Eunomia: UK Anaerobic Digestion Market Saturated Due to Lack of Feedstock

The Anaerobic Digestion (AD) market has reached a ‘tipping point’ beyond which there is not currently sufficient feedstock being collected to support operation of new biogas facilities, according to a report published today by environmental consultancy, Eunomia Research & Consulting. The consultants claimed that some operators and developers are now struggling to access sufficient feedstock at a level of gate fee which can support either new plant development or ongoing operation. Without any change in the market or regulatory environment to stimulate separate collection of household, and most importantly, commercial wastes the report said that there may be consolidation within the sector in the near future. “The report is underpinned by modelling which broadly quantifies the levels of source separated food waste, which is ‘actually available’ across key sectors which generate food wastes,” explained Adam Baddeley, the report’s lead author. The capacity forecast, shown in figure above, is said to suggest that there is a current over-supply of treatment capacity of 100,000 tonnes (in 2013/14), which will increase to 80,000 tonnes in 2016/17, before decreasing to 200,000 tonnes by 2023/24, as captures of food waste grow, assuming capacity remains static. According to the report, it is therefore becoming increasingly important to consider methods by which food waste can be further unlocked from both the commercial and household sectors. In this respect, in the immediate term, the report suggested the following market-driven, commercial approaches to delivering greater capture rates: A move towards weight-based pricing mechanisms, which can be an attractive proposition for contractors, which can offer both residual and food waste collections Procurement of food (and other) waste collection services via collaborative methods, whereby businesses join together to reduce the costs of the service. Further to this, in the short to medium-term, the authors propose the following regulatory measures, as a means to maintaining an upward trend in food waste captures to support growth in the AD sector: Tighter adherence to, and enforcement of the waste hierarchy by the EA, as the authority tasked with ensuring compliance with related Guidance published by Defra The introduction of a requirement in England (and Wales) upon businesses to sort food waste at source, as has been introduced in Scotland The introduction of a requirement for local authorities to provide separate food waste collections to households. It also remains essential for local government, central Government and industry to focus on waste prevention efforts to achieve the most cost effective “AD capacity designed to treat food waste is developing at a faster pace than food waste feedstock is being ‘unlocked’ for separate collection,” said Baddeley. “Market development and regulatory intervention is urgently needed to maintain growth in the sector and to ensure food waste is treated in line with the waste hierarchy,” he concluded. The full report can be downloaded HERE Read More Eunomia Report Warns of Looming Residual Waste Treatment Overcapacity There is currently 5.7 million tonnes of residual waste treatment capacity under construction in Great Britain and total capacity will reach 17 million tonnes by 2017, according to the sixth issue of the Residual Waste Infrastructure Review published today by environmental consultancy firm, Eunomia. 'Waste Regulations Route Map' Broadly Welcomed The ‘Waste Regulations Route Map’, developed with assistance from Eunomia, has been published in the UK by a working group comprising members of local authority waste networks, the London Waste and Recycling Board (LWARB), and WRAP. New Digesters on Schedule at 160,000 TPA Food Waste to Biogas Plant in Doncaster Work is progressing to schedule on the £6 million expansion of UK food waste collection and recycling specialist, ReFood’s Anaerobic Digestion biogas plant in Doncaster.