Nnfcc market review bioenergy issue nineteen october 2013


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A round up of news in the bioenergy sector.

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Nnfcc market review bioenergy issue nineteen october 2013

  1. 1. 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
  2. 2. 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.
  3. 3. 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.
  4. 4. 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
  5. 5. 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.
  6. 6. 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
  7. 7. 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.
  8. 8. 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 YO10 5DG. £30.00 £40.00 £50.00 £60.00 25-Dec-01 25-Dec-03 24-Dec-05 25-Dec-07 24-Dec-09 25-Dec-11 24-Dec-13 AverageROCPrice Auction Date