Professional Documents
Culture Documents
As Seen In
WasteAdvantage
The Advantage in the Waste Industry
Changes in policy and technology preferences are resulting in significant shifts in the development of waste derived renewable energy projects in the UK.
The UK GovernmenT has a commiTmenT To reduce the UKs greenhouse gas emissions by at least 80 percent by 2050 (from 1990 levels). As a result, the UK landscape surrounding renewable energy is shifting rapidly to help deliver a low carbon future. Recently, there have been a number of national consultations which are likely to have a significant bearing on the future viability of non-fossil fuel based energy provision, including a number of planned energy-fromwaste (EfW) projects. Schemes, which enable the heat produced during the electricity generation process to be captured and distributed via a district heating network, i.e. combined heat and power (CHP), are being given increasing focus and prioritization. From a local perspective, proposed local changes such as those put forward by the Mayor of London to realize greater uptake of decentralized energy systems through advanced conversion technologies, have added further complexity to this shifting landscape.
While the uptake of CHP has been slow in the UK, progress is being made with the recent financial close of a major EfW project in South West Devon. Subject to planning consent, this contract will see German company MVV Umwelt build, operate and maintain a CHP facility in the North Yard of the Devonport naval base in Plymouth. Taking in 245,000 tons of residual waste a year, the company will supply steam and electricity to the naval base under a 25-year energy services agreement with the Ministry of Defense. In order to realize CHP opportunities, the following key factors need to be in place: CHP enabled EfW infrastructure (currently not common in the UK); Heat distribution network(s); ufficient and predictable heat baseload S constant heat demand load; nergy prices (for heat and electricity) which are E able to cover the long term infrastructure costs.
Left: Afval Energie Bedrijf EfW Control Room (Amsterdam, Netherlands). Right: Shanks Frog Island MSW solid recovered fuel (London, United Kingdom). Images courtesy of AEA.
38
As Seen In
Renewables Obligation
Under the current Renewables Obligation (RO), support for large scale renewable electricity projects will be provided for up to 20 years, and will run until 2037. Here, ROCs are able to be claimed for the biomass fraction of waste for EfW schemes, which are accredited under the CHP Quality Assurance (CHPQA) scheme until March 31, 2017 when the RO will be vintaged or no longer open to new accreditations. Presently, the number of ROCs that are able to be claimed for EfW projects is dependent upon banding levels, which have been set according to generation type such as Energy from Waste with CHP (1 ROC), Gasification/Pyrolysis (2 ROCs) and Anaerobic Digestion (2 ROCs).1 A review of banding levels is expected to be completed in the third quarter of
2011. For 2010/11, the buy-out price for ROCs was 36.99 (about $60) and will be updated annually to reflect changes in The Advantage in the Waste IndustryIndex.2 the Retail Prices Renewable heat is seen as a key way in which the UK can meet its renewable energy targets. Accordingly, in March 2011, the UK Government announced details of the Renewable Heat Incentive with the aim of having the underpinning regulations approved by Parliament in the summer of 2011. This scheme will be introduced in two phases with the first being a long-term (20 year) tariff to support non-domestic (industrial, commercial and public) sectors in 2011, and the second for the domestic sector to be introduced in late 2012. In 2011, eligible solid recovered fuel (SRF) in the RHI will be limited to SRF from municipal solid waste (MSW) and SRF waste streams containing no more than 10 percent fossil fuel. For medium scale CHP schemes firing MSW, support will range from 19 to 47/MWh (about $31 to $76). For large scale CHP schemes, the tariff will be set at 26/MWh (about $42).3 It should be noted that after April 1, 2013, it is likely that heat from EfW CHP schemes will no longer be rewarded through the RO, but instead through the RHI, meaning that CHPQA qualification would no long be required as support would be provided directly on the used renewable heat output of a facility. Therefore, while accreditation under the RO will be available until March 31, 2017, the interaction between the incentives for renewable heat and electricity is as yet unclear. However, what is certain is that these two schemes will not only encourage greater delivery of renewable energy solutions, but more importantly will also provide the waste sector with a viable and attractive end point for materials collected from households and businesses.
WasteAdvantage
WasteAdvantage Magazine
June 2011
39
As Seen In
WasteAdvantage
40
As Seen In
WRATE
Max Efficiency Electricity Heat Total Efficiency Energy Output Electricity (MWe) Heat (MWth) Max Efficiency Combustion CHP 8.0% 71.0% 79.0% 5.7 50.3 Electricity Only Combustion 23.0% 0.0% 23.0% 16.3 0
WasteAdvantage
The Advantage in the Waste Industry
income would be substantial. However, one of the main cost drivers for any district heating networks relates to the installation of the pipe network for hot water. Here, the Department for Energy and Climate Change (DECC) have estimated that the cost to install the distribution network is in the order of 1,000 (about $1,630) per meter with hard dig (installation along roads and pavements) being 25 percent more expensive, and soft dig (installation along riverbanks and fields) being 25 percent cheaper.4
and Local Authorities, including carbon footprints, lifecycle analysis and carbon metrics. Euston is currently on secondment to the North London Waste Authority as their Fuel Procurement Manager. Euston has been a consultant for the last 10 years and was previously involved in all aspects of waste management at the Sydney Olympics. He can be reached at 07968 707 249 or via e-mail at Euston.Ling@aeat.co.uk.
Notes 1. Department of Energy & Climate Change (2011), http://chp.decc.gov.uk/cms/rocbanding/ 2. Ofgem (2010), www.ofgem.gov.uk/Media/PressRel/Documents1/RO%20BuyOut%20price%202010%2011%20FINAL%20FINAL.pdf 3. Department of Energy & Climate Change (2011), www.decc.gov.uk/en/content/cms/ what_we_do/uk_supply/energy_mix/renewable/policy/incentive/incentive.aspx 4. Department of Energy & Climate Change (2010), http://chp.decc.gov.uk/cms/ workshops/
2011 Waste Advantage Magazine, All Rights Reserved. Reprinted from Waste Advantage Magazine. Contents cannot be reprinted without permission from the publisher.
41