Environmental Permit

issued under the

Environmental Permitting (England and Wales) Regulations 2010

Granted to (Operator): Beckton Energy Ltd Atkins Building, Lower Bond Street, Hinckley, Leics LE10 1QU

Installation address:

Beckton Combined Heat & Power Plant Beckton Gas Pressure Reduction Station (PRS) off Armada Way, Beckton, London E6 7FB

Permit reference LA-PPC-01-2013

Effective date 05 December 2013

Environmental Permit Newham Council/the London Borough of Newham (the Regulator) in exercise of its powers under Regulation 13(1) of the Environmental Permitting (England and Wales) Regulations 2010 hereby permits: Beckton Energy Ltd (the “Operator”) whose registered office (or principal place of business) is: Atkins Building, Lower Bond Street, Hinckley, Leics LE10 1QU Company registration number: 6300207 to operate an installation at: Beckton Combined Heat & Power Plant Beckton Gas Pressure Reduction Station (PRS) Armada Way, Beckton, London E6 7FB (the “Installation”) To the extent authorised by and subject to the conditions of this Permit and operated within the boundary outlined on the plan in Schedule 2. signed

Pollution Control Team, Community Infrastructure Authorised to sign on behalf of Newham Council/the London Borough of Newham Permit reference LA-PPC- 01-2013

Effective date 05 December 2013

Description of permitted activities and the installation Process Description The plant is comprised of a renewable power generation facility consisting of two separate electrical generation processes. Compression Ignition CHP Engine with a Turbo Compound System (TCS) The Compression Ignition Engine will run on bioliquid fuels classified renewable and sustainable under the Renewables Obligation Order (ROO) such as processed cooking oils, Tallow or crude unrefined vegetable oils (excluding Palm Oil) which drive a large electrical generator. The plant engine is a very efficient low speed two stroke unit producing 14.1MW at a gross electrical efficiency of over 50%. The rated thermal energy input of the engine and consequently the whole plant is 28MW. Surplus heat from the plant will provide preheat for the gas stream on the adjacent NGG PRS, replacing the need for the existing water bath heaters. Pre-heating the gas stream is required to compensate for the natural cooling effect that occurs during the pressure reduction process. The temperature drop of the gas as it passes through the reduction valves can affect the safety and integrity of the pipeline system unless it is preheated. The preheating process is traditionally provided through large natural gas fired water bath heaters. The water heaters will be turned off as a result of the heat supplied from the plant, thus reducing the overall environmental impact of the process. Turbo Expander Generator (TE) – Turbo expanders will be installed on the PRS in parallel with the pressure reduction valves to reduce the pressure of the gas into the local distribution network and recover the engines surplus heat into useful work. The turbo expander has a rotating mechanical shaft to which a generator is fitted to create renewable electricity. The turbo expander generator has an electrical efficiency of 85%. In total the plant will generate up to 17MWe (net) of renewable electricity and some useful heat which is excess to that used during the process of pressure reduction. The overall electrical efficiency of the Beckton plant will be 55%. The actual physical plant will comprise of the installation of two separate turbo expander units in parallel with the existing pressure reduction valves, housed in a new building located on the existing NGG PRS, and a single low speed compression ignition engine with TCS and ancillary equipment all housed in a single building on the adjacent Beckton Energy Ltd site. The fuel storage requirements for the bio-liquid engine will provide 5 days operating capacity at maximum load. The engine consumes up to 70,000 litres per 24 hour period. The plant will include four fuel storage tanks located adjacent to the engine building in a newly constructed tank farm complex. There is a single freestanding 28m high engine exhaust stack from the plant.

The plant is fitted with selective catalytic reduction (SCR). The SCR Unit will be used to reduce NOx concentrations in the exhaust prior to emissions to the atmosphere. This is achieved by injecting 40% urea solution into the exhaust gas over a catalyst unit installed in the flue. The catalyst unit is installed in the flue and Urea will be dosed into the exhaust gas upstream of the catalytic unit. Schedule 1: schedule of plant and equipment Description Model number Manufacturer Two stroke diesel engine 28MW thermal input 7K60MC-S MAN diesel

Selective catalytic reduction unit

PN16270LAY010 H+H Umwelt

Monitoring Equipment Ultramat 23 Siemens Schedule 2 Storage tanks Material Tank Inventory and

Storage (approx.) Location

Start up Fuel Storage Tank

75 m3 (net) Storage Volume

External: Within bunded compound in North East corner of site.

Urea 121 m3 Storage Volume External: Within bunded compound in North East corner of site.

