AD MARKET UPDATE JULY 2014

AD market

The AD market has grown rapidly since 2010, reaching the current 154 MW electrical equivalent capacity (between electricity and biomethane) from 145 plants1. The increase in capacity each year since 2010 has been in the range 26-32 MWe-equivalent (across 20-30 new plants each year). 2014 should be a big year, with capacity increasing by a larger amount than this due to uptake of biomethane (see biomethane section below), as well as significant growth in the number of electricity plants2.

1 As of May 2014. For the latest figures, visit http://adbiogas.co.uk/members-area/market-analysis/ 2 Includes electrical capacity supplying biomethane plants. Non-sewage sector only.

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20

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80

100

120

140

160

180

Pre-2004 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Tot

al M

W-e

lect

rical

equ

ival

ent

Cumulative and annual capacity increase (MW electrical-equivalent)

Electrical-equivalent capacity increase in year Cumulative electrical-equivalent capacity

2 | P a g e

Market profile

The following shows the current number of agricultural and waste based plants (as well as on-site industrial organic wastes) and capacity represented by each of these sectors:

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10

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30

40

50

60

70

Cumulative number of waste and farm-based plants

Farm-based Waste-based Farm- and waste-based

Agricultural50%

Industrial18%

Municipal/ commercial

waste32%

Percentage number of operational plants by sector

Agricultural36%

Industrial21%

Municipal/ commercial

waste43%

Percentage capacity of operational electricity/ CHP plants broken down by

sector

3 | P a g e

Future Development

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20

40

60

80

100

120

140

160

180

Farm-based plants withplanning

Waste-based plants withplanning

Farm- and waste-basedplants with planning

Unknown with planning

MW

e

Capacity of plants with planning permission

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1

2

3

4

5

6

7

8

9

ADBA Current annual feedstock use by sector(Mtpa)**

Total potential use with 50% of planned plantswith planning permission

Total potential use with 100% of planned plantswith planning permission

Mill

ion

wet

tonn

es

Current feedstock use and feedstock use if plants with planning permission are constructed

Agricultural feedstocks Municipal/ commercial feedstocks *** Industrial feedstocks**

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Biomethane to grid

In addition to the 4 already commissioned (3 under the RHI), we are aware of a further 37 in the pipeline, which could deliver 10-15 plants to the RHI this year and a further 15 next year. These include food waste, agricultural, sewage and industrial effluent treatment plants.

Biomethane in transport