Farms and other businesses in rural areas of the UK may increasingly find heat-only anaerobic digestion plants ‘a more viable opportunity’ than combined heat and power (CHP) plants given recent policy changes, one manufacturer of such systems has claimed.
Spain-based Norvento, which makes on-site renewable energy systems, said the UK’s revision of its Renewable Heat Incentive (RHI) tariffs could encourage on-site energy consumers to reconsider their options.
Post-revision, the market has seen heat-based tariffs rise and feed-in tariffs for farm-scale electricity generation become increasingly limited.
Norvento predicted that this shift could make heat-only biogas plants more profitable than CHP for farmers and other on-site energy users.
According to Norvento, capital costs for a 600 kW heat-only anaerobic digestion system could be £250,000 ($323,000) less than for a CHP plant. The heat-only plant could also pay for itself in 3.5 years as opposed to five for the CHP plant, the firm claimed.
In addition, Norvento said the UK’s £320m heat network scheme, launched in October 2016, could also incentivize the installation of heat-only plants.