Residual Waste EFW: Difference between revisions

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==Gate Fees/Income Economics==
==Income Economics (Overview)==
The income for an EFW facility is secured from the following main sources:
The income for an EFW facility is secured from the following main sources:
# [[Gate Fee]] - secured via a [[Fuel Supply Agreement]] or [[FSA]]
# [[Gate Fee]] - secured via a [[Fuel Supply Agreement]] or [[FSA]]
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# Heat/steam exported (if [[CHP]]/relevant)  
# Heat/steam exported (if [[CHP]]/relevant)  
# [[PRN]] (if a registered [[R1]] facility)
# [[PRN]] (if a registered [[R1]] facility)
==Gate Fees==
[[Gate Fee]] is typically between 50 to 70% of the income received and so is a key component of the overall income to a project, and is influenced by a number of factors. [[WRAP]] publish an annual report<ref name="WRAP 2019">[https://www.wrap.org.uk/gatefees2019 WRAP Gate Fee Report 2019]</ref> on [[Gate Fee]]s for different waste facilities and the factors influencing them. The table below summarizes the gate fees reported in 2018, the following two graphs show the range of [[Gate Fee]] over time, and the table at the end shows the factors influencing [[Gate Fee]] as reported by interviews with respondents as part of the report process:
[[Gate Fee]] is typically between 50 to 70% of the income received and so is a key component of the overall income to a project, and is influenced by a number of factors. [[WRAP]] publish an annual report<ref name="WRAP 2019">[https://www.wrap.org.uk/gatefees2019 WRAP Gate Fee Report 2019]</ref> on [[Gate Fee]]s for different waste facilities and the factors influencing them. The table below summarizes the gate fees reported in 2018, the following two graphs show the range of [[Gate Fee]] over time, and the table at the end shows the factors influencing [[Gate Fee]] as reported by interviews with respondents as part of the report process:
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The [[WRAP]] report<ref name="WRAP 2019" /> focuses on local authority customers, where 71% of contracts were [[PFI]]/[[PPP]] contracts of duration of 20 years or more. The emphasis on the factors on [[Gate Fee]]s for shorter term contracts, and contracts that rely more heavily on [[Commercial and Industrial Waste]] and different types of [[Waste Derived Fuel]] will be different. The most significant issues/emphasis, if interviewed, would likely to be supply/demand at the time of committing to a contract (typically much shorter in duration) and the fuel specification/[[Waste Derived Fuel]] specification - the more processing the fuel requires to meet the [[EfW]] plant input specification, the lower the [[Gate Fee]] that can be secured (primarily as the [[Gate Fee]] has to acknowledge the additional processing cost required to meet that specification).
The [[WRAP]] report<ref name="WRAP 2019" /> focuses on local authority customers, where 71% of contracts were [[PFI]]/[[PPP]] contracts of duration of 20 years or more. The emphasis on the factors on [[Gate Fee]]s for shorter term contracts, and contracts that rely more heavily on [[Commercial and Industrial Waste]] and different types of [[Waste Derived Fuel]] will be different. The most significant issues/emphasis, if interviewed, would likely to be supply/demand at the time of committing to a contract (typically much shorter in duration) and the fuel specification/[[Waste Derived Fuel]] specification - the more processing the fuel requires to meet the [[EfW]] plant input specification, the lower the [[Gate Fee]] that can be secured (primarily as the [[Gate Fee]] has to acknowledge the additional processing cost required to meet that specification).
==Electrical Power Income==
Income from the export of electricity makes up the majority of the income other than [[Gate Fee]], although this can be more heavily influenced by projects with any subsidies for renewable power (i.e. [[ROC]] and [[CFD]]). The [[PPA]] comprises different elements of payment, but the principle payment is related to baseload power, the value of which fluctuates in the market. [[PPA]]s therefore are normally a balance between optimizing price per Megawatt-hour (normally as a percentage of baseload price) while managing downside risk, over the period of the contract. Hence a project with 15MWe export operating over 8,000 hours a year would have 120,000 Megawatt-hours a year at the baseload price. The variation in baseload price can be seen in the following graph from [[Ofgem]]<ref>[https://www.ofgem.gov.uk/data-portal/all-charts/policy-area/electricity-wholesale-markets: Ofgem Wholesale Electricity Charts]</ref>:
[[File:Chart of baseload price.png|600px|left|Ofgem Baseload Electricity Price - Day Ahead Monthly Average]]__TOC__
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==References==
==References==
<references />
<references />

Revision as of 15:35, 21 April 2020

Residual Waste can be used as a feedstock for Energy from Waste (EfW) facilities and Residual Waste is considered as partially renewable or a low carbon energy source as a result of the energy produced from the fraction of Residual Waste derived from Biomass that is considered renewable[1].

