Nnfcc market review bioenergy issue twentyfive april 2014

Welcome to the April 2014 issue of our bioenergy market review! Each month we
review the latest news from across the bioenergy market. This service is exclusively
for NNFCC members.
Contents
Policy .............................................................................................3
Market...........................................................................................4
Biomass-to-energy...................................................................6
Biogas............................................................................................8
Energy-from-waste ..................................................................9
Events ............................................................................................9
Renewable Obligation Certificate (ROC) Price...........12
Issue Twenty Five
April 2014
April 2014
NNFCC Market Review | Bioenergy

NNFCC Market Review, April 2014, Page 2 of 13
Foreword
According to our new report Anaerobic Digestion Deployment in the UK
released this month, there are currently 342 AD installations under
development (planned or under construction) of which almost two thirds
are farm-fed and typically small-scale (<250kWe) the rest are waste-fed
and typically above 250 kWe. Typically less than 50% of these projects end
up going operational. The main reasons behind project failures are issues
around feedstock supply or economic constraints. For example, the recent
degression of Feed-in Tariffs (FiTs) for small and medium scale AD plants
has reduced support by 20% from April 2014. Smaller projects, typified by
farm-scale AD projects are the ones that will be most affected by the
degression in support for new plants.
As a result of such changes, small-scale AD projects will increasingly need
to find uses for heat to benefit from the Non domestic RHI scheme and the
newly launched Domestic RHI Scheme to ensure project viability.
While the AD market is likely to temper, the new Domestic RHI is likely to
increase the focus on renewable heat applications, an area which is already
showing rapid growth and interest according to industry comment
The latest IPCC reports highlight the value that biomass CCS has in
combatting atmospheric CO2 rises compared to more expensive
alternatives. Hopefully this will help focus more attention on the positive
value and attributes of biomass at a time where the uncertainties
surrounding biomass impacts continue to be exploited by those who would
prefer to see support removed altogether. The misinformation and
misunderstanding demonstrated by many ill-informed commentators
needs to be continually addressed to avoid unnecessary delays to
development and ensure planning decisions are subject to a balanced view.
Read on for the latest market news.

Policy
EU Chiefs must not ignore value of
'sustainable' biofuels
BIOENERGY has a ‘positive’ role to play in society
but more research is needed to realise its full
potential, according to a new report by the United
Nations Intergovernmental Panel on Climate
Change (IPCC).
The report, which comes as the EU considers the
future of the EU biofuels policy within its future
climate and energy policy framework up to 2030,
says existing uncertainties about bioenergy
should not preclude society from pursuing
beneficial bioenergy options that are available.
The IPCC report finds estimated ILUC
emissions are ‘highly uncertain, unobservable,
unverifiable, and dependent on assumed policy,
economic contexts, and inputs used in the
modelling’.
The report confirms measures to address ILUC
must incorporate the impacts of ILUC prevention
or mitigation strategies, including the impact of
forest protection measures, policies and
investments to improve agricultural productivity,
double cropping, and the use of degraded and
marginal lands.
The report also recognises land use emissions can
be reduced through animal feed co-products of
biofuels that substitute the need for protein crops
imports for animal feed production.
Click here for more information.
Biomass with CCS is essential to
counter global warming – UN IPCC
When it comes to technology for averting climate
change, renewable energy often gets the
limelight. But capturing carbon dioxide from
power plants could have a far bigger impact on
the economics of dealing with climate change,
according to a U.N. report released earlier this
week.
The report is the third in a series of major reports
from the Intergovernmental Panel on Climate
Change Committee. This one considers how to
limit greenhouse gas emissions to avoid the most
serious effects of climate change. The report
analyzes the cost of taking steps to stabilize
greenhouse gas levels in the atmosphere
Costs could more than double if carbon capture
and storage (CCS) technology isn’t deployed. It’s
the only technology that can reduce the emissions
of existing power plants, some of which will stay in
operation for decades. It also might be the best
way to limit emissions from some industrial
processes, such as making steel.
Most importantly for the economics of averting
climate change, CCS could be essential for taking
carbon dioxide out of the atmosphere, a strategy
the IPCC found might be necessary to limiting
warming to two degrees Celsius or less.
Power plants burning biomass can reduce
emissions because the carbon dioxide they emit is
offset by the carbon dioxide absorbed by plants as
they grow. Adding CCS, and capturing the carbon
dioxide from the power plant, results in a net
reduction of carbon in the atmosphere.
Some climate and economics models suggest
that building a large number of biomass power
plants equipped with CCS could lead to a
significant reduction in carbon dioxide in the
atmosphere, which will be necessary if the world

