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