Managing Committee Meeting – 21 May 2012, Aachen

1. First Progress Report and Payment Claim • Overview of the spending profile • Overview of the outputs Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

2. Background First Progress Report Covering Period: 1 April 2010 – 31 January 2012 No preparation costs reported currently Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

3. Report forecast: partners and spend All 14 partners should report the costs they incurred during the reporting period Total reported spend by 31 December 2011 should be: 858,572.69 euros that equals 10.77% of the project’s total budget Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

4. Current report: partners and spend Only 4 partners reported their expenditure: BCU, Fondaterra, SRE, Aston University Total reported spend on 31 January 2012: 105,256.08 euros that equals 1.3% of the project’s total budget Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

5. Current underspend Total reported spend on 31 January 2012: 753,316.61 euros that equals 9.45% of the project’s total budget Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

6. Summary of claimed eligible costs Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

7. Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

8. Why it is important to follow your spending profile Budget spending profile is an integral part of the application that was submitted to JTS. As such it is a part of the partnership’s contractual obligation instead of a restriction laid down by a directive. BioenNW performance will be measured against our spending profile, amongst other indicators. Keeping on track of the spending profile is extremely important as if the projects are not spending JTS may decide to disengage with the project and simply cut its budget. This is possible as JTS are subject to the scrutiny of the Interreg Programme Managing Authority which monitors the spending profile on the Programme level. At the moment the Programme is badly underspent - around 8M euros and for this reason the projects are under pressure to follow their spending profiles. BioenNW partners’ budgets reflect your activities and if you don't spend, it is a first warning that you probably do not do much and /or the activities are not undertaken on an envisaged scale. It is important to manage and monitor your individual spending profile as well as the partnership profile. Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

9. Consequences Budget cuts – first warning Disengagement – premature termination of the project Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

10. Current spending targets per partner€16,724 reported so far Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

11. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

12. Current spending targets per partner€37,424 reported so far Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

13. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

14. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

15. Current spending targets per partner€34,492 reported so far Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

16. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

17. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

18. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

19. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

20. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

21. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

22. Current spending targets per partner€16,615 reported so far Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

23. Current spending targets per partner Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

24. Reasons for reporting a low level of spend Late start of the project Partners incurred low level of costs and didn’t want to go through the hassle of reporting small amounts so didn’t report at all Partners may not be entirely sure how to report Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

25. Ways to mitigate a low level of spend in the future Partners focused on deliverables and outputs Making financial forecasts for the next period Financial workshop for finance officers: videoconference on 31 May, 11 June, 14 June All partners to report their preparation costs by 15 September Partners who didn’t report in April will report all their costs for the period 1.04.2010 – 31.07.2012 by 15 September 2012 Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

26. Payment process Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

27. Outputs so far (31 January 2012) Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

28. Main outputs areas of focus on during the next period Build Bioenergy Support Centres: Build BSCs in partner regions through: recruiting members, initiating dialog with stakeholders, designing governance system, recruiting Board and Steering Group members, developing work programme for BSC with input from the members Create and populate an information facility: website development, create depository – the information facility, collect and collate data on biomass, create programme of workshops and open days on development of bioenergy Develop a feedstock testing service: build parofabs – feedstock testing units, devise a package of feedstock testing options for BSC members and non members, market feedstock testing service Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

29. Main outputs areas of focus on during the next period Build Decision Support Scheme Complete requirements analysis: build knowledge base framework, develop mechanism for on-line data uploading to central databases, build databases for emissions quality, regulatory controls, feedstock quality, energy production Write elements of Decision Support Scheme: GIS database, project design model, technology integration model, supply chain model, risk management; Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

30. Main outputs areas of focus on during the next period Demonstrate technology at a commercial scale Install demonstration equipment: Install and operate pyrolysis unit coupled with gasifier at EBRI site with different feedstocks, operate CHP unit with mixed gases from pyrolysis and digestion; Optimise demonstration by running pilot scale testing: determine effects of pyrolysis waters on biogas production, screen a range of digestates from different digester feedstocks in the pyrolysis units; Use demonstration sides for education and training purposes; Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe

31. Main outputs areas of focus on during the next period Install new bioenergy schemes Work with key actors to develop primary bioenergy sites: prepare scoping documents for potential projects identified in 5 partner regions Managing Committee Meeting – 21 May 2012, Aachen BioenNW– Delivering Local Bioenergy to North West Europe