reduces emissions too slowly—something the
IPCC report says is likely. Limiting warming to two
degrees Celsius will likely require limiting
greenhouse gas levels to 450 parts per million, but
many models have found that even with
ambitious measures to reduce emissions, the
world will shoot past that amount by mid-century.
To bring levels back down to 450, some carbon
dioxide will need to be removed from the
atmosphere.
Without the pairing of biomass power plants and
CCS, “we find it very difficult to come up with
scenarios that pass the laugh test that can limit
warming to two degrees Celsius,” says Robert
Stavins, director of the Harvard Environmental
Economics program. Biomass power plants with
CCS aren’t the only way to pull carbon out of the
atmosphere. A net increase in forestation would
help—but that would buck the trend of
deforestation. And experimental technologies that
use carbon dioxide-binding materials to capture
the gas directly from the air are more expensive
than using CCS at biomass power plants, says
Howard Herzog, a senior research engineer at the
MIT Energy Initiative.
Market
UK AD Deployment
Anaerobic digestion deployment in the United
Kingdom, a new report form the NNFCC shows
there are 138 operational AD plants and 341 in
development, most of these on farm sites. The
figures do not include sewage-based AD plants.
The report gives a regional breakdown of AD
development in the UK, providing detailed
information on feedstock requirements, installed
capacity and output type for every project.
Deployment is strongest in the east of England,
while the North East has the fewest plants and
distribution across other regions is broadly equal.
The report shows a current demand for 750000
tpa of energy crops, equivalent to the output from
17,000 ha. The complexity, planning and finance
requirements of AD mean that only around 30-
50% of plants in the pipeline are expected to
complete, but if all those under development went
into production, the UK AD industry’s land
requirement for feedstock crops would rise to
60,000ha by 2017.
The report is available from NNFCC’s website.
Gas Vector Transition Pathways
Development Project
The Energy Technologies Institute (ETI) is seeking
partners to help develop a project to assess the
potential for different gases to supply energy
across the UK.
The project is part of the ETI’s Energy Storage and
Distribution programme (ES&D), which is
identifying how the UK can move energy
economically and efficiently to where and when it
is needed in the future. The ETI believes that a
range of gases, namely bio-synthetic natural gas
(SNG), hydrogen and natural gas, have the
potential to play an increasingly significant role in
the delivery of energy. Gases such as bio-SNG and
hydrogen, could feasibly lower overall effective
CO2 emissions whilst continuing to ensure the
secure supply of energy to a wide range of end-
users.
Closing Date: 30 April 2014

Green Investment Bank funds
bioenergy projects
The U.K. Green Investment Bank has announced
its support for several bioenergy projects in recent
weeks, including investments in a waste-fueled
power plant and a project to install biomass-fired
boilers.
GIB has committed to a £51 million ($84.17
million) investment in a proposed waste-to-
energy plant in Kings Lynn, Norfolk. The new
facility, known as the Willows Power & Recycling
Center, will process 170,000 metric tons
household waste and 100,000 metric tons of
commercial and industrial waste annually. The
project is expected to generate approximately 170
GWh of electricity per year, enough to power
40,000 homes.
Earlier, GIB and Equitix announced a £24.5 million
investment to finance the installation of renewable
energy boilers at Bernard Matthews’ turkey farms.
As part of the project, 179 new biomass boilers
will be installed at 21 farms across the U.K.
According to information released by GIB, the
project was conceived, designed and managed by
renewable energy developer Lumicity.
In addition to reducing costs and greenhouse gas
(GHG) emissions, the new biomass boilers are also
expected to provide benefits associated with
improved heat circulation, including reduced
ammonia levels, reduced ventilation requirements
and increased litter quality.
French biomass industry to benefit
from €250m financing agreement
A group of lenders including the European
Investment Bank (EIB), BPCE Group, and Crédit
Agricole's Caisses régionales, as well as Crédit
Agricole Leasing & Factoring, have agreed to
provide €250m to develop biomass-fed energy
schemes and enhanced waste recycling and
recovery in France.
The financing agreement, which marks a key step
in the development of renewable energy in the
country, will help enhance the value of forest or
agriculture-based biomass by using them,
together with household and similar waste, to
produce electricity, biogas and heat.
The agreement also helps in financing biomass-
fired schemes across France, including heat-only
and combined heat and power cogeneration
plants, along with facilities for treating household
and similar waste to generate biogas and
electricity.
In addition, the latest deal will help support work
on renovating and extending urban heating
systems, with an aim to improve both energy
performance and efficiency.
Ukraine seeks renewables energy
investors
Ukraine is seeking investment in its biomass, wind
and solar power industries. The idea is to use
renewable energy to curb its reliance on fuel
imports from Russia, which annexed Ukraine’s
Crimea region last month and has troops massed
on the border.
“Russia’s aggression towards Ukraine brought
energy security concerns to the fore,” Olexander
Motsyk, Ukraine’s ambassador to the U.S. said at a

