The document discusses the potential for expanding biogas markets in the UK through anaerobic digestion. It outlines the UK's renewable energy targets and current progress, noting that anaerobic digestion could deliver between 3-5 terawatt hours of electricity by 2020. The document also reviews current government support policies and incentives for anaerobic digestion in the UK, such as the Renewables Obligation, Feed-in Tariff, and Renewable Heat Incentive. Barriers to further development are discussed along with the actions outlined in the UK's Anaerobic Digestion Strategy and Action Plan.

1. NNFCC
Expanding Biogas Markets
The potential for anaerobic digestion in the UK
Lucy Hopwood
Head of Biomass & Biogas
November 2011
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

2. NNFCC
UK Renewable Energy Targets
• Renewable Energy Strategy (RES)
– UK RED delivery plan
– 15% renewable energy by 2020
 10% transport fuels
 14% heat
 32% electricity
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

3. NNFCC
UK Progress to Date
UK Energy Production vs. 2020 Targets
Transport = 10% by 2020 2006
2010
Heat = 14% by 2020 2020
Electricity = 32% by 2020
0 5 10 15 20 25 30 35
Energy contribution (%)
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

4. NNFCC
Biogas Contribution
- present
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

5. NNFCC
Anaerobic Digestion: Key Facts
 The UK has 214 anaerobic digestion plants, as of 30th September 2011
 Processing capacity of >5 million tonnes per annum
 Installed capacity of >170MWe
 Two biomethane injection plants
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

6. NNFCC
Biogas Map
= 24 Farm-Fed plants
+ c.54 plants with planning consent
Last updated 04 November 2011
Plus 146 existing sewage
treatment facilities
= 44 Waste-Fed plants
+ c.64 plants with planning consent
Last updated 04 November 2011
www.biogas-info.co.uk
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

7. NNFCC
Biogas Contribution
- future
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

8. NNFCC
Resource Availability
 Food Waste ≈ 16 Mt/y ! Purpose Grown Crops…
≈ 8.3 Mt/y household
≈ 6.3 Mt/y commercial & industrial “…Government policy is to deliver an
increase in energy from waste through AD.”
≈ 1.3 Mt/y food service & retail
“We recognise that at farm-scale, some
 Agricultural Waste ≈ 90 Mt/y energy crops may be required…and that
such crops can be grown as part of the
≈ 13 million cattle
normal agricultural rotation. Furthermore,
≈ 33 million sheep there is land available which is not suitable
≈ 4 million pigs for the production of food crops but which
≈ 166 million chickens may, therefore, be used to supply energy-
crop only AD plants.”
 Sewage Sludge ≈ 1.73 Mt/yr “It is not our policy…to encourage energy
crops-based AD, particularly where these are
grown to the exclusion of food producing
crops.”
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

9. NNFCC
Build Rates for AD – UK
Source: ARUP, 2011
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

10. NNFCC
AD Potential – UK to 2030
“…AD could deliver
between 3–5 TWh of
=5.6TWh
electricity by 2020”
AD Strategy & Action Plan, 2011
=3.0TWh
=1.8TWh
Source: ARUP, 2011
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

11. NNFCC
Current Government Support
- Policies & Incentives
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

12. NNFCC
Coalition Agreement
Treasury, May 2010:
• “We will introduce measures to promote
a huge increase in energy from waste
through anaerobic digestion”
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

13. NNFCC
Renewables Obligation
The Renewables Obligation (RO) for large-scale (generally >5MW) renewable electricity
projects.
ROCs issued to accredited generators for renewable electricity.
 Introduced in April 2002
 Banded from April 2009
 Double ROCs for Anaerobic Digestion
• ROC value c. £44 – 50 per MWh
 Banding Review due 2013, consultation open now.
– Proposing 2 ROCs in 2013 – 14
– Degression of 0.1 ROC per year thereafter
 EMR post-2017, details yet to be published
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

14. NNFCC
Feed-In-Tariff
Feed-in Tariffs (FITs) provide a guaranteed price for a fixed period to small-scale (< 5MW)
electricity producers;
– Generation Tariff – the generator is paid for every kWh of electricity generated.
– Export tariff – for electricity exported onto the National Electricity Grid.
[Generators can opt in or on an annual basis, deciding whether to claim this or
the market value for the electricity.]
06th April 2010: 09th June 2011: End-2011: April 2015:
FITs Launched Fast-track review Comprehensive review Second full review
complete consultation scheduled
07th Feb 2011: 30th Sept 2011: April 2012:
Fast-track review Revised rates apply First review rates
announced implemented
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

