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A presentation at Renewables Futures 2007 By Andrew Needham MD of BIOGEN (UK) Ltd Date: 14th November 2007

What’s the market for AD in the UK?

Presentation format 1. 2. 3. 4.

Who are BIOGEN? What is Anaerobic Digestion? The European perspective The UK AD market

Who are we?

Biogen – Twinwoods plant ƒ Operational plant – inputs / outputs c 40k tonnes of product • •

12k slurry 30k food waste

1.1 MWe 1.6 MWt 30k tonnes of bio-fertiliser

ƒ Industrial plant in farm situation Designed to be flexible

ƒ Complete integrated solution 30k tonnes Bio-fertiliser used on farm

ƒ Heavily licensed EA & DEFRA

BIOGEN (UK) Ltd ƒ Develop a national network of owned or joint venture AD plants ƒ Design, Build, Operate and Fund ƒ Provision of expertise from concept to operational management ƒ Supporting centralised team ƒ ‘2nd Generation plant’

What is Anaerobic Digestion?

The Green Credentials 1. 2. 3. 4. 5. 6. 7. 8. 9.

Low carbon technology Methane – 22x more damaging than CO2 Bio-fertiliser – (fossil fuel 2t CO2 produced per 1t of Nitrogen) Renewable energy – electricity & heat Natural process Top of the waste hierarchy – recycling with energy recovery Diversion from landfill – reducing land and water pollution Defined mass energy balance - reduction in green house gases Biogas has numerous end use applications – CNG, gas grid etc

The Opel Corsa Test Fuel type

Effective fuel yield per hectare

Km/hectare

% increase

Bio-diesel

1,183

23,660

0%

Bio-ethanol

1,650

33,000

40%

Bio-methane

4,984

99,600

320%

The European perspective

German AD Industry

The German AD Industry ƒ ƒ ƒ ƒ ƒ ƒ ƒ

Simple model Long term policy – 20 years Enhanced revenue stream for electricity guaranteed Technical back up Simpler legislation Easier planning Ability to access soft loans

Co-Operative Biogas Plant in Denmark

Combined Heat & Power Unit

Sweden – Central AD Plant

Biogas Car in Finland

Market for AD in the UK?

PEST analysis - drivers ƒ Political Renewable energy & ROC’s Landfill directive LATS

ƒ Economic Legislative drivers – double ROC’s, landfill tax etc Business opportunity

ƒ Social Consumer and corporate responsibility through supply chain Awareness & protection of the environment

ƒ Technological Proven in Northern Europe Relatively new industry

The two main types of AD plant 1. Animal slurry / energy crop AD plant The German model – high feed in tariffs with simple technology Feedstocks – slurry and energy crops Support – double ROC’s improve economics in UK Food v Energy – high commodity prices

2. Food chain waste AD plant Feedstocks – mainly food waste including meats Either Centralised or on site of waste producer More complex and significantly higher cost Highly legislated

The current UK market AD applications in the UK ƒ ~20 On farm plants ƒ