FDBusiness.com

UK Market Report on Anaerobic Digestion

 Breaking News
  • Ardgowan Unveils Plans For Inverclyde Distillery Ardgowan Distillery has revealed ambitious designs for its new £12 million distillery which is being built on the Ardgowan Estate near Inverkip, 30 miles west of Glasgow. The plans showcase the flagship building which has just secured revised planning consent from Inverclyde Council. The striking new design, by Michael Laird Architects, brings a number of improvements [...]...
  • HKScan Launches Exports of Finnish Poultry Products to Sweden HKScan, the Nordic food and meat group, has started exporting Finnish poultry products to Sweden. They will initially be sold through the largest retailer ICA’s outlets under the Karinäs®(Kariniemen®) brand. The launch gives Swedish consumers access to a new innovation: high welfare farm-born poultry that is hatched on the farm where it is raised. This new concept is [...]...
  • Almonds Retain Top Spot For Nut Introductions in Europe According to Innova Market Research’s latest Global New Product Introductions Report, almonds retain the number one spot for nut introductions in Europe. With a 47% share of global almond product introductions, the region leads globally for the eleventh year running. Europe as a whole saw a total of 5,017 new introductions with almonds – a [...]...
  • Arla Foods UK Launches New Standards Model to Bring Sustainable Change to Dairy Farming With ongoing volatility in the global milk markets, increasing consumer misunderstanding of the sector, polarised levels of support for UK dairy farmers and a new post-Brexit Agriculture Bill the challenges for dairy farmers are mounting. Farmer-owned co-operative Arla Foods has launched ‘Arla UK 360’ – a new standard in UK dairy farming. The Arla UK 360 [...]...
  • €172 Million to Promote EU Agri-food Products In and Outside the EU The European Commission will provide funding of €172.5 million from the EU agricultural budget to promote EU agri-food products in Europe and across the world. 79 campaigns, covering a wide range of products such as dairy products, olives and olive oil, and fruit and vegetables, will be rolled out over the next three years. Agriculture and [...]...

UK Market Report on Anaerobic Digestion

UK Market Report on Anaerobic Digestion
July 03
09:27 2013

The UK Green Investment Bank (GIB) has published its first market report on anaerobic digestion (AD). The report, the first of its kind, gives an overview of the issues facing the market and identifies the opportunities, and barriers, for investment.

AD, a natural process in which micro-organisms break down organic matter into biogas and digestate, is used to manage waste and release energy. AD avoids food and agricultural waste going to landfill in addition to being a renewable source of energy and fertiliser. It is at the heart of the Government’s waste policies.

The findings of the report will be used to inform GIB’s strategy on the potential for debt investment in the AD sector as well as being a useful resource for the industry and investment community. GIB is actively investigating the opportunity to directly participate in up to £50 million of debt financing for AD projects. GIB will continue to make equity investments in AD through its nominated waste fund managers, Foresight and Greensphere, both of whom have already made investments in the AD sector.

Government research has indicated that AD could deliver between 3 and 5 TWh of electricity by 2020. However, the industry has expressed concerns about its ability to access funding, in particular senior debt finance. GIB expects AD to be an area of significant focus for it.

The key findings of the report are:

* Growing opportunity: There was 106MWe of capacity installed or in construction by FY 2012, more than double that of FY 2010. An additional 148MWe of specific capacity has been identified as potentially available to be developed;

* Fragmented and young market: The top five operators account for less than 28% of the market, which compares to 71% in the offshore wind sector.  The majority of AD facilities in the UK have been in operation for less than three years. This presents a funding challenge for the sector, as it lacks an established and informed investor community.

* Wide ranging performance factors: There is a marked divergence in operational performance between different facilities;

* Critical factors to project success: The main barriers to growth in the sector are a) Feedstock selectivity; b) Deep understanding of, and access to local markets for digestate; c) Dedicated operating personnel; d) Active process management;

* Finance: The identified development pipeline requires capital investment of approximately £650 million. Although the AD market has indicated that it is in need of debt funding, equity may be more appropriate in many cases due to the youth of the market.

Adrian Judge, Managing Director for Waste and Bioenergy says: “AD is rightly at the heart of the Government’s waste policies, and GIB’s waste investment strategy. It provides a green and efficient way of managing waste, whilst providing both energy and fertiliser. For organic waste, AD is a cost-effective and sustainable waste management option. Although the UK market is still young and there are challenges for projects in delivering a consistent revenue stream, well operated AD facilities have the potential to achieve attractive commercial rates of return to both equity and debt providers.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
  • October 31, 2018Int'l exhibition for food products and equipment (Indagra Food)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements