The UK government has considered a number of economic tools to reduce GHGs, include carbon taxation and the introduction of emissions trading schemes (ETS). The Climate Change Bill contains enabling powers to introduce new trading schemes, including the Carbon Reduction Commitment (CRC) to achieve the carbon reduction targets. The government is currently liaising with key stakeholders in the consultation for the CRC which is expected to be completed by summer 200The UK water industry is responsible for approximately 4.15 million tonnes of greenhouse gas emissions (CO2 equivalent) every year. Although, this is less than 1% of total UK emissions, it is rising gradually year on year. Whilst the industry is increasingly making efficiency gains with abstracting, treating and supplying water and wastewater services; rising population and consumption levels and increasingly stringent quality and environmental standards are driving up energy use (Horton 2007). The Stern Review (2006) highlighted the risks of water scarcity, also echoed in a recent UN report, which claimed that climate change will lead to a 20% increase in global water scarcity and Stern (2006) stresses that our changing climate will also increase the occurrence of extreme weather events such as storms, floods and droughts- presenting a number of challenges for the water industry and its existing infrastructure. The UK Water Industry invests over £4bn per annum, which reflects the capital intensive nature of the water industry, with assets valued at £200bn (Water UK 2007). Having understood the potential impacts of climate change, the industry is implementing a number of strategic changes, including raising awareness of water efficiency, exploring sustainable water and wastewater solutions and energy efficiency projects. Water UK (2007) work closely with government, regulators and stakeholders to develop policies to support the UK water industry, and strive to raise environmental awareness of water regulation, such as the Water Framework Directive. It is argued that this Directive will increase CO2 emissions to achieve the stringent water quality targets it sets for the water industry.
60% reduction based on 1990 levels, 80% based on now.
The UK water industry uses 7,703 GWh/year in energy, which represents 28% of operating costs of the UK water industry operations. Aeration represents 55% of sewage treatment operations and pumping represents 60% of water treatment operations. This usage correlates to approximately 0.4% of the UK’s carbon footprint. Water companies are forecasting a 60-100% increase in energy use to meet new EU Directives (including the Water Framework Directive) and believe the continued emergence of difficult to treat toxic contaminants will drive up energy usage significantly higher (Caffoor 2007). A total of 493 GWh/year of renewable energy is generated on water industry sites, representing 6.4% of total energy used to treat water and wastewater. Renewable energy generation is at the heart of the government’s strategy for reducing the UK’s carbon emissions and reducing grid energy use. The government has set a number of challenging targets in recent years and introduced a number of initiatives, such as the Renewable Obligation Certificates (ROCs), in a bid to increase the energy generated from low carbon, renewable sources. There will also be targets for on site renewable generation in the new Climate Change Bill.
Any company that uses over 6 gig of energy per annum with sites employing half hourly meters (likely to be about 70%). Water companies introduced these to reduce the error on meter readings as a cost saving measure. 20% of CRC trading allowances to come from the water industry.The first phase is expected to span the first 3 years (1st January 2010- 31st December 2012), and to allow participants to become more accustomed to the Scheme, allowances will be made available in a fixed price sale. This introductory phase will be a learning experience for participants, allowing them to gain experience of managing, reducing and reporting their emissions and participating in the trading scheme. The government is keen to introduce a strong carbon price in this phase to motivate investments in abatement, whilst also trying to limit the costs. In order to maintain consistency and avoid any significant jumps in allowance prices in subsequent capped phases, allowances will be sold at £12/tCO2, in two fixed price sales in the first year of the Scheme (Defra 2008). 2013 will see the introduction of the carbon cap and Phase 2 of the CRC. Participants will be required to submit bids for allowances, which will be allocated on the basis of a periodic auction. The availability of allowances will be unrestricted during Phase 1, but will be restricted during Phase 2, when caps will be set in line with the UK’s emission reduction targets as set out in the CCB. It will be possible to bank surplus allowances from one year to the next, with the exception that allowances purchased during Phase 1 will not be allowed to be carried into Phase 2 (Defra 2008). The availability of allowances will be unrestricted during Phase 1, but will be restricted during Phase 2, when caps will be set in line with the UK’s emission reduction targets as set out in the CCB. It will be possible to bank surplus allowances from one year to the next, with the exception that allowances purchased during Phase 1 will not be allowed to be carried into Phase 2 (Defra 2008).
