PRESS RELEASE: “Tide may be turning” for UK anaerobic digestion industry

• Renewable technology has “bright future” despite recent difficulties, says industry body
• Global AD and biogas tradeshow strikes positive note after tough years for UK industry

The “tide may be turning” for the UK anaerobic digestion (AD) industry, according to the head of the Anaerobic Digestion & Bioresources Association (ADBA).

ADBA Chief Executive Charlotte Morton said last week in her welcoming remarks at UK AD & World Biogas Expo 2018, the world’s largest international tradeshow dedicated solely to AD and biogas:

The last few years have been very challenging for the UK AD industry. We’ve been operating in an environment of declining government support for renewable energy, with tariffs for renewable electricity and, until very recently, renewable heat steadily falling. There are, however, a number of reasons to believe that the tide may be turning and that AD in the UK has a bright future.

First, despite significant delays, changes to the Renewable Heat Incentive (RHI) have now finally come into effect, providing the kind of tariff rates for biomethane production that we were seeing five years ago as well as new tariff guarantees that lock in these rates over a set period. This is bringing £150-£300m of new investment to build a further 50+ biomethane plants. And whilst the current RHI scheme is due to close by 2021, the urgent need for more biomethane is resulting in calls from the Committee on Climate Change for the government to put in place a replacement before the end of this year.

There is also good news on the food waste side of the industry, with the European Union’s Circular Economy Package having come into force just last week. One of the key elements of the package is an obligation for EU Member States to bring in separate collections for biowaste by December 2023, and we fully expect the UK to adopt these targets in the Resources & Waste Strategy due out later this year.

Finally, there is considerable investment coming into the AD sector as part of an industry consolidation that involves refinancing and upgrading existing on-farm AD plants to improve their performance. This is expected to require £300m of opex across the industry per annum by 2020.

So there’s a huge light at the end of the tunnel if we can just keep going through these tough times.

AD and biogas technologies convert organic wastes and energy crops into renewable heat and power, clean transport fuel, and nutrient-rich biofertiliser, helping to reduce emissions whilst improving energy and food security and improving air quality.

While the UK AD industry already has sufficient capacity to power 1.2 million homes, the number of new AD plants being built has been falling in recent years, constraining the ability of the industry to help meet government decarbonisation goals across heat, electricity, farming, waste, and transport. ADBA’s latest Market Report shows that AD in the UK is currently reducing emissions by 1% per year but has the potential to reduce emissions by 5% if the industry reaches its full potential.

UK AD & World Biogas Expo 2018 was jointly organised by ADBA and the World Biogas Association (WBA) and brought together AD and biogas professionals from around the world to discuss the latest developments and innovations in the industry. Alongside an exhibition and full conference programme, highlights from the expo included a breakfast briefing for farmers on the opportunities for refinancing existing on-farm AD plants, a dedicated lunch and workshops for local authorities on introducing separate food waste collections, and a black-tie awards ceremony celebrating those making the greatest contribution to AD and biogas in the UK and around the world.

ENDS

Notes for editors

Photo of Charlotte Morton attached for use.

Anaerobic Digestion & Bioresources Association: www.adbioresources.org

ADBA July 2018 Market Report: https://adbioresources.org/news/new-adba-market-report-july-2018-published

UK AD & World Biogas Expo 2018: www.biogastradeshow.com
ADBA is the trade association for the anaerobic digestion (AD) industry in the UK and companies and organisations working on novel technologies and processes that compliment the anaerobic digestion process and products. With our members we promote the economic and environmental benefits of AD in the UK.

We represent organisations from many sectors including: AD operators, AD developers, AD equipment providers, water companies, farmers, food & drink retailers, waste companies, universities and more.

Contact details

Chris Noyce, PR & Parliamentary Affairs Executive, ADBA

T: 020 3176 5441      E: chris.noyce@adbioresources.org

Website: www.adbioresources.org

Twitter: @adbioresources