AD & Bioresources News April 2016

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AD&BIORESOURCES News

THE UK ANAEROBIC DIGESTION & BIORESOURCES TRADE ASSOCIATION’S BI-MONTHLY MAGAZINE adbioresources.org

Issue 31 April 2016

Waste not, want not – the food companies reaping the rewards of AD

UK AD & Biogas 2016 Preview

Enter the AD & Biogas Industry Awards 2016

Measuring & controls

Changes to RHI

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AD & Bioresources News | April 2016

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Foreword Why industry must act responsibly to safeguard its future

Inside this issue > Foreword:

3

View from the top:

4

ADBA News:

5-6

Best Practice Matters:

7

Feature – AD in the food & drink industry: 8-13 UK AD & Biogas 2016 Preview:

14-15

AD & Biogas Industry Awards 2016 Preview: 17 Technology Focus: Measuring & controls: 19-21 R&D Update:

22

R&D Special:

23

Members’ News and Views:

24-26

Policy:

28-29

Government & Agency News:

30

Waste in Westminster:

31

Advice Clinic: Finance Special:

32

Regions:

33

Upcoming Events:

35

Membership Matters:

36-38

Cover image: Wyke Farms

Editorial: To be considered for inclusion in a future issue contact: Editor: Kate O’Reilly T +44 (0)7894 039609 E kate.oreilly@adbioresources.org

By Steve Double MP

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t a time when we are increasingly moving towards energy sources that are both renewable and sustainable, anaerobic digestion (AD) fulfils many of the criteria that the government looks for when it comes to considering future energy provision. For potential producers, benefits include additional income, diversification of outlets for crops, and organic waste processing at competitive prices. In rural communities such as St Austell and Newquay, the constituency I am privileged to represent, AD in theory makes an excellent form of energy production, not only for these reasons but also because it makes use of waste products from farming via sustainable management of organic waste. However, with these great benefits comes an equally large responsibility for the operators of AD plants. It is essential that plants are appropriately located and that during the construction and commissioning phases – and once operational – operators are open and honest when engaging with the local communities around which their facilities are based. Appropriately-sized and sited AD plants integrate well into farming, diversifying farm businesses and reducing agricultural emissions. However, I have sadly encountered cases in my own constituency where AD operators have not always acted in a way that best promotes the industry. Site operators should engage with the local community to attempt to minimise any impact; if the capacity of the site is to be increased, then the necessary infrastructure should be in place to support it first. Failing to do this can lead to major feelings of resentment from local people and effectively set the AD plant in question, and its operators against the local community and council. I am sure readers will agree with me that AD is an exciting form of sustainable energy and one that should be promoted as a positive way forward with many great benefits. It is important to remember to include all aspects of operation in this positive package, otherwise negative elements such as those I have experienced will see the reputation of the AD industry damaged and at odds with the positive future for energy it should be seen as.

AD&Bioresources News FEATURES Features planned for Issue 32 (June) include: • Best practice and improving operational performance • Technology Focus: On-farm AD technology • UK AD & Biogas 2016 Exhibitor Preview Copy deadline: 15 Apr

Features planned for Issue 33 (Sept) include: • How AD is giving water companies a competitive edge • Technology Focus: Odour control • UK AD & Biogas 2016 Review Copy deadline: 24 June

Sponsorship and advertising: Neill Wightman, Events and Sponsorship Manager T +44 (0)203 176 4414 E neill.wightman@adbioresources.org

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View from the top

By Charlotte Morton, ADBA’s Chief Executive

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he UK has laid the foundations for a world class AD industry with over 430 agricultural, food waste, sewage and on-site industrial AD plants, nearly 50 of which are biomethane to grid facilities. This has been ably supported by one of Britain’s most valuable resources; its world-leading academic institutions. Having experienced an astonishing 600 per cent growth in the UK outside of the water sector since 2009, the AD industry offers a wealth of technical knowledge and operational expertise which puts it at the forefront of a global AD technology revolution. And despite a great deal of policy uncertainty, there remains considerable potential for further growth: the Renewable Heat Incentive (RHI) budget will almost treble between now and 2021 and could support up to 100 additional biomethane projects; the UK government is actively looking at how to support biomethane in transport; there’s plenty of current activity in the market, with an estimated 90 plants building now; and the Committee on Climate Change has specifically recommended that biodegradable waste should be removed from landfill, and anaerobic digestion used to reduce emissions on farms. 4

AD & Bioresources News | April 2016

Our sixth Research and Innovation (R&I) Forum (6-7 April 2016, University of York) will offer an overview of the latest research that has been conducted in the sector, which is supporting our goal of continually improving the performance and competitiveness of the AD industry. The event will outline priorities for future research and how we can all work together to deliver them. With a breakthrough in R&I, the potential export value of AD technology is over £2bn per year, yet UK exports are currently estimated at just £50-£100m. Supporting new technological advances could help to sustain the sector and reduce reliance on financial incentives, ensuring AD remains the most cost-effective method of producing home-grown green gas and electricity, and contributing to the UK’s 2020 renewable energy, recycling, decarbonisation, and climate change targets. Through industry and academia working together, we can help to establish a thriving global AD market, boosting manufacturing and paving the way for the international AD industry to solve some of the world’s most pressing issues. See R&D Special, p23

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The importance of R&I for a thriving global AD sector


ADBA News RHI CONSULTATION: MAJOR CHANGES FOR BIOGAS AND BIOMETHANE DECC has released its consultation on the future of the Renewable Heat Incentive (RHI) scheme. The Department is proposing major changes which will affect biogas and biomethane, including: • R estrictions on payments for crop feedstocks for new projects from 2017; •D isqualifying digestate drying as a heat use for new projects from 2017; • Resetting biomethane tariff levels from 2017 if degression means they drop too low; • Implementing tariff guarantees for biomethane and large biogas heat sites from 2017; • An overall cap on scheme expenditure from April 2016. We will present our draft consultation response to ADBA members at our Spring Members’ Meeting, taking place on 21 April 2016 at the London offices Data assessment date

31/10/2015

of Ashfords LLP. Businesses are also encouraged to respond directly to the consultation, which closes on 27 April 2016. You can find our summary briefing at bit.ly/1VNShm9 Alongside the consultation document, DECC is also publishing rules for the operation of the scheme in 2016-17. The expenditure thresholds for biomethane and biogas are detailed below. For more information contact thom.koller@adbioresources.org

31/01/2016

30/04/2016

31/07/2016

31/10/2016

31/01/2017

£15.2 £129.8

£15.2 £145.0

£15.2 £160.2

£15.2 £175.4

£1.1 £10.9

£1.1 £12.0

£1.1 £13.1

£1.1 £14.1

Biomethane Increase in expenditure threshold in quarter (£m) Expenditure threshold (or scaled trigger) £99.4

£15.2 £114.6

Biogas heat Increase in expenditure threshold in quarter (£m) Expenditure threshold (or scaled trigger) £8.6

£1.1 £9.8

FOOD WASTE ACTION PLAN TAKING SHAPE ADBA sits on the Defra-led steering group on consistency of waste collections. The group, set up by Resources Minister Rory Stewart MP, also includes representatives from local authorities, waste producers, NGOs and the wider waste management sector, and has already undertaken considerable data modelling to assess how UK household waste collections could be simplified to deliver better outcomes. As part of our work in the group, we have strongly advocated the role of separate food waste collections in improving recycling rates, reducing the cost of residual collections and delivering considerable value back to the UK. In addition, we are supporting the work of the Food Waste Recycling Action Plan, which is likely to be launched in the summer, once final actions have been agreed between the AD industry, WRAP and local authorities. The plan will set out a series of ways in which food waste recycling can be improved, and with DECC's RHI consultation emphasising the government's desire to see more waste feedstocks processed through AD, this represents an important opportunity to emphasise the need to link waste and energy policies. The way in which the action plan is used and monitored after publication will be important, and AD operators and other interested parties will be able to discuss options for improving collection schemes at UK AD & Biogas 2016 (6-7 July, NEC Birmingham). While this work cannot revolutionise food waste availability on its own, it can play a significant role in showing the importance of improving food waste collection schemes.

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ADBA’S TRAINING PACKAGE SET FOR SUMMER LAUNCH

ADBA is keen to support the provision of high quality training within the AD sector, to ensure that the operation of AD plants is undertaken safely and competently, and that a high level of operational performance is delivered. With the guidance of our Training, Safety and Environment Working Group, we are working on a broader training package that will involve the approval of third-party training courses by ADBA and the promotion of these courses to our members. This is planned for launch at UK AD & Biogas 2016 (6-7 July, NEC Birmingham). We hope this work will support both the development and uptake of training courses, as well as clarifying the training needs of the industry.

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ADBA News LIZ TRUSS MP LISTENS TO INDUSTRY GRIEVANCES AT ADBA’S PARLIAMENTARY RECEPTION We are delighted to report that the industry’s first ever anaerobic digestion reception hosted in the Houses of Parliament was joined by over 60 MPs and Peers, and included support from almost 150 farmers, AD operators and other industry figures, including event sponsors Future Biogas.

Thanks to such a strong political turnout at the event, we are already seeing an increase in the number of parliamentarians raising the plight of the AD industry in the chambers of both the Lords and Commons. Influential politicians at the reception event included: Defra’s Secretary of State, Liz Truss MP; Shadow Farming Minister, Nick Smith MP; and the Chairs of both the Commons’ Environment and Energy Select Committees, respectively Neil Parish MP and Angus MacNeil MP. The event has prompted meaningful dialogue on key industry issues with over 100 MPs and Peers, and our programme for cultivating parliamentary advocates has got off to a strong start with ten MP site visits already scheduled. While this represents real progress at a crucial period in the policy landscape for AD, we still need to go much further. Due to severe capacity restraints at the parliamentary venue, we were unfortunately unable to accommodate every ADBA member interested in joining the event and so we will be looking to follow up with further opportunities to engage parliamentarians and raise AD’s profile. In the meantime, we would urge AD businesses to meet with their local MP. Please see p31 for details on how you can support our lobbying efforts to shift the policy landscape to a more prosperous footing for our industry, or contact Derek Sivyer, our PR & Parliamentary Affairs Manager: T +44 (0)203 176 5441 E derek.sivyer@adbioresources.org

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Best Practice Matters ADBA’S BEST PRACTICE SCHEME TAKES SHAPE The ultimate aim for our Best Practice Scheme is to support the UK AD industry to become a world-leader in environmental, safety and operational performance. The scheme is now taking shape as we work with our members and other industry stakeholders to achieve this goal.

For information and advice on any areas relating to AD best practice, contact our Environment and Regulation Manager, Jess Allan T +44 (0)203 735 8380 E jessica.allan@adbioresources.org

What’s the plan?

