Feasibility Study for a Large Scale Regional Anaerobic Digestion Facility · ·...
Transcript of Feasibility Study for a Large Scale Regional Anaerobic Digestion Facility · ·...
Feasibility Study for a Large Scale Regional Anaerobic Digestion Facility
Cenex and The Business Advice Team limited
Introduction
Aim:
Undertake a feasibility study into the development of a large scale AD facility utilising commercial and industrial food waste sources in the region to produce biomethane for use in transport logistics
Deliverables:
An evidenced Business Case for the development of such a facility in the East Midlands as a result of key stakeholder engagement and research
A detailed understanding of the AD supply chain and logistics operators across the region
A dissemination event to raise the awareness of potential regional stakeholders to the associated opportunity
Rationale for Anaerobic Digestion (AD)
• AD is a series of processes in which microorganisms break
down biodegradable material in the absence of oxygen –
providing volume and mass reduction of the input material
• The process produces: i) a methane and CO2 rich biogas
which can be upgraded to biomethane and used as a vehicle which can be upgraded to biomethane and used as a vehicle
fuel reducing dependency of fossil fuels, and ii) a nutrient rich
digestate that can be used as a fertiliser
• AD reduces the reliance on landfill and hence the emission of
landfill gas into the atmosphere
• Biomethane produced from AD has the lowest GHG
emissions of any biofuel. In transport applications biomethane
burns more cleanly than other fuels, improving air quality with
lower NOx and particulate emissions
• Need to consider the whole system: inputs, process, outputs,
logistics
• Food waste as input
• 40-50kT AD facility
• Biomethane as output – transport
Biomethane as a vehicle fuel
• Biomethane as output – transport
• Digestate as output
©Biogasmax
Biomethane as a vehicle fuel
Inputs
- food waste
- other waste
- other inputs
Pretreatmentand
digestion
Outputs
- gas
- digestate
Use
Proposed AD System
• Food waste as input
• 40-50kT AD facility
• Biomethane as output – transport
• Digestate as output
Business Support
• For the supply chain:
– Grants to develop products, systems and capability: GBI, GRD
– Training: Train to Gain (funding and advice)
– Sector Skills Council (SSC) – Energy and Utility
• For the project:• For the project:
– Technology Strategy Board – BERR – need appropriate
competition call
– Environmental Transformation Fund (ETF) – BERR/Defra – Low
Carbon Energy Demonstration
– Framework Programme 7 – Energy Call May 2009
– European Regional Development Fund (ERDF)
Logistics
• Hardstaff Haulage identified as potential end user due to:
knowledge and uptake of biomethane vehicle technology,
location of operation and interest in AD
• Contacted transport intermediaries (FTA, RHA, CILT) to
ascertain key players in the region – poor responseascertain key players in the region – poor response
• In total 19 logistics operators (including Hardstaff) were
identified across the region – database created
• All operators consulted as to uptake of biomethane – 3 yes
(one of which was Hardstaff), 8 no, 8 no response
• Logistics strategy developed by Hardstaff
Waste Providers
• Interested in commercial and industrial food waste providers
in the region
• Food Processing Faraday Partnership (FPFP) investigated
cutting out food waste in the East Midlands Food Industry
• Worked in collaboration with FPFP to identify large waste
providers around M1 / A14 corridor – logistics consideration
• Range of sources: 1 to 24kT per annum, eggs, dairy,
vegetable and fruit, snacks
• Selected sources greater than 6kT – logistics consideration –
eight key sources - majority located Leicester or Mansfield
• Majority have waste management contracts in place, but
these are short term
• Contacted waste management companies to gauge interest
in project and potential for chanelling of waste to AD; Biffa,
Veolia, Wastecycle, Sita, Lindum
Main control parameters• Temp• Organic loading rate
Process options• TemperatureMesophilic / Thermophilic
AD BasicsAD BasicsAD BasicsAD Basics
• Organic loading rate• pH• C:N ratio• Multi stage / single stage
• Methanogenesis• Acidogenesis• Hydrolysis• Breaking down solid complex organic matter to soluble matter • Fermentation to volatile fatty acids and alcohols• Methane production
AD reactor designs
• Suspended growth digester (STR, CSTR) 5 – 20 % TS Content
• High solids digester (Plug flow
• Supported growth digester (AF, Fluidised beds) 1-2 % TS Content
• High solids digester (Plug flow type) 30 – 55% TS Content
East Midlands food waste
• 143 kT per annum industrial food waste in the East Midlands (FPFP data)
• 52 kT readily available from top eight industrial food waste providers
• Consistent loading rate
• Good C:N ratio
• No value in feathers and eggshells
