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Supply Chain Opportunities in the Bioenergy Sector Workshop - Hilary Kinney

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Invest Northern Ireland
Invest Northern Ireland

The document discusses opportunities in the growing bioenergy sector. It defines bioenergy as renewable energy generated from biological sources like wood, waste and crops. Key technologies include combustion, gasification, anaerobic digestion and pyrolysis. The market for bioenergy is growing rapidly due to targets and incentives. There are opportunities across the supply chain for project development, equipment supply, installation and maintenance. The document provides details on the Irish and UK markets for anaerobic digestion and thermal biomass technologies.

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Opportunities in the Bioenergy Sector Hilary Kinney, Kappa Consulting 5thDecember 2014
Agenda •What is Bioenergy? •Key Technologies •Market Growth •The Supply Chain Opportunity •Market Entry
What is Bioenergy? •What do we mean by ‘bioenergy’ •It is a critical part of the renewable energy mix and the only renewable source that can be used to generate electricity, heat and biofuels •It is a broad and varied industry, covering a wide range of feedstock and technologies, at different stages of development. Renewable energy (heat, electricity and biofuels) generated from materials derived from biological sources The key definer is the feedstock –organic biomass e.g. Wood, wood waste, manure, sewage sludge, grass and energy crops…..
What is Bioenergy? -Key Technologies Feedstock/Fuel Technology % Bioenergy Capacity % Growth 2011- 2012 Wood and agri crops (eg straw) Thermal – combustion; gasification; pyrolysis 39% +5% Landfill Gas CHP 33% -1% Waste (municipal RDF; wood) Thermal – combustion; gasification; pyrolysis 19% +9% Food and agri waste and agri crops AD 3% +67% Municipal sewage sludge AD 6% -
Bioenergy –a rapidly growing industry •Bioenergy will be key to the UK achieving its renewable energy and carbon reduction targets –by 2020 projected to account for 50% of renewable energy production. •Bioenergy expected to be one of fastest growing renewable energy sectors …… particularly heat generation -to account for 10% of NI’s heat consumption by 2020 vs 1.7% currently (and as much as 1.7% of industrial heat demand!!) •Government incentives and targets accelerating growth
Bioenergy –key growth sectors Renewable Heat Technologies -driven by roll out of RHI -CfD not for dedicated power only biomass Anaerobic Digestion (excl water industry –44 new plants over last couple of years; further 189 through planning permission)
An Opportunity –on our door step Project Status AD Dedicated Biomass Municipal NI UK NI UK NI UK Operational 11 118 7 60 Under Construction 2 37 1 13 Application Approved –awaiting construction 86 189 2 67 3 Application Submitted -pending 4 33 2 9 1 Application refused 2 22 13 2 Application withdrawn 1 15 16 Abandoned 1 12 37 1 No application made 1 3 9 Total number of projects 108 429 12 224 7 200 Total Installed capacity (MW) 58 523 56 9792 69 3497 Capacity Banding NI NI NI 0 -1 MW 104 6 0 1 -5 MW 4 4 2 5+ MW 0 2 5
Bioenergy –on our door step •In ROI, annualised spend on bioenergy plants projected to increase by 60% to 2020 -€200mn/year to 2020 (biomass CHP, AD) -€310mn/year (renewable heat technologies –biomass boilers, solar thermal and heat pumps) (80% on capex; 20% O&M) •SEAI estimates that Irish companies should be able to capture 70% of this expenditure (>€350mn pa) •The local market provides a strong springboard for export to wider markets
