Nnfcc market review bioenergy issue twentyfive april 2014


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A round up of news from the bioenergy sector

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Nnfcc market review bioenergy issue twentyfive april 2014

  1. 1. Welcome to the April 2014 issue of our bioenergy market review! Each month we review the latest news from across the bioenergy market. This service is exclusively for NNFCC members. Contents Policy .............................................................................................3 Market...........................................................................................4 Biomass-to-energy...................................................................6 Biogas............................................................................................8 Energy-from-waste ..................................................................9 Events ............................................................................................9 Renewable Obligation Certificate (ROC) Price...........12 Issue Twenty Five April 2014 April 2014 NNFCC Market Review | Bioenergy
  2. 2. NNFCC Market Review, April 2014, Page 2 of 13 Foreword According to our new report Anaerobic Digestion Deployment in the UK released this month, there are currently 342 AD installations under development (planned or under construction) of which almost two thirds are farm-fed and typically small-scale (<250kWe) the rest are waste-fed and typically above 250 kWe. Typically less than 50% of these projects end up going operational. The main reasons behind project failures are issues around feedstock supply or economic constraints. For example, the recent degression of Feed-in Tariffs (FiTs) for small and medium scale AD plants has reduced support by 20% from April 2014. Smaller projects, typified by farm-scale AD projects are the ones that will be most affected by the degression in support for new plants. As a result of such changes, small-scale AD projects will increasingly need to find uses for heat to benefit from the Non domestic RHI scheme and the newly launched Domestic RHI Scheme to ensure project viability. While the AD market is likely to temper, the new Domestic RHI is likely to increase the focus on renewable heat applications, an area which is already showing rapid growth and interest according to industry comment The latest IPCC reports highlight the value that biomass CCS has in combatting atmospheric CO2 rises compared to more expensive alternatives. Hopefully this will help focus more attention on the positive value and attributes of biomass at a time where the uncertainties surrounding biomass impacts continue to be exploited by those who would prefer to see support removed altogether. The misinformation and misunderstanding demonstrated by many ill-informed commentators needs to be continually addressed to avoid unnecessary delays to development and ensure planning decisions are subject to a balanced view. Read on for the latest market news.
  3. 3. NNFCC Market Review, April 2014, Page 3 of 13 Policy EU Chiefs must not ignore value of 'sustainable' biofuels BIOENERGY has a ‘positive’ role to play in society but more research is needed to realise its full potential, according to a new report by the United Nations Intergovernmental Panel on Climate Change (IPCC). The report, which comes as the EU considers the future of the EU biofuels policy within its future climate and energy policy framework up to 2030, says existing uncertainties about bioenergy should not preclude society from pursuing beneficial bioenergy options that are available. The IPCC report finds estimated ILUC emissions are ‘highly uncertain, unobservable, unverifiable, and dependent on assumed policy, economic contexts, and inputs used in the modelling’. The report confirms measures to address ILUC must incorporate the impacts of ILUC prevention or mitigation strategies, including the impact of forest protection measures, policies and investments to improve agricultural productivity, double cropping, and the use of degraded and marginal lands. The report also recognises land use emissions can be reduced through animal feed co-products of biofuels that substitute the need for protein crops imports for animal feed production. Click here for more information. Biomass with CCS is essential to counter global warming – UN IPCC When it comes to technology for averting climate change, renewable energy often gets the limelight. But capturing carbon dioxide from power plants could have a far bigger impact on the economics of dealing with climate change, according to a U.N. report released earlier this week. The report is the third in a series of major reports from the Intergovernmental Panel on Climate Change Committee. This one considers how to limit greenhouse gas emissions to avoid the most serious effects of climate change. The report analyzes the cost of taking steps to stabilize greenhouse gas levels in the atmosphere Costs could more than double if carbon capture and storage (CCS) technology isn’t deployed. It’s the only technology that can reduce the emissions of existing power plants, some of which will stay in operation for decades. It also might be the best way to limit emissions from some industrial processes, such as making steel. Most importantly for the economics of averting climate change, CCS could be essential for taking carbon dioxide out of the atmosphere, a strategy the IPCC found might be necessary to limiting warming to two degrees Celsius or less. Power plants burning biomass can reduce emissions because the carbon dioxide they emit is offset by the carbon dioxide absorbed by plants as they grow. Adding CCS, and capturing the carbon dioxide from the power plant, results in a net reduction of carbon in the atmosphere. Some climate and economics models suggest that building a large number of biomass power plants equipped with CCS could lead to a significant reduction in carbon dioxide in the atmosphere, which will be necessary if the world
