Anaerobic Digestion in Ireland

BIOMASTER Workshop

Oak Park Crops Research Centre

Carlow

Wednesday May 22nd 2013

Ireland’s Renewable Targets

RED 2009/28/EC – 16% TFC by 2020

• RES-E 40% renewable contribution by 2020

• RES-T 10% renewable contribution by 2020

• RES-H 12% renewable contribution by 2020

Additional Targets

30% co-firing with biomass at peat power stations 2015

800MWe of CHP by 2020

Energy Forecasts

TFC RES- E 2,665 ktoe

TFC RES- H 4,126 ktoe

TFC RES- T 4,910 ktoe

TFC for 2020 = 11,701 ktoe

16% = 1,872 ktoe

Land use in Ireland

Land area 6.9mha

Agricultural 4.3mhaForestry 0.7mhaOther 1.9m ha

Pasture ,hay and silage 3.4mhaRough grazing 0.5mhaArable crops 0.4mha

91%

Achievable from agriculture

51m0.250204m3.4mhectares

Grass

36,0000.1800.2m13.9mPoultry

57,6000.0242.4m1.6mPigs

1,280,0000.0432m6.4mCattle

PotentialElectrricity

MWh

MWh/tonneWet tonnes

available

PopulationAnimals

Typical House

Typical House uses 4,000 kWh of electricity per annum

AD could meet this demand with either:

Seven dairy cows producing 100 tonne of Slurry

or

0.27 ha of grassland

or

17 tonne of catering waste

AD facilities currently operating

6 operating agri feedstocks

– Adamstown, Co. Wexford (200 kW) (el)

– Callan, Co. Kilkenny (200 kW) (th)

– Methanogen, Co. Waterford (50 kW) (th)

– McDonnell Green Gas, Co. Limerick (250 kW) (el)

– Roughty Valley Co-operative, Co. Kerry (200 kW) (th)

– Silver Hill Duck Farm, Co. Monaghan

- Kerry Ingredients Listowel, Co Kerry (600kW)(el)

TOTAL of 1 MW of Electrical Capacity

Plants currently in planning ROI

Approximately 11MW at Planning Stage

Active Plants NI

• Six plants up and running (2.7MW el capacity)

Plants seeking planning or planning approved

• 110 with 75% in the 250 – 500kW bracket

• 13 – 15 MW at this stage

REFIT Tariffs in Republic of Ireland

• AD (non CHP) (units of greater than 500 kWe) €0.10c per kWh

• AD (non CHP) (less than or equal to 500 kWe) €0.11c per kWh

• AD CHP (units of greater than 500 kWe) €0.13c per kWh

• AD CHP (units less than or equal to 500 kWe) €0.15c per kWh

ROC’s in Northern Ireland

Banding levels from 2015 / 2016 are subject to review

4444AD

2015

–

2016*

2014 –

2015

2013 –

2014

Current

2012 -

2013

Technology

How the ROC’s Work

• Get an annual-revised subsidy guaranteed at leastfor 20 years for every unit of energy you generateand export.

• Generation rate of 17.64p/kWh and export rate of5.41p/kWh

• Exchange rate - £1 sterling = €1.18

• £0.23 pence per kWh = €0.27 cent per kWh

AD Tariffs in other European Countries

€0.13 - €0.15Ireland

€0.16 - €0.18Czech Republic

€0.15 - €0.20 linked to gas priceLatvia

€0.16 + 30% Capital GrantFrance

€0.16 - €0.18Austria

€0.22 - €0.27Northern Ireland

€0.18 - €0.25United Kingdom

€0.22 - €0.28Italy

€0.18 - €0.28Germany

Price per kWhMember State

Drivers for AD in Ireland

• Landfill Diversion Obligations - The Landfill Directive(1999/31/EC)

• Landfill Taxes

• EC Waste Framework Directive

• Household Food Waste Regulations 2013

• Commercial Food Waste Regulations 2009

• National Waste Management Policy

• Climate Change Strategy

• Energy White Paper

• REFIT

Reasons for Poor Uptake in ROI

• Complex planning, licensing and consents environment

• Waste policy uncertainty

Waste industry unstable

Long term contracts difficult to conclude

• Financing environment difficult

Indigenous banks restricted lending

Foreign lenders nervous about lending into Ireland

• Current electricity tariffs make the returns very low

• Grid Connection Cost may vary from zero (auto producer withexisting connection) to large 6 and 7 figure sums for MEC in order of50MW

What are the main challenges

• Appropriately sizing AD project to farm-scale

• Availability of feedstock

• Utilising thermal energy in an efficient and practical manner

• FINANCE

Planning Issues

• Size / scale of plant (500kW…)

• Throughput

• Waste Categorisation

• Type of plant – Farm Scale v Centralised

• EIA Requirement

Investment Costs

• Typically €5,000 - €7,000 per kWe of installed capacity

• CHP Unit €500 - €1,000 per kW of installed capacity

- Depends on availability of feedstocks

- Grid connection costs

- Planning costs

O & M Costs

• 7% of investment costs

Job Creation Potential*

• Small Scale 250 kW – 5 hours per day

• Medium Scale 500 kW 2 FTE

• Large Scale > 1MW 3 to 4 FTE

C&I stage 7.5 FTE per €1m of investment

Based on 2020 scenario = 2,500 work years (not all in Ireland)

*Economic benefits of the development of bioenergy in Ireland

Conclusion

• 50 MW of AD planned by 2020

• Many obstacles and barriers to development

• Finance biggest problem

AD offers opportunities

• To improve our energy security

• Can generate energy with low net carbon emissions

• Can lead to job creation

• Can meet heat, electricity and transport targets

• AD plants could have a positive effect on government finances ifmanaged correctly.

• Reduction in fines from the EU for not meeting Directives