2016: Continuing the Energy & Waste Transition

Declan Burns, managing director of Energy & Waste Services, reflects on 2015 and considers the opportunities and challenges that the energy and waste sector faces in 2016 and beyond.

Reflecting on 2015

The past year has seen a significant shift in the UK’s energy sources, from traditional fossil fuels, towards low carbon and sustainable alternatives. The doubling of the carbon floor price in 2015, in addition to the government’s climate change commitments, have had a profound effect on the coal industry, with three major coal-powered stations closing last year and the government intending to completely move away from coal by 2025.

Several key energy generation announcements have been made recently in a bid to ensure the UK’s future energy supply. The most significant of these is the £18.6bn Hinkley Point C nuclear power station which is projected to be operating by 2025, with the aim of producing around seven per cent of the UK’s total energy needs throughout its 60 year lifetime. However, the viability of the project has recently been questioned which is likely to cause significant delays to the site generating energy.

Following double digit growth between 2010 and 2014, and a further rise of over ten per cent in 2015, energy from waste (EfW) and bioenergy are becoming an increasingly important part of the UK energy’s make-up. As a result, renewables currently account for nearly a quarter of all the UK’s total energy output, making it the second biggest contributor behind gas (34.9%). The energy market is therefore well positioned to deliver low carbon and sustainable power, in line with the government’s vision.

The rapid growth of biofuels has been aided, in part, by the conversion of half of Drax’s power stations from coal to biomass. Their North Yorkshire site is generating between seven and eight per cent of the UK’s total energy needs. We’re proud to have supported Drax, for the past seven years, by providing a range of testing and consultancy services, as they carry out the largest decarbonisation project in Europe. Our work with Drax and several other important clients has had a substantial bearing on the type of samples we are getting through the doors at SOCOTEC, with 2015 being the first year in our history where we have tested more biomass samples than coal. Moving forward, SOCOTEC, formerly ESG, will continue to provide Drax with a range of testing and analysis services from our UKAS accredited testing laboratories, following the signing in March 2015 of a three year contract, with the option of extending the agreement by a further two years.

The revision of waste management legislation in June 2015, from WM2 to WM3, has had a profound impact on the waste sector. There are various fundamental changes to the regulation including the modifications to the criteria surrounding chemical waste assessments and identifying the potential presence of persistent organic pollutants (POPs) in waste samples.

As well as adapting our WAC testing service to comply with the latest waste acceptance legislation, in June 2015 we responded to client requirements and reduced our turnaround times by 50%. Before the reduction, ten days was the time needed to test and analyse the sample, whereas we are now able to provide a standard turnaround time of just five days. Through extensive investment and streamlining of our processes we have been able to boost our overall efficiency, therefore improving the service that we deliver to our clients.

The future of energy generation

With Renewables Obligation Certificates (ROCs) for biomass energy ending in March 2017, the upcoming year is likely to see continued growth of this fuel as part of the UK’s energy needs. Looking further ahead, the Department for Environment and Climate Change (DECC) have announced additional ‘grandfather’ support up to 2027 for a range of advance thermal technologies, which should help maintain a stable biomass market, whilst organisations adapt to the loss of the subsidy.

The UK is now heading into a new generation of nuclear energy, with several nuclear power plants, such as Hinkley Point and Anglesey, hoping to extend their sites in order to generate energy for future decades. There are various UK nuclear plants which will continue to be decommissioned throughout 2016 including Sellafield and the group of Magnox sites. SOCOTEC is proud to be assisting the facility characterisation team throughout the decommissioning process at Sellafield Ltd by providing a range of services including radiochemical, chemical and asbestos analysis through to 2024.

There are several other energy sources which may play an important role in the UK’s future energy needs; however they face considerable challenges before they can become viable options. Following recent government approval, fracking could provide a valuable supply of energy, although it is likely to continue to face environmental opposition, which may make it an untenable source. Materials such as agricultural matter, coffee beans, manufacturing process waste, and sewerage, are just a few of the many potential new power sources which will continue to be explored in 2016. It is vital to consider the comparable energy output produced per tonne between fossil fuels and new energy sources in order to distinguish the viability of low carbon options as future energy sources.

Stronger collaboration between energy and waste

The relationship between the energy and waste sectors are becoming increasingly closer with the development of EfW plants and solid recovered fuels (SRF). As this market matures, it is likely that the UK will reduce the amount of waste it is exporting to Europe in favour of using it to produce our own energy.

The past few years have seen exponential growth in the number of small energy producers within the UK. Two key drivers of this growth are the investments by local councils in building EfW facilities, and the continued upward trend of organisations looking to produce energy from their own waste. This has been driven by the ever increasing need to boost efficiencies, reduce carbon footprints, as well as improving sustainability.

Although Germany, the Netherlands and Scandinavian countries are seen as the market leaders in the waste recovery and EfW markets, the UK is making substantial progress in mirroring their successes. The UK’s current waste infrastructure and the industry’s ability to test a high volume of samples have played a considerable part in creating a solid UK market. Moving forward, continued investment into these two areas will be integral in consolidating the UK’s previous successes, as well as acting as a catalyst for future growth.

The most prominent regulation change in 2016 is likely to arise in the SRF industry. The current European standards are to be adapted into a new International Organisation for Standardisation (ISO) standard, which will supersede any previous regulation. The new ISO is expected to be based upon the current European directive, therefore reducing any impact this may have on the UK market. Moreover, the influence of WM3 on the waste sector will probably strengthen in the upcoming year, as organisations continue to adapt to the latest changes.

Moving towards a low carbon and sustainable future

Overall, there is plenty of optimism surrounding both the energy and waste sectors, with solid investment and the increased likelihood of a stronger relationship between the two markets moving forward.

As the energy sector continues its transition towards a low carbon and renewable future, which energy sources will prevail as the most viable alternatives to fossil fuels? Furthermore, with fracking and nuclear power facing public and environmental opposition, how can the government and market ensure a reliable energy supply?

I am looking forward to seeing how both sectors develop over the upcoming year. Large-scale EfW projects, the new generation of nuclear power plants, and the government's commitment to supporting the development of new energy sources should go a long way to bolstering industry confidence. With the pressures of climate change intensifying, the line between energy generation and waste disposal will continue to blur as we switch towards a circular economy.

If you require any support with your energy or waste projects, please contact us at salesuk@socotec.com

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