Waste to Energy

CIBSE Presentation
Patrick Grange

Rural, Business and Renewable Energy Consultants

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Agenda
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CMS UK
Background to Renewables
Energy from Waste
CHP Units
H
How
we prepare b
business
i
plan
l
Projected Input and output

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

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CMS UK
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Farm Renewable Energy Projects

Environmental Stewardship
Business Plans
Countryside Educational Visits Accreditation
Scheme
Farm Assurance Assessments
Rural Consultancy Services

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Renewable Energy
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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
B i
Business
planning
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Grant and planning applications

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The CMS UK Energy Audit

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Collect key information

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Energy
Water
Rainwater harvesting
Waste Management
Additi
Additional
lC
Carbon
b ffootprint
t i t metrics
ti

Highlight areas of improvement

Provide tangible
g
Financial savings
g

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Energy Fuels

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Miscanthus

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Mowing Miscanthus

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Baling Miscanthus

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Baled Miscanthus

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Woodchip

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Example of Business Planning

BACKGROUND TO THE PROJECT
z
Family owned farm of some 650 acres mainly arable growing wheat; barley; potatoes and 35
acres of Miscanthus.
z
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
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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.
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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
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Total cost of the project was estimated at 2.142 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
z
The Government changes the renewable energy policy requiring energy providers to source
10% of their output from renewable sources by 2011.
z
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.

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BENEFITS
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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
fertilizer.
The project complies with the Governments 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
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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
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 businesss capital to update all local
infrastructures. (Power lines, poles etc)

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z
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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
g
Certificates)) p
paid q
quarterly
y in arrears.
52.00 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.

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PRICING OF OUTPUT
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Pricing varies dependant on time of day, time of year and even day of the week.
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Winter period is October to March inclusive
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Day
08.00 16.00 and 19.00 20.00
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Peak 16.00 19.00
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Night 20.00 08.00
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Summer period is April to September inclusive
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Day
08.00 20.00
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Night 20.00 08.00
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However Sundays and bank holidays are paid at a lower rate
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V i
Various
other
th items
it
affect
ff t the
th final
fi l price
i to
t be
b paid
id as the
th above
b
tariffs
t iff equate
t to
t a TWA
(Time weighted average)
CAPITAL REQUIREMENTS
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Gasification Plant
1,670,000
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Connection Charge 250,000
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Site Housing
g etc
74,552
,
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Briquetting Machine 100,000
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Push Floor Loading 45,000
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TOTAL
2,139,552

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CONCLUSION
z From these figures we were able to produce:z Balance Sheet
z Cash Flow
z Funds Flow
z Profit & Loss
z After allowing for Insurance,
Insurance Maintenance costs
costs, Electricity
Electricity,
Operator costs Interest and fees we calculated that the
enterprise would pay for itself in less than six years.
z This included a fuel input cost estimated at a maximum of
20 00 per tonne
20.00

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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
nonrecyclable 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.
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.
p

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Waste to Energy
CIBSE Presentation
Patrick Grange

Rural, Business and Renewable Energy Consultants

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