Ferrybridge 2 (with Ferrybridge 1 in background) - which will be the largest 'single site' for Residual Waste EFW in the UK when both are fully operational
Ferrybridge 2 (with Ferrybridge 1 in background) - which will be the largest 'single site' for Residual Waste EFW in the UK when both are fully operational


Operational EfW

The following list summarizes all EfW sites that were operational as of January 2020, with limited summary information in the table. More detailed information can be found by clicking through to the site-specific page:

Locations of Operational residual waste EfWs in the UK
Locations of Operational residual waste EfWs in the UK
ID Site Name Capacity (kt)

1. Runcorn EfW 1100
2. Riverside Resource Recovery Facility (RRRF) 850
3. Teeside EfW - lines 1-5 (Teeside & NEERC), Billingham. line 3 756
3. North East Energy Recovery Centre. Lines 4 & 5 0
3. North East Energy Recovery Centre. Lines 1&2 0
4. Ferrybridge Multifuel 1 (FM1) 725
5. Edmonton EcoPark EfW 750
6. Allington EFW 560
7. SELCHP ERF 464
8. Lakeside EfW 468
9. Wilton 11 EfW 500
10. Trident Park (Cardiff ERF) 425
11. Tyseley ERF 441
12. Severnside Energy Recovery Centre 467
13. Greatmoor EfW 345
14. Four Ashes EfW (Staffordshire ERF) (W2R) 340
15. Ardley EfW 378
16. Allerton Waste Recovery Park (EfW) 320
17. Coventry EfW Plant 315
18. Great Blakenham EfW 295
19. North Yard EfW (Devonport EfW CHP Facility) 275
20. Cornwall ERC 240
21. Sheffield ERF 245
22. North Quay ERF (Newhaven) 242
23. Marchwood ERF (Integra South West) 220
24. Portsmouth ERF (Integra South East) 220
25. Stoke-on-Trent EfW 210
26. EnviRecover - Hartlebury EFW 230
27. Eastcroft EfW (Lines 1 & 2) 200
28. Leeds Recycling & ERF (Cross Green ERF) 190
30. Lincolnshire EFW 190
31. Vine Street EfW (Kirkless EfW) 135
32. Glasgow Renewable Energy and Recycling Centre (ACT) 154
33. Bolton TRF 128
34. Baldovie and Dundee EfW 260
34. Dundee EfW CHP Facility 0
35. Wolverhampton EfW 118
36. Chineham ERF (Integra North) 110
37. Dudley EfW 105
38. Battlefield EfW 102
39. Milton Keynes Waste Recovery Park 140
40. Peterborough EfW 110
41. Lancing EfW 75
42. Exeter Energy Recovery Facility 60
43. Newlincs EfW 56
44. Lerwick Energy Recovery Plant (Shetland EfW Plant) 24
47. Rookery Pit Energy Recovery Facility (Rookery South) 585
48. Ferrybridge Multifuel 2 (FM2) 725
49. Kemsley K3 EfW 657
50. Severn Road Resource Recovery Centre 377
51. Dunbar EfW (Oxwellmains EfW) 390
52. Beddington EfW 347
54. Energy Works (Hull) 315
55. Parc Adfer EfW 232
56. Javelin Park EfW 190
57. Levenseat EfW 97
58. Millerhill EfW 190
61. Belfast Harbour Estate 144
66. Charlton Lane Eco Park (ACT) 55
67. Isle of Wight Waste Recovery Park 44
68. Sustainable Energy Centre 15
73. Newhurst EFW 455
78. Hooton Bio Power 260
148. Earls Gate Energy Centre 274
149. Baddersley EfW 130
151. NESS Energy Project 150

Summary site information collated from a variety of sources including: Monksleigh[2], Tolvik[3], EA, SEPA, NRW, DEFRA, BEIS and owner and developer websites.

ID item 3 has multiple line entries - the capacity of all entries is shown once in the first line, consolidating the later ones and resulting in a 0 entry for those consolidated.

The map, right, contains the locations of all the sites listed above - please note that due to scale and cartographic limitations some of the numbers in the list might not be shown on the map due to sites being in close proximity, or sites in areas of high density. This does not mean that the site marker is not there. An example of this is Ferrybridge as both FM1 & FM2 are in geographically similar locations, a few 100m apart, and as a result the location markers will appear on top of each other, and as a result one will block the other's numerical id. This also applies to the following maps on sites in construction and planning.

