green gas to grid - biogaz europe 2013
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Green Gas to Grid
www.adnamsbioenergy.co.uk
www.biogroup.co.uk
www.adnams.co.uk
BIOGAZ EUROPE, 2011 - NANTES
The Rationale
• Bio Group has been building and operating organic waste plants for over 10 years
• We spent 4 years developing and testing our renewable energy system – based on AD
• Our driver is the reduction of greenhouse gas emissions – Every tonne of food waste disposed of in landfill can produce 200-400 m3 of
biogas (55% methane) and every tonne of methane emitted into the atmosphere has 21 times the warming potential 1 tonne of carbon dioxide
• BUT if processed and captured…. – One tonne of food waste can produce enough methane to drive a car for 600
miles
• Adnams Bio Energy represents the first of 25 facilities over the next 4 years and we are now in construction on a second facility in Manchester
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What have we built?
• An Energy Park, complementing AD with solar thermal and photo voltaic panels to produce additional energy
• AD processing food waste
• Using cryogenic technology to produce 97% biomethane from biogas
• Biomethane injected into the National Gas Grid and for use as vehicle fuel
• Produces water and liquid fertiliser for use in agriculture, water produced by biomass process
• Parasitic load minimised by electrical energy generation and export
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The “Firsts”
• First food AD green gas to grid
• First use of plastic technology in tanks
• First time AD tanks have been buried
• First deployment of plastic tanks with no internal moving parts, using patented gas displacement technology
• First use of biomass to naturally clean the digestate output
Adnams Bio Energy – How and Why
• Adnams plc- our key partner • On May 1st 2008 at the 2nd in reducing carbon emissions and leading by
example • The following September we agreed to work closely together • We have now built Phase 1 of a 25k tonne AD and energy facility
– On land leased from Adnams – With Adnams providing around 20% of feedstock – With Adnams beginning a rolling program of converting Adnams delivery trucks to run
on gas – With a robust plan to work with schools, businesses and the public sector to develop
knowledge and awareness
• AD is complemented by solar thermal and PV arrays • Other other partners
– National Grid – Centrica/British Gas
• Managing the Partnerships
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Working with our Partners
• Adnams
• National Grid
• Centrica
• Government involvement – The Environment Agency
– The Planning Authority
Why biomethane?
• It’s new to the UK and therefore presents a first mover opportunity
• It is more efficient
• It is energy “storage”
• Strangely, it can be easier to export than electricity
• Issues – OFGEM, the UK regulator is still an obstacle not an enabler
– Costs
– Clean up technology
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The Business Case
• Plant cost Euros 3.5m – This excludes the cost of the actual grid injection kit and the PV
– Funding came from • 55% Grant or equivalent
• The balance was senior – bank – debt and equity from the JV partners
• The business case would have worked with external non grant funding
• Increasing energy costs continue to make plants attractive
• The facility makes around 20% return – The business model works for future plants
• Fairfield Bio Energy, Manchester
• Dunsfold Bio Energy, Surrey
The Business Case
• Gate Fees, plus energy, plus subsidy – To get the returns required to attract investment you need all 3
• European and local grant funding was essential to first deployment
• The facility makes around 20% return – The business model works for future plants
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The Key Lessons
• The right partners are essential
• Control and own as much of the process as possible
• Don’t underestimate the difficulties with regulators – They don’t understand commercial timescales
• Build in sensible timescales for new technology – You can’t rush things, so ensure that the business case doesn’t stress
the deployment too much
The Future?
• AD has a key role to play in reducing greenhouse gases and generating renewable energy
• National Grid says up to 50% of domestic gas could come from biomethane in the UK
• We need the right conditions for the industry to grow – – The right energy framework and incentives
– A sensible regulatory regime
– Sensible engagement with the food industry
– A banking sector that backs AD
– Certainty – on incentives, on carbon pricing and on policies
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Steve Sharratt, Group Chief Executive, Bio Group Limited