LAWR

" Now it seems the hottest thing in waste is heat " ENERGY FROM WASTE Keith Riley is a partner at BH EnergyGap. steam to heat nearby buildings. And yet, until recently it was possible to count on one hand the EfW plants in the UK that could do that – namely Sheffield, Nottingham, Coventry and the much-overlooked Shetland. Even south-east London Combined Heat and Power (SELCHP) had no CHP and just generated electricity. So why are there not more? In a nutshell: logistics and cost. Heat needs pipes, and in our crowded towns and cities, burying pipes in the ground is not easy. Even in ideal conditions, building the infrastructure required to deliver heat requires large upfront costs that may not be recouped for a number of years. Perhaps unsurprisingly, few have been keen to invest in the heat exchangers and pipes to deliver the heat without the demand to use and, critically, pay for it. Nobody seemed to want to step up to the plate. Big difference In addition, government subsidies offered under the Renewables Obligation were based on the electrical generation of the plant, and actually countered heat production. They did nothing to encourage construction of the infrastructure required. The Renewable Heat Incentive has been a step in the right direction, but it hasn't overcome the need to have a secure heat user. But things have changed – and now it seems the hottest thing in waste is heat. Even SELCHP, after two decades just generating power, has its first heat scheme in south-east London. New schemes are being proposed in various locations around the country. The big difference is that the public sector has at last recognised its vital role in developing heat infrastructure. Following a consultation in 2012, the government finally understood the message and publically acknowledged heat as an important part of the country's energy policy. The Heat Networks Delivery Unit (HNDU) was set up in 2013 by DECC, with grants made available to local authorities enabling the process of supply to take place. HNDU is currently supporting 122 projects around the country, over 25 of which supply heat from EfW or anaerobic digestion. It's estimated up to £800m will be required to provide the country with the heat networks it requires, which explains the reluctance of the private sector to invest before now. Major step In Scotland, efficiency of energy conversion is built into the Scottish Environment Protection Agency's permitting system, so as plants are developed – like the one at Levenseat – they are likely to deliver heat as well as power. This is not the case in England and Wales, however. A major step forward in the development of heat supply throughout Britain is the establishment of energy supply companies called ESCOs (energy service companies). These have the local authority as the major shareholder, but work at arm's length. Woking led the way with its Thamesway Energy CHP some years ago; now more are heading down the same route. Peterborough, for instance, has established its own company to take the energy from EfW and Devon is looking at a similar model. Sutton in London, Birmingham, Glasgow, Knowsley and Cardiff are all considering ESCOs. Finance can be raised through the company, which offers a counterparty with which the EfW plant and the network developers can contract for the supply of heat. Once there is a secure basis on which the finance can be raised, companies like Cofeley, Veolia and Utilicom will be much more likely to invest. It appears that the heat revolution in EfW is finally underway. There are issues to resolve, but EfW has a unique position; being independent of gas prices, it can be competitive in the sale of heat to consumers. S u f f o l k ' s tomatoes may just be the start. Heat captured at an energy-from- waste plant in Suffolk will be used in greenhouses to produce tomatoes June 2015 Local Authority Waste & Recycling 25

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