We had an excellent level of engagement at the first meeting of our Steering Group, which was chaired by Amaya Arias-Garcia (see p37) and made up of representatives of key organisations within the AD industry. The group concluded that the scheme should aim to raise awareness and increase the use of existing guidance and tools, helping AD operators to achieve improvements in their performance and have full confidence in the systems and procedures they have in place. In order to deliver this, we have proposed a two-step process: Step 1 First, we will develop a series of checklists, which will set out how to achieve best practice in key aspects of operating AD plants. We will initially work on three checklists: Risk Management; Procuring an AD plant; and

Operational Performance. We are aiming to deliver these by July, just in time for UK AD & Biogas 2016. Step 2 We will then develop the checklists into units, which together will provide the structure of a voluntary certification scheme. This will involve devising suitable assessment criteria, which will be designed to ensure that potential financial and regulatory benefits for operators using the scheme are realised. The British Hospitality Association (BHA), SWR and Winnow Solutions How you can get involved have collaborated to produce a 10 part mini-series on how to reduce business waste. With the cost of wasteand disposal increasing year on We will continue to contact members stakeholders regularly over the year, themonths first instalment thisyou bite-sized aims to help coming to ensureinthat can putguide forward your viewshospitality and help businesses find newWeand ways toareduce food waste, to shape the scheme. willinnovative also be holding stakeholder meetingleading in May, financial reputational andthis competitive advantage. which willsavings be openastowell all –asmore details on will be provided soon. For http://bit.ly/1GdiLrY more information contact jessica.allan@adbioresources.org

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AD in the food & drink industry

A wasted opportunity – helping the food and drink industry to value its waste

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he UK is responsible for 15m tonnes of food waste each year – the highest figure in Europe – and for every two tonnes of food we eat, another tonne goes to waste. The costs, both to planet and pocket, are huge. Food and drink accounts for 20 per cent of the UK’s greenhouse gas emissions and it’s predicted that by 2050, meeting global food demand alone using today’s methods could increase temperatures by 2°C. WRAP estimates the financial value of food and drink wasted in the UK at over £19bn a year. In business terms, this equates to a £10,000 average cost per annum to each hospitality and food service outlet. The UK’s AD industry has been growing apace in recent years and there are now more than 400 plants in operation, over a third of which are treating food waste. The European Waste Hierarchy makes it clear that if food waste is not fit for human or animal consumption then the preferred treatment option is anaerobic digestion. But the AD industry is still only processing a fraction of the food waste being generated; just under 2m tonnes. With many plant operators reporting a feedstock shortfall, the issue is no longer a lack of AD capacity. So what needs to be done to join the dots and encourage more food and drink companies to wake up to the benefits of AD? 8

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Reduce before we recycle

Before considering what to do with our food waste, the main priority is to reduce the amount being generated in the first place. But following the supply chain from field to fork can be a complicated process – who has the power to really make a difference? “There are a number of reasons why food waste can arise throughout the supply chain, including in the home,” says a spokesperson for the Food and Drink Federation (FDF). “With our members, we have been working with WRAP on a new food waste quantification study to produce more detailed estimates of the amount of food waste produced by industry on a sub-sector basis, along with the most significant causes. Reducing food waste at every stage of the food chain is a priority for UK food and drink manufacturers and we encourage our members to work to the food waste hierarchy, prioritising actions that prevent waste arising in the first place and, where unavoidable, taking steps to maximise its recovery.”

Food businesses are making an effort to reduce the amount of waste they generate, introducing initiatives such as Asda’s ‘wonky veg’ boxes www.adbioresources.org adbioresources.org

Baroness Scott is Chair of the EU Energy and Environment Sub-Committee and two years ago carried out the ‘Counting the Cost of Food Waste’ enquiry. She believes the responsibility lies with us all: “The report covered the entire


AD in the food & drink industry The 1.5 MW Holbeach Biogas AD plant converts unavoidable organic waste from QV Foods’ production line into renewable energy

Sainsbury’s is the first retailer to come off the National Grid, powering its Cannock store through food waste

food chain, from farms to manufacturers, retailers to consumers. I’ve recently raised another House of Lords debate on the topic to see what, if anything, has changed. Although the statistics show that we are still wasting roughly one third of all the food we produce – a figure that should concern us all – there are lots of positive signs that things are moving in the right direction; from campaign groups led by people such as Hugh Fearnley-Whittingstall, to waste reduction initiatives by big businesses such as Sodexo and the leading supermarkets.”

The end of waste?

Mark Varney, Director of Food for distribution charity FareShare, believes that food businesses should never see their produce as waste: “The whole definition of what food waste actually is, is a contentious one. Does food become waste simply once the food business can no longer use it? Not in my opinion. If it’s not saleable, it should be redistributed to those in need. If it’s not edible, then it should be used for animal feed. And if that’s not possible, then it should be sent to AD to be recycled into energy and biofertiliser. There’s no reason why food should ever be ‘wasted’.” Mark believes that more businesses should plan for every possible end scenario for the food they produce. “At the moment, the focus is just on the customer, but there are many other opportunities to consider. There’s no responsibility or duty of care on food producers towards the final destination of their valuable produce, as there is in the hazardous waste industry, for example. It can be difficult, especially for big organisations, to change working practices but we know that when this approach is taken, businesses reduce the amount of Warrens’ Food Fuel scheme has attracted hundreds of signatories who are sending a total of 50,000 tonnes of food waste to the Emerald Biogas plant

food waste they generate in the first place, and increase the percentage sent for redistribution.” FareShare has recently launched its Food Efficiency Framework, to support food and drink businesses to increase resource efficiency, reduce food waste and take proactive steps to support those experiencing food poverty. In fact, there has been a concerted effort by many food businesses over the last few years to reduce the amount of waste they generate, and to make more of the unavoidable portion. As part of its Beautiful on the Inside range, Asda is trialling ‘wonky veg’ boxes in 128 stores in an effort to tackle food waste across the supply chain. Tesco donates surplus fresh food from its distribution centres and online grocery centres to FareShare, sends its bakery waste to be converted into animal feed, and when this isn’t available, send its food waste to anaerobic digestion. And Sainsbury’s is going a step further. Its Cannock superstore is powered directly by its own food waste, the first time a retailer has come off the National Grid to power a store. The store already sends all its food waste to a nearby AD plant and a 1.5km cable has been installed to link the plant to the supermarket. The resulting digestate is used by local farmers. “Sainsbury's sends absolutely no waste to landfill and we’re always looking for new ways to re-use and recycle,” says Paul Crewe, Head of Sustainability at Sainsbury’s.

Making a change

There are other initiatives helping to focus the minds of food and drink businesses on reducing their food waste volumes and maximising the value of what remains. Signatories of WRAP’s Hospitality and Food Service Agreement – a voluntary initiative supporting the sector in reducing waste and increasing recycling – achieved a reduction in CO2eq emissions of 3.6 per cent in 2014 relative to the baseline year. The estimated cost saving from reducing food waste alone was £3.6m, with the amount of surplus food redistributed rising by 47 per cent, to 528 tonnes. Continued>>

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Getting value from digestate

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AD in the food & drink industry 50,000 tonnes of food waste and processes it at the AD plant run by Emerald Biogas (Warrens’ sister company) in Newton Aycliffe. “By the end of 2016 we want to help Food Fuel members recycle 100,000 tonnes of North East food waste, enough to power 4,000 homes a year,” says Adam Warren, Co-owner and Director of Warrens.

Wyke Farms’ digesters generate a total of 1 MW of energy and supply heat and power to the cheese production facility

This initiative is just one example of how AD operators are responding to the changing needs of their customers, with flexibility now at the heart of any successful AD business. Agrivert operates three AD facilities and believes it’s essential to work in partnership with food waste companies, rather than merely viewing them as feedstock suppliers. “In the past, barriers to AD for food companies have been issues with collecting and preparing waste for treatment, as well as depackaging,” explains Harry Waters, Commercial Director. “However, this can all be overcome if The Courtauld Commitment – a voluntary agreement aimed at improving both parties work together. The AD company has to be flexible: for example, if resource efficiency and reducing waste within the UK grocery sector, funded by a food company has limited space, we can offer different types of food waste Westminster, Scottish, Welsh and Northern Ireland governments and delivered containers, and increase the frequency of collection. And if the food waste by WRAP – was launched in 2005 and is now in its third phase: Courtauld supplier lacks the time or capability to depackage their own waste, we are able 2025. Over the four year period of Phase 1, 1.2m tonnes of food and packaging to offer that service to them. waste was prevented, with a However, the customer has to monetary value of £1.8bn, and be aware that this all comes at a saving of 3.3m tonnes of a price. If packaging is covered CO2eq. A total of 1.7m tonnes in animal by-product waste, for of waste was reduced through example, it can’t be recycled, the influence of Phase 2. so there’s a disposal cost to Signatories including Cadbury, the AD company, which has to Mars, Nestlé and Asda are now be passed onto the customer. aiming to cut the waste and Equally, we are happy to invest greenhouse gas emissions in front-end equipment to associated with food and drink The associated ‘green halo’ from Wyke Farms’ renewable energy initiatives helps the company to deal with contamination, but by at least one-fifth per person stand out in a crowded marketplace only if there’s a long-term in ten years. commitment from the food company. By working together, and keeping the channels of communication But it’s not just big businesses leading the charge. County Durham waste open, there should be no reason why any food company can’t treat their waste management firm Warrens has attracted hundreds of members to its Food Fuel through AD – and it’s considerably cheaper than landfill, too!” scheme, which enables local businesses to help generate clean, green energy for the North East and divert their food waste from landfill. Signatories include Michelin-starred restaurant, The Raby Hunt; Matfen Hall Hotel and Spa; Manor The benefits of on-site AD Walks shopping centre; and 200 local schools. Warrens currently collects Some AD developers are going even further and building on-site AD plants for food and drink companies. The 1.5 MW Holbeach Biogas AD plant is a joint venture between Tamar Energy and A H Worth, QV Foods’ parent company. It The Lake District Biogas plant, built by Clearfleau for First Milk converts unavoidable organic waste (such as vegetable peelings and washings) from QV Foods’ production line into renewable energy that meets the site’s electricity demand, with any excess exported to the National Grid. QV Foods benefits from an estimated 20 per cent reduction in energy costs and certainty of future power supply, with reduced reliance on fossil fuel-derived energy. Plus, waste transport and management costs have been reduced. What’s more, the PAS 110-compliant digestate replaces the need for traditional chemical fertilisers on the farm, delivering cost savings of over £60,000. “The most obvious benefit for us is cheaper electricity, but we are also keeping around 10,000 tonnes of potato peel and outgrades on site, reducing costs and transport,” says Duncan Worth, Chairman of QV Foods. Somerset-based cheese producer Wyke Farms has been operating an on-site AD plant for the last three years. “Our two digesters generate a total of 1 MW Continued>> www.adbioresources.org adbioresources.org

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AD in the food & drink industry At First Milk’s cheese creamery in the Lake District, Clearfleau is commissioning a new on-site digestion plant. The creamery produces over 1,500m3 per day of liquid residues. The on-site digester treats trade effluent and whey permeate. When fully operational, the plant will generate up to 1,000m3 per day of biogas, 80 per cent of which will be upgraded for injection to the national gas grid, from where some of the gas will be used to power the cheese creamery’s boilers. The Lake District Biogas plant will reduce First Milk’s fossil fuel-derived energy use by 25 per cent, removing 7,000 tonnes of carbon per annum from the supply chain. It is the largest on-site digestion plant in the European dairy sector and the first to feed gas into the grid, based only on treating residues from cheese making. “This shows what is available for food processors and larger multinational companies who can afford to invest in on-site energy generation. This is not always the case for smaller food businesses that are being pressed to cut their carbon emissions,” continues Richard. “We need a stable incentive regime to support investment and an incentive rate that is commensurate with the risk. Companies investing in low carbon technology need to be assured of a return on their investment.”

of energy and supply heat and power to our cheese production facility,” says Tom Clothier, Production Director in Renewable Energy. “Over the last year, we’ve also been operating an 800m3 biomethane to grid plant; we were virtually self-sufficient in electricity so it made sense to become self-sufficient in gas, too. There are so many benefits to our business from AD – we have no outside energy bills; we spread the digestate on our farmland and on local farmers’ land within a 30-minute tractor distance; we save over 10,000 tonnes of CO2 each year; and our superior green credentials help our products stand out in a crowded marketplace.”

Balancing the books

Beyond incentives

Cath Anthony is an Associate at Bidwells and assisted G’s Growers, one of the largest fresh produce growers and packers in the UK, in developing a 2.4 MW AD plant operating on break crops and outgrade produce from their growing and packing operations. The plant provides heat and electricity for their mushroom farm. “As a result of the changes to the incentive schemes, we are likely to see more plants being built next to large energy users or waste producers, where the benefits of the displaced electricity, heat and feedstock costs might reduce the impact of the reduction in tariffs,” she states. “However, funding is likely to be difficult without the guarantee of a secure income. Viability varies hugely from site to site and each project should be considered on its own merits.”