Fuel Storage Tanks 4 x 101 m3 (net) fuel storage tanks

External: Within bunded compound in North East corner of site.

Sludge 38 m3 (net) Storage Volume

External: Within bunded compound in North East corner of site.

Bioliquid Service Tank 4 m3 (net) Storage Volume Internal within main CHP building

Start up Fuel Service Tank

35 m3 (net) Storage Volume

Internal within main CHP building

Fire Water Tank 100 m3 Storage Volume External The main personnel who will be involved in operating the facility are as follows: Facility Manager has overall responsibility for: - The operation and maintenance of the facility; - Compliance with the relevant legislation and consents; - Safety, health and environmental compliance and the management system. O&M Supervisor (Incident Controller) has responsibility for: - Day to day operation of the plant and supervision of the operational personnel. O&M Technician has responsibility for:

- Day to day operation and maintenance of the plant. The site will be staffed during daytime operations. The primary role of day personnel is to ensure and oversee all plant operations. Additional activities will include general site housekeeping and administration activities. Additional personnel attending the site will be visiting engineers from the equipment manufacturers who are adequately trained to perform their duties at the site. The site will maintain written operation instructions for all the plant and monitoring equipment present on site. All personnel working for and on behalf of the site, will be suitably qualified, trained and experienced (e.g. professional maintenance engineers, electricians, equipment operators etc). The site will be operated on a continuous 24/7 basis with deliveries, loading and unloading operations being carried out between 08:00 and 18:00 Monday to Friday, and between 08.00 and 13:00 on Saturday. There will be a maximum of 3 deliveries of fuel per day. Additional activities will include general site housekeeping and administration activities. The site will maintain written operation instructions all for the plant and monitoring equipment present on site. All personnel working at the facility will be trained in the necessary sections of the Environmental Management system and associated Procedures.

Permit conditions General

1. If the operator proposes to make a change in operation of the installation, he

must, at least 14 days before making the change, notify the regulator in writing. The notification must contain a description of the proposed change in operation. It is not necessary to make such a notification if an application to vary this permit has been made and the application contains a description of the proposed change. In this condition ‘change in operation’ means a change in the nature or functioning, or an extension, of the installation, which may have consequences for the environment.

2. Chimneys or vents shall be designed for an efflux velocity of not less than 15

m/sec at full load operation

3. Chimney flues and ductwork leading to the chimney shall be adequately insulated to minimise the cooling of waste gases and prevent liquid condensation on internal surfaces. Chimney flues and ductwork shall be cleaned regularly to prevent accumulation of material.

4. The receipt, handling and storage of liquid fuel shall be carried out so as to

prevent the emission of offensive odours to the air outside the process boundary. Deliveries of fuel shall only be made when the site is staffed.

5. Any malfunction or breakdown leading to abnormal emissions shall be dealt

with promptly and process operations adjusted until normal operations can be restored. All such malfunctions shall be recorded in the log book. If there is likely to be an effect on the local community the local enforcing authority shall be informed without delay.

6. Instruments should be fitted with a visual alarm to warn the operator of

arrestment plant failure. 7. Only recovered fuels which have been subject to an EA ‘End of Waste’

Position, legal determination or WRAP protocol shall be accepted and used at the plant. Before any new recovered fuel is used, authorisation must be sought from the regulator. The operator shall submit documentation showing that the EA has accepted the fuel as having met the end of waste test. The operator shall keep on site records of all fuel used together with the documentation which confirms that they have met the ‘end of waste test.

Monitoring - General

8. All emissions to air, other than steam or water vapour, shall be free from persistent mist. All emissions to air shall be free from persistent fume and free from droplets.

9. All emissions are free from offensive odour outside the site boundary, as perceived by the local enforcing authority Inspector or authorised person.

10. Emissions from combustion processes shall in normal operation be free from

visible smoke and in any case shall not exceed the equivalent of Ringelmann Shade 1 as described in British Standard BS 2742:1969.

11. Visual and olfactory assessments of emissions shall be made frequently, and

at least every normal working day. Remedial action must be taken immediately in the case of abnormal emissions.

12. The operator shall keep records of inspections, tests and monitoring, including

all non-continuous monitoring, inspections and visual assessments as detailed in this permit. The records shall be:

a) kept on site by the operator for at least two years; and,

b) made available for the regulator to examine,

The results of any monitoring shall include process conditions at the time of monitoring.

