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94 Evaluation of Opportunities for Converting Indigenous UK Wastes to Wastes and Energy AEA/ED45551/Issue 1 Currently the energy, iron and steel, mineral process and pulp and paper industries are covered by EU ETS. All installations carrying out activities in these areas are required to hold a GHG emissions permit, which will require the installations to monitor and report emissions in accordance with a plan that has been approved by the Regulator. A site becomes liable under the EU ETS when the sum of the site’s rated combustion capacity exceeds 20MW (thermal). 163 Once over this limit the site’s CO2 emissions are capped and strict monitoring is required. Emissions are required to stay within the cap or the site will need to trade carbon. Biomass or waste boilers are included towards the total site limit. Therefore an operator cannot reduce the site’s generating capacity under EU ETS by substituting biomass or waste fuelled plant for fossil fuel plant. However, CO2 emissions from biomass are rated as zero under EU ETS, which means that any carbon emissions resulting from the biomass will not count towards the site’s emissions. This may help a site meet its limit for GHG emissions and be able to trade any surplus. The relevance of this to waste for energy is that the biomass content of waste will also be rated as zero – and for high biomass wastes this is a considerable advantage, provided the biomass content can be easily demonstrated In addition a third phase, running from 2013, is in planning. One of the proposals under consideration is to set an emission target for sectors not covered by the current ETS (e.g. the buildings, transport and waste sectors). In addition the next phase may include other emissions as well as CO2. 163 According to Defra’s guidance: ‘the EU ETS Directive expressly states that the burning of municipal waste and hazardous waste is not treated as a “combustion installation” for the purposes of the EU ETS. Where primary purpose of incineration is the provision of energy using a fuel derived from waste, then the installation is a “combustion installation” under the medium definition.’
Evaluation of Opportunities for Converting Indigenous UK Wastes to Wastes and Energy AEA/ED45551/Issue 1 7 Solid recovered fuels and other fuels manufactured from waste Each energy conversion technology is limited in the range of fuel types that it can accept and places demands on the preceding steps in the chain, in terms of fuel quality, properties and composition. Technologies are being introduced in the UK and elsewhere that transform waste components from their raw form to standard fuels with a defined specification. Manufactured fuels can offer the following benefits: • Consistent properties that can be defined and used in contracts making the material a tradable commodity. • Physical and biological stability that makes longer term storage possible and can even out unbalances between the constant supply of waste and the seasonal demand for energy. • An opportunity to manage the properties of the fuel to achieve optimum performance from the energy technology. These fuels are in many ways the key to using waste in a diverse range of energy technologies that offer higher resource use efficiency and enhanced greenhouse gas reduction potential when compared to traditional combustion with energy recovery. They allow CHP installations to be sized according to the heat load and processes to manufacture transport fuels and methane to be operated at an economic scale. We have identified the following manufactured fuels on sale or planned in the UK. • Solid recovered fuels. These fuels are produced from mixed wastes from the municipal and commercial stream by separating the high heating value components from the residues remaining after conventional recycled products have been removed. The material contains both biological and non-biological matter. They are supplied dried and either shredded for short distance and short term transport or compressed into pellets for longer distances and storage times. • Graded waste wood fuels. This sector is growing rapidly as wood fired power plants are built to take advantage of the reformed Renewables Obligation. Waste wood is collected from industry and amenity centres and graded depending on the level of contamination. The grades are then chipped and sold to a specification. • Clean grade wood chips from virgin materials. Here wood residues for forestry and sawmills are chipped and potentially dried to meet a specification. • Domestic grade wood pellet fuel from saw mill by-product. Sawmill residues, in particular sawdust, is dried and compressed through a die into small cylinders approximately 6mm in diameter and 10 mm long. This fuel resembles cattle feed or cat litter and is clean and free flowing. Several small scale combustion appliances have been developed to take advantage of the properties of this fuel. The high energy density means that it can be transported economically regionally, nationally, and internationally. • Industrial grade pellet from forestry, cereal processing residue and clean waste wood. This is similar to the domestic pellet but has a higher ash content and larger size. • Thermochemical fuels. These are chars and pyrolysis oils produced close to the point of arising. Supplied either separately or as a slurry mix, the increased energy density extends the economic transport distance for local to national. These fuels are not currently produced but have been proposed as a feedstock option for large gasification processes producing 2 nd generation biofuels or Substitute Natural Gas (SNG). We also include torrefaction, or high temperature drying in this category. 95
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South East 327 - - 55% of MSW by 20
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Appendix 3 MBT Methods Specific in
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Figure 27 Orchid Environmental proc
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