renewable-energy conference at his country’s
embassy in Washington.
Ukraine relies on Russian natural gas for heat and
electric power. U.S. and European officials have
been searching for ways to help Ukraine limit this
dependence, including expediting U.S. approvals
of facilities to export liquefied natural gas.
Biomass and biogas are the most promising forms
of renewable energy for Ukraine, in part because
the nation’s network of electric-power lines and
substations can’t easily adjust to the addition of
significant amounts of wind and solar energy.
Biomass may help replace natural gas used in the
nation’s 24,000 boiler plants, officials from the
Energy Industry Research Center said. Ukraine’s
heating supply accounts for about 40 percent of
all gas imported from Russia, which could be
replaced with renewable energy within three to
five years.
By 2030, renewables could account for about 15
percent of Ukraine’s electricity supply, up from
about 2 percent now, with adequate investment.
Industry figures suggest UK biomass to
heat market growing rapidly
Leading UK biomass technology company Rural
Energy has reported it has a record order book
with work underway to install biomass heating
systems that will generate more than 30MW of
renewable heat.
The company has secured a string of deals for its
cutting-edge biomass boilers across a wide range
of sectors, including agriculture, healthcare,
leisure, commercial property and education.
By the end of April, Rural Energy will have
received orders for more than 140 biomass
systems so far this year for clients, including
projects with its partner network. This growing
order book underlies the continued development
and popularity of biomass heat opportunities in
the UK.
Paul Clark, managing director of Rural Energy,
said “The demand for biomass technology
continues to grow and we remain right at the
forefront of the industry. The Herz boilers we are
installing are market-leading and are some of the
first in the UK to be awarded the all-important
emissions certificates from Ofgem.” “ Our range of
domestic packages eligible for the new domestic
RHI tariff are live and we are looking forward to
training MCS domestic installers in our new
training centre to deliver this offer”
Biomass-to-
energy
Industry research into sustainability of
UK pellets
Renewable energy from wood fuel has major
potential as a sustainable and efficient way to

produce heat which can be used to warm homes
and businesses, provide hot water and drive
industrial processes. However, the benefits
accrued from utilising wood fuel for this purpose
depend on the sustainability of the source and
emissions accruing from land-use production,
harvesting, transportation and conversion.
An industry-funded briefing "Delivering the UK’s
renewable heat objectives through wood fuel" sets
out the position of some of the UK’s leading pellet
manufacturers, distributors and suppliers of wood
pellet boilers for heating on the issue of
sustainability. It provides data obtained from
current production and distribution within the UK
wood pellet industry and emissions of CO₂ from
every stage of the supply chain are analysed.
The authors have sought to illustrate the journey
and emissions from supplying biomass pellets
typically available in the UK, to provide insight
into a real journey from forest to radiator. The
results show that wood pellets supplied through a
high quality supply chain significantly exceed
DECC’s requirement for 60% reduction in GHG’s.
Pellet producers offer insight on
'shortage'
Pellet retailers and consumers in some Northeast
and Midwest locations have learned a lesson this
heating season, as many have run out of pellets
and are facing difficulties securing additional
supplies.
The general consensus amongst pellet producers
on what, exactly, that lesson should be is that
ordering or buying pellets too late in the season
leads to inaccurate demand estimates.
Although the winter has been unusually cold —
albeit not the coldest on record — and has upped
demand some, pellet producers insist current
industry capacity is fully capable of meeting and
exceeding market needs.
Cory Schrock, plant manager of White Pigeon,
Michigan-based Fiber By-Products, said:
“Producers have an average operating capacity of
50 to 60 percent, because that is all the market
requests of us. Couple that with one of the coldest
and hardest winters on record so consumer usage
is up, and skyrocketing propane prices, and
consumers have turned to wood pellets.”
For most consumers, pellet stoves aren’t primary
heat sources, but when propane reaches $3 to $5
per gallon most cannot afford to use it, Schrock
says, so they turn to their pellet stoves.
Forth Energy pulls out of Scottish
biomass projects
The planned biomass plant in Dundee had attracted
controversy; Source: BBC
Forth Energy said it was not continuing with
renewable energy projects in Grangemouth and
Rosyth and was seeking new backers for the
schemes. The plans for a plant in Dundee have
also been withdrawn altogether.
The news came after key backer Scottish and
Southern Energy (SSE) announced it was pulling
back from renewable energy projects.

