Defra announce Anaerobic Digestion Loan Fund at UK AD & Biogas 2011
Defra Minister Lord Henley has announced a 10m Anaerobic Digestion Loan Fund (ADLF) for new AD plants in his speech to the conference at UK AD & Biogas 2011.
The ADLF, which will be administered by the Waste Resources Action Programme, will lend amounts ranging from 50,000 – 1m to support the development of new AD capacity in England, in conjunction with investment from the private sector. It aims to support 300,000 tonnes of annual capacity to divert food waste from landfill by 2015.
Lending will be asset based and can include industrial units, plant and machinery, and groundwork. The projects will be selected through a competitive process in four phases, the first of which will run from July-October 2011.
Responding to the announcement, ADBA Chief Executive Charlotte Morton said:
This fund is welcome news for the industry, and will support projects which will make a real difference in starting to build up the UKs anaerobic digestion capacity
However, it represents only a small part of the investment which is needed to take AD to the point where it is really delivering for the UKs strategic objectives and raising finance remains the biggest barrier for projects.
Meeting the UKs 2020 commitments on landfill diversion and renewable energy require high investment in new capacity over the next few years. That simply isnt happening while investors are being put off by mixed messages from Government, and while they remain unwilling to direct Local Authorities to take a course they have already said realises the most benefit.
The Government needs to build on this announcement by grasping the nettle to encourage wider private finance into the market. This doesnt require more money from the taxpayer simply clear statements that organic waste feedstock should be source segregated and prioritised for AD.
Show Details
The Anaerobic Digestion and Biogas Association (ADBA) is holding its second annual trade show, UK AD & Biogas 2011, at the Birmingham NEC on 6-7 July 2011. The UKs only show to focus on anaerobic digestion (AD) features 160 exhibitors, more than double the number who featured at UK AD & Biogas 2010. The companies cover every aspect of the AD process, from constructors, plant operators and tank builders through to seed producers, gas grid connectors, consultants and training providers.
This two-day trade show includes an exciting programme of free seminars, workshops and case studies covering all aspects of AD, plus a high-profile conference looking at The Life Cycle of an AD Plant. Government representatives and leading industry experts have presented and debated the policy background, and taken delegates through every stage of developing and operating an AD plant. Issues ranging from feedstocks, collection and use of municipal and commercial food waste, co-digestion, grid injection, biofuels, finance and many more have discussed by expert speakers including Lord Henley (Defra), Nigel Keen (Waitrose), Wendy Manning (Coca-Cola), Steve Sharratt OBE (BioGroup), John Carolin (Biogen Greenfinch), Julia Barrett (Cambridgeshire County Council), Prof Charles Banks (Southampton University), and Les Gornall (PROjen).
Key facts you need to know about anaerobic digestion and biogas
Anaerobic digestion (AD) is a natural process which converts organic matter such as household food and garden waste, farm slurry, waste from food processing plants and supermarkets, into biogas.
Biogas (which is approximately 60% biomethane, 40% CO2) can be utilised to generate electricity and , heat, andor, upgraded to bio-methane, be either used as a biofuel transport fuel or be fed directly into the UKs gas grids
According to the Carbon Trust the generation of bio-methane would save twice as much carbon dioxide as producing electricity by 2020
AD is the only renewable that can be scaled up fast enough to enable the UK to reach its 2020 renewable energy target
AD reduces greenhouse gas emissions by treating organic wastes which would otherwise emit methane (landfill, slurries) and reducing our use of energy intensive commercial fertilisers and fossil fuels
AD preserves critical natural resources such as Nitrates and Phosphorus. Phosphorous is a finite resource for which there is no known alternative. It is critical for plant growth and world resources are already running out. Nitrates are one of the key components of fertilisers.
AD reduces our use of fossil fuels
AD significantly improves Britains energy security – we will soon be importing over 70% of our gas
Unlike other renewables, biomethane is generated constantly and can be stored in the gas grid, and biomethane is one of the few renewable fuels for Heavy Goods Vehicles (HGVs) which cannot run on electricity
The AD industry has the potential to generate around 40TWh of energy, equivalent to 20% of the UKs domestic gas demand
The AD industry has the potential to be worth 2-3bn in the UK alone and employ 35,000 people
Overseas potential is significant and the UK could be a world leader – with the right support now.
Five facts you need to know about ADBA
ADBA stands for The Anaerobic Digestion and Biogas Association
The Anaerobic Digestion and Biogas Association was founded in September 2009
Since its launch ADBA has acquired nearly 240 members, including AD plant operators, suppliers, local authorities, farmers, utility and energy companies such as British Gas and Scotia Gas Networks, supermarkets such as Waitrose and Morrisons, fleet operators such as Coca Cola and Howard Tenens
Since its launch ADBA has acquired over 230 members
ADBAs chairman is Lord Redesdale, former Liberal Democrat energy spokesman
ADBAs aim is to help enable or facilitate the development of a mature AD industry in the UK and to represent all businesses involved in the anaerobic digestion and biogas industries, to remove the barriers they face and to support its members to grow their businesses and the industry to help UK plc meet its renewable energy, climate change and landfill targets, as well as the preservation of critical natural resources.