Supply Chain Opportunities Across The Bioenergy Sector •If bioenergy targets are to be achieved, local supply chains need to expand •Opportunities for wide range of products and services Project Planning Eg. feasibility studies, permitting, financial services Design, ManufactureInstallation Eg. design & project mgt; component supply; civil and electrical engineering Operations & Maintenance Eg. QA, technicians,
Anaerobic Digestion
Anaerobic Digestion
Anaerobic Digestion -Main Supplies Planning, Permitting and Design -Professional advisers (environmental. Engineering, legal, financial) -Mechanical/electrical/civil engineering Plant Manufacture -Feedstock storage/receiving tank -Feedstock mixers, pumps, hoppers, augers and mechanical handling equipment -Main Digester/Fermenter tank -Storage tank for digestate/residue -CHP Unit/Heat exchanger -Process control equipmentand pipework Installation/Commissioning -Groundworksand civil engineering -M&E Engineering -Control Engineering O&M -M&E Engineering -Residue Disposal -Operators
Anaerobic Digestion – Indicative Capital Costs Building and Infrastructure £ Machinery Capital £ AD Digester 900,000 CHP Generator 450,000 Separater 25,000 Cables and Pipes Feedstock Storage 67,000 Heat Exchanger Digestate Storage 65,000 Biogas Scrubber Grid Connection 50,000 Fencing Start/Backup boiler 20,000 Depackaging Water Connection Cleaning Technology Goundworks 75,000 Degritter Reception building Odour management Siliage clamp 8,000 Front end loader Weighbridge Pumps Grease Trap Shredder Wheel Wash Pasteuriser Roadways 5,000 District Heating System Total CHP Costs £450,000 Mixing Pit Noise reduction 5,000 Project Development 35,000 Setup Capital Expenditure Summary Professional costs 15,000 Total AD & Connection 1,270,000 Total CHP Costs 450,000 Total AD & Connection £1,270,000 Total £1,720,000 AD plant of 3,200m3 capacity with output of c500kW Source: The AD Economic assessment tool (NNFCC 2013)
Anaerobic Digestion –ROI Indicative Spend Average annual spend 2013-2020 Average annual spend 2013-2020 Feasibility, planning, permitting and design €2mn Project mgt €0.5mn AD Vessels €2mn Groundworks and civils €0.7mn Generator €0.5mn M&E and controls engineering €0.2mn Mechanical Handling €0.75mn Assembly €0.35mn Other plant (Pipes. Pumps etc €0.3mn O&M –M&E engineering €3.52mn Process control equip €0.3mn 0&M -Operatives €4mn Source: SEAI
Thermal -Biomass boiler (large scale)
Thermal biomass boiler –Main Supplies Planning, Permitting and Design -Professional advisers (environmental. Engineering, legal, financial) -Mechanical/electrical/civil engineering Plant Manufacture -Boilers -Generator (if CHP); Accumulator -Feed storage, hoppers and mechanical handling -Air pollution control equip/flue -Plant rooms and process control equipt Installation/Commissioning -Groundworksand civil engineering -M&E Engineering -Control Engineering O&M -M&E Engineering -Residue Disposal -Operators
Commercial Thermal Biomass, Heat –ROI Indicative Spend Average annual spend 2013-2020 Average annual spend 2013-2020 Planning and permitting €11mn Flue system <€1mn Boiler €5mn Boiler installers €3mn Fuel feeding system <€1mn Boiler house and Controls €3mn Fuels storage €1.5mn General installers, civils and project mgt €40mn Accumulator <€1mn O&M -maintenance €20mn Pipes and Fittings <€1mn Source: SEAI
Thermal Biomass, CHP –ROI Indicative Spend Average annual spend 2013-2020 Average annual spend 2013-2020 Planning and permitting €12mn Pother plant (pipes, pumps etc) €2mn Boiler €11mn Groundworks and civils €7mn Generator €3mn M&E and control engineering €2mn Mechanical Handling €3mn Device assembly €3mn Air pollution control €2mn O&M –M&E €8mn Process control equip €2mn O&M -Operatives €3mn Source: SEAI
A Significant Market –Where to Start? •Be clear on your sales channels? •Where is your best skills fit? •What will you compete on? •How to build some track record? •Partnerships to gain entry?
