5. What is AD viability?
• ‘If it costs me less to manage slurry – that’s for me!’
• ‘My slurry storage is a continuous cost to the
business’
• It’s a major capital cost and my bank demands 15%
IRR on the amount they loan
6. Source
No. of
plants
Range cost £/kWe
Average
£/kWe
Median
£/kWe
Germany (FNR,
2005)
59 £1,010 -
£6,411
£2,677 £2,487
Germany (FNR,
2009)
61 £1,307 - £5,247 £2,646 £2,707
Austria (Laaber,
2011)
41 £1,979 - £4,748 £3,476 £3,327
France (Bastide
(2013)
61 £4,237 -£ 8,547 Not
available
Not
available
Capital cost – comparing apples and pears
8. Why the ‘100 cow’ digester?
• Agriculture in the UK is responsible for 43% of
the methane (CH4) and 80% of the nitrous oxide
(N2O) emissions
• 100m3 digester – 10kWe
• Average dairy farm is ~ 120 cows
• Dairy cow is 1 LSU
• AD has the potential to make the biggest impact
in this sector
• Estimated 80-100 MT slurries and manures
• ‘Energy’ (larger & larger) vs ‘Slurry handling’
9. Why use AD as an advanced slurry handling & nutrient
recycling system on farm?
• Easier slurry handling
• Faster re-grazing / healthier animals
• Clover
• Targeted nutrient use (with separation)
• Lime
• Grassland maintenance
• Improved growth (?) / water
• Research done on long term use??
…and the ‘viability’?
10. Scenarios
1. Slurry, cows in 219 days, boiler, RHI only, funding
farmer/bank 20:80
2. Slurry, cows in 365, boiler, RHI only on excess, funding
20:80
3. Slurry 365, CHP, funding 20:80
4. Cow inside in winter, 20% slurry recovery summer, so
supplement with maize (grass)
5. Maize only
11. Variables changed
• Interest rates from 2%-5% on capex from £100-£300K
• Electricity and fuel oil varying from 90%-130% (10p/kWh &
62.5p/l) & from £100k-£200K capex
• RHI at 7.3p varying from 80% (5.84p) to 130% (9.49p)
• FIT at 11.21p varying from 0 to 130% (14.57p) & from £100K-
£200K capex
• Varying heat use from 0% to 20% to 80%
13. Conflicting Messages
• ILUC vs FIT subsidies for electricity
• ‘Encouragement’ of circular economy vs red tape around
waste
• Increasingly stringent legislation around storage & use of
M/S but no strictures on storage of digestate from crop AD
• Covered slurry store AD?
14. Ideas?
• Marginal Abatement Cost (MAC) is the
cost of mitigating emissions by one tonne
CO2eq
• An alternative subsidy could be provided
by marginal abatement cost (MAC) which
gives a value for GHGs abated. This
research shows that after incentives dairy
farmers bear a marginal abatement cost of
£27 tonne-1 CO2 eq. abated (Jain)
• Innovation?
• Horses for courses
16. The following organisations support Task 37 (UK) /IEA
financially
Agri-food and Biosciences Research Institute (NI), AnDigestion Ltd, Barfoots Energy,
BiogenBiogas Nord UK Ltd, Bioplex Technologies Ltd, Chesterfield Biogas Ltd,
CNG Services, Country Land and Business Association, Clarke Energy, Evergreen
Gas, Edina Group, EHV Engineering, Evergreen Gas Ltd, FM BioEnergy, Future
Biogas, GWE Biogas, Hardstaff Group, J.H.Walter Sustainable Resource
Management, Judith Norris Ltd, Malaby Biogas, Kirk Environmental Ltd, Marches
Biogas, Masstock Smart Farming, Methanogen UK Ltd, National Grid, Natural
England, NETZSCH Pumps and Systems Ltd, Omex Environmental Ltd, Organic
Power Ltd,, Peter Jones, OBE, Renewables East, Rob Heap Consultants, RH and
RW Clutton LLP, Royal Institution of Chartered Surveyors, Sustraco Ltd, University
of Southampton, UTS Biogas Ltd, Veolia Environmental Services Ltd, Xebec
Adsorption (UK) Ltd, Xergi UK Ltd,
Task 37 (UK) is supported by DEFRA, BERR and DfT and part funded by the Esmee
Fairbairn Foundation
Thank you
