19/07/2010

Increasing competition for biodegradable waste

Photo source: www.boston.com/bostonglobe/regional_editions/globe_west/west/pile%20of%

Competition for biodegradable waste is starting to increase. In June this year, it was announced that INEOS Bio had received an offer of a £7.3m grant towards £52m construction costs for the first commercial plant in Europe using its advanced BioEnergy Process Technology. According to Ineos Bio, 'The plant, to be located at the INEOS Seal Sands site in the Tees Valley, is designed to produce 24,000 tonnes per year (30 million litres) of carbon-neutral road transport fuel and generate more than 3MW of clean electricity for export from over 100,000 tonnes per year of biodegradable household and commercial waste. This would provide the biofuel requirement of around 250,000 vehicles per year running on E10* and the electricity needs of 6000 households.'

The process takes domestic waste, converts it into gases and then uses an anaerobic fermentation step to convert the gases into bio-ethanol. My understanding is that the process is highly efficient and has relatively low costs, meaning that this type of facility could be installed in any large population centre and provide an effective means of energy production, whilst eliminating costly landfill or waste incineration.

This move is to be welcomed but it does mean more competition for the anaerobic digesters being installed in the water industry. If this project is successful, which I expect to be the case, one can foresee the value of easily biodegradable waste is likely to increase and this will need to be factored into the economics.

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