Sharp’s Brewery invested in an upflow anaerobic sludge blanket waste water treatment plant from Nijhuis H2OK, becoming the first brewery in the South West to use this form of technology

When Sharp’s Brewery invested in an upflow anaerobic sludge blanket (UASB) waste water treatment plant, it became the first brewery in the South West to use this form of technology. Nijhuis H2OK was appointed as principal contractor, using Nijhuis Water Technology process equipment. Brian Scheffe,

With so many positives, it’s clear that food and drink companies have much to gain from developing an on-site AD plant. But many in the industry are concerned that recent government actions are hindering the growth Bidwells assisted G’s Growers in developing a 2.4 MW AD plant operating on break of this important sector. “Despite crops and outgrade produce from their growing and packing operations continued uncertainty about the future of support mechanisms for on-site renewables, from a government that seems to undervalue smaller scale decentralised energy generation, there is real potential for on-site AD across the UK food and beverage sector to generate energy from process residues,” states Richard Gueterbock, Marketing Director for Clearfleau, which designs and builds industrial AD plants. “Government should be working with British businesses to help decarbonise their sites, following the lead of enlightened companies like Nestlé, Diageo and First Milk.” 12

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AD in the food & drink industry lead by example: “The first thing government could do is take a really good look at its own contracts – in schools, hospitals, prisons, etc – and see what it does with its own waste. It could really set an example.” In fact, the House of Commons already sends on-site food waste from Parliament’s canteens to AD. “If segregating food waste for AD is right for Parliament, then surely the same principle should apply for the rest of the UK,” says ADBA’s Chief Executive, Charlotte Morton. “If the UK’s waste strategy followed the example of Parliament and all inedible food waste was diverted from landfill and incineration to AD, then the industry could generate enough additional indigenous green gas to power 750,000 homes.”

The value of political will

Sharp’s Brewery in Truro is reaping the rewards of its £1m AD investment

Divisional Head – Industrial Effluent & AD Biogas, believes that on-site AD is still an economically sound proposal for many companies, despite the current tariff uncertainties: “On-site AD plants that treat liquid waste or trade effluent can provide strong financial returns with or sometimes even without the requirement for subsidies or government incentives. Manufacturing sites that discharge trade effluent to the mains sewerage network all pay trade effluent costs, and these can be significantly reduced by discharging effluent with reduced pollution loading. As trade effluent costs can vary substantially depending upon location, the viability of projects is also influenced by where they are located. When you combine these savings with the offsetting of energy costs through the production of heat or electricity, some projects will be more resilient to reductions in FIT or RHI.”

A very English problem

While tariff degression may be the industry’s current bête noire, there are also concerns that England is falling further behind its neighbours regarding its attitude towards food waste reduction. Gabriella Pieraccini, Head of Zero Waste at the Scottish Government, confirmed the country’s ambition to be recognised as an international leader in the efficient use of bioresources, following an announcement in October 2015 to introduce a food waste reduction target for Scotland – the first such target in Europe. It plans to cut a third of all food waste produced in the province by 2025, as part of its ‘Making Things Last’ Circular Economy Strategy. Under Scotland’s existing Zero Waste Strategy, businesses producing more than 5kg of food waste per week are already required to present the material for separate collection. It’s a similarly positive story in Northern Ireland, and also in Wales, where the Environment (Wales) Bill will introduce new requirements for businesses and the public sector to separate out food waste for collection, and ban the disposal of food waste to sewers. FareShare’s Mark Varney believes that England hasn’t yet gone far enough. “We welcome initiatives like the Courtauld Commitment and encourage more manufacturers to become signatories to Courtauld 2025 and put processes in place to redistribute surplus food to charities like FareShare. However, the real issue is further up the supply chain – the biggest barrier affecting food manufacturers from giving their edible surplus food for charity redistribution is cost. The government needs to introduce incentives similar to those in other European countries and in the USA, otherwise it’s not a level playing field.” Baroness Scott, meanwhile, believes that the government could do well to

Could a misguided fear of financially hurting businesses and local authorities be partly to blame for the government’s softlysoftly approach to food waste legislation? “There’s a common misconception that segregating food waste is an economic disbenefit and the UK Parliament is perhaps wary of adding any burden to cash-strapped local authorities,” believes Olleco’s Adam Baisley. “The same may be true of a Conservative administration that is pro-business and therefore unwilling to add costs to the business sector. However, in the vast majority of cases the removal of food waste from the general waste stream has an economic benefit.” However, there can be no hiding from the elephant in the room – for smaller scale on-site AD, whether on farm or factory, the rapid rate of degression of incentive rates is undermining investor confidence and there is a real danger that some plants will no longer be viable. “FIT rates for smaller on-site AD plants (sub-500 kW) have fallen by about 60 per cent since 2013,” confirms Richard Gueterbock. “For larger plants the decline is just 25 per cent. On-site AD can stack up financially if cost savings are taken into account but we need a viable FIT rate to encourage deployment. The food industry will respond if DECC takes action to promote on-site renewables and decarbonisation of their sites.” ADBA’s Head of Policy, Matt Hindle, agrees that it’s now time for political action: “The differences between England and the rest of the UK show the value of political will. Politicians in devolved administrations have seen the opportunity and acted, and it’s time for England to catch up.” www.wrap.org.uk www.emeraldbiogas.com www.agrivert.co.uk www.tamar-energy.com www.clearfleau.com www.bidwells.co.uk www.nijhuisindustries.com www.olleco.co.uk

Rather than being a cost to the business, the removal of food waste from the general waste stream has an economic benefit to most food companies

www.adbioresources.org adbioresources.org

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UK AD & Biogas 2016 Preview

UK AD & Biogas goes global

N

ow in its sixth successful year, UK AD & Biogas has grown 600 per cent since the inaugural event in 2010. Our 2015 show attracted thousands of visitors and 275 exhibitors from the UK and abroad. Building on this extraordinary success, UK AD & Biogas 2016 is now expanding to cover not just the exceptional opportunities in the UK AD market, but also around the world, as the global biogas industry really starts to take off. Taking place on 6-7 July at the NEC Birmingham, UK, the event will showcase the very best AD technology for sewage treatment, food waste, farm and small-scale facilities, as well as community and micro-scale plants, alongside the latest innovations in gas upgrading and biomethane vehicle technology. The free

conference and seminar sessions will keep attendees up to date with the latest market drivers and industry hot topics. Other highlights include the Research and Innovation Hub, which will bring together industry and academia, while our free one-to-one advice clinics will provide expert assistance from key regulators and leading farming advisors. The show also features local site visits to operational food waste, sewage and on-farm AD plants. With so much on offer, this year’s event promises to be our most successful to date. Exhibitor space is selling fast so contact neill.wightman@adbioresources.org today to secure your stand. Visitors can register for free at adbioresources.org

Conference UK AD & Biogas 2016 features a high profile, two-day free conference, which will outline the key drivers for the AD industry around the world and the opportunities for AD to address some of the world’s biggest issues, including: • Global energy security – AD’s ability to provide baseload power • Combating climate change – helping governments meet their COP21 carbon commitments • Enhancing food security – recycling essential nutrients and organic matter to our soils • Wastewater and sanitation development – how AD is contributing to rural communities which lack basic sanitation • Food waste collections – international case studies and biowaste collection strategies • Global land use – AD’s crucial role in sustainable farming The conference will also provide assessments of the fastest growing AD markets around the world.

Seminars A total of 24 free seminar sessions will focus on what makes a high performing, world class AD industry, covering all aspects of the design, build and operation of AD plants, such as: • Operational performance – why isn’t my plant running at 100 per cent? • How shared data modelling can lead AD into a more efficient future • What is secondary containment? • What is the optimum feedstock mix for my tank digester? • Cost-competitiveness – how to boost revenue from every stage of the AD process • The launch of the first ever Best Practice Scheme for AD plant design, construction and operation • Training requirements for the sector

Show highlights • Research and Innovation Hub – bringing together academics, industry and the public sector to debate the latest research and how it will transform the industry over the next five years • Biomethane and vehicle area – showcasing the latest biomethane vehicles, including: public transport, HGVs, tractors, fleet vehicles, and cars • One-to-one advice clinics – free advice from key regulators and leading farming advisors • Local site visits – see AD in action at leading food waste, sewage and on-farm AD plants • PLUS International networking, briefings, lunches and roundtables on offer in private rooms adjacent to the show

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UK AD & Biogas 2016 Preview What our exhibitors say “The greatest networking event in the AD calendar.” Les Gornall, PROjEN

“Wow! 168 enquiries and contacts at UK AD & Biogas 2015 make it the busiest ever show for Landia in the world. This is the proven, focused event for AD and biogas, with no end of good business to be gained.”

“UK AD & Biogas 2015 generated more than 100 business leads for us. We've had several meetings as a result and have now secured two firm orders for our Digestate Concentration Systems – one from as far away as the Philippines.”

Hugh Vaughan, Landia (UK)

Matt Hale, HRS Heat Exchangers

Why exhibit?

Why visit?

• Showcase and sell your technology, products and services to buyers from the largest growing AD markets • Network with over 4,000 potential customers from across the globe including Europe, Asia, North America, South America and Africa • Widen your distribution network • Learn about new technology and innovation • Promote your brand at the AD & Biogas Industry Awards on 6 July (see p17)

• Find leading international AD and biogas technology and product suppliers all under one roof • Network with over 4,000 attendees and 350+ exhibitors from across the globe including Europe, Asia, North America, South America and Africa • Learn about plant operation, performance and stability at our free seminar sessions and conference • Find out about the latest innovations in AD and biogas technology in our Research and Innovation Hub • Discover worldwide AD projects and learn which markets offer the most potential • Gain free advice from leading experts including regulators, operators, developers, farmers and investors

What our visitors say “A very focused event with all the right people there.”

“The conference covered all aspects of the AD industry very thoroughly and answered all my queries.”

Jim Budd, Cetix

John Fisher, Kings Boiler Hire

“An essential visit for anyone already in the industry, or anyone starting up.” Amanda Pullen, AGL-Energy Ltd

87% 80%

of 2015 attendees rated the show as good to excellent

✔ of 2015 exhibitors rebooked for 2016

Interested in exhibiting or sponsoring? Space is selling fast! To book your stand and find out about our sponsorship opportunities, contact: E neill.wightman@adbioresources.org T: +44 (0) 203 176 4414

www.adbioresources.org adbioresources.org

April 2016 | AD & Bioresources News

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o.humphries@biogas.com

g.davey@bts-biogas.com

info@bts-biogas.com www.bts-biogas.com

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sales@acp-concrete.co.uk www.acp-concrete.co.uk

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AD & Biogas Industry Awards 2016 Preview

INDUSTRY

AWARDS 2016 Enter now and see your AD project recognised Final call for award entries For the first time in its five-year history, our annual awards ceremony – AD & Biogas Industry Awards 2016 – is open to international entries, celebrating the finest achievements and innovations from the AD and biogas industry both in the UK and across the globe. This high profile, black-tie event will take place on 6 July at The Vox Conference Centre, Birmingham, UK and is expected to attract over 250 industry leaders. The call for entries is now open – but with the closing date of 18 April fast approaching, you’ll have to be quick. So enter today at adbioresources.org and see your projects, products, teams and services recognised at this industry-leading event, rewarding the best that the international anaerobic digestion industry has to offer.

THE CATEGORIES

UK awards:

• Showcase your achievements to a UK and international audience • Stand out from your competitors • Increase sales in the UK and globally • Gain valuable media exposure • Reward your team • Add award logo to your marketing materials

Gala Awards Dinner

UK and International awards:

• Innovation in sewage treatment through AD • Best food waste collection system • Best process optimisation • Making the most of digestate • Making the most of biogas • AD hero of the year • AD team of the year

Why enter?

