Phil Gerrard, Eastern Counties Finance

1. AVENUES OF FINANCE –
ASSET VALUE
#UKADBiogas @adbioresources
CHAIR:
DR ROBIN SZMIDT, TARGET RENEWABLES
PANEL:
DAN POULSON, BASEPOWER
DEAN HERRON, AQUA ENVIRO
PHIL GERRARD, EASTERN COUNTIES FINANCE

2. 15/07/2015 www.ecf.uk.com
Financing Asset Value in AD Projects
• ECF has funded 15+ AD projects from £1m->£30m
• As a project/development funding partner we look for:
• Secured tariffs: FIT and RHI
• High yield feedstock – crop or waste
• Security of feedstock price and supply
• Quality of design and proven output of equipment
• Manufacturers of key equipment – feeders/digesters/tanks/scrubbers/CHP
• Quality of maintenance support and contracts
• End use/proximity and access to grid

3. 15/07/2015 www.ecf.uk.com
What we have learned:
• Due diligence is critical to maximise overall plant and asset value –
policy/tariff impact, design, manufacturer and main contractor
• Choice of feedstock – sustainability of price and supply over 20 year
horizon versus optimal yield?
• Maintenance quality and cost can kill the project if not addressed early
• Tight project management and post “live production” monitoring crucial
to ensuring asset values are optimised from Day 1
• Quality of digestate will be increasingly important – environment and
revenue

4. www.ecf.uk.com
Specific profit/cost opportunities:
• Gas – on site, tanker and to grid
• Electricity – on site and to grid
• Storage of power for reducing peak tariff usage on site
• CO2 by-product opportunities
• Digestate cost versus revenue
• Integrated maintenance

5. AVENUES OF FINANCE –
ASSET VALUE
#UKADBiogas @adbioresources
CHAIR:
DR ROBIN SZMIDT, TARGET RENEWABLES
PANEL:
DAN POULSON, BASEPOWER
DEAN HERRON, AQUA ENVIRO
PHIL GERRARD, EASTERN COUNTIES FINANCE