Challenge: Assess the benefits and risks of an Energy from Waste plant
The Waste Management firm wanted to assess the potential revenue streams and costs associated with installing a small scale Energy from Waste (EfW) plant on its existing waste processing site. The EfW would be fed with Refuse Derived Fuel (RDF) produced on site and would process up to 30,000 tonnes of RDF annually. There is a financial benefit associated with using RDF produced on site for an EfW of around £50/ tonne based on avoided disposal costs, electricity savings, electricity sale to the grid and heat sale to local users.
Service Provided: Review of Technologies & development of Financial Model
Green Umbrellas carried out a site survey and desk-based energy usage review.
- We assessed the suitability and efficiency of technologies and components that could use RDF to generate heat and power, and how to use the energy on site, supply to the grid and to potential heat customers in the vicinity.
- Interviews were carried out with the Waste firms’ management team and local stakeholders including landowners, land developers and the local council to understand the potential barriers and motivations within the broader community for such an EfW .
- We analysed a variety of EfW technology and selected a supplier that provided a suitable match.
- We analysed the cost and complexity of creating a local heating network to ensure the capacity to sell the heat existed.
- We developed a business model which takes into account key variables including: CapEx, OpEx, price of waste, cost and sale price of electricity and sale price of heat.
- We prepared a board level presentation that summarises the findings, explains the value of putting the EfW in place and the roadmap for project delivery with reference to the operations, technical, regulatory, planning and financial considerations.
Outcome: Feasibility report helps the Board decision making
By clarifying the size and complexity of the investment to the board they were able to make an informed decision as to how best to take advantage of EfW marketplace in their locality, opting to focus on the production of RDF to sell to other EfW plants.