Sources of Information •Invest NI –GB Bioenergy Market http://www.investni.com/bioenergy_market_report_march_2013.pdf •RESTATShttps://restats.decc.gov.uk/cms/welcome-to-the-restats-web-site/ •REPD https://restats.decc.gov.uk/cms/planning-database/ •REPD Interactive Map http://restats.decc.gov.uk/app/pub/map/map •Biogas –Info Interactive Maphttp://biogas-info.co.uk/maps/index2.htm •Irish Bioenergy Association •Biomass Energy Centrehttp://www.renewables-map.co.uk/biomass.asp
Supply Chain Opportunities in the Bioenergy Sector Workshop - Hilary Kinney
Supply Chain Opportunities in the Bioenergy Sector Workshop - Hilary Kinney

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Supply Chain Opportunities in the Bioenergy Sector Workshop - Hilary Kinney

  • 1. Opportunities in the Bioenergy Sector Hilary Kinney, Kappa Consulting 5thDecember 2014
  • 2. Agenda •What is Bioenergy? •Key Technologies •Market Growth •The Supply Chain Opportunity •Market Entry
  • 3. What is Bioenergy? •What do we mean by ‘bioenergy’ •It is a critical part of the renewable energy mix and the only renewable source that can be used to generate electricity, heat and biofuels •It is a broad and varied industry, covering a wide range of feedstock and technologies, at different stages of development. Renewable energy (heat, electricity and biofuels) generated from materials derived from biological sources The key definer is the feedstock –organic biomass e.g. Wood, wood waste, manure, sewage sludge, grass and energy crops…..
  • 4. What is Bioenergy? -Key Technologies Feedstock/Fuel Technology % Bioenergy Capacity % Growth 2011- 2012 Wood and agri crops (eg straw) Thermal – combustion; gasification; pyrolysis 39% +5% Landfill Gas CHP 33% -1% Waste (municipal RDF; wood) Thermal – combustion; gasification; pyrolysis 19% +9% Food and agri waste and agri crops AD 3% +67% Municipal sewage sludge AD 6% -
  • 5. Bioenergy –a rapidly growing industry •Bioenergy will be key to the UK achieving its renewable energy and carbon reduction targets –by 2020 projected to account for 50% of renewable energy production. •Bioenergy expected to be one of fastest growing renewable energy sectors …… particularly heat generation -to account for 10% of NI’s heat consumption by 2020 vs 1.7% currently (and as much as 1.7% of industrial heat demand!!) •Government incentives and targets accelerating growth
  • 6. Bioenergy –key growth sectors Renewable Heat Technologies -driven by roll out of RHI -CfD not for dedicated power only biomass Anaerobic Digestion (excl water industry –44 new plants over last couple of years; further 189 through planning permission)
  • 7. An Opportunity –on our door step Project Status AD Dedicated Biomass Municipal NI UK NI UK NI UK Operational 11 118 7 60 Under Construction 2 37 1 13 Application Approved –awaiting construction 86 189 2 67 3 Application Submitted -pending 4 33 2 9 1 Application refused 2 22 13 2 Application withdrawn 1 15 16 Abandoned 1 12 37 1 No application made 1 3 9 Total number of projects 108 429 12 224 7 200 Total Installed capacity (MW) 58 523 56 9792 69 3497 Capacity Banding NI NI NI 0 -1 MW 104 6 0 1 -5 MW 4 4 2 5+ MW 0 2 5
  • 8. Bioenergy –on our door step •In ROI, annualised spend on bioenergy plants projected to increase by 60% to 2020 -€200mn/year to 2020 (biomass CHP, AD) -€310mn/year (renewable heat technologies –biomass boilers, solar thermal and heat pumps) (80% on capex; 20% O&M) •SEAI estimates that Irish companies should be able to capture 70% of this expenditure (>€350mn pa) •The local market provides a strong springboard for export to wider markets
  • 9. Supply Chain Opportunities Across The Bioenergy Sector •If bioenergy targets are to be achieved, local supply chains need to expand •Opportunities for wide range of products and services Project Planning Eg. feasibility studies, permitting, financial services Design, ManufactureInstallation Eg. design & project mgt; component supply; civil and electrical engineering Operations & Maintenance Eg. QA, technicians,