Growth in Residual Waste EfW

Historically, the UK has been very dependent on Landfill or Incineration without energy recovery for Disposal of Residual Waste. The landfill diversion targets set in the mid 1990s promoted EfW developments. The diversion of residual waste away from Landfill and into EfW processes reduces emissions of methane and pollution originating from Landfill sites and increases production of renewable energy[1]. Energy from Waste is the now the main method for dealing with Residual Waste, with Landfill of Residual Waste being the least preferred method, as outlined in the Waste Hierarchy[1].

In 2018, the amount of residual waste that was sent to EfW processes in the UK increased by 5.6%, amounting to a total of 11.5 million tonnes being sent to 42 operational EfW facilities across the UK[4]. This represents 41.8% of the total residual waste produced in the UK in 2018 (increasing from 39.5% in 2017)[4]. The total power generated from EfW facilities in 2018 was 6,153 GWh, this supplied 1.9% of the total UK power generation, and gives an average of 536 kWh of power generated per tonne of residual waste treated at UK EfW facilities[4]. ‌ The graph below displays how the tonnage of residual waste processes by UK EfW facilities has changed over recent years, and excludes sites reported as operational in the previous section that were commissioned in 2019 and early 2020.

Changes in residual waste tonnage processed by EfWs[4]
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Table Summarizing Graph Data
Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Tonnes 3.3 3.3 3.3 3.6 4.2 4.8 5.2 5.5 6.7 8.4 10.1 10.9 11.5


The table below shows the power and heat generation from residual waste EfW facilities in the UK between 2014-2018.[4]

Power and Heat Table
Year 2014 2015 2016 2017 2018
Net Power Export (GWhe) 3,368 4,636 5,241 6,187 6,153
Net Heat Export (GWhth) NA 554 730 865 1,112


England produced 12.5 million tonnes of Residual Waste from Households in 2016[5], and it is estimated that there will be an increase in EfW capacity for Residual Waste by 2 million tonnes/year by 2022 [6].

With the increasing social, economic and political drive to Prevent, Reuse and Recycle more waste, in line with the Waste Hierarchy and the Circular Economy the amount of Residual Waste is expected to decrease in the medium to long term[1]. The exact magnitude of this reduction and the Residual Waste continuing to need to be delivered to EfW has been debated at length by different commentators over the last few years.

Under Construction EfW

The following list summarizes all EfW sites that were under construction January 2020, with limited summary information in the table and more detailed information by clicking through to the site-specific page . Historically there have been some plants that have not passed from construction to operation due to commissioning issues and are not listed i.e. Air Products. Several of the plants listed below that are presently in extended commissioning are based on Gasification technologies, but no comment is made as to whether they will reach full operational capacity.

In addition there are some plants below which are reported as commencing construction, but this only applied to initial works or the construction of adjacent infrastructure, and not the EfW element of the project. The sites that fall into this category (i.e. the EfW is not thought to be under construction) in the list below include ID numbers 53, 59, 60, 63, 65, and 68.

Under Construction EfW within the UK.
Under Construction EfW within the UK.
ID Site Name Capacity (kt)

45. North London Heat and Power (Edmonton EcoPark Replacement) 700
46. Lostock Sustainable Energy Plant 600
62. Showground Road 105
69. Riverside Energy Park (REP) 650
70. Rivenhall EFW 595
72. Protos EFW 400
75. Slough Multifuel EFW 480
76. Walsall Energy Recovery Facility 478
83. Binn Eco Park EFW 85
95. Drakelow Renewable Energy Centre 169
127. South Clyde Energy Centre, Bogmoor Road, Glasgow 385
144. Drumgray Energy Recovery Centre (DERC) 300
146. Kelvin Energy Recovery Facility 400
170. Oldhall EfW Plant 180
178. Skelton Grange EfW Plant 435
184. Westfield EfW Plant 240
216. Advanced Biofuel Solutions 8

Summary site information collated from a variety of sources including: Monksleigh[2], Tolvik[3], EA, SEPA, NRW, DEFRA, BEIS and owner and developer websites

In Planning EfW

The following list summarizes all EfW sites that were in the planning process as at January 2020, with summary capacity shown in the table. In some cases planned capacity replaces existing sites, and no comment or note is made on those plants whose planning consent may have expired due to not being implemented within consented time limits, or the likelihood of them moving from this stage into construction.