Forth Energy, a joint venture between Perth-based
energy giant SSE and Forth Ports, had won
consent from the Scottish government for the
wood-burning biomass plants in Grangemouth
and Rosyth. However, the Dundee proposal, which
carried a similar price tag, had been held up by a
government inquiry after plans were rejected by
the local city council.
Last coal power plant in Ontario
converts to biomass
Officially earning the province a coal-free status
several months prior to its goal of the end of
2014, Ontario Power Generation’s Thunder Bay
Generating Station has burned its last supply of
coal, the utility and the Ontario government
reported.
The 300-MW power plant entered service in 1963
and is the oldest coal-fired station in the
province. A conversion is planned to switch to
advanced biomass, or steam exploded biomass
fuel, which OPG believes will be the first power
plant in the world to utilize. An initial proposal to
convert the station to natural gas was cancelled. A
successful 100-percent advanced fuel test burn
was done at the plant in September.
Ontario’s “Ending Coal for Cleaner Air Act”,
proposed in late 2013 and currently under
legislative review, builds upon the province’s 2007
Cessation of Coal Use Regulation. It prohibits the
use of coal several generating facilities after Dec.
31, and at any future stand-alone electricity
generating facility. Ceasing coal-fired electricity
generation at other facilities, such as industrial
facilities, does not apply if it produces a product
other than electricity or steam, and electricity
generation is not the primary purpose of the
facility.
Biogas
Biomass plant plans for Anglesey
Aluminium move forward
Source: BBC
Plans to build a large biomass plant and eco park
on the site of the former Anglesey Aluminium
works near Holyhead have taken an important
step forward.
The UK government has approved design changes
to the proposals by Chester-based Lateral Power.
Plans for a biomass plant at the site were first put
forward in 2009 and a licence was granted in
2012.
Dagenham gets 1.5MW biogas facility
Aenergia new facility in Dagenham; Source: Aenergia
Anaergia has announced that UTS Biogas, a wholly
owned subsidiary of Anaergia based in the United

Kingdom, has successfully constructed and
commissioned a 1.5 MWel biogas facility at
Dagenham, London, for its client TEG
Environmental.
The Dagenham facility, located on a newly
developed site within the London Sustainable
Industries Park, is a combination of in-vessel
composting and anaerobic digestion
technology. The facility can process up to 50,000
tonnes of organic waste each year.
UTS and TEG have already successfully
commissioned their first co-located facility in
Perthshire, Scotland.
Energy-from-
waste
Abengoa becomes dually renewable
Abengoa recently brought the power component of its
Kansas cellulosic ethanol facility on line; Source:
BiomassMag
Close to 90 percent of first-generation U.S.
ethanol plants are dependent on natural gas to
power operations, but the new generation of
ethanol plants coming on line may deviate from
that trend. Not only is Abengoa Biomass Energy
LLC forging the path to commercial-scale
cellulosic ethanol, it is taking a new road when it
comes to fuel.
Besides cellulosic ethanol, the Hugoton facility,
located in the southwest corner of the Kansas
state in US, also produces power, a segment of
the facility that was brought on line in December.
Abengoa began conceptualizing a plan for a joint
power and cellulosic ethanol plant about 10 years
ago. While navigating through pilot- and
demonstration-scale developments, the master
blueprint, which was modified over time, began to
take its final shape.
The power source will be primarily corn stover—
the same feedstock used for liquid fuel
production—wheat straw, prairie grasses, and,
potentially, some dedicated energy crops such as
switchgrass, as there is a switchgrass farm in the
area, Standlee says.
Events
NNFCC and North Energy Life Cycle
Assessment (LCA) workshops on 29-30
April in York, UK
Following the success of our previous Life Cycle
Assessment (LCA) workshops, NNFCC and North
Energy bring you two new training workshops