13. Adverse results from any monitoring activity (both continuous and non-continuous) should be investigated by the operator as soon as the monitoring data has been obtained. The operator should:

• identify the cause and take corrective action; • clearly record as much detail as possible regarding the cause and extent of

the problem, and the remedial action taken; • re-test to demonstrate compliance as soon as possible; and inform the

regulator of the steps taken and the re-test results. Monitoring - Annual

14. Sampling for NO2 SOx CO & PM shall be carried out annually. The first sample date shall be within three months of the commissioning of the plant and repeated annually thereafter. Such monitoring shall be carried out by a suitably MCERTS qualified specialist contractor.

15. All annual emission testing shall be carried out when the engine is operating

at a single load point, within 30%, of its maximum continuous rating

16. All pollutant concentrations shall be expressed at reference conditions, 273K, 101.3 kPa, normalised for 15% oxygen content by volume, dry gas.

17. The Pollution Control Team shall be informed of the date of the annual

emission test at least 14 days before the test is due.

18. No result obtained from annual monitoring for particulates, carbon monoxide, nitrogen oxides and hydrocarbons shall exceed the specified emission concentration limits set out below.

Emission mg/m3

CO 108 NOx 360 SOx 60 HC 84 Particulate Matter Total of (PM10& PM2.5)

102

19. The results of all non-continuous emission testing shall be forwarded to the local enforcing authority within 8 weeks of the completion of the sampling.

Monitoring - Continuous

20. Emissions shall be continuously indicatively monitored for NOx. 21. All continuous monitoring readings should be on display to appropriately

trained operating staff. Where staff are not on site there should be an automatic system in place to alert the operator when any of the parameters in condition 23 are breached. In the event of exceedence of the limit value for NOx a site visit shall be made within 1 hour to ascertain the cause of the excedence and to put in place remedial action.

22. Starting six months from the commencement of operation and every 6 months

thereafter, a report shall be submitted containing the continuous monitoring data including the following:

• Values that exceed the 95% annual limit in that period; • 60-minute mean emission values that exceed the 100% limit, if appropriate in

that period; • The 95th-percentile value for each period.

23. The continuous monitor shall be operated, maintained and calibrated (or

referenced) in accordance with the manufacturers' instructions, which shall be made available for inspection by the regulator. The relevant maintenance and calibration (or referencing) shall be recorded and be available for inspection.

Procedures

24. The plant shall be operated in accordance with corporate standards and procedures as part of a wider Environmental Management System (EMS) which will conform to the requirements of BS EN ISO 14001: 2004. The

Environmental and Quality Management system will be designed to meet the requirements of the Environmental Permitting Regulations and associated pollution prevention guidance.

Operations and Site Maintenance

25. Operational and maintenance systems shall be prepared for all aspects of the process whose failure could impact the environment. Documented procedures shall be prepared to control operations that have the potential to have an impact on the environment. The environmental procedures shall cover the following areas:

• Environmental Aspects and Impacts Evaluation • Legal and Other Requirements • Setting Environmental Objectives • Licenses and Consents • Communication with Interested Parties • Definition of Structure and Responsibilities • Spillage Control and Disposal • Fuel Acceptance and Testing Procedure • Inspection of Plant Bunds • Point Source Emissions to Air • Site Inspection • Inspection of the Petrol Interceptor • Waste Management • Environmental Management Systems Audit • Management Review

These procedures shall be in place before the plant begins operation

Site plan with installation boundary edged in green

Isometric Plan

Site location plan with site boundary edged in red (installation boundary is shown in green)

Relationship to other Legislation

This Permit relates to the control of air emissions from a prescribed activity from the named Installation. The Permit does not detract from any other statutory requirement, such as the need to obtain planning permission, hazardous substances consent, discharge consent from the Environment Agency, building regulations approval, or a waste disposal licence. In addition, it must not be taken to replace any responsibilities for health, safety and welfare in the workplace under workplace Health and Safety legislation.

Commercial Confidentiality and the Public Register The Permit requires the Operator to provide certain information to Newham Council, and in addition, Newham Council has the power to seek further information at any time under the EP Regulations provided that the request is reasonable. In accordance with the EP Regulations, the Council will place certain information (including the Permit) onto a public register. Certain information may be withheld from the public registers where it is commercially confidential, or if it is in the interest of national security to do so. Variations to the Permit Should the Operator want any of the conditions of the Permit to be changed, to reflect any changes in the activity regulated by the Permit, a formal application must be submitted to Newham Council, on an application form available from the Pollution Control Unit of the Council. Following an evaluation of the application, Newham Council will then vary the Permit, by serving a variation notice on the Operator or issuing a new permit if that is more appropriate.

