Quadruple Growth Predicted in Biomethane and BtG In the UK and Europewide

The idea that the number of biomethane plants could quadruple by 2021 sounds remarkably optimistic, but it is a figure supported by the top industry experts. 

It is a prediction which will be very welcome news for all those that have for so long worked in the industry and striven to convey to anyone who would listen, the many advantages of the anaerobic digestion process.

Biomethane is the term used for the raw (anaerobic digestion plant) biogas which is purified into "biomethane" before being sold, and the use of that "green gas" for injection into the gas supply grid is one of the very most efficient uses of that energy. 

Until recently, the most common use of biogas was to use it after only a minimum purification (to avoid corrosion of the generator equipment) to create electricity. However, producing electrical power invokes a large loss of that energy in the electrical distribution system, and a much higher loss than in the natural gas grid (although energy is of course expended in the purification (upgrading) process). 

It is also wonderful news for the environment, and will significantly reduce greenhouse gas emissions if this number of plants is built. Additionally, other biogas plants will continue to be built for electricity production, and will continue to expand the overall renewable energy output in electricity.

This is, not forgetting that, biomethane is also very useful as a transport vehicle fuel (Bio-CNG), as explained in our final article excerpt.

So, now! If you want to check the validity of what I am saying here, read on!

ADBA (UK) concludes that the number of biomethane plants could quadruple by 2021

Dec 16, 2015: According to the latest data, Europe counts with 17,240 biogas and 367 biomethane plants. For the past six months, the EBA team has joined efforts to compile its Biomethane and Biogas Report 2015, the annual statistical report on the European anaerobic digestion industry and markets. via european-biogas.eu

EBA Biogas Report will be shortly available!

According to the latest data, Europe counts with 17,240 biogas and 367 biomethane plants. For the past six months, the EBA team has joined efforts to compile its Biomethane and Biogas Report 2015, the annual statistical report on the European anaerobic digestion industry and markets.
via Green Gas Industry Could “Quadruple” With New RHI Budget

...The Anaerobic Digestion and Bioresources Association (ADBA) forecasts that the Chancellor George Osborne’s spending review could support the construction of an additional 140 biomethane plants. The announced £1.15 billion allocation for the Renewable Heat Incentive (RHI) budget by 2021 could quadruple the number of UK biomethane plants. These plants represent a fourfold increase on current numbers […]

The post UK: ADBA concludes that the number of biomethane plants could quadruple by 2021 appeared first on European Biogas Association.

via UK: ADBA report concludes that the number of biomethane plants could quadruple by 2021

The UK has seen a further 23 biomethane to grid (“BtG”) connections in 2015. This makes a total of 50 BtG sites and means that, for the second year running, the UK has been the fastest growing biomethane market in the world.

Judging from the above, we do seem to have been correct when last year we reported in this blog How the Big Picture for Anaerobic Digestion and Biogas Gets Yet Bigger!

UK sees highest level of Biomethane to Grid (BtG) growth in the world

BtG is the process whereby renewable gas is injected into the UK’s gas grid, giving the UK a highly flexible and efficient source of green, sustainable energy made from organic material include food waste.

John Baldwin, CNG Services founder and managing director said:

“The growth experienced in 2014 has continued with a total of 47 new projects in the last two years, the highest level of growth of any gas market in the world”

“Biomethane is a highly flexible renewable fuel as it utilises the extensive and valuable UK gas grid to provide energy both for gas central heating and also to fuel supermarket distribution trucks” ...

Baldwin continues:

“Growth of BtG has been spectacular. ... Growth accelerated markedly in 2014 with CNG Services connecting over 20 plants across the UK working with customers including Wyke Farms, Severn Trent, Wessex Water, Refood and Future Biogas.

Baldwin comments:

“When you look at how fast this industry sector is developing, it’s clear that BtG is going to be the biggest renewable heat technology in the UK. I’m proud of the part we’ve had to play in this success story”.