EfW Sites within UK in Planning
EfW Sites within UK in Planning
ID Site Name Capacity (kt)

53. Enviroparks Hirwaun Generation Site 250
59. Bulwell Energy 160
60. Coatbridge Renewable Energy Facility 204
65. Swindon Energy Plant 70
71. North Beck Energy Centre 560
77. Houghton Main 260
82. Bilsthorpe Energy Centre 96
84. Bloomfield Recycling Depot (Re-submission) 180
86. The 3Rs Bradford 160
87. Gretton Brook Road, Corby 154
92. Clydach Refinery 103
93. Cornwall Bio Park (Redruth) 80
94. Derwenthaugh Ecoparc (resubmission) 90
97. Eastleigh 120
98. Eastcroft EfW (3rd Line) 140
100. Finmere Quarry 60
101. Fleetwood Energy Centre 80
102. Keighley EfW Plant, Former Gas Works, Aire Valley Road 100
103. Rotherham Renewable Energy Centre (Former Templeborough Steel Works) 215
104. Fort Industrial Park (Castle Bromwich) 105
105. Hams Hall National Distribution Park 150
106. Hangmans Lane 50
108. Killoch Depot 160
109. Kingmoor Park 250
110. Kingspan Insulation 240
111. Knowsley ERF 80
112. Land to the South of Knapton Quarry Landfill Site 110
113. Levenseat EfW Phase 2 315
117. Melton Waste Park/Solar 21 EfW plant 250
118. Moody Lane (Former Acordis site) Resubmission 170
120. Northacre RRC 243
122. Peterborough Energy Park (Green Energy Parks - Gasification) 350
124. Pond Green Energy Park 80
128. Southmoor Energy Centre 350
130. Greengate EfW Plant 330
131. Thames Gateway EfW (Resubmission) 200
132. The 3Rs Doncaster 350
134. Uskmouth Power Station (Subcoal) 450
136. Washwood Heath (resubmission) 128
138. Corby Energy Recovery Centre 357
139. Tilbury Docks - Phase 2 (EfW) 350
141. Garden of England Energy 104
142. Haverton Hill (line 6) 200
145. Keypoint Industrial Estate 150
147. Darwen Energy Recovery Plant 500
150. Medworth EFW CHP 626
152. Thainstone Inverurie Energy Park ERF 240
154. 3Rs EfW Plant, Horsham 180
155. Boston Alternative Energy Facility 1000
159. Chiltern Green Energy Park 500
161. Envirofusion EfW Plant (Alfreton) 5
162. EP South Humber Bank Energy Centre 750
163. Grundon Circular Technology Park 275
167. Hay Hall Bio Power 277
171. Llynfi Biomass Power 300
172. Longridge Road Energy Centre (Preston) 395
176. Protos (Bio-Sustainable Natural Gas) Plot 4 175
177. Redcar EfW Plant (South Tees) 350
181. Swansea EfW plant 30
189. Trostrey Court Farm Barns Clytha Road Trostrey Common Gwehelog (Usk) 42
191. Bandeath Industrial Estate, Throsk 60
192. Hill Barton Business Park 88
193. Magnetic Park Energy Centre 96
199. Hightown Quarry EFW 211
200. North Hampshire (Alton) 330
202. East Midlands Energy Re-Generation Centre (EMERGE) 500
203. Immingham 600
207. Energy and Resource Park, Kidderminister 75
208. Eco Park EFW (Parley) 50
213. South Tees Development Corportation/Redcar EFW 450
215. Teeside Renewable Energy Plant 333
217. Billingham Reach 375
220. Berry Lane ERC/Reading Quarry 150
221. New Road Billingham EFW 200
222. Graythorp Energy Centre 560
230. Thornton ERC 120
231. Medway Energy Hub 400
232. Plymouth EfW Facility 60
233. Immingham Railfreight Terminal 320

Summary site information collated from a variety of sources including: Monksleigh[2], Tolvik[3], EA, SEPA, NRW, DEFRA, BEIS and owner and developer websites

Income Economics (Overview)

The income for an EFW facility is secured from the following main sources:

  1. Gate Fee - secured via a Fuel Supply Agreement or FSA
  2. Electrical power exported - secured via a Power Purchase Agreement or PPA
  3. Any subsidies for renewable power generation (primarily CFD or ROC for electrical power and RHI for heat)
  4. Heat/steam exported (if CHP/relevant)
  5. PRN (if a registered R1 facility)

Gate Fees

Gate Fee is typically between 50 to 70% of the income received and so is a key component of the overall income to a project, and is influenced by a number of factors. WRAP publish an annual report[7] on Gate Fees for different waste facilities and the factors influencing them. The table below summarizes the gate fees reported in 2018, the following two graphs show the range of Gate Fee over time, and the table at the end shows the factors influencing Gate Fee as reported by interviews with respondents as part of the report process:

