Bioenergy & Waste News

Wednesday 10 February 2010

Chairman of ADBA, Lord Redesdale, believes AD should be a top priority

The government needs to provide anaerobic digestion with the same financial support as less efficient technologies such as wind and solar PV, according to the Anaerobic Digestion and Biogas Association (ADBA).

Founding members of the trade body have criticised the finalised Feed-in Tariff scheme, which was announced last week (see this NewEnergyFocus.com story), for providing no incentive for AD operators to move from the current ROC system due to low tariff rates.

According to ADBA, the government has favoured other more developed, but less efficient technologies, such as wind and solar in the new scheme, but has failed to improve the rates for AD.

Under the scheme, the FiT level for small-scale AD plants (less than 500kW) remains unchanged at 11.5p/kWh, while tariffs for wind peak at 34.5p/kWh for generators of less than 1.5kW and solar PV installations of less than 4kW (retrofit) will receive 41.3p/kWh.

Rob Heap, general manager of global biogas company UTS Biogas Ltd and one of ADBA's founder members, said: "As a result of this decision, it is likely that between 60 and 80% of farm based plants that were being developed in anticipation of a robust feed in tariff will now not be developed."

"We have been developing AD projects for many farmers from all over the country to support the smaller and medium sized farms and especially those with livestock enterprises. AD technology at this small scale is environmentally very attractive, but it needs financial support to secure commercial funding for the high level capital investment. We have taken many calls from farmers who are now placing their project plans for AD in the pending file."

Dorian Harrison, technical director of Monsal and chair of ADBA's policy working group, added: "Whilst anaerobic digestion is a low risk, well proven technology for reducing greenhouse gasses, the industry will need the same support DECC is giving wind, PV and hydro to build the significant infrastructure required within the coming years."

Targets

ADBA claims that AD could provide two thirds of the UK's renewable energy target if there is a rapid building of a nationwide infrastructure (see this NewEnergyFocus.com story).

Commenting on the FiT scheme, chairman of ADBA, Lord Redesdale, said: "It is remarkable that DECC has not grasped the opportunity to incentivise the AD industry, which can make a significant contribution to reducing the UK's CO2 emissions now as well as generate a significant proportion of the UK's energy.

"DECC has seen that to promote renewables it must increase the subsidy. The Minister, Hilary Benn, has said he supports AD but the Department has failed to support his words with action."

Welcomed

However, some aspects of the new legislation which have been welcomed by the AD industry are the inclusion of index-linking FiTs to the retail price index and the guarantee of support over a project's life (see this NewEnergyFocus.com special report on FiTs).

Lord Redesdale, chairman of ADBA, concluded: "At a time when the cost and security of our gas supply is in jeopardy, when there is so much public support for renewable technologies, and when we do not look like we are going to hit our renewable and recycling targets, anaerobic digestion needs to be one of our top priorities.

"This means supporting it at least on a par with other renewables."