Investor interest in advanced conversion technologies (ACTs) – such as gasification – could see a ‘revival’, despite set-backs in the roll-out of the technology in recent years, consultancy Eunomia claims.
In a market report published by the consultancy yesterday (30 November), Eunomia predicted that the UK could see a ‘cascade’ of further gasification energy from waste projects if one or more of the facilities currently in development are successful.
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New Earth’s former Avonmouth ERF gasfication facility, pictured, which was sold in 2014
At present, Eunomia claims there are eight advanced conversion technology projects under construction in the UK – which involve plasma gasification or pyrolysis. Eunomia notes that these have the potential to “improve efficiency and reduce carbon emissions associated with mass burn incinerators”.
However, the record of gasification projects has hit by a number of recent challenges in ‘scaling-up’ the technology in some facilities.
This includes Air Products’ two 350,000 tonne-per-year Tees Valley facilities – abandoned in April this year. Gasification technology supplier Energos also entered administration in July.
‘Critical’
However, Eunomia believes it is a ‘critical time’ for the technology, with a wave of new projects due to come online. It adds that the prospect of the UK leaving the EU has introduced new uncertainties regarding the continuing decline of residual waste arisings, and the future role of refuse-derived fuel (RDF) exports to Europe, which could create the need for additional recovery capacity (see letsrecycle.com story).
It cites Chinook Energy as one company marketing the technology used at its facility in Oldbury in the West Midlands to treat municipal solid waste – although it currently only processes automotive shredder residue. It also claims the Air Products plants ‘could be subject to a takeover’ which would see the failed plants become operational.
Eunomia claims Air Products’ Tees Valley sites could still become operational
The consultancy suggests investors could be reassured to back the technology if it secures Contracts for Difference (CfD) support from government. As mass burn plants can only bid if they meet combined-heat and power (CHP) criteria, gasification plants could obtain a ‘competitive advantage’, it adds.
The report notes: “Our financial modelling demonstrates, however, that some UK projects may be able to generate sufficient revenue from gate fees and electricity sales to make them attractive without any Government support.”
These projects would be:
- Located in areas where there is a lack of treatment infrastructure and no straightforward access to continental Europe; or
- Directly supplied with the majority of feedstock from a long-term local authority contract.
Feedstock
Eunomia goes on to claim that gasification plants would ideally be fuelled by solid-recovered fuel (SRF) rather than RDF – but finding a contract with a third party supplier to produce this higher-quality material would ‘entail accepting lower gate fees and potentially severe penalties for non-acceptance’.
Commenting on Eunomia’s report, Mark Sommerfeld, policy analyst at the Renewable Energy Association, described the UK as “world-leading” in its advanced conversion technology expertise.
He said: “The government should act to ensure that a full suite of ACT renewable products are developed for domestic use and, eventually, for international export. ACT can produce green chemicals and renewable transport fuels, including valuable aviation fuel.”
He added: “The beauty of this technology is that its by-products include expanding our waste management capacity and reducing the amount of trash heading to landfill.”
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Source: letsrecycle.com Waste Managment