Summary of the UK ERF Gate Fees reported by Local Authorities, 2018 £/tonne (Table 5)[7]
Type of ERF Responses Median Mode[8] Range[9] No. of Gate Fees Reported
All All £89 £85 - £90 £44 - £125 68
Pre-year 2000 All responses £65 £65 - £70 £44 - £89 20
Pre-year 2000 With contracts £66 £65 - £70 £44 - £89 16
Pre-year 2000 Without contracts £54 £45 - £50 £47 - £81 4
Post-year 2000 All responses £93 £85 - £90 £50 - £121 45
Post-year 2000 With contracts £92 £85 - £90 £50 - £121 42
Post-year 2000 Without contracts £93 £90 - £95 £92 - £110 3
Source - WRAP Gate Fee Report 2019 - Tables 10 and 11
Source - WRAP Gate Fee Report 2019 - Tables 10 and 11


Key Influencing factors of Gate Fees in 2018 and in the future (Table 37 and Table 38 combined)[7] (expanded example from original tables in italics)
Influencing Factor Number of Responses (2018) % (2018) Number of Responses (Future) % (Future)
Inflation (RPI, RPIX) 40 63% 30 46%
Availability of capacity (i.e. supply/demand) 32 51% 35 54%
Operating costs 28 44% 25 38%
Competition between similar facilities (also a supply/demand issue) 16 25% 25 38%
Legislative requirements (i.e. changes to BAT) 16 25% 28 43%
Contractual changes, other than inflation increase 15 24% 7 11%
Investment/capital costs (i.e. new plants vs older plants with capital repaid/refinanced) 15 24% 11 17%
Other 12 19% 8 12%
Cost of landfilling residues (i.e. disposal of ash not recycled) 10 16% 7 11%
Product/commodity end market prices (i.e. value of electricity) 10 16% 10 15%
Competition from alternative treatment options 8 13% 16 25%
Competition from foreign incinerators/ERF 5 8% 4 6%
Government incentive schemes e.g. renewables (i.e. CFD) 4 6% 8 12%
Quality of input materials (i.e. fuel/waste specification) 3 5% 8 12%
Cost of recycling residues (i.e. metals from bottom ash) 2 3% 5 8%

The WRAP report[7] focuses on local authority customers, where 71% of contracts were PFI/PPP contracts of duration of 20 years or more. The emphasis on the factors on Gate Fees for shorter term contracts, and contracts that rely more heavily on Commercial and Industrial Waste and different types of Waste Derived Fuel will be different. The most significant issues/emphasis, if interviewed, would likely to be supply/demand at the time of committing to a contract (typically much shorter in duration) and the fuel specification/Waste Derived Fuel specification - the more processing the fuel requires to meet the EfW plant input specification, the lower the Gate Fee that can be secured (primarily as the Gate Fee has to acknowledge the additional processing cost required to meet that specification).

Electrical Power Income

Income from the export of electricity makes up the majority of the income other than Gate Fee, although this can be more heavily influenced by projects with any subsidies for renewable power (i.e. ROC and CFD). The PPA comprises different elements of payment, but the principle payment is related to baseload power, the value of which fluctuates in the market. PPAs therefore are normally a balance between optimizing price per Megawatt-hour (normally as a percentage of baseload price) while managing downside risk, over the period of the contract. Hence a project with 15MWe export operating over 8,000 hours a year would have 120,000 Megawatt-hours a year at the baseload price. The variation in baseload price can be seen in the following graph from Ofgem[10]:

Ofgem Baseload Electricity Price - Day Ahead Monthly Average
Ofgem Baseload Electricity Price - Day Ahead Monthly Average


References

  1. ↑ 1.0 1.1 1.2 1.3 Defra, 2014. Energy from Waste: A guide to the debate February 2014 (revised edition). London.
  2. ↑ 2.0 2.1 2.2 Monksleigh Ltd
  3. ↑ 3.0 3.1 3.2 Tolvik
  4. ↑ 4.0 4.1 4.2 4.3 4.4 Derived from Tolvik Consulting, 2019. UK Energy from Waste Statistics – 2018. Gloucestershire.[online]
  5. ↑ DEFRA UK Statistics on Waste 2020
  6. ↑ Tolvik Consulting, 2017. UK Residual Waste: 2030 Market Review. Environmental Services Association.
  7. ↑ 7.0 7.1 7.2 7.3 WRAP Gate Fee Report 2019
  8. ↑ Mode is the gate fee range (in £5 increments) which received the most responses in the survey data.
  9. ↑ Range lists simply the range between the maximum and minimum data points in the survey data collected.
  10. ↑ Ofgem Wholesale Electricity Charts
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