Agenda

Background, Overview, Investment Opportunities (Renewable Energy/Materials) – John Brady (NEPIC)

Regional Growth Fund – Programme Bid – John Brady (NEPIC)

PYReco Company Overview and Investment Support – Richard Tweddle (PYReco)

Verta Energy Company Overview and Investment Support – Paul Watts (Verta Energy)

Bioresources Activity in NE Region – DVD

NEPIC Investment Support Seminar Sedgefield Racecourse – May 12, 2011

 

NEPIC – strategic deliverers for One North East Regional Biofuels Project

£1.7M public sector funding April 2008 – March 2011

Co-incided with UK legislation – RTFO; European legislation - RED

Sustainability criteria

Vision – for NE to become a global hub for biofuels/renewable energy

Underpinned by a number of strategic initiatives

In order to build critical mass, recognised the need to focus on a wider bioresources sector incorporating fuels, chemicals, heat, electricity, AD and solar

Background

 • 30% electricity, if all wind, will require ~15,000 turbines

• 12% heat target, if met by biomass alone, will require ~20 million tonnes of wood in UK by 2020

• 10% transport target, if met by biofuel alone, will require ~6.5 billion litres bioethanol and biodiesel in UK by 2020

In all the above, opportunities exist in either supply chain, technology deployment or technology development

Size of Challenge – Scale of Opportunity

 

Building Critical Mass in North East England

Building Critical Mass in NE England

What Next ?

Develop a regional roadmap Access to feedstock – NESRB; www.nesrb.org.uk

Maintain and build upon connectivity to supply chains

Seek and develop relationships with potential investors – build on NEPIC relationship with UKTI – Brazil, China, India, USA

Access (via NEPIC) to a range of political contacts

Overview of Biorefining Classification System

International Energy Agency (IEA) Bioenergy Task 42 Biorefinery Document

 

NE current activityActivity: separation and autoclaving, NIBF demonstrator facility, AD Plant Location: Gateshead, Durham, Tees ValleyLead organisations: Graphite Resources, Premier Waste, CPI, Northumbrian WaterNE proposed activityActivity: fuel production, hydrogen production, anaerobic digestion R+D, fuels/chemicals biorefinery, Bio SNG feasibility study.Location: Tees Valley, Cockle ParkLead organisations: Ineos Bio, Air Products,Sembcorp/SITA, CPI (ADDC), Newcastle University (AD), IBS Project c/o NEPIC and NEB, NEPIC Bio SNG.

Anaerobic digestion

Biogas

Combustion

Electricity and Heat

Pre-treatment e.g. Graphite

Resources, Premier Waste

Gasification

Syngas

Fuels e.g.

Ineos Bio

Chemical Feedstocks e.g. Tees

Valley

Hydrogen e.g Air Products

SNG (NEPIC

feasibility study)

Organic Residues and Waste

Combustion

Electricity and Heat

Sembcorp/ SITAWilton 11

NWL

Lignocellulosic Crops and Residues

Bio Methanol

Some key/strategic activities

Securing a sustainable long term supply of raw materials selection of the optimum proven technology and process a plan for the handling, storage and distribution of all identified raw material feedstock, intermediate, primary and co-products, Building market opportunity and demand for the new green/low carbon products. Key outputs are 4 - 6 major high impact investments in the low carbon economy.

RGF Bioresources Programme Bid

NEPIC Support to PYReco

Richard Tweddle Wilton Manager

PYReco Introduction

• A new company formed to exploit patented pyrolysis technology to convert waste rubber to its constituent parts: carbon black, oil, gas and steel.

• First plant planned for Wilton site• 60ktes of used tyres producing

– 20ktes carbon black– 8ktes of steel– 32 ktes of oil and gas

• Phase 1 will utilise oil and gas to produce green electricity

• Phase 2, double size, may use oil as a valuable feedstock for other processes.

NEPIC - Introductions to supply chain

• Engineering companies• Logistics suppliers• Feedstock suppliers• Potential employees and recruitment

advice• Local councils• Local infrastructure• Advice on the area.

PYReco Introduction

• Phase 1 will employ >60 people + Several hundred construction jobs

• Currently raising funds for first plant (£100m)

• Site identified

• Ground studies complete

• Planning permission sorted

• Start building later this year!

NEPIC - Political Lobbying

• The PYReco project does not fit within the existing waste hierarchy, being neither recycling, recovery or waste to energy.

• NEPIC recognised the difficulties faced by PYReco in explaining the project to Government and discussing which legislation should apply.

• NEPIC organised and facilitated– introduction to the local MP– meeting with the Chief Whip in the House of Commons– meetings and correspondence with Ministers from DECC,

DEFRA– meetings with Senior Civil Servants within DEFRA.

NEPIC - Introductions to supply chain

• Engineering companies• Logistics suppliers• Feedstock suppliers• Potential employees and recruitment

advice• Local councils• Local infrastructure• Advice on the area.

NEPIC Assistance in Overseas Activities

• obtaining UKTI financial support for travel

• introductions to possible overseas investors in the project through arranging inward missions.

• finding opportunities for the project during outward missions

NEPIC Assistance in Obtaining a £2m RDA Grant

• Identifying the opportunity for a Grant from One North East.

• Provided local information

• Advised on the process

• Assisted with the application form itself

• Lobbied for support for the application

Conclusion

• PYReco not alone in being bewildered by the array of organisations offering business support.

• NEPIC was a one stop shop whose assistance was invaluable in helping the project come to fruition and locating the project in the North East.

Paul Watts

Chief Operating Officer

Financing complete for phase I ($3.5m)

Test units for Power Generation and Crush Facility  Continuing supply chain negotiations

Planning consents are in place

OFGEM process

EA Permits

Second stage finance

7MW power generation with CHP

  10,000 MT oil processing on site

Expansion

 Up to 20 MW power generation with CHP 30,000 MT oil processing on site 10,000 MT oil processing off site 60,000 MT crush facility 20,000 MT oil40,000 MT animal feeds

Future Expansion

Up to 50 MW power generation on site 

100 acres of zoned development land