The potential of anaerobic digestion is significant. With a sound scientific profile from European projects and an increasing appetite for more sustainable waste management options, there are trailblazing projects springing up all over the USA, often backed by strong local support, waste management money and European project developers.
The primary concern for these innovators has increasingly become one of commercial viability rather than a need to prove the science. With the payback on larger facilities upwards of 10 years and the initial investment substantial – these projects are taking longer than expected to materialize. Plus they require a very long term approach by the waste managers at a local level who have to be prepared to commit to long term contracts (and therefore a fairly rigid pricing structure).
The abstract that has been released by Renewable Waste Intelligence looks at both the pros and cons of anaerobic digestion as a means of tackling waste management for organics. But in addition, there is some consideration given to the funding structure of anaerobic digestion facilities with a case study to give more detail.
“Renewable Waste Intelligence has created a well written and informative report. This, in combination with the detailed case studies would be valuable to those seeking proof of viability of investing in renewable waste,” comments Greg Shipley (CEO of Waste to Energy LLC).
The North American market for anaerobic digestion and biogas production equipment is valued at $510 million in 2011 and is forecast to reach nearly $1.2 billion by 2016. A huge portion of this growth is set to come from the increasing versatility of anaerobic digestion as it expands beyond the agriculture market.
But there are challenges. A grasp of the significantly different business model and the need to understand the position of waste management stakeholders puts up barriers to this fledgling niche of the biogas industry. Financing, feedstock security, long-term agreements and dialogue with utilities concerning off take agreements are also pivotal issues as that can obstruct progress.
Harvest Power, will be joining several other key players in the US’s waste-to-energy sector next week to discuss these matters at the Anaerobic Digestion Conference and Expo in San Francisco (US).
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