Advice on notifying Newham Council on activity changes, which may either be relevant or substantial, can be found in Regulation 20 and in the General Guidance Manual. Operators will be liable to enforcement action if they make a change without approval that means either the activity (as changed) is no longer the activity which is permitted, or a condition of the Permit is not being complied with as a result of the change being made. Variations can be documented in the table given at the end of this introductory note. Appeal against Permit Conditions Any person who is aggrieved by the conditions attached to a Permit can appeal to the Secretary of State for Environment, Food and Rural Affairs. The address is as follows:

Environment Appeals Team, The Planning Inspectorate, Room 4/04 Kite Wing, Temple Key House, 2 The Square, Temple Key, Bristol BS1 6PN

Tel: 0117 372 8726/8939 environment.appeals@pins.gsi.gov.uk An appeal brought under Regulation 31 paragraph (1) (c) or (d) in relation to the conditions in a Permit will not suspend the effect of the conditions appealed against; the conditions must still be complied with. Appeals must be received by the Secretary of State with the documentation and within the time limit specified in Schedule 6 of the EP Regulations. In determining an appeal against one or more conditions, the Regulations allow the Secretary of State to quash any other conditions not subject to the appeal and to direct Newham Council either to vary any of these other conditions or to add new conditions. Surrender and Revocation of the Permit Where an Operator intends to cease the operation of an Installation (in whole or part) Newham Council shall be informed in writing. The operator should fill in an Application to Surrender a Permit form. Notifications must include the information specified in the EP Regulations. Newham Council may then issue a revocation notice or accept the application to surrender the permit. The London Borough of Newham may also revoke the Permit if the operator contravenes relevant sections of the EP Regulations. Fees In accordance with EP Regulations, the holder of a Permit is required to pay a fee for the subsistence of the Permit. This fee is payable annually on the 1st of April and the operator will be sent an invoice for the amount accordingly; the amount payable is reviewed and published annually by central Government. You are advised that under the EP Regulations, if you fail to pay the fee promptly, Newham Council may revoke the Permit. Transfer of the Permit or part of the Permit Before the Permit can be wholly or partially transferred to another person, a joint application to transfer the Permit has to be made by both the existing and proposed Operators. A transfer will not be approved if Newham Council is not satisfied that the proposed Permit holder will be the person having control over the operation of the installation, or will comply with the conditions of the transferred Permit. In addition, if the Permit authorises the Operator to carry out a specified waste management activity, the transfer will not be approved if the Regulator does not consider the proposed Permit holder to be a ‘fit and proper person’ as required by the EP Regulations.

Summary of Terms (see Regulations 2, 3, 5 to 9: Interpretation, for more detail and terms)

Application the application for this Permit, together with any response to a notice served under Paragraph 4 of Schedule 5 to the EP Regulations and any operational change agreed under the conditions of this Permit.

Activity an activity listed in Part 2 of Schedule 1 of the EP Regulations (subject to Part 1 of Schedule 1).

Conditions the components of the permit that the operator must comply with.

EP Regulations Environmental Permitting (England and Wales) Regulations 2010, as amended

Installation (a) a stationary technical unit where one or more are carried on, and

(b) any other location on the same site where any other directly associated activities are carried on

Permitted installation the activities and the limits to those activities described in this Permit.

Substantial Change

a change in operation which, in the opinion of Newham Council, may have significant negative effects on human beings or the environment.

Documents Newham Council may issue under the EP Regulations

Enforcement Notice

Under Regulation 36, if an operator has contravened, is contravening or is likely to contravene any condition of his Permit, Newham Council may serve upon the operator an 'Enforcement Notice'.

Information Notice A notice served by Newham Council under Regulation 60 requiring specified information to be provided within a specified time period.

Permit Granted under Regulation 13, the permit allows the named operator to operate an installation carrying out one or more specified activities

Revocation Notice A notice served by Newham Council under Regulation 22 revoking all or part of a permit.

Suspension Notice

A notice served by Newham Council under Regulation 37 which results in a permit ceasing to authorise the operation of the entire installation or specified activities, until remedial action has been taken against an imminent risk of pollution, or any outstanding charge is paid (whichever is appropriate to the reason for the notice being served).

Variation Notice A notice served by Newham Council under Regulation 20 varying the conditions or other provisions of the permit.

Contact Information

With regard to any aspect associated with the Environmental Permit, please contact Newham Council’s Pollution Control Unit on:

Pollution Control Unit Newham Dockside London E16 2QU

Pollution Control Unit Tel: 020 3373 0643

pollution.inquiry@newham.gov.uk

End of Explanatory Note and Permit