15. NNFCC
Feed-in-Tariff (FIT)
Original Tariff – from RPI Adjusted Tariff – New Tariff – from
Capacity
Anaerobic Digestion
April 2010 from April 2011 September 2011
<250 kWe 14.0 p/kWh
11.5 p/kWh 12.1 p/kWh
250 – 500 kWe 13.0 p/kWh
>500 kWe 9.0 p/kWh 9.4 p/kWh 9.4 p/kWh
For Comparison:
PV (<50* – 100kW) 31.4 32.9 19.0 (12.9 *)
PV (<100* – 5MW) 29.3 30.7 15.0 – 8.5 *
Wind (100 – 500kW) 18.8 19.7 19.7
* Proposed banding differs – aggregated here for comparison only.
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

16. NNFCC
Impact of Feed-In-Tariff (2010 – 2011)
Source: Ofgem – Feed in Tariff Newsletter, September 2011
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

17. NNFCC
Renewable Heat Incentive
• The Renewable Heat Incentive is intended to provide financial support to encourage
a switch from fossil fuel heating to renewable sources.
• England, Wales and Scotland
• Two-phase approach:
 2011: non-domestic sector e.g. from large-scale industrial heating to SMEs and
community heating projects.
 2012: domestic sector and perhaps additional technologies (bioliquids, air-source
heat pumps, etc)
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

18. NNFCC
RHI Structure
• Tariff levels are intended to provide a rate of return of 12% on the additional capital
cost of renewables over conventional heat systems.
• Opened for applications Monday 28th November 2011 (delayed since 30th September)
• Payment period is guaranteed for 20 years from installation.
• Payments will be made quarterly.
• A review of tariffs is scheduled every four years, from 2014;
– Interim adjustments will take into account inflation –RPI linked annually
– Degression will apply
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

19. NNFCC
RHI Tariffs
Technology Size (kWth) Tariff (p/kWh)
Biogas combustion Biogas combustion
< 200 6.8
(excl. landfill)
Biomethane Biomethane injection All scales 6.8
For Comparison:
Small Biomass Tier 1: 7.6
< 200
Tier 2: 1.9
Solid Biomass; Municipal Solid
Medium Biomass Tier 1: 4.7
Waste (incl. CHP) 200 – 1,000
Tier 2: 1.9
Large Biomass ≥ 1,000 1.0 (2.6)
Solar thermal Solar thermal < 200 8.5
Small ground source Ground-source heat pumps; < 100 4.3
water-source heat pumps; deep
Large ground source ≥ 100 3.0
geothermal
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

20. NNFCC
AD Strategy & Action Plan
CREATION DELIVERY
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

21. NNFCC
 Small-scale technology  Availability of finance
 Waste segregation  Perceived technology issues
 Biogas upgrading  Cost of energy crops
 Biomethane for Transport  Security of incentives
Technical Economic
KEY ACTIONS
Social Regulatory
 Food waste collections  Planning
 Markets for digestate  Permitting
 Skills & training  Health & Safety
 Food vs. Fuel conflict  Gas Quality Standards
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

22. NNFCC
Official AD Information Portal
www.biogas-info.co.uk
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

23. NNFCC
Conclusion
• The UK has come a long way in just a few years,
• But, barriers to development remain in place.
• To see a “huge increase” in AD we need;
 Long-term security
- Policy
- Incentives
- Feedstock supply
 Confidence
 Investment
 Strategy & planning
 Regulatory framework
The UK’s National Centre for Biorenewable Energy, Fuels and Materials

24. NNFCC
The NNFCC provides high quality, industry leading consultancy
for more information contact us
Email - enquiries@nnfcc.co.uk
Twitter - @NNFCC
+44 (0) 1904 435182
• Future Market Analysis • Technology evaluation & associated
• Feedstock Logistics Planning due diligence
• Sustainability Strategy • Project feasibility assessment
Development • Policy and regulatory support
The UK’s National Centre for Biorenewable Energy, Fuels and Materials