Department of Engineering and Design

ME5569 Renewable Energy Technologies III – Geothermal Biomass, Waste,

Hydrogen (A 2015/16 YEAR)

“Weybridge Farm”

BY CARLO COGNI
1527795

12-11-2015

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INDEX
1. Executive Summary .............................................................................................................................. 3
2. Introduction to Weybridge Farm ...................................................................................................... 4
3. Biomass Plant: Anaerobic Digestion................................................................................................. 5
3.1 Technical data .............................................................................................................................................. 5
3.1.1 Anaerobic Digester sizing .................................................................................................................................. 7
3.1.2 CHP engine sizing .................................................................................................................................................. 8
4. Economic Considerations .................................................................................................................... 8
4.1 Levelized price of electricity…………………………………………………………………………………………9
4.2 Annual Revenues ....................................................................................................................................... 10
4.3 Net Present Value (NPV) and Internal Rate of Return (IRR) ..................................................... 11
5. Final considerations. ...................................................................................................................... 13
5.1 AD thermal requirements ...................................................................................................................... 13
5.2 AD and CHP Location ............................................................................................................................... 13
5.3 Biogas Cleaning .......................................................................................................................................... 14
5.4 Utilisation of electrical power output................................................................................................ 14
5.5 Environmental permitting ..................................................................................................................... 14
5.5.1 Health and Safety ............................................................................................................................................... 14
5.5.2 Duty of Care .......................................................................................................................................................... 15
5.5.3 Animal by-product Regulations ................................................................................................................... 15
5.5.4 Permits for spreading digestate................................................................................................................... 15
5.5.5 Environmental Permitting ............................................................................................................................. 16
6. Bibliography ...................................................................................................................................... 16

List of Figures and Tables

Figure 1. Technology overview............................................................................................................................. 4

Figure 2. Section of the Anaerobic Digester ..................................................................................................... 5
Figure 3. schematic of the chambers .................................................................................................................. 6
Figure 4. Cash Flow and Pay-Back Time at different discount rates....................................................11
Figure 5. Pay Back Time and NPV20th year .........................................................................................................12
Figure 6. Cash Flow (Bank Loan case) .............................................................................................................12
Figure 7. AD and CHP possible location ..........................................................................................................13

Table 1. Input and Output from the AD ............................................................................................................. 6

Table 2. CAPEX ............................................................................................................................................................ 8
Table 3. OPEX ............................................................................................................................................................... 9
Table 4. Annual Revenues .....................................................................................................................................10

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 1. Executive Summary
Project “Weybridge Farm” is biomass power plant composed of an anaerobic digester (“AD”) for
the creation of biogas mainly from cattle slurry and in small part from waste liquid (with fats)
deriving from the cheese-making process of the farm. The AD is combined with a Combined Heat
and Power engine (“CHP”) used to generate electrical and heat power.

Out of the 5000 tonnes of cattle slurry annually produced and the 2000 tonnes of waste water (of
which, 100 tonnes of fats), a production of 220,000 Nm3 of biogas have been estimated, with a
conversion factor of ~ 43 Nm3/t.

Once delivered to the power unit, the total amount of biogas will result in a production of 376,000
kWh per year of electrical energy to be delivered to the grid. The heat generated will be used
mainly to heat up the digester, in order to maintain the optimal range of temperatures to generate
the biogas ( mesophilic conditions: 40-42 °C )

Some economic consideration have been introduced, showing how the investment is feasible,
leading to a payback time in between the 7th and the 8th year, depending on the discount and
inflation rate (multiple cases have been considered).

In the final chapter, some issues have arisen regarding technical aspects. Moreover, the
environmental permitting process has been explained.

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 2. Introduction to Weybridge Farm

The Weybridge Farm, located south east edge of Dorking (Surrey), comprises 90 hectares of
arable and grazing land, which is in support of about 500 dairy cows, to produce 200,000 kg
of cheese per year. The electricity bills are 25,000 £, for an estimated electrical power of 20
kW. This electrical power is used mainly for lighting, refrigeration and vacuum pumps to
extract milk. It is desire of the farmer to adopt an anaerobic digestion plant as in figure 1
(qualitative example).

Figure 1. Technology overview

The farm produces every year about 2,000 tonnes (of which 100 tonnes of solids fats) of waste
liquids, to be discharged at a cost of 27,000 pounds. In addition, 5,000 tonnes of slurry per annum is
produced from the dairy herd. The slurry is stored in two lagoons and is spread over the pasture
land during spring.

