The Anaerobic Digestion and Biogas Association (ADBA) has published two key documents which were promised in the AD Strategy and Action Plan to support the industry. They are available on the association’s website.
The Due Diligence template, developed in association with WRAP, offers a simple way for developers to check they have provided all the information which investors need to carry out due diligence on projects. Banks and VCs financing AD, their advisers and ADBA’s Lawyers Working Group, which includes representatives from major law firms, were among those who helped ensure the document is comprehensive.
The template provides developers with overarching guidance on what investors would expect to see in a business plan, and gives investors a simple way to check where the information they need can be found. The template aims to help reduce the cost and complexity of due diligence and facilitate raising finance.
ADBA has also published a list of current financial schemes available to AD projects. Collating these into one accessible document gives developers a signpost to such schemes, and where they can find more details.
Charlotte Morton, Chief Executive of ADBA, said:
“We are delighted to announce the publication of both ADBA’s Due Diligence template and a comprehensive list of financial schemes available to the AD industry, two of the eleven industry actions ADBA were assigned in the AD Strategy and Action Plan.
“I would like to thank the many people who have contributed to these – particularly WRAP and Compass Renewables.
“Delivering these documents is part of the wider work ADBA is doing to develop the AD industry, both within and outside the actions agreed in the Action Plan.”
Key facts you need to know about anaerobic digestion and biogas
- The AD industry has the potential to generate around 40TWh of energy, equivalent to 20% of the UK’s domestic gas demand
- The AD industry has the potential to be worth £2-3bn in the UK alone and employ 35,000 people
- Overseas potential is significant and the UK could be a world leader - with the right support now.
- Anaerobic digestion (AD) is a natural process which converts organic matter such as household food and garden waste, farm slurry, waste from food processing plants and supermarkets, into biogas and biofertiliser.
- Biogas (which is approximately 60% biomethane, 40% CO2) can be utilised to generate electricity and heat, or, upgraded to bio-methane, as a transport fuel or fed directly into the UK’s gas grids
- According to the Carbon Trust the generation of bio-methane would save twice as much carbon dioxide as producing electricity by 2020
- AD is the only renewable that can be scaled up fast enough to enable the UK to reach its 2020 renewable energy target
- AD significantly improves Britain’s energy security - we will soon be importing over 70% of our gas
- AD reduces greenhouse gas emissions by treating organic wastes which would otherwise emit methane (landfill, slurries) and reducing our use of energy intensive commercial fertilisers and fossil fuels
- AD preserves critical natural resources such as Nitrates and Phosphorus. Phosphorous is a finite resource for which there is no known alternative. It is critical for plant growth and world resources are already running out. Nitrates are one of the key components of fertilisers.
- Unlike other renewables, biomethane is generated constantly and can be stored in the gas grid, and biomethane is one of the few renewable fuels for Heavy Goods Vehicles (HGVs) which cannot run on electricity
Five facts you need to know about ADBA
- ADBA stands for The Anaerobic Digestion and Biogas Association
- The Anaerobic Digestion and Biogas Association was founded in September 2009
- Since its launch ADBA has acquired over 250 members, including AD plant operators, suppliers, local authorities, farmers, utility and energy companies such as British Gas and Ecotricity, supermarkets such as Waitrose and Morrisons, fleet operators such as Coca Cola and Howard Tenens
- ADBA’s chairman is Lord Redesdale, former Liberal Democrat energy spokesman
- ADBA’s aim is to help enable or facilitate the development of a mature AD industry in the UK and to represent all businesses involved in the anaerobic digestion and biogas industries, to remove the barriers they face and to support its members to grow their businesses and the industry to help UK plc meet its renewable energy, climate change and landfill targets, as well as the preservation of critical natural resources.