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Knowledge Transfer Network February 2009

Waste Infrastructure Delivery Programme Waste - its potential contribution to reducing CO2 emissions. Knowledge Transfer Network February 2009. There are five pieces to the jigsaw. Energy sector – outputs and fuels Waste market PFI / PPP investment and methodology Technology offering

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Knowledge Transfer Network February 2009

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  1. Waste Infrastructure Delivery ProgrammeWaste - its potential contribution to reducing CO2 emissions Knowledge Transfer Network February 2009

  2. There are five pieces to the jigsaw • Energy sector – outputs and fuels • Waste market • PFI / PPP investment and methodology • Technology offering • Carbon footprint / WRATE

  3. Energy White Paper Paragraph 5.3.44 Generating energy from that portion of waste that cannot be prevented, reused or recycled has both energy and waste policy benefits. Energy generated either directly from waste or through the use of a refuse derived fuel has benefits for security of supply. In addition, the biodegradable fraction of waste is a renewable resource. The RO will remain open to the biomass fraction of waste used in good quality CHP stations….

  4. HES and Renewable Heat Incentive (“RHI”) • CHP - 30% saving over electricity-only • CHP - 7% of electricity and 10.2MtCO2 saved in 2008 • Estimated potential 27.7MtCO2 by 2015 • Fuel savings; > competitiveness; > security of supply • CHP displaces fossil fuel generation • Gas CHP up to 85% efficiency versus 50% for CCGT • EWP suggested CHP @ £16/tCO2 • CCC estimated >4MtCO2 available at cost < £40/tCO2 • Spark spread volatility

  5. What is missing? Clear consistent signal about long term price of carbon

  6. Supports for CHP - 1 • Favourable treatment in Phases II & III of EUETS • CRC – zero carbon for CHP heat exports • Exemptions from CCL for GQCHP • ECAs – 100% 1st year capital allowances

  7. Supports for CHP - 2 • Renewable CHP – 2 ROC/MWh for GQCHP • Feed-in tariff for up to 5MWe CHP • Renewable Heat Incentive • Planning – building regs & sust. homes code

  8. Fuel producer / fuel user model • Industrial intensive energy users with / without CHP • Public sector energy users with / without CHP • Captive SRF burners (EfW) with / without CHP • Cement kilns • Co-firing with coal or biomass with / without CHP • [Landfill]

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