International awards:

• Best international agricultural plant *NEW* • Best international municipal plant *NEW* • Best international commercial plant *NEW* • Best international micro-scale plant *NEW*

• Best on-farm AD plant UK • Best food waste AD plant UK • Best food & drink industry AD project UK • Best small scale AD plant (sub 250 kW) UK • Best AD support (technical) *NEW* • Best AD support (legal/accounting/ consulting) *NEW* • Regulatory/H&S leadership award *NEW* • Research project award *NEW*

The AD & Biogas Industry Awards 2016 will comprise a gala three-course dinner with wine for over 250 industry, government and press representatives. Hosted by Charlotte Smith from BBC Radio 4’s Farming Today and featuring a leading comedian, the black-tie ceremony also delivers first class networking opportunities. Tickets are selling fast so book your place today at adbioresources.org Individual place: £190 + VAT = £228 Table of ten: £1,800 + VAT = £2,160 ADBA members receive 10 per cent discount on above prices. Contact terry.ash@adbioresources.org to receive your discount code.

HOW TO ENTER • Simply complete the entry form at http://bit.ly/1QXvAsd and return to awards@adbioresources.org. As well as your 1,500 word entry, don’t forget to also send in a supporting statement, which can include graphs, links and images (no longer than two A4 pages), and a 100-word synopsis for the awards brochure. • The awards are FREE to enter and open to any company or organisation operating in either the UK or international AD and biogas industries, regardless of size or sector. The awards come in three categories: UK & international awards, UK awards only and international awards only – please make sure that you enter a category in which you are eligible to enter. • To ensure your entry stands out, make sure to read our ‘top tips’ at adbioresources.org/uk-ad-biogas-2016/industry-awards-2016

Deadline for entries – 18 April 2016 www.adbioresources.org adbioresources.org

Sponsorship opportunities to raise your company’s profile A variety of sponsorship opportunities are available to help your company stand out from the crowd, including: • Platinum sponsorship • Gold sponsorship • Category sponsorship • Drinks reception sponsorship • Advertising in the awards brochure For further details and prices contact terry.ash@adbioresources.org

April 2016 | AD & Bioresources News

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Technology Focus - Measuring & controls

www.tramspread.co.uk enquiries@tramspread.co.uk

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enquiries@greencrop.co.uk

www.greencrop.co.uk

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Technology Focus - Measuring & controls

The importance of measuring to maintain a healthy plant James Wood, Operations Manager for Swancote Energy, explains why operators should not overlook the importance of measuring and controlling their AD process. Swancote Energy operates a 3.5 MW AD facility in Bridgnorth, Shropshire, which processes 70,000 tpa of maize silage and commercial food waste. Swancote Energy’s AD plant in Shropshire

it meet PAS 110 specifications? Is it at the right temperature for spreading (max 25°C due to odour risk)? Is the contractor spreading it correctly and when the crop is ready to take up the nutrients? Are the nutrients at a level which meets the value the operator has placed on their product? After digestate has been applied, what has the resultant crop yielded? Again, all these measurements must be controlled so it’s essential to keep all laboratory results and fill out the correct documentation. Other areas of an AD operation that require careful measurement include: a plant’s parasitic load; organic loading versus biogas/electricity produced; machinery downtime; water consumption; waste quality in terms of Biogas Methane Potential (BMP); packaging content; and, of course, the all important profit and loss sheet. Lack of control over this final point could prove terminal.” www.swancoteenergy.com

ADBA members helping to keep the AD industry running “A wise man once said to me; if you can’t measure it, you can’t manage it. This was one of the first, and most important, lessons given to me on how to run an AD plant. There are many areas of anaerobic digestion that require close measurement to allow operators to make decisions on how to best control their plant. Measuring alkalinity ratio (FOS/TAC), volatile fatty acids (VFAs) and trace elements are critical to the health of the digester. The first two should be checked most regularly – at least twice a week – with trace elements checked every quarter. I would expect to see a FOS/TAC ratio between 0.17 (hungry) and 0.27mg/l (max feed), and a healthy digester should see total VFAs below 500mg/l (this can be a little higher if post-digestion is used). If the FOS/TAC or VFA levels start to rise, operators should consider reducing the feed rate and check the trace element levels. (Operators ought to know what their trace element levels should be, but this is rarely the case and is often left to third party specialists to determine.) Controlling the FOS/TAC, VFA and trace element levels is critical for successful AD operation and will help prevent issues such as foaming and, at worst, biological failure.

The measurement and control of digestate is just as important as the digester biology, as this is a quality fertiliser product and not something we should be disposing of. As with any product that holds a value, digestate has to meet certain criteria. Operators need to check if their digestate is compliant with all animal health criteria. Does

FM BioEnergy is offering a free comprehensive set of analysis for any operator interested in improving their overall plant efficiency. “The need for ongoing process monitoring is now widely recognised as crucial to the efficient operation of a biogas plant,” explains Adrian Rochefort, Account Continued>>

FM BioEnergy is offering a free set of analysis to plant operators

www.adbioresources.org adbioresources.org

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Technology Focus - Measuring & controls

Allison Engineering’s biogas analyser at Bio Dynamic’s Colwick plant

Manager. “Much of this can be conducted as standard on site at minimal expense, such as monitoring the feed inputs and gas output ratio, FOS/TAC analysis, and gas quality checks. These results will give an indication of any potential problems in the digestion process. However, it’s important to remember that each biogas plant is different and there are so many potential operational variations that you cannot expect your plant to behave in the same way as another. For more technical work, a biogas laboratory should be used to determine DM, oDM, VFA speciation and NH4 levels. These results can accurately diagnose any process issues and allow

a remedial action plan to be made and quickly put into action. When compared to the potential cost of lost production this works out as a very cost effective insurance policy to maintaining efficient AD operation.” Biogas production can be problematic for CHP engines, with increasing levels of hydrogen sulphide (H2S) and siloxanes causing expensive downtime and engine damage. Eurotron Instruments (UK) Ltd provides a solution to this with the SWG 100 biogas analyser, which continuously monitors H2S levels. Eurotron’s Managing Director, Massimiliano Moltrasio, explains: “Controlling H2S levels and measuring and analysing biogas with a SWG 100 biogas analyser can protect CHP engines. It’s critically important to monitor and analyse AD operations to avoid low quality biogas and control the process in a manageable way.” A biogas analyser from Allison Engineering is helping to improve efficiency at Bio Dynamic’s 2 MW food waste AD plant in Colwick, Nottingham. Supplied with its own air compressor, the analyser, which features within the plant’s desulphurisation system, uses a combination of PID and fuzzy logic to automate the injection of small quantities of air (less than one per cent) into the gas stream within the digester. The oxygen converts the H2S to elemental sulphur and water, a process which is completely automatic and does not require any operator input, thereby eliminating any additional operational and maintenance costs. “Protecting the CHP plant operations from excessive H2S levels is crucial to any successful AD site,” states Bio Dynamic’s Technical Director, Gary Burgess. “We wanted a desulphurisation system that was easy to install, easy to maintain, yet capable of reducing H2S concentration to less than 300 ppm. The Allison system has enabled us to maintain levels of less than 100 ppm and at minimal operational cost.” Plant technicians rigorously check for contaminants within digesters and ensure that performance is optimised, but the maintenance of the gas analyser monitoring the whole process is often overlooked. Geotech is now offering a maintenance package for its fixed gas monitor, the GA3000 PLUS, which has been developed to help reduce the risk of unexpected costs associated with plant downtime. As part of the package, the analyser’s core sensor unit can be replaced with a spare, taking just 20

info@fmbioenergy.co.uk www.fmbioenergy.co.uk

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Technology Focus - Measuring & controls Eurotron’s SWG 100 biogas analyser continuously monitors H2S levels

minutes to swap out. “Many analysers are used in harsh and potentially explosive environments, so it’s crucial that the operation runs smoothly and safely,” says UK Sales and Development Engineer, Graham Sanders. “Overlooking the maintenance of analysis equipment brings many potentially costly risks, including rising oxygen and H2S levels. These could lead to costly repairs,

Geotech is offering a maintenance package for its GA3000 PLUS fixed gas monitor

reduced equipment lifespan and inaccurate readings, affecting methane production.” It’s also important for developers to consider analysis equipment when planning an AD project, warns Graham: “Have you considered gas conditioning, appropriate filtration and heated gas lines to ensure moisture doesn't damage your system? Has the installation been carefully planned and installed in the appropriate location on site? Do you have correct gas line connections? What control

measures do you have in place for corrosive gases? Have you considered desulphurisation? Making adequate preparations in advance can prevent problems further along in the project.” www.fmbioenergy.co.uk www.eurotron-uk.com www.allison.co.uk www.biodynamicuk.com www.geotech.co.uk

www.weightron.com sales@weightroncb.co.uk www.adbioresources.org adbioresources.org

April 2016 | AD & Bioresources News

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R&D Update Digesting the indigestible

For information and advice on our R&D activities, contact our Market Analyst, Ollie More T +44 (0)203 567 0751 E ollie.more@adbioresources.org

F

ood waste AD has developed dramatically in the last three years: the volume of food waste processed through the UK industry has doubled to 1.9m tonnes today. In that time, gate fees have tumbled and the economics of the sector have become more challenging, both to existing operators and to those developing new projects.

Bringing down this figure was a focus at our recent Cost Competitiveness Task Force workshop, and we’ve recently received a number of case studies from members on how innovation in this area is already reducing costs (available on our website library section – adbioresources.org/library/). But we want the academic community to work with industry and focus more attention on this area. Could new, low-energy processes be developed? Could thermal treatment of compostable liners reduce costs and even increase biogas yields? How much peer-reviewed research is being conducted in this area?

Every step of the process now needs to be as efficient as possible. One significant cost to operators is handling packaging material and the compostable/indigestible liners in which AD operators receive food waste. As well as the cost of removing these items from the waste stream, there is the disposal cost to landfill or incineration. If five per cent of the waste received by a 50,000 tonne plant was screened as indigestible material, it would cost the operator £250,000 a year to dispose of, at a cost of £100 per tonne – that’s £5m over a 20-year plant lifetime.

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rotamat@huber.co.uk www.adbioresources.org adbioresources.org

To see if we can answer some of these questions, we have allocated day one of our Research and Innovation Hub at UK AD & Biogas 2016 to researchers and innovators in this field. Day two will focus on making more from digestate. We want to set the challenge to the academic community to provide solutions to these important industry issues. If you are researching in this area, please respond to the call for papers on our website (adbioresources.org/uk-ad-biogas-2016). And if you’re simply interested in finding out more, come along to the R&I Hub on 6 July at the NEC Birmingham and engage in the debate.


R&D Special

Perspectives from academia By Dr Louise Byfield and Angela Bywater, Co-Network Managers, BBSRC AD Network, University of Southampton Opportunities for communication

Right now, people in academia across the world are working on AD-related science. To ensure this is translated into real-world benefits, communication between industry and academia is paramount. How is an academic supposed to focus their research if they are unaware of the real issues? Fortunately, finding opportunities to have the kinds of casual, ‘soft’ conversations needed to bring the two parties together has never been more straightforward. The best way to find out what’s happening is by speaking to the experts, at events such as the ADBA R&I Forum (6-7 April, University of York), the R&I Hub at UK AD & Biogas 2016 (6-7 July, NEC Birmingham), and large academic conferences.

Industry in the UK has always had a long tradition of making use of the facilities and expertise available in the academic sector. However, for anyone with no previous experience of this, a good way to access the knowledge and equipment available in universities is with a Business Interaction Voucher (BIV) through the AD Network. Set up by the Research Councils to encourage trust-building interactions between academics and industry, these vouchers will pay for up to £10,000 of an academic’s time, provided matched funding is pledged by the industry partner. They are intended to allow an industry partner to use university skills and facilities in a cost-effective way, in order to solve a technical challenge. An early example is the work on the testing of anaerobic digester components found in the thermophilic digestion of food wastes, between Dr Sonia Heaven, Head of the Water and Environmental Engineering Research Group at the University of Southampton, and Permastore Ltd, producers of tanks for AD applications.