  4. 4. NNFCC Market Review, April 2014, Page 4 of 13 reduces emissions too slowly—something the IPCC report says is likely. Limiting warming to two degrees Celsius will likely require limiting greenhouse gas levels to 450 parts per million, but many models have found that even with ambitious measures to reduce emissions, the world will shoot past that amount by mid-century. To bring levels back down to 450, some carbon dioxide will need to be removed from the atmosphere. Without the pairing of biomass power plants and CCS, “we find it very difficult to come up with scenarios that pass the laugh test that can limit warming to two degrees Celsius,” says Robert Stavins, director of the Harvard Environmental Economics program. Biomass power plants with CCS aren’t the only way to pull carbon out of the atmosphere. A net increase in forestation would help—but that would buck the trend of deforestation. And experimental technologies that use carbon dioxide-binding materials to capture the gas directly from the air are more expensive than using CCS at biomass power plants, says Howard Herzog, a senior research engineer at the MIT Energy Initiative. Market UK AD Deployment Anaerobic digestion deployment in the United Kingdom, a new report form the NNFCC shows there are 138 operational AD plants and 341 in development, most of these on farm sites. The figures do not include sewage-based AD plants. The report gives a regional breakdown of AD development in the UK, providing detailed information on feedstock requirements, installed capacity and output type for every project. Deployment is strongest in the east of England, while the North East has the fewest plants and distribution across other regions is broadly equal. The report shows a current demand for 750000 tpa of energy crops, equivalent to the output from 17,000 ha. The complexity, planning and finance requirements of AD mean that only around 30- 50% of plants in the pipeline are expected to complete, but if all those under development went into production, the UK AD industry’s land requirement for feedstock crops would rise to 60,000ha by 2017. The report is available from NNFCC’s website. Gas Vector Transition Pathways Development Project The Energy Technologies Institute (ETI) is seeking partners to help develop a project to assess the potential for different gases to supply energy across the UK. The project is part of the ETI’s Energy Storage and Distribution programme (ES&D), which is identifying how the UK can move energy economically and efficiently to where and when it is needed in the future. The ETI believes that a range of gases, namely bio-synthetic natural gas (SNG), hydrogen and natural gas, have the potential to play an increasingly significant role in the delivery of energy. Gases such as bio-SNG and hydrogen, could feasibly lower overall effective CO2 emissions whilst continuing to ensure the secure supply of energy to a wide range of end- users. Closing Date: 30 April 2014
  5. 5. NNFCC Market Review, April 2014, Page 5 of 13 Click here for more information. Green Investment Bank funds bioenergy projects The U.K. Green Investment Bank has announced its support for several bioenergy projects in recent weeks, including investments in a waste-fueled power plant and a project to install biomass-fired boilers. GIB has committed to a £51 million ($84.17 million) investment in a proposed waste-to- energy plant in Kings Lynn, Norfolk. The new facility, known as the Willows Power & Recycling Center, will process 170,000 metric tons household waste and 100,000 metric tons of commercial and industrial waste annually. The project is expected to generate approximately 170 GWh of electricity per year, enough to power 40,000 homes. Earlier, GIB and Equitix announced a £24.5 million investment to finance the installation of renewable energy boilers at Bernard Matthews’ turkey farms. As part of the project, 179 new biomass boilers will be installed at 21 farms across the U.K. According to information released by GIB, the project was conceived, designed and managed by renewable energy developer Lumicity. In addition to reducing costs and greenhouse gas (GHG) emissions, the new biomass boilers are also expected to provide benefits associated with improved heat circulation, including reduced ammonia levels, reduced ventilation requirements and increased litter quality. Click here for more information. French biomass industry to benefit from €250m financing agreement A group of lenders including the European Investment Bank (EIB), BPCE Group, and Crédit Agricole's Caisses régionales, as well as Crédit Agricole Leasing & Factoring, have agreed to provide €250m to develop biomass-fed energy schemes and enhanced waste recycling and recovery in France. The financing agreement, which marks a key step in the development of renewable energy in the country, will help enhance the value of forest or agriculture-based biomass by using them, together with household and similar waste, to produce electricity, biogas and heat. The agreement also helps in financing biomass- fired schemes across France, including heat-only and combined heat and power cogeneration plants, along with facilities for treating household and similar waste to generate biogas and electricity. In addition, the latest deal will help support work on renovating and extending urban heating systems, with an aim to improve both energy performance and efficiency. Ukraine seeks renewables energy investors Ukraine is seeking investment in its biomass, wind and solar power industries. The idea is to use renewable energy to curb its reliance on fuel imports from Russia, which annexed Ukraine’s Crimea region last month and has troops massed on the border. “Russia’s aggression towards Ukraine brought energy security concerns to the fore,” Olexander Motsyk, Ukraine’s ambassador to the U.S. said at a
