INDUSTRY FOCUS WATER & WASTE TREATMENT
WHAT’S NEXT FOR THE AD INDUSTRY?
Duncan McPherson, CEO at CooperOstlund, discusses how legislation has shaped the anaerobic digestion (AD) industry and why the phase-out of renewable subsidies means efficiency is key to maximising profitability
L
egislation has played a driving role in developing the UK AD industry. From
global emissions caps designed to replace polluting fossil fuels with cleaner alternatives, through to national subsidies introduced to incentivise investment, a proactive approach has fast-tracked industry growth. In less than ten years, the industry has
grown from almost nothing to nearly 480 operational plants in the UK, including 80 biomethane-to-grid set-ups. A further 327 projects are currently under development.[1] AD plants across the UK now power the
equivalent of a million homes with renewable electricity. According to the Anaerobic Digestion and Biogas Association (ADBA), with the right policy support the industry could meet 30% of the UK’s household electricity and gas demand (some 78 TWh per year) – reducing reliance on fossil fuels.[2] Recently though, subsidies have been
reduced and, in some cases, revoked. Large AD companies, with access to long- term, sustainable feedstocks, are still benefitting despite fewer financial incentives. Smaller companies, however,
Engine servicing can maximise energy generation capacity
are struggling to secure investment funding. Self-consumption of energy, maximising site efficiency and minimising downtime are becoming increasingly important to proving investment viability. At CooperOstlund, we’ve watched the AD
Duncan McPherson says: “We’re also delivering a growing number of engine servicing agreements. With poorly maintained engines reducing efficiencies by as much as 20%, more sites than ever are outsourcing, rather than opting to undertake the role in-house”
[1]https://www.nnfcc.
co.uk/publications/report -anaerobic-digestion- deployment-in-the-uk
[2]
http://www.biogas
tradeshow.com/ad- energy-generation/
industry flourish. Legislation has continued to play a driving role, even in our day-to-day operations. A few years ago, when subsidy rates were high, our team delivered numerous specification and installation projects nationwide – everything from small-scale farm set-ups to huge food waste recycling facilities. As subsidy rates dropped, customer
requirements changed. Quickly sourcing combined heat and power (CHP) engines and commissioning projects ahead of degression deadlines became increasingly important. Now, however, we’re experiencing a
growing demand for re-calibration work and long-term engine servicing agreements to maximise energy generation capability. We’re also being approached in a more consultative capacity – to analyse existing CHP engines and advise changes to improve outputs. We regularly engage with operators who
ROUND-THE-CLOCK ANALYSIS OF PROCESS STREAMS
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are experiencing issues due to poor initial planning. For example, one recent project saw us recalibrate, refurbish and perform a comprehensive engine service on a CHP unit that had been operating at less than 50% efficiency for more than six years. Poor advice from the outset, combined with a rushed installation to save labour costs, had seen the engine generate less than a fifth of its generation potential. A simple two-hour service transformed the project, which is now running at maximum efficiency, 24 hours a day. As the AD industry continues to expand,
legislation will continue to play a driving role. Energy policy, subsidy frameworks, technological advances and feedstock developments will all contribute to our future energy landscape. For the AD supply chain, continued
change is nothing new. However, with sourcing investment becoming ever-more challenging and maximising outputs now instrumental to project success, the following points are worth considering: Right first time – From initial
specification, it’s important to partner with an expert to ensure your site is fit- for-purpose. This process must take long- term feedstock sourcing, output requirements and self-consumption capacity into close consideration. Prioritise longevity – Failing to properly
maintain your CHP engine will see your profitability plummet. Whether actioning in-house or engaging a specialist, treat your AD site like your car. That way, you’ll maximise your return. Don’t rule-out pre-loved – When
properly restored, second-hand engines can be a cost-effective way to enter the AD market. Remember to recalibrate –
Maximising generation capability and site efficiency requires frequent tweaks to your CHP. We’re working with more sites than ever before to supply and install gas engine control panels, essentially automating the process.
CooperOstlund
www.cooperostlund.com
32 SEPTEMBER 2018 | PROCESS & CONTROL / PROCESS&CONTROL
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