NNFCC has published the ninth
edition of its annual Anaerobic Digestion Deployment in the UK report. The
report summarises the developments in the UK’s anaerobic digestion (AD)
industry over the past 12 months and looks ahead to future developments in the sector.
As of 11th April
2022, the UK currently counts 660 operational facilities (excluding traditional
water treatment plants), representing an added installed electrical capacity of
40,000 kWe equivalent and 7,000 Nm3/hr biomethane compared to April 2021,
resulting from 13 new biomethane to grid (BtG) and 8 new combined heat and
power (CHP) plants becoming operational. Furthermore, although several plants
have been facing construction and supply delays due to the pandemic, our data still
shows a strong development pipeline. This includes a further 39 BtG projects that
are planned or consented, boasting a total cumulative biomethane capacity of
17,000 Nm3/hr.
To complement the
comprehensive production data and with increased interest in biomethane for
transport, underpinned by the Renewable Transport Fuels Obligation (RTFO), the
report also now includes data on offtake, with a particular focus on
distribution, scale and status of biomethane filling stations. NNFCC currently
records 35 operational biomethane refuelling facilities in the UK. Of these, 9
are open to the public, 21 are restricted to commercial use only, and 2 are
private.
The Green Gas Support Scheme
(GGSS) opened, as scheduled, on 30th November 2021. To date 11
applications have been made for tariff guarantees, with 6 being granted,
suggesting a reasonable pipeline of developments can be expected to commission
over the next 12-18 months. As ever, the journey hasn’t been smooth for many,
with sanctions on Russia delaying financial close whilst the provenance and
flow of funds was investigated, and although elevated gas prices offer a
significant upside to revenue forecasts in most financial models, the capital
and operational costs continue to rise as a result of ongoing uncertainty and
ever tightening regulatory controls.
Lucy Hopwood, NNFCC’s Lead
Consultant for Bioenergy and Anaerobic Digestion comments: “Since the Covid-19
restrictions have lifted, it has been great to be back meeting clients in person
and attending events, where the reassuring vibrancy of the industry is evident.
Although there hasn’t been any significant leap in deployment, we continue to
see a steady rise which is what is required to deliver and maintain a strong,
healthy and resilient sector.”
“The recent heightened focus
on energy security clearly provides opportunities for the AD market, in
particular for domestic biomethane supply, to reduce our reliance on imported
fossil gas. However, there remain many hurdles to overcome before this
potential can be realised. The recent publication of the British Energy
Security Strategy felt like a missed opportunity to recognise the potential
contribution the UK’s biomethane, and broader bioenergy sector, can make. There
are also nuances in the Regulations that need to be clarified or tested, to
give confidence to the sector before investments can proceed.”
However, Lucy adds that “over
the past 12 months, [NNFCC] has seen a lot of interest from overseas
businesses, looking at the UK AD market for investment and development
opportunities”, which shows that these hurdles do not deter investment, and
that current obstacles are not insurmountable.
To purchase the report please click here.