• Fried waste high energy content
• Ready meals – depackaging / fat
East Midlands food waste – technology providers
• Nine companies
• Three responses
• Confirmed gas yields and TS content
• Detail technology options and economic data
East Midlands food waste – Digestate options
• Clean digestate due to source segregation of waste
• Typically 4 – 5% DM content suitable for use as fertiliser (N,K,P)
Spreading Spreading Spreading Spreading digestate as 4digestate as 4digestate as 4digestate as 4----5% DM fertiliser5% DM fertiliser5% DM fertiliser5% DM fertiliser
• Storage / NVZ• Labour intensive • Low demand in Notts
SeparatingSeparatingSeparatingSeparatingdigestate into cake digestate into cake digestate into cake digestate into cake
and liquorand liquorand liquorand liquor
• High demand ~35% DM fertiliser
• Further aerobic treatment plant for liquor and disposal to sewer
• Supply for irrigation
AD plant scenarios for digestion of food waste
Scenario 1Scenario 1Scenario 1Scenario 1• Nottinghamshire based CSTR AD
facility• Supplement market for CNG/CBG• Food waste providers along M1/A14
corridor• Digestate separation with liquor • Digestate separation with liquor
treatment and discharge to sewer
Scenario 2Scenario 2Scenario 2Scenario 2• Nottinghamshire based high solids digester food waste• Supplement with MSW / Energy crops / manure / garden waste• Suited to where there is no market for liquid fertiliser and no
discharge consent then treatment systems can be installed to reduce or eliminate disposal needs using flocculants.
AD plant scenarios for digestion of food waste
Scenario 3Scenario 3Scenario 3Scenario 3• Lincolnshire based CSTR AD facility• Higher agriculture demand for a
liquid fertiliser• Increased feed stock transportation
costs• Reduce / eliminate digestate disposal • Reduce / eliminate digestate disposal
cost
Implementation plan for a regional AD facility
• Create partnerships
• Build business plan and business model
• Choose location
• Choose production technology
• Choose distribution technology• Choose distribution technology
• Obtain planning permission
• Construct facility
• Start production
• Start distribution
Business model for a large scale regional AD Facility
Activities Products Distribution Customers
Partners Customers
•Feedstock sorting and pre-treatment
•AD
•Upgrading
•Biogas
•Biomethane•Digestate
•On-site distribution
•Shipping and distribution
•Private fleets
•Public fleets•Customers for digestate
Cost Revenue
Economic model of AD – points to note1. inputs
• Much food waste is seasonal, but
• Some food waste is more consistent and predictable – eg,
slaughterhouse waste
• Other food waste is the result of accident and is highly
unpredictable – eg, milk waste.unpredictable – eg, milk waste.
• If have guaranteed market for outputs (eg, electricity or
vehicle fuel) have to maintain outputs even if inputs are
variable
• Study findings are that inputs can be guaranteed
Economic model of AD – points to note2. gate fees
• Current 'ball park' figure for gate fees for AD is £30-£60/tonne
(WRAP)
• Figures found by study range from £30/tonne for food waste,
£5/tonne for milk waste
• Anecdotally, European experience is that increased • Anecdotally, European experience is that increased
competition for carbon-rich substrates creates market
pressures which lower and ultimately reverse gate fees.
Need further investigation to verify if this is actually the case
• Building business case on rising gate fees therefore may not
be realistic. Needs further investigation
Economic model of AD – points to note3. outputs
• Economic model of existing (non-vehicle fuel) plants good if
double ROCs and gate fees kept at £30-£50/tonne
• Biomethane as vehicle fuel most favourable economics of all
providing local demand is stimulated
• Uncertainly of long-term future of ROCs, but also of diesel • Uncertainly of long-term future of ROCs, but also of diesel
price
• Finding a local market for digestate is crucial
Summary
“The challenge is capturing all of this [waste] as it is going
indifferent directions. No waste management company has
all, or even most of it. Secondly, the major retailers are
pushing this agenda, and once they decide to go in a given
direction, you will lose their inputs for several years to
come. If there is to be an East Midlands project, then it come. If there is to be an East Midlands project, then it
needs to move quickly and also communicate its potential to
the large food waste producers.”
Keith Riley, Managing Director of Veolia Environmental Services
(UK) plc reported:
Business model for a large scale regional AD Facility
Activities Products Distribution Customers
Partners Customers
•Feedstock sorting and pre-treatment
•AD
•Upgrading
•Biogas
•Biomethane•Digestate
•On-site distribution
•Shipping and distribution
•Private fleets
•Public fleets•Customers for digestate
Cost Revenue