Alternative energy trends in the U.K.

The United Kingdom's use of alternative energy sources is increasing at a rapid pace. While wind projects often receive the most media attention, several projects involving biofuels, biomass, and energy from waste are planned or already under way in the country.

This new trend is a welcome sign in the event of growing concerns over the perils of global warming. Industrial emission cut and reduced use of fossil fuels are two main ways of combating the global climate change.

Biofuels

In the biofuels market, feedstock prices have fallen to levels that have enabled producers to reconsider a number of projects previously placed on hold. Large grain surpluses have also reduced concerns regarding using food as fuel: Vivergo Fuels Limited (Hull), the joint venture between British Sugar Group (London), BP plc (London) and DuPont (Wilmington, Delaware), is now believed to be a considering a second GBP200 million (USD335 million) grain-to-bioethanol production plant; Total SA's (Paris) Lindsey refinery, the third largest oil refinery in the U.K., is currently considering constructing a new GBP30 million (USD50 million) facility at the Immingham site to produce bioethanol for on-site blending with petrol.

TMO Renewables (Guildford) has developed a biotech process capable of efficiently converting 25 different bio-feedstocks into ethanol. At one of its plants, TMO can take process byproduct and increase production by 15%, while reducing CO2 emissions 50%. The system will be applied initially to a number of U.S. plants.

Biomass and refuse derived fuel

Refuse Derived Fuel (RDF) is the organic residue from municipal waste, which rather than being incinerated on site to create heat and power, is often pelletised and sold as fuel for power plants.

Decreased CO2 emissions and a reduced reliance on fossil fuels are the main considerations behind organisations moving forward with RDF- and biomass-fired power plants. Cemex (Egham, Surrey) will be using RDF to fire cement kilns, and calcium-carbonate manufacturer Brunner Mond (Cheshire) will generate one-third of its steam and power requirements from a combination of RDF and biomass. Major airports, including Heathrow, East Midlands Airport, and Manchester Airport, are pursuing biomass power solutions to reduce their carbon footprints. Jacobs Engineering (Pasadena, California) secured the engineering design contract for the Renewable Energy Centre at Heathrow.

Eco2 Limited (Cardiff) will construct a number of plants in the grain-growing area of East Anglia, using straw as a feedstock. Renewable Energy Systems (Kings Langley, Hertfordshire) and MGT Power Limited (London) are both proposing to construct plants adjacent to port facilities that will enable feedstock to be easily transported to the plants.

Forth Energy, a joint venture between Forth Ports and Scottish & Southern Energy (Perth, Scotland), has made the largest commitment by announcing its intention to construct four GBP300 million (USD500 million) biomass energy plants at the ports of Dundee, Rosyth, Grangemouth and Leith.

A significant number of more modest power plants are also under active consideration including NHS Grampian's GBP10 million (USD16.8 million) energy centre at the Aberdeen Royal Infirmary and Northern Energy Developments' plans to construct 10 biomass-fuelled power stations in Scotland and the north of England.

There have been signs that certain major energy providers are considering the acquisition of smaller companies that already have planning permission to construct new biomass plants, but are lacking financing. This allows the larger providers to gain more rapid entry into the 'green' energy market.

Energy from waste

A number of different technical solutions are used to convert waste to energy, the simplest of which is incinerating residual waste to drive steam turbines, such as the Peterborough City Council's waste-to-energy plant. Alternative methods include gasification as used by Cyclamax Limited (Monmouth) and plasma gasification as proposed by Waste2Tricity Limited (London).

Biological treatment such as anaerobic digestion is also widespread, and increasingly, the resulting biogas is used to generate power.

Sterecycle (London) has developed a waste-treatment process that uses an interconnected autoclave system to break down waste into separate RDFs and sterilised non-organic streams. The company is now considering a GBP25 million (USD41.9 million) plant at its Rotherham site to turn biomass into biomethane for injection into the gas network.

European Union legislation, fears over climate change, high energy costs and a potential shortfall in electrical generating capacity have all provided the stimulus for new capital expenditure. Concerns that less waste food will be available to convert into power seem unfounded, as growth has continued. LondonWaste (London) and Denbighshire County Council will generate energy by producing gas through anaerobic digestion and linking the process to a combined heat and power plant.

Other local authorities are focusing on energy from waste (EfW) schemes in which residual municipal wastes are processed to create heat and power. These projects tend to develop over lengthy amounts of time, and increasingly, major private waste management companies are speculatively planning self-funded EfW schemes to secure municipal waste contracts.

Funding issues have plagued some local authority schemes. Wakefield Metropolitan District Council has been delayed more than 12 months in awarding a contract to VT Group (LSE:VTG) (Southampton). Entrepreneur-led EfW plants are being developed, with financial backing only being obtained once planning permission has been granted.

Significant heat and power generation schemes are being linked to business and technology parks. Recent schemes include Peterborough Renewable Energy, EnviroParks and BioPower.