to power around
Dedicated Biomass
90,000 homes. It will be fuelled by wood chips
imported directly to the plant through the
New Bristol biomass plant to benefit port, reducing carbon dioxide emissions by
local community 190,000 tonnes a year compared to power
generated by coal.
E.ON Climate and Renewables have been
granted permission to build a new 150MWe Click here for more information.
dedicated biomass power station at Royal
Portbury Dock in the Port of Bristol, North RWE npower renewables and SITA UK
Somerset. sign major deal to supply Scottish
state-of the art biomass CHP plant
If built the plant will provide enough electricity
to power up to 160,000 homes and displace
RWE npower renewables has awarded
almost 400,000 tonnes of CO2 emissions
leading recycling and resource management
annually. In addition, the new plant will
company, SITA UK, a long- term deal to
create up to 325 temporary jobs during
supply recovered wood to its £200 million
construction, 35 full-time jobs during
biomass combined heat and power (CHP)
operation and a further 20 contract personnel
plant at Fife, Scotland.
during routine and annual maintenance.
The contract will provide more than 50 per
E.ON will also set up a Community Investment
cent of the feedstock requirements to the
Fund, which will contribute £50,000 per year
49.9 MW biomass CHP facility which is
NNFCC Market Review, April 2012, Page 5 of 8
6. currently under construction. The plant is due Biomass Boilers
to be commissioned later this year and be
fully operational by mid-2013.
Click here for more information.
Vega Biofuels showcases its ‘Bio-Coal’
during European road show
Vega Biofuels recently announced plans to
build a green-energy manufacturing plant in
Cordele, Georgia that will manufacture bio-
coal from timber waste. The bio-coal will be
made using special technology called Source: Anesco
"torrefaction."
Anesco touts biomass boiler give-
The company has received interest in its bio- away
coal product from all over the world.
However, the company's main focus is Green energy firm Anesco could soon be
currently in Europe. The European Union has installing up to 10 free biomass boilers for
the world's largest regional energy market businesses per month under a new scheme
and accounts for one fifth of the world's taking advantage of the government's
energy use. Renewable Heat Incentive.
Click here for more information. Anesco yesterday confirmed it is launching a
fund designed to provide organisations with a
NNFCC attend World Biofuels Markets 50-100kW biomass boiler, as well as fuel
Conference in Rotterdam storage and maintenance, free of charge.
Dr Geraint Evans, Lucy Hopwood and Dr John The scheme is expected to help organisations
Williams were all invited speakers at the World reduce their energy bills by up to 50 per cent
Biofuels Markets Conference in Rotterdam on and curb their environmental impact. The
13-15th March 2012. company is targeting medium-sized to large
buildings with a heavy heating demand, such
The conference primarily covered biofuels but as nursing homes, hotels, large commercial
also bioenergy and bio-based chemicals, units and leisure centres.
and was attended by around 1500 delegates
including significant numbers of technology Click here for more information.
providers, brand owners and investors.
E.ON offers councils ‘free’ biomass
For a full report on the conference or to boilers
receive a copy of any of the talks given by
NNFCC staff, NNFCC members can contact E.ON is looking to install biomass boilers in
enquiries@nnfcc.co.uk leisure centres and other council properties to
take advantage of the government’s
Renewable Heat Incentive (RHI) subsidy.
E.ON will pay all capital and maintenance
costs, and source the biomass. The company
NNFCC Market Review, April 2012, Page 6 of 8
7. will then receive all payments from the heat for the swimming pool and other
government’s RHI. E.ON is initially trialling the facilities. The centre currently has gas boilers.
offer, called ‘Project New Heat’, in the north- The council says it will save £5,000 a year on
west. It is approaching businesses with high fuel costs under the arrangement. The boiler
heat loads, such as hotels and care homes, will also save up to 258 tonnes of carbon
as well as councils. annually, meaning the council will not have
to pay £3,096 a year to buy allowances under
Denbighshire County Council in north Wales the CRC Energy Efficiency Scheme.
became the first to take advantage of the
offer. E.ON will install a 500 kilowatt biomass Click here for more information.
boiler in Rhyl Leisure Centre in May to provide
Events Conference in the field of Biomass comprising
more than 800 presentations in plenary, oral
and visual sessions. The 20th EU BC&E attracts
Life Cycle Assessment Workshops, 16-
policy and industry decision makers through
17 May 2012 in York, UK several parallel events addressing special
www.nnfcc.co.uk/events topics which are currently in the focus of
discussion.
Two workshops have been developed to
provide a basic understanding of LCA and NNFCC members receive a €140 discount off
how to set about doing one. The first the standard rate if they book before 27th
workshop covers the principles of LCA, April 2012, contact enquiries@nnfcc.co.uk for
requirements, problems and issues. The the discount code.
second provides a ‘hands on’ opportunity to
learn to carry out an LCA. The workshops can Waste to Energy City Summit 2012, 21
be taken together or separately.
June 2012 in London, UK
www.wastetoenergy.rethinkevents.com
Anaerobic Digestion: Opportunities for
Development in the North East, 29-30 The Waste to Energy City Summit will draw
May 2012 in Morpeth, UK together the most innovative technology
www.envirolink.co.uk developers and waste management
companies with the city’s financial
This event aims to explore the opportunities community and policy-makers to define the
available to a range of organisations, future of this exciting sector and to forge the
including private businesses, farmers, partnerships that will take new projects to
developers and supply chain companies in commercial success.
North East England from the development of
AD. NNFCC members receive a 20 per cent
discount off the standard rate. Contact
20th European Biomass Conference enquiries@nnfcc.co.uk for the discount code.
and Exhibition, 18-22 June 2012 in
Milan, Italy
www.conference-biomass.com
The international science and technology
Conference of the 20thEU BC&E is the leading
NNFCC Market Review, April 2012, Page 7 of 8
8. UK AD & Biogas 2012 - AD: Your
Missing Link, 04-05 July 2012 in
Birmingham, UK
www.adbiogas.co.uk
The Anaerobic Digestion and Biogas
Association’s (ADBA) third annual trade show
and conference, UK AD & Biogas 2012 (4-5
July, NEC) will demonstrate where anaerobic
digestion can offer the best benefits to the
farming sector.
Credits and Disclaimer
NNFCC Market Review is edited by Dr Matthew Aylott 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, 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
YO10 5DG.
NNFCC Market Review, April 2012, Page 8 of 8