Nnfcc market review bioenergy issue nineteen october 2013

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

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.

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.
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.

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.
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.
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.
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

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.
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.

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.”
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.
Fisia Babcock Environment secures
major orders in Scandanavia
Gärstadverket waste incineration plant;
Source: Avfall Sverige

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.
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.

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
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

Nnfcc market review bioenergy issue nineteen october 2013

Recomendados

Recomendados

Más contenido relacionado

Más de NNFCC

Más de NNFCC (20)

Último

Último (20)

Nnfcc market review bioenergy issue nineteen october 2013