The BBSRC AD Network has co-sponsored fee-paying events and also holds specialist events which are completely free to members. Around 50 people attended the workshop on anaerobic membrane bioreactors in January 2016, and more are expected at the forthcoming Science Meets Industry event at Warwick University on 10 May. AD plant operators may be interested in taking advantage of the free microbiome analysis available on the day – just bring along a sample and get it characterised. But perhaps the best time to start the habit of cross-sector conversation is at the start of your career. The BBSRC AD Network is sponsoring a free two-day, annual mini-conference for Early Career Researchers (ECR) and Young Professionals in AD. This year’s event will be held at the University of Birmingham on 4-5 July, to coincide with UK AD & Biogas 2016, ensuring there is every chance of communication between the newest cohort of AD practitioners.

Bridging the gap between industry and academia

Working with universities in the UK can present something of a cultural challenge for those more used to the corporate environment. Traditionally, universities are seen as open places dedicated to disseminating information freely and widely for the benefit of all, whereas industry is perceived as being secretive and closed; obsessed with patents and infringements of intellectual property (IP). The reality, of course, lies somewhere in between. Joint initiatives are commonplace and a key starting point for any university/ industry collaboration is the initial Collaboration Agreement. This sets out the ownership of IP, any restrictions on publication or anonymity of the data and, as the foundation for all future work together, is definitely worth getting right. Standard agreements are readily available (eg the Lambert agreement, www.gov.uk/guidance/lambert-toolkit), which can be tailored to fit most circumstances. For those not familiar with the academic world, it may come as a surprise to learn just how much publicly funded research goes on in AD. Some recently awarded grants through the IB Catalyst include projects on wastewater biofuel cells (total funding £243,175); the biomethanisation of CO2 in AD plants (£1,861,999); enhanced biofuel production via integrated microbubble technology (£1,708,403); and the production of biomethane from seaweed by AD (£2,072,745). There is also other work covered by the SUPERGEN BIOENERGY Hub (www.supergen-bioenergy.net/funding/).

Speakers at the recent BBSRC AD Network’s Anaerobic Membrane Bioreactors Workshop

Further information For more information on the AD Network, BIV awards, ECR event or other workshops/conferences, go to www.anaerobicdigestionnet.com or contact Angela Bywater or Louise Byfield at adnet@soton.ac.uk For more information on the R&I Hub at UK AD & Biogas 2016, or to respond to the call for papers, go to adbioresources.org/uk-ad-biogas-2016 For more information on the ADBA R&I Forum (6-7 April, University of York) go to adbioresources.org

www.adbioresources.org adbioresources.org

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Members’ News & Views Boxford Suffolk Farm and Shaw Renewables: Perfecting closed loop sustainability Our Editor, Kate O’Reilly, visited the 750 kW Shaw Renewables project at Boxford Suffolk Farm to find out how apple pomace is powering a luxury hotel... Family-run Shaw Renewables is the UK agent for BioConstruct, a German AD plant construction company with over 250 operational facilities across Europe, as well as 21 owned AD plants in their portfolio. To date, their UK projects range from a 5 MW food waste plant to a 500 kW on-farm facility, and the company is currently constructing its second 5 MW plant in Middlesbrough, as well as a 2.5 MW gas to grid project in Sheffield. For Boxford Farm in Suffolk, tapping into this expertise to create an on-site AD plant made perfect sense. The farm supplies apples, pears and soft fruits to nationwide supermarkets and a neighbouring fruit juice company. Realising that its organic by-product material could be converted into energy, Boxford Suffolk Farm originally commissioned BioConstruct to build a 500 kW AD plant in 2014. Constructed in just five months, the site was recently expanded to 750 kW and handles a feedstock mix of approximately 80 per cent apple pomace to 20 per cent maize, processing around 46 tonnes per day. A 500 kW CHP engine converts the biogas into electricity for the farm and fruit juice factory, while an 1,800m pipe leads to a 250 kW CHP engine at the neighbouring Stoke-by-Nayland hotel, golf club and spa, which is owned by the Boxford Group. “During the day, the hotel uses every kilowatt hour of energy produced, and at night we export any surplus power to the grid,” explains Robert England, Farm Director.

er memb

visit

L-R: Andrew Shaw, MD of Shaw Renewables; Kate O’Reilly, Editor of AD & Bioresources News; Lucien Benke, Plant Manager; and Robert England, Farm Director

But energy generation isn’t the only benefit provided by the plant. The digestate is separated, with the solid fraction used as mulch under the farm’s apple trees. The liquid portion, meanwhile, is spread onto the golf course, reducing fertiliser bills, cutting carbon costs and improving soil structure. “As well as income from FIT and RHI, this project brings real benefits and savings to the site owners,” says Andrew Shaw, Managing Director of Shaw Renewables. “Electricity is sold to the fruit juice factory, there’s a good use for the digestate, and the hotel is virtually self-sufficient in both heat and electricity. With the current issues around subsidies, more UK developers will need to adopt this kind of approach, looking for local energy consumers to whom they can supply power directly.” www.shawrenewables.co.uk See feature, ‘A wasted opportunity – helping the food and drink industry to value its waste’, p8

Global News GE Water transforming waste across the pond GE Water is poised to launch an AD system in Long Island, New York, converting 160,000 tonnes of food waste, fats, oils and grass cuttings into renewable energy. The company, which incorporates UK AD specialist Monsal, will provide six anaerobic digesters for American Organic Energy’s 62 acre food waste processing plant, which will power the site itself and provide vehicle fuel. Diverting this waste from landfill will reduce 40,000 tonnes of greenhouse gas emissions – the equivalent of removing 8,125 cars from the roads. Heiner Markhoff, President and Chief Executive, water and distributed power for GE Power, says: “GE is pleased to be a part of the American Organic Energy project, as it represents a significant step in transforming how solid wastes will be managed in New York State as a potential renewable energy resource.” www.gewater.com 24

AD & Bioresources News | April 2016

Weltec Group brings new lease of life to old AD plant Nordmethan GmbH, The 3.3 MW facility will be back a subsidiary of plant online by the end of 2016 manufacturer Weltec Biopower, is investing €2m to renew a former biogas plant in Germany. Currently decommissioned, the Falkenhagen facility, near Brandenberg, will be equipped with five digesters, five post-digesters, five digestate storage units and six CHP plants to generate 3.3 MW of electricity. The power will be exported to the grid, while the CHP exhaust heat will be used for the digestate drying process. Jens Albartus, Director of Weltec Biopower and Nordmethan, comments: “One of the reasons for the purchase was that due to Nordmethan’s nearby biomethane plant, the company has long-standing contacts with local farmers. Thus, it was easy to find regional partners to supply substrates – primarily maize silage and pig manure – for the Falkenhagen site.” www.weltec-biopower.com For more AD stories from around the world see our new global supplement, AD & Biogas News International

www.adbioresources.org adbioresources.org


Members’ News & Views Outside is the right side for Landia GasMix Four Landia GasMix systems have completed their first year of uninterrupted operation at Eco Sustainable Solutions’ 1.6 MW AD facility in Piddlehinton, Dorset. Externally-mounted with no moving parts inside the tank, the systems serve two 2,500m3 digesters that process food waste from around 60,000 Dorset households, plus liquid waste from milk and cheese production. Using 18.5 kW chopper pumps to generate a total of 700m3 gas per hour, the GasMix systems achieve total mixing via specially angled recirculation nozzles, and only need to operate for approximately 10 to 20 minutes per hour. Stephen Harman, Operations The GasMix system is located Manager at Eco Sustainable Solutions, says: outside the digester “Since the installation of the four Landia GasMix systems, we have had absolutely no performance or reliability issues, and because all the pumps and pipework parts are on the outside of the digesters, they can be maintained without interruption to our 24/7 process.” www.landiagasmix.co.uk

ReFood orders second gas to grid plant from Greenlane Biogas Greenlane Biogas has received a multi-million pound contract to supply and install a Totara biogas-to-biomethane upgrading plant at ReFood’s new food waste processing site in Dagenham, Essex. The contract is the second to be placed by ReFood for Greenlane’s water wash upgrading equipment, following the success of the Widnes project. The Totara unit in Dagenham will output up to 2,000 Nm3/hr of biomethane to the national gas grid. Greenlane’s Director of Engineering, Glenn Mercer, says: “The ability of the Greenlane water wash system to treat high levels of contaminants, inherent in biogas from most food waste, is a prime reason to be confident that the Dagenham project will match and even exceed the operating and commercial benefits to the customer of the successful Widnes plant.” ReFood's Commercial Director, Philip Simpson, adds: “We are proud of our food waste processing site at Widnes and the Greenlane upgrading system within it. We are looking forward to achieving the same success with our Dagenham project.” www.greenlanebiogas.com The Greenlane Totara unit at ReFood’s Widnes site

Improving plant performance with Nutromex Biopack OMEX Environmental has launched a new AD powder additive. Nutromex Biopack is a solution of trace elements and specially selected bacteria which is used to supplement the existing microbial populations in anaerobic digesters, improving overall plant functionality. Each digester needs essential metals to create the perfect balance for microbial populations to thrive and break down feedstock effectively, and Nutromex Biopack provides both bacteria and trace elements The powder additive provides in one hit. Available in 10kg plastic pails bacteria and trace elements containing 40 x 250g bags, which are administered directly into the digester on a daily basis, the water soluble powder is easy to apply. Suitable for a variety of substrates from grass silage to food waste, the additive is currently undergoing successful trials on several farms throughout the UK. www.omex.co.uk

NVP Energy and C-Capture stand out from the competition NVP Energy and C-Capture have each scooped £150,000 after being named as two of the six national finalists at the Shell Springboard competition. C-Capture, a spin-out company from the University of Leeds, developed technology to remove CO2 from different industrial gas streams. The company hopes that the Shell Springboard funding will help establish them in the biogas upgrading technology market. NVP Energy is a clean-tech company whose technology turns wastewater into a revenue generator. Director Michael Murray enthused: “This is a game changing amount that will enable us to put critically needed resources on a prospect and sales pipeline development to capitalise on our full-scale NVP Energy reactor, co-funded by DECC.” Shell Springboard aims to find and support the next breakthrough low carbon enterprises in the UK, and is part of Shell’s strategy to support the transition to a lower carbon-higher energy system, while helping to create jobs and growth among UK small businesses. www.nvpenergy.com C-Capture hopes the funding will help put them on www.c-capture.co.uk the map for biogas upgrading technology

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Members’ News & Views Huber trial success helps Tamar improve bottom line Huber UK has released the results of a nine-month trial with Tamar Energy, to reduce the amount of reject disposal from the AD operator’s Tiger depackaging units, saving money and reducing waste to landfill. With a contaminate rejection rate of around seven to 12 per cent, Huber trials initially included washing the rejects prior to pressing. While this resulted in cleaner reject material, this method used water and diluted the digester feed soup, increasing digestate volumes for

disposal. Huber then turned to using a proven WAP-L unit, modified for the application. This uses no water and accepts rejects continuously. Easy to maintain, the WAP-L unit has many advantages including tolerance of variations in feed materials, producing dry solids content of up to 70 per cent, and reducing the volume for disposal to landfill by more than 50 per cent. www.huber.co.uk www.tamar-energy.com

Operator News United Utilities turns sewage sludge into gas and vehicle fuel United Utilities has installed water wash biogas upgrading equipment from Malmberg at its AD facility at Davyhulme wastewater treatment plant. The plant will be capable of supplying between 300-900m3 per hour and will soon start exporting gas to the grid network. Tom Lissett, Sludge Business Manager, explains: “We already use our biogas in engines to generate renewable heat and electricity from Davyhulme – enough to power the entire works. As we increase the efficiency of the sewage and sludge treatment process we are able to generate more biogas and, as a result, we’ll be able to put that into the gas grid for the very first time.” United Utilities is always looking at ways to maximise the value of its sewage sludge, which it dubs ‘black gold’