Biomethane has had the support of the [UK government subsidy known as the] Renewable Heat Incentive (RHI) worth £860 million. ...

Biomethane is also increasingly being used as a fuel for transport, known as Bio-CNG, where is offers big environmental benefits.

For the full article, visit : http://www.cngservices.co.uk

We would be delighted to see your comments below. Do you agree that this predicted rate of growth in AD plants for biomethane production is realistic, for example? Are you worried that energy crops will raise the cost of food, by doing this? Is this the right way forward for renewable energy production, or are there better ways of using organic waste materials? Please give us your opinions here.

UK AD Plant Installation Contractors Rush To Complete Biogas Installations Ahead Of FiT Reductions

A new set of UK Feed-in-Tariff (FIT) reductions known as "degressions" will come into force from 31 March 2016. This has led to companies rushing to complete existing projects and starting new ones early, to ensure that their anaerobic digestion (AD) projects get the last of the high subsidy rates.

Rates will only drop 5% to 11% at the start of April, but there is widespread concern that the mechanism known as degression, which it is hoped will soften the run-down of this subsidy, will deter the commencement of a large number of projects due to start later this year, and result in a high level of UK AD Plant Installation Contractor bankruptcies.

The idea of degression is that as the target spending level approaches, the FiT will be reduced more rapidly. This should minimize government overspending if the uptake of the FiT is rapid, but the uncertainty it introduces into predictions of anaerobic digestion plant project profitability could simply stifle demand for new biogas plants. If that happened it would set-back the UK's biogas industry for years, and cause widespread job losses.

How The UK Got UK AD Plant Installation Contractors Into This Situation

This has been explained by CooperOstlund's Johan Ostlund in the January 2016 edition of Wet News, as follows:

"Feed-in Tariffs (FITs) were introduced by the government in 2010 to help increase the level of renewable energy generated in the UK. The subsidy outlined that renewable generation systems, up to a capacity of five megawatts (MW), were eligible for financial support for producing green energy.

Alongside helping the UK towards its legally binding EU target of 15% of total energy from renewables by 2020, the incentives aimed to drive long-term investment in renewable technology and innovation.

Since its introduction, the scheme has been hugely successful. In 2014 alone, the anaerobic digestion (AD) industry installed 89 new plants in the UK, a high percentage on site at water companies, food manufacturers or recycling businesses to turn organic waste, wastewater or sewage into renewable energy.

Energy targets

In fact, such has been the success of the financial support for AD installations that the industry now exceeds 500MW of total capacity across 411 plants nationally, making a significant contribution to the UK's renewable energy targets.

FITs have transformed the way the UK generates its power over the past three years, with more than 22% coming from renewables in the early part of 2015.

However, this has come at a price and the Department of Energy and Climate Change (DECC) admits spending on clean energy support is projected to be as much as £1.5bn over budget by 2020/2021.

In a bid to keep the budget under tighter control, the government introduced the FITs degression mechanism, which automatically reduces the level of subsidy available to new projects once a certain level of deployment is reached. Now, as part of the latest review, DECC wants to cut expenditure on the FITs scheme to between £75M and £100M, from January 2016 to 2018/19 and has significantly reduced the rates it will pay.

As part of these latest FITs degressions, financial support for AD sites will decrease significantly from the end of March 2016. In fact, the tariff for facilities under 500KW will reduce from 10.54 to 936p/Kwh, while facilities greater than 500KW will drop from 9.16 to 8.68p/Kwh." via WWT Online-WetNews

Opinion

It would be foolish of any government to continue to damage the UK'S renewable energy industry/UK AD Plant Installation Contractors in the way it has the solar panel and home insulation industries over the last 6 months, since the current Conservative Government got into power in May 2015.

For a party which is says it is both keen to introduce measures which will reduce climate change, and provide employment/support businesses, while improving the UK's housing stock, it is hard to fathom why they would jeopardize the biogas industry in this way, with all its beneficial spin-off's.

Please give us your comments below (Click on "comments" to add your own.)