  6. 6. NNFCC Market Review, April 2014, Page 6 of 13 renewable-energy conference at his country’s embassy in Washington. Ukraine relies on Russian natural gas for heat and electric power. U.S. and European officials have been searching for ways to help Ukraine limit this dependence, including expediting U.S. approvals of facilities to export liquefied natural gas. Biomass and biogas are the most promising forms of renewable energy for Ukraine, in part because the nation’s network of electric-power lines and substations can’t easily adjust to the addition of significant amounts of wind and solar energy. Biomass may help replace natural gas used in the nation’s 24,000 boiler plants, officials from the Energy Industry Research Center said. Ukraine’s heating supply accounts for about 40 percent of all gas imported from Russia, which could be replaced with renewable energy within three to five years. By 2030, renewables could account for about 15 percent of Ukraine’s electricity supply, up from about 2 percent now, with adequate investment. Click here for more information. Industry figures suggest UK biomass to heat market growing rapidly Leading UK biomass technology company Rural Energy has reported it has a record order book with work underway to install biomass heating systems that will generate more than 30MW of renewable heat. The company has secured a string of deals for its cutting-edge biomass boilers across a wide range of sectors, including agriculture, healthcare, leisure, commercial property and education. By the end of April, Rural Energy will have received orders for more than 140 biomass systems so far this year for clients, including projects with its partner network. This growing order book underlies the continued development and popularity of biomass heat opportunities in the UK. Paul Clark, managing director of Rural Energy, said “The demand for biomass technology continues to grow and we remain right at the forefront of the industry. The Herz boilers we are installing are market-leading and are some of the first in the UK to be awarded the all-important emissions certificates from Ofgem.” “ Our range of domestic packages eligible for the new domestic RHI tariff are live and we are looking forward to training MCS domestic installers in our new training centre to deliver this offer” Click here for more information. Biomass-to- energy Industry research into sustainability of UK pellets Renewable energy from wood fuel has major potential as a sustainable and efficient way to
  7. 7. NNFCC Market Review, April 2014, Page 7 of 13 produce heat which can be used to warm homes and businesses, provide hot water and drive industrial processes. However, the benefits accrued from utilising wood fuel for this purpose depend on the sustainability of the source and emissions accruing from land-use production, harvesting, transportation and conversion. An industry-funded briefing "Delivering the UK’s renewable heat objectives through wood fuel" sets out the position of some of the UK’s leading pellet manufacturers, distributors and suppliers of wood pellet boilers for heating on the issue of sustainability. It provides data obtained from current production and distribution within the UK wood pellet industry and emissions of CO₂ from every stage of the supply chain are analysed. The authors have sought to illustrate the journey and emissions from supplying biomass pellets typically available in the UK, to provide insight into a real journey from forest to radiator. The results show that wood pellets supplied through a high quality supply chain significantly exceed DECC’s requirement for 60% reduction in GHG’s. Click here for more information. Pellet producers offer insight on 'shortage' Pellet retailers and consumers in some Northeast and Midwest locations have learned a lesson this heating season, as many have run out of pellets and are facing difficulties securing additional supplies. The general consensus amongst pellet producers on what, exactly, that lesson should be is that ordering or buying pellets too late in the season leads to inaccurate demand estimates. Although the winter has been unusually cold — albeit not the coldest on record — and has upped demand some, pellet producers insist current industry capacity is fully capable of meeting and exceeding market needs. Cory Schrock, plant manager of White Pigeon, Michigan-based Fiber By-Products, said: “Producers have an average operating capacity of 50 to 60 percent, because that is all the market requests of us. Couple that with one of the coldest and hardest winters on record so consumer usage is up, and skyrocketing propane prices, and consumers have turned to wood pellets.” For most consumers, pellet stoves aren’t primary heat sources, but when propane reaches $3 to $5 per gallon most cannot afford to use it, Schrock says, so they turn to their pellet stoves. Click here for more information. Forth Energy pulls out of Scottish biomass projects The planned biomass plant in Dundee had attracted controversy; Source: BBC Forth Energy said it was not continuing with renewable energy projects in Grangemouth and Rosyth and was seeking new backers for the schemes. The plans for a plant in Dundee have also been withdrawn altogether. The news came after key backer Scottish and Southern Energy (SSE) announced it was pulling back from renewable energy projects.