The company has also taken delivery of a fleet of electric vehicles which will run on power generated by the plant. The new electric Polaris vehicles, which replace diesel vans, will be able to charge up at their own docking station at the Davyhulme plant. www.unitedutilities.com www.malmberg.se

Drained and compacted reject material, ready for recycling

Future Biogas reveals plans for new crop facility Future Biogas is looking to add to its portfolio of 10 operational plants with a new facility in Warwickshire

Future Biogas is planning an AD plant in Warwickshire capable of providing gas or electricity for up to 4,500 homes. The plant, due to be built at Whitehill Farm near Alscot if the planning application is successful, will use crop matter to produce biogas, the majority of which will be fed into the gas grid, while some of the electricity generated on-site will be supplied to local businesses. John Scott Kerr, Head of Business Development, comments: “AD plants are sustainable and renewable, providing power and heat 365 days a year – and we don’t need the wind to blow or the sun to shine. We anticipate that AD will be cost competitive with nuclear power within five years.” Mr Scott Kerr also explained that sourcing the crop matter from local farms would allow those businesses to better rotate their crops; obtain higher yields from the follow-on crops; combat resilient weeds without the use of fossil-based chemicals; and provide a hedge from volatile commodity markets. www.futurebiogas.com

Agraferm and British Sugar work on new AD projects Agraferm Technologies is working with leading sugar producer, British Sugar, to build a new 5 MW AD plant at the company’s factory in Bury St Edmunds, Suffolk. The facility will process around 97,000 tonnes of pressed sugar beet pulp each year, a high yielding and stable feedstock that is produced alongside the sugar making process. Work on the new plant started last summer and the project is due for completion later this year. Agraferm is also supporting British Sugar on a new project to work in partnership with sugar beet growers to develop a sustainable, scaled down, on-farm AD model. The plan is for growers to supply sugar beet on a long-term

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basis, securing raw material for the British sugar beet industry, and in return British Sugar will supply beet pulp back to growers for their small scale on-farm AD plants. The pulp can even be transported back to farms in the same vehicles that have delivered the sugar beet to the nearest British Sugar factory, making the overall model one of the most sustainable in the industry. www.agraferm.com See feature, ‘A wasted opportunity – helping the food and drink industry to value its waste’, p8

www.adbioresources.org adbioresources.org


Members’ News & Views

Get grid-ready with propane enrichment from Flogas

If you’re looking for a simple, dependable and cost-effective gas-to-grid solution for your plant, Flogas has the answer. As the market leader in propane enrichment for biomethane, Flogas specialises in providing generators with complete package solutions – designed to meet the exact needs of individual applications, for exceptional performance, optimum results and long-term gas-to-grid success.

Trusted expertise. Custom systems. Real results.

Flogas has been at the forefront of the propane enrichment industry since the UK’s first biogas plants launched in 2012, and is the only company that can provide a comprehensive, turnkey propane solution. This includes supply only, propane injection or even complete packages spanning specification, system design, project management, installation and maintenance. This is backed by Flogas’ well-established national LPG delivery network, served by a large fleet and more distribution depots than any other supplier. All installations are also fitted with telemetry units as standard, allowing for remote monitoring, seamless LPG delivery whenever needed and full peace of mind. Dan Hamley, head of energy services at Flogas, explains: “For us, it’s all about making gas-to-grid easier. From specifying the right technology through to project management and ongoing support, our goal is to provide tailor-made and hasslefree solutions. Each package is designed

to meet the plant’s individual requirements from start to finish – so our customers can rely on one company to handle all their propane needs. Whether it’s supply only (for liquid or vapour systems), injection into an existing grid entry unit or a whole, purpose-built system, our expert team is on hand to help AD plants get the very best out of their biogas.” With more than 35 gas-to-grid systems now in operation, successful projects all over the UK are already reaping the rewards of Flogas’ unrivalled propane enrichment offering – delivering highquality biogas back to the grid and benefiting from ongoing RHI (Renewable Heat Incentive) payments to further boost their bottom line. Matt Wardle, national accounts manager at Flogas, concludes: “The UK biogas industry has gone from strength to strength in recent years, and plants that are equipped to supply consistent, grid-ready fuel have an even brighter future ahead. Here at Flogas, propane is our speciality – and we understand that without effective enrichment, biomethane simply can’t go to grid. We’ve worked hard to develop a service that makes good business sense for customers large and small, and we’re very proud of our biogas offering. We’re now focusing on investment in our technology and our people, to ensure we stay at the very forefront of a fast-moving – and increasingly important – market.”

“We’ve worked with Flogas on all of our biomethane-to-grid projects, and are very happy with the quality of the products and the strong working relationship that’s developed. We now have six biomethane plants in operation, all with propane enrichment requirements, so we need a reliable partner that really understands our needs and can provide a consistent level of service. That’s exactly what Flogas does: we work with the same project managers each time and even when timescales are tight, the team and the products deliver. We know we can rely on the technology to do the job, and on Flogas’ national network to provide dependable LPG supply. This means we can concentrate on generating first-rate, grid-ready biogas.” William Mezzullo, Head of Projects at Future Biogas

Get in touch

To find out more about Flogas’ market-leading propane enrichment service, and how it could benefit your biomethane plant, contact Greg Brown on 07701 021223 or visit flogas.co.uk.

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Policy

OFGEM REJECTS PROPOSALS TO REDUCE BIOMETHANE REGULATION Ofgem has rejected proposals by the Energy Networks Association (ENA) for reducing costs and removing barriers for low flow entry sites. This would have reduced some of the regulatory burdens around CV measurement and reporting for biomethane plants. However, the regulator did emphasise its desire to encourage more biomethane connections and to make other changes to the regulatory regime to support this. In particular, it has identified reducing the cost and complexity of Calorific Value Determination Devices (CVDDs) as an opportunity. We will therefore be working with Ofgem, the ENA and other members of the biomethane campaign group to see how this can be taken forward.

NEW DECC PROJECT TO SPEND £300M ON HEATING NETWORKS As part of the Spending Review, the government announced that £300m has been allocated for the construction of heating and/or cooling systems in England and Wales over the course of this Parliament. To design the support to best apportion this investment, DECC has launched a new project; the Heat Networks Investment Project (HNIP). HNIP recognises that: ‘heat networks can contribute to local authorities’ targets and aspirations for carbon emissions reduction, fuel poverty, cost reduction, regeneration, local jobs and growth’. The support will encourage private and local match investment to increase the volume of heat networks built. The project may be of particular interest to members with existing biogas plants that do not qualify for the RHI because they were commissioned before 2013 and generated over 200 kW. It may also appeal to existing biomethane plant operators considering generating for private gas networks, since the scheme also intends to support heat networks that: • have explored a suitable range of technical options and are efficient heating and cooling systems that are technically future proofed; • are commercially future proofed; and • operate with no customer detriment. ADBA has put itself forward as a stakeholder to the project and will contribute to the design of investment support funding ahead of initial plans that we expect to be set out later this year.

DEFRA MODELLING OF LAND RENT FLUXES FINDS AD HAS ‘NO SIGNIFICANT INFLUENCE’ Defra has published the results of economic research on the local impacts of AD on agricultural land rental values and the environment. The key finding is that, ‘spatial

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modelling of land rental values found no significant influence of proximity to AD plants’. The report notes the importance of following best practice when growing crops for AD and operating AD plants, and in spreading digestate to land. It can be seen in full at: bit.ly/1MrvB8Y

www.adbioresources.org adbioresources.org

To download a PDF version of our Voluntary Guidelines on Best Practice for Crop Feedstocks in Anaerobic Digestion go to: bit.ly/1UjO0HE


Policy MORE BANG FOR YOUR MUCK Phosphate rock is included in the EU list of critical raw materials and is ranked 20th in an index of commodity price volatility. The University of Surrey has been working in collaboration with Thames Water to assess the options for phosphorus recovery and use across Thames’ wastewater treatment works. The project has found that: ‘significant operational and maintenance savings totalling £113,000 can be made in the first year of operation of the phosphorous

EC CONFIRMS THAT UK CAN RETAIN EXISTING END OF WASTE PROVISIONS The European Commission (EC) recently announced that Member States will be allowed to have ‘optional harmonisation’ with the revised EU Fertiliser Regulation. This confirms that UK AD operators will be able to continue using existing national end-of-waste criteria (ie PAS 110) when trading digestate within the UK. This is extremely welcome news and is a direct result of pressure put on the Commission by the UK AD industry, including ADBA and our members. This demonstrates the effectiveness of the industry working together to deliver clear and consistent messages to policymakers.

Why is this significant?

While in principle the creation of common standards could offer some benefits, some of the proposed limits in the regulations would have been unachievable for many UK operators. As a result, if the proposed EU standards had been applied in the UK, it would have likely led to a higher proportion of digestate failing to meet end-of-waste criteria. This would have caused more digestate to be spread as a ‘waste’ under deployment permits, resulting in unnecessary regulatory burden and higher costs for operators. By securing optional harmonisation, the UK industry will not face these issues.

How will operators be affected?

For up to the minute information and advice on regulations, consultations and government news, contact our Head of Policy, Matt Hindle T +44 (0)203 176 0591 E matt.hindle@adbioresources.org recovery system in Slough WWTP. Sale of phosphate-rich struvite fertiliser produces annual revenue of £20,000’. In addition, a second project has been undertaken by Dr Ruben Sakrabati et al of Cranfield University, who has developed a phosphorus map to identify areas where an application of biosolids would be economically and agronomically beneficial. This tool, which Dr Sakrabati will discuss at ADBA’s R&I Forum on 6-7 April at the University of York, could help the AD industry and farmers using digestate to reap the full benefits of the value contained within this vital resource. For more information contact ollie.more@adbioreources.org

FIT FOR PURPOSE? DELAYS IN FIT DEPLOYMENT Over the last few months, ADBA members have been reporting severe delays in Ofgem approval of their Feed-in Tariff (FIT) applications. The backlog of AD applications resulted from last summer’s reforms, with many projects submitting prior to October 2015 to ensure they were not affected by the new scheme rules. Across all technologies, ROOFIT applicants currently number between 1,500 and 3,000. Working closely with members, we compiled four case studies that clearly demonstrate the months that have lapsed since applications were submitted. The studies also illustrate that all inquiries Ofgem has made of ROOFIT applicants have usually been answered within a matter of days. Delays create uncertainty which can threaten the financial viability of AD projects. We sent these case studies to Secretary of State for Energy and Climate Change, Amber Rudd MP, requesting an extension to the preliminary accreditation for all ROOFIT applicants from before October 2015, and also a meeting to further discuss the delays and the effects they are having on both members and the AD industry as a whole. In addition to the five or six months that may have lapsed since operators submitted their applications, Ofgem has made contradictory statements regarding how to track the status of an application, so this is another point we are seeking to raise with DECC.

If operators only trade digestate in the UK, they will not be affected by the new EU Fertiliser Regulation and will be able to continue as normal. UK operators will therefore have two options: Option 1: Comply with the new harmonised European safety, quality and labelling requirements, then affix the CE mark to their product and benefit from easy and free access to the EU internal market. Option 2: Trade their digestate in the UK only, in accordance with the existing regime (ie the ADQP and PAS 110).

FIT deployment caps

What happens next?

In the latest Ofgem update on the deployment on 15 March, 18.720 MW capacity had been applied for. This means that the second and third quarter caps are already filled and the fourth quarter cap has also almost been reached.

The draft Regulation will now be sent to the European Parliament and Council for adoption, and we will keep members updated as it progresses.