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 3. Biomass Plant: Anaerobic Digestion
The farm produces a large quantity of animal waste (slurry), which can be further utilized in the
anaerobic digestion process. The effective load estimate is of 7000 tonnes, of which useful 5100
tonnes.

Cattle slurry production can be estimated of 43 Nm3/t.a (Normal cubic meter per ton
per annum )1. Hence, a production of almost 220,000 Nm3/a of biogas can be estimated. The
digestate (fraction of waste that did not transform into gas) can be stored separately and then used
as fertilizer on the land.

3.1 Technical data

The anaerobic digestion plant (AD) has been chosen in order to exclusively use the cattle slurry,
Hence to maximize the Biochemical Methane Potential ( Nm3 of CH4 per kg of volatile solids).

Figure 2. Section of the Anaerobic Digester

The digester, which operates in plug-flow with mesophilic conditions (40-42°C), is made by two
concentric cylindrical chambers (K1 and K2), realized in concrete and hydraulically connected on
the bottom. The biogas production in the chamber K1, its storage and the eventually increase in
pressure, will cause the movement of organic material from K1 to K2. When the pressure exceed a
certain limit, a valve is opened allowing the biogas from K1 to exit. This equilibrates the level of
organic material in the two chambers (agitation of the digestate). In addition to this process, the
mixing of digestate will occur thanks to an innovative system of heated pipes (one in K1 and one in

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K2) named “Thermo-Gas-Lift” (TGL), which avoid the use of mechanical systems (mixers) and at
the same time warms up the digestate.

Figure 3. schematic of the chambers

This effect achieved as follow:

 Compressed air introduced with the air pump in the lower end of the TGL in K1
(desulphurisation action) and input of biogas at the upper end of the TGL in K2.
 Rising of air bubbles
 Thermal convection thanks to the presence of hot water in the interspace of the TGL.

Table 1. Input and Output from the AD

Annual load 7000 tonnes

Total solids ~12% -
Organic Load (OL) ~ 62% -
Organic Load Rate ~3.5 Kg(OL)/m3*d
Biogas annual production 220,000 Nm3 (1)

Methane annual production 132,000 Nm3 (1)

Gross annual electrical production 396,000 kWh

1. Nm3 = cubic metres of gas at Normal Pressure and Temperature (1 bar and 0°C )

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With reference to table 1, of the 7000 tonnes of annual load, 2000 derives from liquid waste of the
cheese-making process, containing 100 tonnes of solids (5% fraction). The cattle slurry (5000
tonnes) on average contains 15% of solids. Thus, it can be estimated a total percentage of solids
around 12%.

The organic load for cattle slurry normally is of 85%, which combined with the liquid fraction,
gives final value of 62%.

Of the 220,000 Nm3, around 60% will be constituted of Methane.

The gross electrical output can be estimated by considering 1 cubic meter of biogas (60% CH4, 40%
CO2) with a lower calorific value of 6 kWh/m3 (for pure methane it is 10 kWh/m3). By adding an
average engine electrical efficiency of 30%, we have 1,8 kWh/m3 of biogas. Hence the annual
production is equal 396,000 kWh

3.1.1 Anaerobic Digester sizing

The anaerobic digestor can be sized starting from the daily biogas production:

220,000 𝑁𝑚3 𝑁𝑚3

≅ 602
365 𝑑𝑎𝑦𝑠 𝑑𝑎𝑦

Thus, 602 his the minimal volume required to store the production. As a safety measure this value
will be increased by 10% leading to a final volume of 662 Nm3. By the formula of volume, the
diameter of the external digestion chamber can be estimated by considering a reasonable height of
H = 5.5 m :
𝐻𝜋𝑑2 4𝑉
𝑉= => 𝑑 = √𝜋 𝐻 ≅ 12 𝑚
4

The internal chamber will have a diameter equal to 60% of the external chamber, thus around 7
metres.

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 3.1.2 CHP engine sizing

Starting from the gross annual electric output of 396,000 kWhe some considerations can be made
for the engine. We can assume the engine to work for 8,000 hours per year at a load factor of 100%.
Thus:
396,000 𝑘𝑊ℎ𝑒
𝑁𝑜𝑚𝑖𝑛𝑎𝑙 𝐸𝑙𝑒𝑐𝑡𝑟𝑖𝑐𝑎𝑙 𝑃𝑜𝑤𝑒𝑟 = ≅ 50 𝑘𝑊𝑒
8000 ℎ

Hence, for this nominal power obtained, the Czech CHP engine MAN E0834 LE302 is suggested as
example. With a nominal electrical power of 63.7 kWe and a nominal thermal power 94.4 kWht, it
can accomplish the task of supporting the AD for production, with marginal safety.