  • 12. Anaerobic Digestion -Main Supplies Planning, Permitting and Design -Professional advisers (environmental. Engineering, legal, financial) -Mechanical/electrical/civil engineering Plant Manufacture -Feedstock storage/receiving tank -Feedstock mixers, pumps, hoppers, augers and mechanical handling equipment -Main Digester/Fermenter tank -Storage tank for digestate/residue -CHP Unit/Heat exchanger -Process control equipmentand pipework Installation/Commissioning -Groundworksand civil engineering -M&E Engineering -Control Engineering O&M -M&E Engineering -Residue Disposal -Operators
  • 13. Anaerobic Digestion – Indicative Capital Costs Building and Infrastructure £ Machinery Capital £ AD Digester 900,000 CHP Generator 450,000 Separater 25,000 Cables and Pipes Feedstock Storage 67,000 Heat Exchanger Digestate Storage 65,000 Biogas Scrubber Grid Connection 50,000 Fencing Start/Backup boiler 20,000 Depackaging Water Connection Cleaning Technology Goundworks 75,000 Degritter Reception building Odour management Siliage clamp 8,000 Front end loader Weighbridge Pumps Grease Trap Shredder Wheel Wash Pasteuriser Roadways 5,000 District Heating System Total CHP Costs £450,000 Mixing Pit Noise reduction 5,000 Project Development 35,000 Setup Capital Expenditure Summary Professional costs 15,000 Total AD & Connection 1,270,000 Total CHP Costs 450,000 Total AD & Connection £1,270,000 Total £1,720,000 AD plant of 3,200m3 capacity with output of c500kW Source: The AD Economic assessment tool (NNFCC 2013)
  • 14. Anaerobic Digestion –ROI Indicative Spend Average annual spend 2013-2020 Average annual spend 2013-2020 Feasibility, planning, permitting and design €2mn Project mgt €0.5mn AD Vessels €2mn Groundworks and civils €0.7mn Generator €0.5mn M&E and controls engineering €0.2mn Mechanical Handling €0.75mn Assembly €0.35mn Other plant (Pipes. Pumps etc €0.3mn O&M –M&E engineering €3.52mn Process control equip €0.3mn 0&M -Operatives €4mn Source: SEAI
  • 15. Thermal -Biomass boiler (large scale)
  • 16. Thermal biomass boiler –Main Supplies Planning, Permitting and Design -Professional advisers (environmental. Engineering, legal, financial) -Mechanical/electrical/civil engineering Plant Manufacture -Boilers -Generator (if CHP); Accumulator -Feed storage, hoppers and mechanical handling -Air pollution control equip/flue -Plant rooms and process control equipt Installation/Commissioning -Groundworksand civil engineering -M&E Engineering -Control Engineering O&M -M&E Engineering -Residue Disposal -Operators
  • 17. Commercial Thermal Biomass, Heat –ROI Indicative Spend Average annual spend 2013-2020 Average annual spend 2013-2020 Planning and permitting €11mn Flue system <€1mn Boiler €5mn Boiler installers €3mn Fuel feeding system <€1mn Boiler house and Controls €3mn Fuels storage €1.5mn General installers, civils and project mgt €40mn Accumulator <€1mn O&M -maintenance €20mn Pipes and Fittings <€1mn Source: SEAI
  • 18. Thermal Biomass, CHP –ROI Indicative Spend Average annual spend 2013-2020 Average annual spend 2013-2020 Planning and permitting €12mn Pother plant (pipes, pumps etc) €2mn Boiler €11mn Groundworks and civils €7mn Generator €3mn M&E and control engineering €2mn Mechanical Handling €3mn Device assembly €3mn Air pollution control €2mn O&M –M&E €8mn Process control equip €2mn O&M -Operatives €3mn Source: SEAI
  • 19. A Significant Market –Where to Start? •Be clear on your sales channels? •Where is your best skills fit? •What will you compete on? •How to build some track record? •Partnerships to gain entry?
  • 20. Sources of Information •Invest NI –GB Bioenergy Market http://www.investni.com/bioenergy_market_report_march_2013.pdf •RESTATShttps://restats.decc.gov.uk/cms/welcome-to-the-restats-web-site/ •REPD https://restats.decc.gov.uk/cms/planning-database/ •REPD Interactive Map http://restats.decc.gov.uk/app/pub/map/map •Biogas –Info Interactive Maphttp://biogas-info.co.uk/maps/index2.htm •Irish Bioenergy Association •Biomass Energy Centrehttp://www.renewables-map.co.uk/biomass.asp