York, 27th April 2017: Although it’s hard to believe, 12
months has passed since our previous ‘Anaerobic Digestion Deployment in the UK’
report was published, so today sees the release of the fourth edition. The annual
report is the culmination of many hours of routine research throughout the year
into the progress of the AD market here in the UK. The report is always seen as
a valuable resource by those active or with a commercial interest in the AD
industry, as it presents a comprehensive picture of both the scale and nature
of existing development in the sector. The report goes beyond the present
situation by providing projections for future development based on the current
planning pipeline and NNFCC’s in-depth knowledge of how AD projects tend to and
are likely to progress given the current policy landscape.
At NNFCC we track the progress of all
UK-based AD plants, including planning and construction progress, capacity and
output, and planned feedstock inputs. In the market report this information is
distilled and condensed, giving an overview of AD development activity and
recent trends at both at national and regional level, painting a picture of the
current and future AD landscape in the UK.
The past year has been full of
uncertainty for the AD sector. The UK’s vote to leave the European Union cast
huge doubts on the UK’s continued obligation to Europe’s Renewable Energy
Directive, thus putting the future of renewable energy support in the UK such
as the RHI and FIT in jeopardy. The uncertainty was compounded later in 2016
with the government reshuffle and the formation of the Department for Business,
Energy and Industrial Strategy (BEIS), causing a delay in public consultations
on the RHI and the FIT, both of which had potentially huge ramifications for the
AD sector. Eventually we got our answers and by early 2017 the short-term
future for the industry was looking surprisingly positive, with BEIS responding
favourably to the AD industry. However, we are not out of the woods yet, and
with the recent closure of the RO, the upcoming election and the added
frustration that the RHI regulations were recently laid and subsequently
withdrawn from parliament leaves us in a state of limbo on when, and
potentially if, this positivity will now transpire.
Despite all this uncertainty, the
sector has still seen reasonable growth in the past 12 months, with 85 new AD
plants becoming operational, taking the national total over 400, excluding
traditional water-treatment facilities. Just over 50 new plants began
development, which is a decrease on last year, but one that we previously
forecast, and is no doubt down to the uncertainty over the future viability of
AD and the typically long project development time.
Lucy Hopwood, Director and Lead
Consultant for Bioenergy and Anaerobic Digestion at NNFCC says “Following a
year full of surprises, delays and disruptions for the AD industry we are
delighted to report positive progress – with now over 400 operational plants
and a healthy looking pipeline, the future looks promising. We have supported
many existing and new clients over the past 12 months and look forward to
continued growth and diversity in the coming year.”
“As we look ahead, we see a future where
AD is more entwined in the bioeconomy and where the focus is not only on its
energy outputs, but also developing higher value product streams, in turn
reducing reliance on the ever dwindling renewable energy support. We are
working with others in the industry to recognise the true value potential of
biogas by producing more and using less energy in the process, to increase
profits and further enhance the UK’s already credible reputation in science and innovation.
Look out for further communications on this in coming weeks.”
Where to access the report
The report is available to buy on the
NNFCC website, either outright or as part of a
business support package. For
further information please contact
Dr Michael Goldsworthy, the report author on
m.goldsworthy@nnfcc.co.uk
Sustainability guidance from NNFCC
Whilst tracking the market landscape,
NNFCC have been helping AD and bioenergy clients understand what new policies
mean for their business and how to strengthen their supply chain, to be
resilient to increasingly stringent sustainability policy. We have developed a user-friendly
carbon calculator for biogas and biomethane producers to demonstrate compliance
with sustainability criteria, for RHI or RO (in line with policy guidance), and
also FITs in the future.
NNFCC’s Biomethane & Biogas Carbon
Calculator deals with the complexities of multiple feedstocks and is excel-based,
making it easy to use, robust and transparent. It also graphically highlights
where weaknesses lie in supply chains and where to focus efforts on reducing
emissions, to comply with regulation as it is inevitably set to tighten in the
future. Access options for the Biomethane & Biogas Carbon Calculator can befound here.