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Scottish Water David Weber October 2013. Presentation Agenda. Scottish Water & Scottish Water Horizons Scottish Water and Energy Scottish Water and Recycling Deerdykes Anaerobic Digestion Plant Conclusions. Scottish Water : History 1996-2002. Three regional water authorities
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Scottish Water David Weber October 2013
Presentation Agenda • Scottish Water & Scottish Water Horizons • Scottish Water and Energy • Scottish Water and Recycling • Deerdykes Anaerobic Digestion Plant • Conclusions
Scottish Water : History 1996-2002 • Three regional water authorities • Vast variations in population and geography • Massive differences in charges • Water authorities not financially viable in long term to meet future investment. • Huge challenge to meet EU Directives • Heavy reliance on PFI for wastewater investment • Privatisation challenge
Scottish Water: Industry Structure The Scottish Parliament Scottish Ministers Government officials Drinking Water Quality Regulator Scottish Water WaterIndustryCommissionfor Scotland CustomerForum ScottishEnvironment Protection Agency ConsumerFocusScotland ScottishPublic ServicesOmbudsman
Scottish Water : 2002 – 2013 • Scottish Water created by merger of three regional authorities • Reduced operating costs by 40% in first four years • In our first 4 years, we delivered £2.3 billion investment for £1.8 billion • Improved every performance measure
Scottish Water 5.3 million customers Produce 1.3 billion litres of water every day 280 water treatment works More than 1800 waste water treatment works Over 100,000 km of water and sewer pipes £1 billion turnover £500m per annum capital programme 4th largest water services provider in the UK 3,500 Employees
Scottish Water International Poland Asset Management Alberta DWSP training India Finance & Regulation Qatar 5-yr O&M management New Zealand Leakage management
Scottish Water: Why Renewable Energy? • Consume 450 GWh/annum of electricity • Target 20% in 5 years (6% in 2013) • Current annual spend £40m • Forecast to rise to £70m by 2020 • Helps keeps customers charges low • It’s the right thing to do • Meets the expectations and aspirations of our shareholder
Scottish Water’s Renewable Energy Portfolio • Wind • Hydro • PV • Biomass • Anaerobic Digestion
Scotland and Renewable Energy • Target to achieve 100% of electricity demand from renewable sources by 2020 (achieved 39.2% by 2012) • Target to achieve 11% of heat demand from renewable sources by 2020 (achieved 4.1% by 2012) • Target to achieve 10% of transport energy from renewable sources
Scottish Water’s Journey to Renewable Energy • Liquid waste management • Recycling commercial sludge • Composting green waste • In-vessel composting • Anaerobic digestion • Other renewables – aided by FITs
Results of Drivers For Change • 2001 – Scotland had 5% of municipal waste recycled • 2012 – Scotland had 41% of municipal waste recycled • 2025 – Scotland will have only 5% of municipal waste sent to landfill
What took us there? Drivers For Recycling • Increase asset utilisation • Legislative – European Landfill Directive • National legislation – Waste Scotland Regulations • Fiscal – Landfill tax = Opportunity
Challenges • Technology Selection • Waste contracts • Power grid connection • Stable energy generation • Competition • Contamination levels • Effluent quality
Challenge - Digestate • Whole Digestate or cake • Barriers – perception and legislation • PAS 110 accreditation • Currently spread to land – seasonal challenges • Emerging market for product
Food waste - Local Authority Segregated food waste – ZWS funding Local Authority decision/indecision Take-up rates mixed response - renewed campaigns - socio-economics - housing stock Contract base load for plant
Commercial Food waste Key focus waste area moving forward Legal duty - New Waste Regulations - over 50kg of FW per week (Jan 14) - over 5kg of FW per week (Jan 16) Landfill tax - steadily increasing by £8 per tonne p.a. Market growth – demand likely to outstrip capacity In the future food waste may be viewed as a commodity
Key growth opportunity Ban of macerators Food waste truck – access to new markets Quality / high energy value waste Food waste – SME
Conclusions • In Scotland the days of “dumping” has gone • Collection and treatment of organic waste has made a major contribution to Scotland’s recycling rates • Composting and anaerobic digestion now form integral solutions to Scotland’s waste management infrastructure • We have gone through major (often painful) learning on composting and anaerobic digestion • Fiscal and legislative measures have helped drive the recycling rates which drive the demand for treatment capacity • The energy benefits of AD make this an attractive proposition • Feed In Tariffs are pushing renewable energy projects