Waste to Energy. Patrick Grange. Copyright CIBSE MNW Region 1. Rural, Business and Renewable Energy Consultants

Transcription

1 Waste to Energy CIBSE Presentation Patrick Grange Rural, Business and Renewable Energy Consultants Copyright CIBSE MNW Region 1

2 Agenda CMS UK Background to Renewables Energy from Waste CHP Units How we prepare business plan Projected Input and output Copyright CIBSE MNW Region 2

3 Patrick Grange Background: Cheshire Farmer former dairy now farming beef and sheep Co-op Director for some 15 years now Deputy Chair of Co-operative Group Director of South Cheshire Chamber of Commerce Founder of Rural Funding Solutions now part of the CMS UK Group Copyright CIBSE MNW Region 3

4 CMS UK Farm Renewable Energy Projects Environmental Stewardship Business Plans Countryside Educational Visits Accreditation Scheme Farm Assurance Assessments Rural Consultancy Services Copyright CIBSE MNW Region 4

5 Renewable Energy Rural,Business and Renewable Energy Consultants Carbon management and Carbon audits Biomass boiler systems for heating Combined heat and power systems Wind Power systems Anaerobic digestion and biogas systems Production of Energy crops Energy crop payments (SPS) Renewable energy business groups Business planning Grant and planning applications Copyright CIBSE MNW Region 5

6 The CMS UK Energy Audit Rural,Business and Renewable Energy Consultants Collect key information Energy Water Rainwater harvesting Waste Management Additional Carbon footprint t metrics Highlight areas of improvement Provide tangible Financial savings Copyright CIBSE MNW Region 6

7 Energy Fuels Rural,Business and Renewable Energy Consultants Copyright CIBSE MNW Region 7

8 Miscanthus Rural,Business and Renewable Energy Consultants Copyright CIBSE MNW Region 8

9 Mowing Miscanthus Rural,Business and Renewable Energy Consultants Copyright CIBSE MNW Region 9

10 Baling Miscanthus Rural,Business and Renewable Energy Consultants Copyright CIBSE MNW Region 10

11 Baled Miscanthus Rural,Business and Renewable Energy Consultants Copyright CIBSE MNW Region 11

12 Woodchip Rural,Business and Renewable Energy Consultants Copyright CIBSE MNW Region 12

13 Copyright CIBSE MNW Region 13

14 Copyright CIBSE MNW Region 14

15 Example of Business Planning BACKGROUND TO THE PROJECT Family owned farm of some 650 acres mainly arable growing wheat; barley; potatoes and 35 acres of Miscanthus. Farm also carries a flock of 550 breeding ewes and over winters some cattle in addition to a Broiler Unit with 90,000 chickens per crop, six crops per year. DESCRIPTION OF THE BUSINESS PROPOSAL The proposal was for a One Megawatt wood fuelled gasification plant housed in a new purpose built building on the farm producing electricity for the National Grid. Surplus heat produced by the plant to provide heat drying of input materials also to provide heat for the poultry unit thereby reducing the dependency and cost of bought in gas. INVESTMENT REQUIREMENTS Total cost of the project was estimated at million to be financed by a loan from Agricultural Mortgage Corporation at a rate of 1.1% above base rate over a ten year repayment period with a 1% loan facility fee. With a six month break before start of repayments. RISKS The Government changes the renewable energy policy requiring energy providers to source 10% of their output from renewable sources by The other risk was that in time the market could have an excess of the mandatory amount of renewable energy which could result in a reduction of the price paid to producers. Copyright CIBSE MNW Region 15

16 BENEFITS The project will greatly improve the viability of the family business in addition to providing employment in a rural area. The project is environmentally friendly, meeting all the green energy policies with absolute minimal pollution the only waste product being a small amount of potash that will be used on the farm saving on imported fertilizer. The project complies with the Government s Renewable Energy Scheme. The project fits in with the current farm business enhancing the use of farm crop production Miscanthus is one of the few crops still attracting subsidies from DEFRA. The unit would use the Miscanthus grown on the farm together with any surplus straw. Heat from the unit would be used for drying and heating the other enterprises. Manure from the poultry unit would be dried and briquetted then used as fuel for the Gasifier again reducing any chance of pollution in the area. The project completes the principle of whole farm production meeting with best practise by reducing dependence on outside sources. OUTSIDE AGENCIES The local authority has been very supportive of the project in granting planning permission. The project has had to comply with all Health and Safety legislation. A licence is needed from the Environment Agency for the spreading of the waste potash on the farmland. Need to obtain quote for electrical connection to the Grid. Energy companies see it as an ideal time to use other business s capital to update all local infrastructures. (Power lines, poles etc) Copyright CIBSE MNW Region 16

17 MARKETING OF THE ELECTRICITY The demand for renewable energy is undeniable with the world running out of existing energy sources. Energy companies are obliged under current government legislation to produce 10% of their supplies from renewable sources. Biomass produces a clean, environmentally friendly product without any adverse impact on the local population. The use of wood chippings, green waste, poultry manure and straw reduces the need for land infill. INCOME The pricing structure for the electricity produced is complex to say the least. The figures shown are the ones used when preparing the business plan. Income from direct sales is received within 14 days of the month end. Income from LECs (Levy Exemption Certificates) is payable 90 days after production. 0.43p per kwh Income from ROCs (Renewable Obligation Certificates) paid quarterly in arrears per kwh We based plan on a projected output of 85Kilowatts per hour, 24 hours a day, 7 days a week in effect 50 weeks of the year. Two weeks per year were allowed for general maintenance spread over the full year. Copyright CIBSE MNW Region 17

18 PRICING OF OUTPUT Pricing varies dependant on time of day, time of year and even day of the week. Winter period is October to March inclusive Day and Peak Night Summer period is April to September inclusive Day Night However Sundays and bank holidays are paid at a lower rate Various other items affect the final price to be paid as the above tariffs equate to a TWA (Time weighted average) CAPITAL REQUIREMENTS Gasification Plant 1,670,000 Connection Charge 250,000 Site Housing etc 74,552 Briquetting Machine 100,000 Push Floor Loading 45,000 TOTAL 2,139,552 Copyright CIBSE MNW Region 18

19 CONCLUSION From these figures we were able to produce:- Balance Sheet Cash Flow Funds Flow Profit & Loss After allowing for Insurance, Maintenance costs, Electricity, Operator costs Interest and fees we calculated that the enterprise would pay for itself in less than six years. This included a fuel input cost estimated at a maximum of per tonne Copyright CIBSE MNW Region 19

20 Knowsley Energy From Waste Facility Energos is planning to build a new renewable energy facility at Knowsley Park. The proposed facility will use environmentally responsible gasification technology to generate green electricity for up to 10,000 homes and heat for local industry from non- recyclable waste. The planning application for the facility, which would be a centre of international excellence for green waste management has been submitted to Knowsley Metropolitan Borough Council. The plans can be viewed at Council Offices and the non-technical full summary can be downloaded. The plant at Knowsley would take 2 years to build and it would be the second advanced conversion plant built in the UK. Copyright CIBSE MNW Region 20

21 Waste to Energy CIBSE Presentation Patrick Grange Rural, Business and Renewable Energy Consultants Copyright CIBSE MNW Region 21