providing you with insight into how LCA's work
and their applications. The workshops take place
over two days:
 Day 1: 29 April 2014. Introduction to LCA
Workshop
 Day 30 April 2014. Advanced LCA
Workshop.
ACI 4th Annual European Algae
Biomass Conference on 6-7 May 2014
in Seville, Spain
ACI will hold their 4th annual European Algae
Biomass Conference, which will once again bring
together senior executives from industry and
academia to discuss the latest commercial and
technical developments, challenges and research
breakthroughs throughout the entire algae value
chain.
European Bioenergy Conference on 12-
14 May 2014, Brussels, Belgium
In its 5th year, the AEBIOM Bioenergy Conference
has established itself as one of the main leading
bioenergy conference in Europe. The event has
gained major proportions and is aiming higher
each year.
20th International Symposium on
Analytical and Applied Pyrolysis on 19-
23 May in Birmingham, UK
The conference will cover the latest results in all
areas of pyrolysis and related thermal processes
and will attract a wide range of researchers from
academia and industry.
Seaweed for Biofuel on 21 May in
Oban, Scotland
Seaweed for Biofuel is organised by the Algal
Bioenergy Special Interest Group and Innovation
Norway and is aimed at enhancing collaboration
and addressing supply chain challenges around
developing a sustainable and robust algal biofuel
network.
World Waste to Energy City Summit
2014 on 21-22 May in London, UK
Registration is now open for the third annual
World Waste to Energy City Summit, taking place
in London in May 21-22, 2014, will once again
bring together the leading players in the
advanced waste to energy sector with the most
active funders in the market for two days of
interactive debate and networking.
20% delegate discount off registration for NNFCC
members.

The Algae Event on 25 June in
Hamburg, Germany
Providing a better understanding on how algae fit
into the current biomass industry and how they
could contribute to a sustainable bioeconomy in
the future.
EnAlgae is co-organising a stand-alone
conference session on algae within the EU
Biomass Conference and Exhibition in Hamburg.
16th European Congress on
Biotechnology on 13-16 July in
Edinburgh, UK
The European Congress on Biotechnology is the
leading conference for academic and industrial
biotechnologists in Europe organised by the
European Federation of Biotechnology.
2nd International Conference on Algal
Biorefinery on 27-29 August in
Copenhagen, Denmark
This international conference aims to share
research experience on aquatic biomass resources,
both micro-, and macroalgae as a potential source
of food, feed, biochemical, biofuels and
biofertlizers.
The Bioenergy from Forest Conference
on 15-18 September in Helsinki,
Finland
The Conference will focus on the factors affecting
the future of bioenergy and biobased modern
technologies and business solutions, including
logistic systems, management, total procurement
chains, the effects of the energy markets, the
influence of green marketing and other trends
affecting forestry, agriculture, industry and
climate.

Prices
Historical auctioned prices of ROCs in sterling pounds, and total amounts of ROCs
historically sold.
The scheduled e-ROC monthly auction took place
today Monday 31st March 2014 and 142,807
ROCs were sold. This is the highest number of
ROCs sold since June 2012 and is also 61% up on
March 2013.
The average price was £41.50 a very small
decrease of 4p from last month.
A record 1,019,137 ROCs have been sold through
the 12 e-ROC auctions held between April 2013 to
March 2014. This represents a 23% increase on the
829,771 ROCs sold in the previous financial year.
The date of the next e-ROC monthly auction is on
Friday 25th April 2014.
Click here for more information
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17/10/02 17/10/04 17/10/06 17/10/08 17/10/10 17/10/12
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HistoricalsellingROCprice(£)
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Total no. of ROCs sold ROC price

Credits and Disclaimer
NNFCC Market Review is edited by Dr Efthalia Arvaniti for NNFCC members. Feedback is welcome. The
Review has been compiled in good faith and NNFCC does not accept responsibility for any inaccuracies or
the products or services shown.
NNFCC
The Bioeconomy Consultants
NNFCC, Biocentre, Phone: +44 (0)1904 435182
York Science Park, Fax: +44 (0)1904 435345
Innovation Way, E: enquiries@nnfcc.co.uk
Heslington, York, Web: www.nnfcc.co.uk
YO10 5DG.

Nnfcc market review bioenergy issue twentyfive april 2014

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Nnfcc market review bioenergy issue twentyfive april 2014