The current deployment cap reopened on 8 February 2016 and was breached almost immediately – after just 15 minutes – with pre-accreditation granted to the 5.8 MW worth of plants the cap permits. By the end of the first day of the current quarter, which ends on 31 March, applications had been submitted amounting to a total capacity of 14.907 MW. Applications can still be submitted but will be ‘queued’ and not approved until there is space in a new quarter’s cap.

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Government & Agency News Results of WRAP study set to revolutionise digestate use Farmers’ and growers’ confidence in digestate has been given a welcome boost following research by WRAP which shows that smart use of renewable fertilisers can increase yields and reduce bills with no negative impact on crop quality or safety. The programme of field experiments, ‘Digestate & Compost in Agriculture’ (DC-Agri), confirms that food-based digestate is a valuable source of readily available nitrogen; the single most important nutrient influencing crop yields. This new data can help farmers predict how much nitrogen the digestate will supply their crops, allowing them to confidently reduce the amount of bagged fertiliser without affecting yields. The five year research programme demonstrated that the timing and method of digestate application is critical if the maximum value is to be gained. Dr Richard Swannell, Director at WRAP, said: “These new findings show the benefits that using the product correctly can bring, and for the first time farmers and growers have the evidence to make informed decisions about their fertiliser use.” Review the DC-Agri summary and full reports at www.wrap.org.uk/dc-agri-reports

GIB not legally bound to invest in green projects The Green Investment Bank (GIB) will no longer be required by law to invest in low carbon projects – but ministers insist the environmental role of GIB is to be protected by a ‘golden share’ after the bank is privatised. GIB is being sold to raise money for the Treasury, reduce government borrowing, and to let it expand by borrowing in private financial markets. At the bank’s beginning in 2012, the government argued that the clause guaranteeing its green mission was legislated for because “legislation provides that the bank will always have a green purpose clause”. But a proposed amendment to the Enterprise Bill by Business Minister Anna Soubry MP drops the clause from law as part of the privatisation process. The government has stated that the clause has to be removed from legislation in order for the bank to be removed from government books and sold off. “To ensure the bank’s green credentials are maintained it plans to put a special share structure in place that protects its green mission and keeps it focused on what it does best,” said Business Secretary, Sajid Javid MP.

Head of National Grid appointed to Defra Steve Holliday has been appointed as Defra’s Lead Non-Executive Director, replacing Iain Ferguson, the former boss of Tate & Lyle. Steve is also Chief Executive of National Grid and was a Non-Executive Director of Marks and Spencer from 2004-2014.

WRAP boss steps down After successfully leading WRAP for nearly nine years, Dr Liz Goodwin will be leaving her position as Chief Executive in June. “I look forward to seeing WRAP continue to grow and prosper in future,” said Dr Goodwin. “I intend to continue working with WRAP in an indirect way and to continue to offer my knowledge and expertise.” In her time at the helm, Dr Goodwin has been at the forefront of tackling food waste in the UK – helping to reduce food waste in UK homes by 21 per cent – and was awarded an OBE in June 2015. Notable projects under her leadership have included the flagship Courtauld Commitment, which targets waste in the grocery sector, and the ‘Love Food Hate Waste’ consumer campaign. www.wrap.org.uk

Dr Lukehurst receives OBE medal After being recognised in the 2015 Queen’s Birthday Honours List, Dr Clare Lukehurst has now received her OBE for services to the anaerobic digestion industry during an investiture ceremony at Buckingham Palace conducted by HRH The Prince of Wales. Currently the IEA Bioenergy Task UK Team Leader at Task 37, Dr Lukehurst is widely acknowledged as one of the UK’s leading experts on anaerobic digestion and was awarded a lifetime achievement award at the 2013 ADBA industry awards, when she was described as an ‘indefatigable promoter, defender and adviser on anaerobic digestion’. 30

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www.adbioresources.org adbioresources.org


Government & Agency News Waste in Westminster Our PR & Parliamentary Affairs Manager, Derek Sivyer, reports on the latest waste news from Parliament

DON’T WASTE WESTMINSTER’S SUPPORT FOR AD ADBA’s first parliamentary reception (see p6 for event review) was a huge success. But with over 60 MPs and Peers in attendance, and almost as many again having expressed an interest in learning more about the industry, it is vitally important that AD businesses act now to translate this unprecedented political interest into legislative support. March’s reception was a success because of the overwhelming support we received from AD operators and investors across the country. Their attendance hooked the interest of their local MPs, giving us the opportunity to enthuse politicians about the industry.

www.haith-recycling.com

sales@haith.co.uk

Help us get heard

MPs are jumping at the opportunity to don their wellies and hard hats, and press the hands of constituents by visiting the plants and headquarters of businesses operating in our exciting industry, which to many MPs appears a no-brainer – getting value from our organic food, farm and industrial wastes. So, if you haven’t already done so, please get in touch with your local MP and invite them to visit your premises. We are able to support our members with whatever policy, press or logistical support you may need, and can even forward a tailored invitation letter for your MP. Of course, site visits are just another step in our journey to engage MPs. Please let us know when an MP visits your company and we will follow up to secure their vocal support on the floor of the House of Commons. Contact derek.sivyer@adbioresources.org

ADBA’s Chief Executive, Charlotte Morton, with Mark Pawsey MP

www.adbioresources.org adbioresources.org

whites@longley.uk.com

www.whitesconcrete.co.uk

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Advice Clinic: Finance special

Funding for AD projects With AD developers finding it more and more difficult to attract funding, Bruce Nelson of Compass Renewables, ADBA’s finance arm, provides the answers to some common financial queries...

Bruce Nelson, Director of Compass Renewables T +44 (0)1732 464495 E bruce@compassbusinessfinance.co.uk www.compassbusinessfinance.co.uk

Q A

“I’m looking at refinancing options for my plant. What should I consider?”

“Initially, you’ll need a redemption figure from your existing lender or, if you’re acquiring the plant from an equity investor, you’ll need to negotiate a purchase price. You may wish to speak with your bank, providing you’re happy to offer security, land and buildings to more than cover the loan, but you should achieve attractive rates and longer repayment terms if required. However, there are alternatives to banks for well performing plants. Any approach to funders will require you to produce cash flows and profit and loss forecasts, based on the performance data of your plant since commissioning. This will also allow you to more accurately predict the term of borrowing required, ensuring cash flow isn’t stressed. Any funder will want to see operational and financial performance data and the more complete the material you offer, the better.”

Q A

“How have funders reacted to recent changes and restrictions to renewable energy support?”

“Many funders have turned their attention to refinancing operational plants, where the prevailing tariff will make the investment return acceptable. There are of course a number of plants still looking to complete their funding arrangements, having pre-accredited with the Feed-in Tariff (FIT) last September; but even with these higher tariffs, funding hasn’t necessarily proved straightforward. The funding community is taking even greater care with its due diligence to ensure a plant’s potential viability. Margins are tight even if pre-accredited, with these and current tariffs often also requiring the Renewable Heat Incentive (RHI) to make the investment palatable.”

Q A

“What is the finance sector looking for from the new phase of the RHI?”

“The finance community is currently nervous of lending to plants where the tariff is unknown. New plants require construction finance and may take anything up to a year to complete. Investment won’t be forthcoming and developers won’t commit to building where there’s no agreed tariff. The ability to pre-accredit is therefore essential to continue to attract the investment community. Having a political landscape devoid of direction and commitment will delay, or halt, growth in this vitally important renewable sector. Equally, the government could come through with tariffs and pre-accreditation that allow investment to continue – but at the moment, it’s still ‘wait and see’.”

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Q A

“Why is it difficult to finance my plant at the construction phase?”

“At the point you’re able to commence construction, the whole project only works on paper. There’s considerably greater risk for a lender than if the plant were already operating successfully. It’s also dependent on the security available. If the lender is able to enjoy good headroom on the security you offer, they may consider funding the project through construction, rolling up interest until the revenue flows from the operational plant. Some lenders will consider the construction phase without additional security, but only if they can get comfortable with the project following careful due diligence. In these circumstances, you may have to pay a higher rate of interest and you’ll need to consider refinancing after a couple of years.”

Next issue: UK AD & Biogas 2016 Advice Clinic Special

www.adbioresources.org adbioresources.org


Regions News from the regions RHI in Northern Ireland to close Northern Ireland’s Enterprise, Trade and Investment Minister, Jonathan Bell, announced a shock decision to close the domestic and non-domestic Renewable Heat Incentive (RHI) schemes in February 2016. He said: “Both schemes have been very successful, with the non-domestic scheme in particular seeing significant uptake during the last 12 months, and more so in the run up to the recent scheme changes introduced in November 2015…However, this increased demand means the available budget for new applications has been exhausted. To meet RHI commitments for existing installations, significant levels of additional funding will have to be found from within the NI Executive’s budget for the next five years to address the current deficit. To prevent further overspend I must bring forward legislation to the Assembly to close both schemes to new applications.” The decision took effect from 1 March 2016. www.detini.gov.uk

‘Recycle food waste or face fine’, Scottish businesses told Businesses and other large organisations in Scotland now face hefty fines if they do not recycle their food waste. A change in law from January 2016 means that any

company producing more than five kilograms of food waste each week will have to recycle their leftovers instead of sending them to landfill. The Scottish Environmental Protection Agency can hit non-compliers with an on-the-spot fine of £300, while repeat offenders face penalties of up to £10,000. Zero Waste Scotland, which was set up to deliver the Scottish Government’s Zero Waste Plan, estimates that businesses could save £192m a year by reducing their food waste. www.zerowastescotland.org.uk

Could AD be the answer to NI’s poultry problem? The Northern Ireland Executive’s attempts to find a solution to deal with the 260,000 tonnes of poultry litter generated in the country each year is continuing apace. A total of £15-20m was set aside for the Sustainable Use of Poultry Litter (SUPL) Project, and will be used to part fund at least two demonstrator plants to test new technology. Six applications have already been assessed, with the Agriculture Minister, Michelle O’Neill, revealing that schemes based on AD technology were furthest advanced in the selection process. Once finance is in place, the first plants could be operational by late 2016 or early 2017. www.investni.com

sean.stevenson@nrm.uk.com

duncan.rose@nrm.uk.com

www.nrm.uk.com

www.jonesmcgirr.com

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info@edina.eu www.edina.eu/biogas

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Upcoming Events

6-7 ApR 2016

ADBA Research & Innovation Forum 2016

Join us to discover the future of AD in 2016, at an event which will bring together the AD industry, academia and the public sector. adbioresources.org In partnership with

Supported by

The University of York

ADBA Webinars: 8 & 14 Apr 2016

21 Apr 2016

16 May 2016

RHI Consultation - Analysing Eligible Heat Uses 8 April 2016 11:00am – 12:00pm RHI Consultation - Tariff Levels & Degressions 14 April 2016 11:00am – 12:00pm

ADBA Spring Members’ Meeting Ashfords LLP offices, London

ADBA Regulatory Forum Clarke Willmott LLP offices, Bristol

UK AD & Biogas 2016 6-7 Jul 2016

6 jul 2016

Hall 3, NEC Birmingham

AD & Biogas Industry Awards The Vox Conference Centre, Birmingham

Following the publication of DECC’s RHI consultation, The Renewable Heat Incentive: A reformed and refocused scheme, ADBA will be hosting a series of member-only webinars to discuss the main issues in the consultation, and offer members the opportunity to feed in to our response. adbioresources.org