  8. 8. NNFCC Market Review, April 2014, Page 8 of 13 Forth Energy, a joint venture between Perth-based energy giant SSE and Forth Ports, had won consent from the Scottish government for the wood-burning biomass plants in Grangemouth and Rosyth. However, the Dundee proposal, which carried a similar price tag, had been held up by a government inquiry after plans were rejected by the local city council. Click here for more information. Last coal power plant in Ontario converts to biomass Officially earning the province a coal-free status several months prior to its goal of the end of 2014, Ontario Power Generation’s Thunder Bay Generating Station has burned its last supply of coal, the utility and the Ontario government reported. The 300-MW power plant entered service in 1963 and is the oldest coal-fired station in the province. A conversion is planned to switch to advanced biomass, or steam exploded biomass fuel, which OPG believes will be the first power plant in the world to utilize. An initial proposal to convert the station to natural gas was cancelled. A successful 100-percent advanced fuel test burn was done at the plant in September. Ontario’s “Ending Coal for Cleaner Air Act”, proposed in late 2013 and currently under legislative review, builds upon the province’s 2007 Cessation of Coal Use Regulation. It prohibits the use of coal several generating facilities after Dec. 31, and at any future stand-alone electricity generating facility. Ceasing coal-fired electricity generation at other facilities, such as industrial facilities, does not apply if it produces a product other than electricity or steam, and electricity generation is not the primary purpose of the facility. Biogas Biomass plant plans for Anglesey Aluminium move forward Source: BBC Plans to build a large biomass plant and eco park on the site of the former Anglesey Aluminium works near Holyhead have taken an important step forward. The UK government has approved design changes to the proposals by Chester-based Lateral Power. Plans for a biomass plant at the site were first put forward in 2009 and a licence was granted in 2012. Click here for more information. Dagenham gets 1.5MW biogas facility Aenergia new facility in Dagenham; Source: Aenergia Anaergia has announced that UTS Biogas, a wholly owned subsidiary of Anaergia based in the United
  9. 9. NNFCC Market Review, April 2014, Page 9 of 13 Kingdom, has successfully constructed and commissioned a 1.5 MWel biogas facility at Dagenham, London, for its client TEG Environmental. The Dagenham facility, located on a newly developed site within the London Sustainable Industries Park, is a combination of in-vessel composting and anaerobic digestion technology. The facility can process up to 50,000 tonnes of organic waste each year. UTS and TEG have already successfully commissioned their first co-located facility in Perthshire, Scotland. Click here for more information. Energy-from- waste Abengoa becomes dually renewable Abengoa recently brought the power component of its Kansas cellulosic ethanol facility on line; Source: BiomassMag Close to 90 percent of first-generation U.S. ethanol plants are dependent on natural gas to power operations, but the new generation of ethanol plants coming on line may deviate from that trend. Not only is Abengoa Biomass Energy LLC forging the path to commercial-scale cellulosic ethanol, it is taking a new road when it comes to fuel. Besides cellulosic ethanol, the Hugoton facility, located in the southwest corner of the Kansas state in US, also produces power, a segment of the facility that was brought on line in December. Abengoa began conceptualizing a plan for a joint power and cellulosic ethanol plant about 10 years ago. While navigating through pilot- and demonstration-scale developments, the master blueprint, which was modified over time, began to take its final shape. The power source will be primarily corn stover— the same feedstock used for liquid fuel production—wheat straw, prairie grasses, and, potentially, some dedicated energy crops such as switchgrass, as there is a switchgrass farm in the area, Standlee says. Click here for more information. Events NNFCC and North Energy Life Cycle Assessment (LCA) workshops on 29-30 April in York, UK Following the success of our previous Life Cycle Assessment (LCA) workshops, NNFCC and North Energy bring you two new training workshops