4. Economic Considerations
Before dealing with economic considerations, it must be underlined that values here presented must
not be taken has definitive. They were assumed by looking at similar example of AD plants. Thus,
they should be taken as indicative. Some of the values assumed are presented in figure 4 and 5:

First of all we’ll introduce the initial investment cost (table 2):

Table 2. CAPEX

Investment cost (CAPEX) [£]

Civil work 70,000
Electromechanical works 80,000
CHP 42,000
Separator S/L 15,000
Groundwork, electrical 30,000
connections
Various (administrative practices, 55,000
project, others)
Tot 292,000

Then, we’ll introduce the operation and maintenance cost1 (Table 3):

1 Values for CAPEX and OPEX have been taken from a similar plant (see bibliography point 2.)

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 Table 3. OPEX

O&M (OPEX) [£/yr]

Repairs / maintenance 3,300
Biological assistance 3,500
Tot 6,800

4.1 Levelized price of electricity

The levelized price of electricity is the average price that the generating asset must receive in a
market to break even over its lifetime. It is defined as the capital recovery factor over the annual
energy production of the asset.

In case of a 20-years bank loan at 5%, then the capital recovery factor would be:

0.05 (0.05 + 1)20 £

𝐶𝑅𝐹(0.05,20) = £ 292,000 𝑥 = 23.430
(0.05 + 1)20 − 1 𝑦𝑟
Which is the annual debt payment to the bank. The final annual cost for the farmer will be given by
the annual debt payment plus the levelized O&M cost, which is:

𝑶&𝑴
𝐋𝐞𝐯_𝐎&𝐌 = ∑𝟐𝟎
𝒕=𝟏 (𝟏+𝒓)𝒕

Where t is time, and r the discount rate.

In our case with r = 5%, the total cost of the biomass plant over its lifespan is:

𝑇𝑜𝑡 𝑐𝑜𝑠𝑡 = 𝐶𝑅𝐹 𝑥 𝑙𝑖𝑓𝑒𝑠𝑝𝑎𝑛 + 𝐿𝑒𝑣_𝑂&𝑀 = 468,616 £ + 84,743 £ = 553,359 £

Finally the levelized price at which electricity needs to be sold for the project to be viable is:

𝑡𝑜𝑡 𝑐𝑜𝑠𝑡 553,359 £ £

𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = = 𝑘𝑊ℎ = 0,073 𝑘𝑊ℎ
𝑎𝑛𝑛𝑢𝑎𝑙 𝑒𝑛𝑒𝑟𝑔𝑦 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑥 𝑙𝑖𝑓𝑒𝑠𝑝𝑎𝑛 376,000 𝑥 20 𝑦𝑟
𝑦𝑟

For the annual energy production an abundant 5% margin has been added, due to possible losses for
conversion and transmission.

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In case the farmer will self found itself, then the selling price is just the annual O&M over the
energy production :
𝑂&𝑀 6,800 £ £
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 = = = 0.018
𝐴𝑛𝑛𝑢𝑎𝑙 𝐸𝑛𝑒𝑟𝑔𝑦 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜 376,000 𝑘𝑊ℎ 𝑘𝑊ℎ ∙ 𝑦𝑟
𝑦𝑟

4.2 Annual Revenues

Finally, we’ll introduce the annual revenues (table 4). It must be underlined that for anaerobic
digestion plants the UK government sponsors a feed in tariff of 10.13 p/kWh for AD powers below
250 kW2 for a period of 20 years. In addition, for every unit exported to the grid, the seller may
choose either, to receive an extra 3p/kWh, the Export Tariff, or negotiate a higher price directly
with a supplier3. For this case study, we’ll choose the fixed price of 3 p/kWh. Of all the gross
electrical output, we’ll consider an addition 5% of conversion and transmission losses (net
electricity production equal to 376,000 kWh/yr) . Finally, an extra earning comes from the fact that
the digestate (part of the biomass loaded that do not transform into biogas) can be used as fertilizer.
As a matter of fact, the anaerobic digestion process determines a reduction in the organic matter less
stable, but it does not reduce the parts of nitrogen, phosphorous and potassium. On the contrary the
AD process mineralize the organic nitrogen into ammonia nitrogen (especially for biomass deriving
from animal manure), which is a precious fertilizer for many types of cultivation4. For it matters the
waste water, the anaerobic digestion process has been proven to be a possible water treatment
process, for the water output results decontaminated5.

