Defra announce Anaerobic Digestion Loan Fund at UK AD & Biogas 2011
Defra Minister Lord Henley has announced a £10m Anaerobic Digestion Loan Fund (ADLF) for new AD plants in his speech to the conference at UK AD & Biogas 2011.
The ADLF, which will be administered by the Waste Resources Action Programme, will lend amounts ranging from £50,000 - £1m to support the development of new AD capacity in England, in conjunction with investment from the private sector. It aims to support 300,000 tonnes of annual capacity to divert food waste from landfill by 2015.
Lending will be asset based and can include industrial units, plant and machinery, and groundwork. The projects will be selected through a competitive process in four phases, the first of which will run from July-October 2011.
Responding to the announcement, ADBA Chief Executive Charlotte Morton said:
“This fund is welcome news for the industry, and will support projects which will make a real difference in starting to build up the UK’s anaerobic digestion capacity.
“However, it represents only a small part of the investment which is needed to take AD to the point where it is really delivering for the UK’s strategic objectives – and raising finance remains the biggest barrier for projects.
“Meeting the UK’s 2020 commitments on landfill diversion and renewable energy require high investment in new capacity over the next few years. That simply isn’t happening while investors are being put off by mixed messages from Government, and while they remain unwilling to direct Local Authorities to take a course they have already said realises the most benefit.
“The Government needs to build on this announcement by grasping the nettle to encourage wider private finance into the market. This doesn’t require more money from the taxpayer – simply clear statements that organic waste feedstock should be source segregated and prioritised for AD.”
Key facts you need to know about anaerobic digestion and biogas
- Anaerobic digestion (AD) is a natural process which converts organic matter such as household food and garden waste, farm slurry, waste from food processing plants and supermarkets, into biogas.
- Biogas (which is approximately 60% biomethane, 40% CO2) can be utilised to generate electricity and , heat, andor, upgraded to bio-methane, be either used as a biofuel transport fuel or be fed directly into the UK’s gas grids
- According to the Carbon Trust the generation of bio-methane would save twice as much carbon dioxide as producing electricity by 2020
- AD is the only renewable that can be scaled up fast enough to enable the UK to reach its 2020 renewable energy target
- AD reduces greenhouse gas emissions by treating organic wastes which would otherwise emit methane (landfill, slurries) and reducing our use of energy intensive commercial fertilisers and fossil fuels
- AD preserves critical natural resources such as Nitrates and Phosphorus. Phosphorous is a finite resource for which there is no known alternative. It is critical for plant growth and world resources are already running out. Nitrates are one of the key components of fertilisers.
- AD reduces our use of fossil fuels
- AD significantly improves Britain’s energy security - we will soon be importing over 70% of our gas
- Unlike other renewables, biomethane is generated constantly and can be stored in the gas grid, and biomethane is one of the few renewable fuels for Heavy Goods Vehicles (HGVs) which cannot run on electricity
- The AD industry has the potential to generate around 40TWh of energy, equivalent to 20% of the UK’s domestic gas demand
- The AD industry has the potential to be worth £2-3bn in the UK alone and employ 35,000 people
- Overseas potential is significant and the UK could be a world leader - with the right support now.
Five facts you need to know about ADBA
- ADBA stands for The Anaerobic Digestion and Biogas Association
- The Anaerobic Digestion and Biogas Association was founded in September 2009
- Since its launch ADBA has acquired nearly 240 members, including AD plant operators, suppliers, local authorities, farmers, utility and energy companies such as British Gas and Scotia Gas Networks, supermarkets such as Waitrose and Morrisons, fleet operators such as Coca Cola and Howard Tenens
- Since its launch ADBA has acquired over 230 members
- ADBA’s chairman is Lord Redesdale, former Liberal Democrat energy spokesman
- ADBA’s aim is to help enable or facilitate the development of a mature AD industry in the UK and to represent all businesses involved in the anaerobic digestion and biogas industries, to remove the barriers they face and to support its members to grow their businesses and the industry to help UK plc meet its renewable energy, climate change and landfill targets, as well as the preservation of critical natural resources.
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