  10. 10. NNFCC Market Review, April 2014, Page 10 of 13 providing you with insight into how LCA's work and their applications. The workshops take place over two days:  Day 1: 29 April 2014. Introduction to LCA Workshop  Day 30 April 2014. Advanced LCA Workshop. ACI 4th Annual European Algae Biomass Conference on 6-7 May 2014 in Seville, Spain ACI will hold their 4th annual European Algae Biomass Conference, which will once again bring together senior executives from industry and academia to discuss the latest commercial and technical developments, challenges and research breakthroughs throughout the entire algae value chain. European Bioenergy Conference on 12- 14 May 2014, Brussels, Belgium In its 5th year, the AEBIOM Bioenergy Conference has established itself as one of the main leading bioenergy conference in Europe. The event has gained major proportions and is aiming higher each year. 20th International Symposium on Analytical and Applied Pyrolysis on 19- 23 May in Birmingham, UK The conference will cover the latest results in all areas of pyrolysis and related thermal processes and will attract a wide range of researchers from academia and industry. Seaweed for Biofuel on 21 May in Oban, Scotland Seaweed for Biofuel is organised by the Algal Bioenergy Special Interest Group and Innovation Norway and is aimed at enhancing collaboration and addressing supply chain challenges around developing a sustainable and robust algal biofuel network. World Waste to Energy City Summit 2014 on 21-22 May in London, UK Registration is now open for the third annual World Waste to Energy City Summit, taking place in London in May 21-22, 2014, will once again bring together the leading players in the advanced waste to energy sector with the most active funders in the market for two days of interactive debate and networking. 20% delegate discount off registration for NNFCC members.
  11. 11. NNFCC Market Review, April 2014, Page 11 of 13 The Algae Event on 25 June in Hamburg, Germany Providing a better understanding on how algae fit into the current biomass industry and how they could contribute to a sustainable bioeconomy in the future. EnAlgae is co-organising a stand-alone conference session on algae within the EU Biomass Conference and Exhibition in Hamburg. 16th European Congress on Biotechnology on 13-16 July in Edinburgh, UK The European Congress on Biotechnology is the leading conference for academic and industrial biotechnologists in Europe organised by the European Federation of Biotechnology. 2nd International Conference on Algal Biorefinery on 27-29 August in Copenhagen, Denmark This international conference aims to share research experience on aquatic biomass resources, both micro-, and macroalgae as a potential source of food, feed, biochemical, biofuels and biofertlizers. The Bioenergy from Forest Conference on 15-18 September in Helsinki, Finland The Conference will focus on the factors affecting the future of bioenergy and biobased modern technologies and business solutions, including logistic systems, management, total procurement chains, the effects of the energy markets, the influence of green marketing and other trends affecting forestry, agriculture, industry and climate.
  12. 12. NNFCC Market Review, April 2014, Page 12 of 13 Prices Historical auctioned prices of ROCs in sterling pounds, and total amounts of ROCs historically sold. The scheduled e-ROC monthly auction took place today Monday 31st March 2014 and 142,807 ROCs were sold. This is the highest number of ROCs sold since June 2012 and is also 61% up on March 2013. The average price was £41.50 a very small decrease of 4p from last month. A record 1,019,137 ROCs have been sold through the 12 e-ROC auctions held between April 2013 to March 2014. This represents a 23% increase on the 829,771 ROCs sold in the previous financial year. The date of the next e-ROC monthly auction is on Friday 25th April 2014. Click here for more information 0 1 2 3 4 5 6 7 8 30 40 50 60 17/10/02 17/10/04 17/10/06 17/10/08 17/10/10 17/10/12 Totalno.ofROCssold(millions) HistoricalsellingROCprice(£) Auction date Total no. of ROCs sold ROC price
  13. 13. NNFCC Market Review, April 2014, Page 13 of 13 Credits and Disclaimer NNFCC Market Review is edited by Dr Efthalia Arvaniti 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.