This free to attend event is perfectly timed to give our members a final opportunity to comment on the government’s RHI consultation, which closes on 27 April. Come and discuss the proposals with our policy team, DECC representatives and other ADBA members. In addition, ADBA’s Strategic Advisor, Chris Huhne, will share his thoughts on ‘The politics of AD: is there light at the end of the tunnel?’. There will also be a market update by our Market Analyst, Ollie More, including future tariff degressions, and a presentation on separate food waste collection across England as Defra works on a new scheme. Registration now open, see p38 for full details. adbioresources.org This free forum tackles the most important regulatory issues facing our industry. AD operators, consultants and developers will be kept abreast of the latest changes to regulations and compliance structures through presentations from the core regulators: Environment Agency, Health & Safety Executive, Animal Plant Health Agency, Scottish Environment Protection Agency, and Natural Resources Wales. Attendees will also have the chance to feed back their views and discuss particular issues with the regulators and other members. adbioresources.org The leading AD and biogas trade show features the latest technology and services from over 350 exhibitors. Building on its extraordinary success to date, the show is now expanding to have a global outlook and will include: high-profile conference; seminar programme; AD site visits; biomethane vehicles area; advice clinics; R&I Hub, and much more. International networking, briefings, lunches and roundtables will also be held in private rooms adjacent to the show. Stand space is filling fast – book your stand today by contacting neill.wightman@adbioresources.org. See p14 for more details. adbioresources.org Does your AD business or project deserve wider recognition? Then make sure to enter our fifth annual industry awards, which for the first time include international categories to recognise and reward AD innovation and achievement across the globe. Incorporating a drinks reception, entertainment, and three-course dinner with wine, this event is also an excellent networking opportunity. See p17 for full details. adbioresources.org

Third Party Events Foodex NEC Birmingham 18-20 Apr 2016

7-9 sep 2016

Nordic Biogas Conference Finland

Join ADBA at stand E296 in the Sustainability Zone at Foodex, the UK’s premier trade event for the food and drink processing, packaging, ingredients and logistics industries. www.foodex.co.uk

Organised by biogas representatives from all five Nordic countries, the sixth Nordic Biogas Conference will include plenary presentations, parallel sessions, a poster session and an exhibition, attracting hundreds of international delegates. nordicbiogas.biokaasuyhdistys.net

www.adbioresources.org adbioresources.org

April 2016 | AD & Bioresources News

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Membership Matters Getting to know you A problem shared is a problem halved

In the first quarter of 2016 I’ve been busy getting to know our members, paying visits to a number of current member plants and businesses. Jess (our Environment and Regulation Manager) and I made the trip to the Isle of Wight to see Wight Farm Energy, neatly nestled away in a disused quarry pit, to discuss how ADBA could help with some permitting and sustainability criteria questions. I also had the pleasure of visiting the heavily AD-populated county of Lincolnshire to visit the two plants operated by Beeswax (Rainbow) Farming, who are now ADBA members and will be assisting in the development of our Best Practice Scheme.

Our Membership Development Manager, Alex Monks, reports on the front-line issues affecting ADBA members. To invite Alex to visit your business or find out how to make the most of your membership, contact: T +44 (0)203 176 5418 E alex.monks@adbioresources.org

One of the most enjoyable aspects of my job is experiencing first-hand the different ways that plants have been permitted, designed, constructed and operated to deal with either common issues or challenges unique to that particular site. I would encourage all our members to come to us with any issues you may have as the chances are we have either seen or helped someone solve a similar issue to yours; so please do get in touch if you would like us to come and visit your plant. We also support our Food and Crop Operator Groups, which offer an excellent forum to discuss any issues. As well as visiting operational sites, I’ve also been busy getting to know our supply chain members. Last month I made the arduous journey from Oval, South London to Waterloo, South London to meet new members Limejump and hear all about their innovative energy selling platform. I was also shown how they are helping ADBA operator members to sell their power and benefit from the National Grid’s demand response programme.

So, whether you’re an existing or potential member, if you would like to know more about the benefits of ADBA membership, such as free press releases, member-only events and sponsorship opportunities, please do get in touch. E alex.monks@adbioresources.org

Register now for Spring Regulatory Forum Taking place on 16 May 2016 at the Bristol offices of Clarke Willmott LLP, our Spring Regulatory Forum will tackle the most important regulatory issues currently facing the AD industry. AD operators, consultants and developers will be kept abreast of the latest changes to regulations and compliance structures through presentations from the following core regulators: Environment Agency, Health & Safety Executive, Animal Plant Health Agency, Scottish Environment Protection Agency, and Natural Resource Wales. This free event allows delegates to feed their views back to the regulators, engage with critical issues important to the continued development of the AD industry,

and network with fellow operators, with the ultimate aim of increasing operational efficiency and safety. To register your attendance go to adbioresources.org

Welcome new ADBA members! AB Energy Ltd. Air Spectrum Environmental Beeswax (Rainbow) Farming Ltd Bespoke Engineering Services Bourne Partners Celtic Chemicals Clayton Hall Farm Bioenergy Clive Pug Doosan Enpure Eco Prospects Edenviro Edwin Thompson LLP Foresight Group Geoline Gogar Logistics Green Power Energies Hitachi Zosen Inova AG HoSt Imperial College London J Haig Hamilton & Sons Limejump Linton Solutions Lutra Organic Waste Logistics Premier Tank Systems PricewaterhouseCoopers Richard Long Ltd Roto Pumps Symbiona UK Honorary International Trade Association Member:

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BGAM BioGas Association Malaysia

www.adbioresources.org adbioresources.org


Membership Matters

Safety First Process safety at the heart of ADBA’s Best Practice Scheme ADBA is leading the development of a Best Practice Scheme for the AD industry, with support and input from partners across the sector. A Steering Group has been established, consisting of representatives from key organisations with an interest in the industry, including trade bodies, professional bodies and other organisations. Process safety focuses on the application of safe engineering and design principles, safe operating practices, prevention controls, and safe optimisation of processes that have the potential to cause harm by uncontrollably releasing hazardous materials or energy. Risk-based process safety is at the heart of the Best Practice Scheme, following the pillars of accident prevention systems: • Commitment to process safety – This is the foundation of process safety quality. Businesses generally don’t improve without strong leadership and solid commitment. A team that is convinced that the organisation completely supports safety will tend to do the right things in the right way even when unsupervised. • Understanding hazards and risk – Facilities should ensure that correct and complete documentation is available to allow the team to have process knowledge. With this knowledge, a thorough Hazard Identification

and Risk Analysis (HIRA) is the core element in process safety. HIRA includes all the activities involved in identifying hazards and evaluating risk to ensure that risks are controlled. These studies (HAZOP, LOPA, SWIFT) typically address three main risk questions: • Hazard – What can go wrong? • Consequences – How bad could it be? • Likelihood – How often might it happen? • Managing risk – This focuses on ensuring that good operating procedures are in place: safe work practices, training, management of change, operational readiness and emergency management. • Learning from experience – This involves monitoring and acting on internal and external sources of information. To learn from experience, businesses can apply best practices, correct deficiencies exposed by internal incidents and near misses, and apply lessons learned from other organisations. ADBA’s Best Practice Scheme, set to be launched later this year, will produce a checklist of the key considerations, guidance and regulations surrounding risk management, as well as the existing risk identification and management tools. It will also set out why risk management is important and the benefits of good risk management.

By Amaya Arias-Garcia, Technical Director, GOALS-PME Ltd

sales@pumpmix.co.uk www.pumpmix.co.uk www.adbioresources.org adbioresources.org

April 2016 | AD & Bioresources News

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Membership Matters Team changes

TEAM

Welcome Gayle

Gayle Brandon Kirby, Senior Events Manager “With a degree in Public Relations, I’m passionate about events and project management and enjoy organising events that raise the profile of an industry. I’m looking forward to working with the team at ADBA to contribute to the industry’s growth through sector-leading events.”

Welcome Nicolle

Nicolle Oshinowo, Marketing Executive “With a background in marketing and customer-focused industries, I’m pleased to be working as part of the ADBA marketing team to help promote a strong voice for the AD industry.”

Chief Executive, Charlotte Morton T + 44 (0)203 176 0503 E charlotte.morton@adbioresources.org PA to Chief Executive, Eleanor Maroussas T +44 (0)203 567 1041 E eleanor.maroussas@adbioresources.org Strategic Advisor, Chris Huhne E chris.huhne@adbioresources.org Head of Policy, Matt Hindle T +44 (0)203 176 0591 E matt.hindle@adbioresources.org Policy Officer, Thom Koller T +44 (0)203 176 0592 E thom.koller@adbioresources.org Market Analyst, Ollie More T +44 (0)203 567 0751 E ollie.more@adbioresources.org Environment and Regulation Manager, Jess Allan T +44 (0)203 735 8380 E jessica.allan@adbioresources.org PR & Parliamentary Affairs Manager, Derek Sivyer T +44 (0)203 176 5441 E derek.sivyer@adbioresources.org

Welcome Sarika

Sarika Jain, Market Research Analyst “Furthering a passion and background in the environmental sector, my doctoral research evaluated the economic and emission reduction benefits of AD. I look forward to understanding the drivers of the AD market around the globe and the role it can play in society.”

Welcome Anthony

Anthony Olasoji, Accounts Assistant “As this is my first role in the AD industry I am keen to make my mark with a high level of professionalism and eagerness. I’m looking forward to dealing with our members.”

Have your say on changes to the RHI at our Spring Members’ Meeting

Membership Development Manager, Alex Monks T +44 (0)203 176 5418 E alex.monks@adbioresources.org Events and Sponsorship Manager, Neill Wightman T +44 (0)203 176 4414 E neill.wightman@adbioresources.org Exhibition Accounts Manager, Ekow Monney T +44 (0)203 176 5416 E ekow.monney@adbioresources.org Senior Events Manager, Gayle Brandon Kirby T +44 (0)203 176 5440 E gayle.brandonkirby@adbioresources.org Event Producer, Ed Gavaghan T +44 (0)203 176 4415 E edmund.gavaghan@adbioresources.org Marketing Manager, Vera Gerson T +44 (0)203 176 0590 E vera.gerson@adbioresources.org Marketing Executive, Nicolle Oshinowo T +44 (0)203 176 5417 E nicolle.oshinowo@adbioresources.org Market Research Analyst, Sarika Jain E sarika.jain@adbioresources.org Database Marketing Assistant, Maryanne Torok T +44 (0)203 176 0769 E maryanne.torok@adbioresources.org Accountant, Amy Pritchard T +44 (0)203 176 6962 E amy.pritchard@adbioresources.org Accounts Assistant, Anthony Olasoji T +44 (0)203 176 0503 E anthony.olasoji@adbioresources.org AD Finance, Bruce Nelson, Director of Compass Renewables T +44 (0)1732 464495 E bruce@compassbusinessfinance.co.uk AD & Bioresources News Managing Editor, Kirsty Sharpe T +44 (0)1920 821873 E kirsty.sharpe@adbioresources.org

Taking place at the London offices of Ashfords LLP on 21 April 2016, our free to attend Spring Members’ Meeting provides a final opportunity for our members to comment on the government’s RHI consultation, which closes on 27 April. Come and discuss the proposals with ADBA’s dedicated policy team, representatives from the DECC team working on the FIT and RHI schemes, and other ADBA members. The ADBA Spring Members’ Meeting will also cover the following industry hot topics: • The politics of AD: is there light at the end of the tunnel? Thoughts from ADBA’s Strategic Advisor, and former Minister for Energy & Climate Change, Chris Huhne; 38

AD & Bioresources News | April 2016

AD & Bioresources News Editor, Kate O’Reilly T +44 (0)7894 039609 E kate.oreilly@adbioresources.org

• A market update by our Market Analyst, Ollie More, including future tariff degressions; • An update on separate food waste collections across England as Defra works on a new scheme; • Presentations on the RHI and FIT schemes from DECC. This free to attend, member-only event includes a networking lunch and post-event drinks reception. Spaces are limited; to register or for more information go to adbioresources.org or contact our Marketing Executive, Nicolle Oshinowo E nicolle.oshinowo@adbioresources.org T +44 (0)203 176 5417.

www.adbioresources.org adbioresources.org


Exhibitor Profiles

texlubgen@chevron.com

www.chevronlubricants.com www.adbioresources.org adbioresources.org

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info@edina.eu www.edina.eu/biogas

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AD & Bioresources News | April 2016

www.adbioresources.org adbioresources.org


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