FGEN’s AD assets use energy crops and agricultural waste to generate biomethane that replaces fossil gas in the GB gas network. Not only do the assets contribute to the decarbonising of the heat sector, they offer farmers a means to diversify their revenue sources and to use digestate, the by-product from the process, as an alternative to chemical fertilisers.
About the portfolio
The assets consist of operational agricultural anaerobic digestion plants across the UK.
Investment attractions
- Government-backed incentives (FiT and RHI accreditation)
- Index-linked incentives
- Low technology risk
- Higher returns than solar and wind
First investment
2017
Potential risks
- Risks around cost and supply of feedstock
- Merchant gas and electricity prices
- Operational issues
Our anaerobic digestion assets
Icknield Anaerobic Digestion Plant
The Icknield Farm project was developed in conjunction with Scotia Gas Networks,a local gas network operator.
The plant consists of two digester tanks, each thirty metres in diameter. The feedstocks used, fit within the existing farming practices of the area and a variety of waste and crop feedstocks are used, depending on availability and time of year. At full capacity, the plant produces just under four million cubic metres of biomethane annually – enough for the annual gas consumption of up to 3000 homes.*
The site is eligible to receive revenue through two subsidy regimes: the RHI gas injection subsidy for gas exported onto the network, and the FiT for all electricity the CHP engine produces.
*Based on average annual domestic gas consumption of 12000 kwh/year
Case study spotlight: Vulcan Renewables
The Vulcan Renewables project comprises an anaerobic digestion plant located in Hatfield Woodhouse near Doncaster. The plant was commissioned in October 2013 and predominantly produces and upgrades biogas to be injected into the gas grid.