The revenues generated by the sale of carbon allowances will be recycled back to participants based on their performance in a league table at the end of the following year. This will be based on absolute emissions reductions per year (percentage reduction in emissions per unit turnover), providing economic incentives for companies to reduce their carbon emissions. Well performing companies will be rewarded and those at the bottom of the table will be penalised. This in effect means that well performing participants will ultimately get back the revenue they have spent on emissions allowances on a rolling 24-month cycle. At the end of each year, 20% of market participants will be audited (Defra 2007). In order to ensure that participants remain incentivised to abate their emissions, particularly in the introductory phase where there will be no government imposed cap; the government has decided to introduce a bonus/penalty rate which would increase gradually year on year. This will be +/-10% in respect of the first year of the introductory phase, rising to +/-20% in respect of year two, +/-30% in respect of year three, +/-40% in respect of year four and +/-50% in respect of year five. Additionally, to provide further certainty, the government will invite the views of the Committee on Climate Change to discuss how much further the CRC bonus/penalty revenue recycling regime should be strengthened in respect of years 6 and beyond. It is important to note that the government has not ruled out the possibility of this reaching up to +/-100% (Defra 2008).
2.86g is a theoretical minimum value and will be substrate (more energy is required to convert fat into methane than carbs) and process dependent being increased for compounds that are difficult to degrade and non-optimal loadings.Add in cost of electricity too to ROC’s? The recent revision to the government White Paper increased the incentive for power generation from anaerobic digestion of biowaste by introducing a 2 x ROC banding. The current buyout price for ROC’s is £35.76 per MWhe and, assuming £55 per MWhe as a cost offset for power generated, this gives electricity generated from anaerobic digestion a minimum value of £126.52 per MWhe.
10,000 m3 plant
100 tonnes of dry solids per day and £2k per tonne of poly = a saving of £500 per day = £182 k per annum
Up to a saving of £438k per annum
Optimising Sludge Handling & Digester Operation
firstname.lastname@example.org<br />Optimising Sludge Handling & Digester Operation<br />14th European Biosolids And Organic Resources Seminar<br />10th November 2009<br />
Environmental & Economic Drivers<br />“The scientific evidence is now overwhelming: climate change presents very serious global risks, and it demands an urgent global response.” (Stern , 2006)<br />Climate Change Bill<br />Carbon Reduction Commitment (CRC)<br />
UK Water Company Energy Usage<br />1990 Baseline<br />80% reduction required by 2050<br />Source: Jolly, M: 2009. UKWIR Energy Efficient Research Project, Energy Efficiency in the Global Water Industry<br />
The Status Quo<br />The UK water industry uses 7,703 GWh/year in energy. Forecasted to increase by 60-100% to meet EU directives<br />Aeration = 55% of sewage treatment costs<br />Pumping = 60% of water treatment operations<br />493 GWh/year (6.4%) of renewable energy is generated on water industry sites<br />Source: Caffoor, I: 2007. Energy Efficient Water & Wastewater Treatment<br />
GWh / yr<br />Source: Caffoor, I: 2007. Energy Efficient Water & Wastewater Treatment<br />
CRC<br />a ‘cap and trade’ scheme scheduled to start 01/01/2010 (£12t CO2 initially then auction)<br />Aims to reduce carbon against current levels by 8% (1.1 MtC / year) by 2020<br />applies to organisations whose mandatory half-hourly metered electricity consumption is greater than 6,000MWh per year (based on 2008 data) <br />Source: Sawar, N: 2008. Analysing the Impacts of a Carbon Emissions Trading Scheme on the UK Water Industry<br />
CRC (2)<br />League table of performance with rewards and penalties (£25-£75 per tonne CO2)<br />well performing participants will ultimately get back the revenue they have spent on emissions allowances on a rolling 24-month cycle. <br />Source: Sawar, N: 2008. Analysing the Impacts of a Carbon Emissions Trading Scheme on the UK Water Industry<br />
The Water Industry<br />Risk averse and conservative.<br />1% of turnover on R&D<br />Rising energy requirement.<br /> To meet these targets the water companies will need to embrace innovation, R & D and make significant operational savings.<br />
Summary<br />There are significant financial and carbon savings to be made on domestic and industrial treatment plants.<br />The larger the plant the greater the potential.<br />To realise these savings an understanding of basic design / evaluation principles is required.<br />Operator buy-in and training is critical.<br />
Thank you<br />For any training or plant optimisation enquiries please contact me at:<br />email@example.com<br />01924 242255<br />
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