Table 4. Annual Revenues

Annual revenues [£/a]

Annual revenues from electricity
selling (0.1313 £/kWh) 49,369
No-fertilizer earnings 2,200
Electricity bills -25,000
No discharging cost 27,000
Tot 53,569

3 http://www.biogas.org.uk/pdf/ad-connection-guide.pdf
4http://www.crpa.it/media/documents/crpa_www/Pubblicazi/conoscer&competere/_conoscerexcompeter_n4.
pdf
5 “Cheese factor waste water treatment by anaerobic semicontinuous digestion” by Lebrato, Perez Rodrigues,
Maqueda and Morillo. Material science institute of Sevilla and institute of agrobiology of Sevilla. 1990

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It must be underlined, by looking at the LCOE, how a total selling price (feed in tariff plus export
tariff) of 0,1313 £/kWh can make the project economically feasible.

4.3 Net Present Value (NPV) and Internal Rate of Return (IRR)

Knowing the O&M cost and the annual revenues, we can combine the two to obtain the net
annual revenues of £ 46,769. By discounting (r) with different rates we can predict the pay
back time for the investment and the net present value at the 20th year(figure 6). The final
results are summarized in table 5. To the normal cost for O&M, the extraordinary
maintenance (£10,500) of the CHP engine has been added at the 8th and 15th year.

Figure 4. Cash Flow and Pay-Back Time at different discount rates

700000.0

600000.0

500000.0

400000.0

300000.0

200000.0

100000.0

-
0 2 4 6 8 10 12 14 16 18 20
-100000.0

-200000.0

-300000.0
r = 0% r = 1% r = 3% r = 5%

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 Figure 5. Pay Back Time and NPV20th year

r NPV20th year Pay Back

0% 622.376 6th year
1% 533.228 6th year
3% 388.773 7th year
5% 278.685 8th year

Internal Rate
of Return = 14,7509%

For the investment the Internal Rate of Return (IRR) has been calculated and is equal to
14.7509%.

In case of 20-year bank load at 5%, the results are presented in figure 7, with a final value of
445,759 £.

Figure 6. Cash Flow (Bank Loan case)

500000

£
450000

400000

350000

300000

250000

200000

150000

100000

50000

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
year

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 5. Final considerations.
Overall, the opportunity to pair an AD combined with CHP to the farm, has been proven
feasible from an economic point of view. In this last chapter some final considerations will be
expressed in relation to technical and legal issues.

5.1 AD thermal requirements

Since the AD needs to operate at mesophilic conditions (40-42 °C), the heat required can be
delivered from the CHP engine. The thermal output will be absorbed mainly by the digestion
chambers (K1 and K2). In case extra heat may be produced, it may be delivered to the farmer
house, or otherwise (during summer) released into the environment.

In case of failure of the CHP engine or during maintenance, it would be wise, as a safety
measure, to add thermal resistance to deliver heat from the electric grid.

5.2 AD and CHP Location

Figure 7 shows a possible location for the AD and the CHP. This has to be taken as suggestion
due to the proximity of the slurry lagoon (easier for loading)

Figure 7. AD and CHP possible location

The CHP is likely to be positioned next to the AD, hence reducing the thermal losses along the
pipes to heat up digesting chambers. Whilst, the AD is preferable to be positioned next to the
slurry lagoons to facilitate the daily uploading of slurry in the chambers.

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 5.3 Biogas Cleaning

Before entering the CHP unit, the biogas has to be cleaned, using filters, to make sure that potential
corrosive elements ( in particular sulphuric acid) are limited to the specifics of the engine and pipes.
Otherwise premature corrosion may result in failures and hazard for the operators of the farm.

5.4 Utilisation of electrical power output

In this case study, the energy, produced by the CHP unit, have been assumed to be delivered
entirely to the grid. Of course, part of it could be used in the farm facilities.

The reason for this choice is due to the fact that in order to be rewarded of the feed in tariff and the
export tariff, the energy delivered must be metered accurately, which may not be an easy task. If
such energy has to be divided in between the farm and the grid, metering could be inaccurate and
could lead to non-payment to the farmer.

5.5 Environmental permitting

All anaerobic digester operators in the UK must comply with regulations concerning environmental
protection, animal by-products, duty of care and health and safety.

5.5.1 Health and Safety

Anaerobic digestion can be regarded as a chemical process with all the associated risks: flammable
atmospheres, fire and explosion, toxic gases, confined spaces, asphyxiation, pressure systems,
COSHH, etc. In addition, it also incorporates gas handling and gas storage. Therefore, it is essential
that thorough hazard and risk assessments are carried out at each stage of a project from design to
installation to commissioning to implementation and operation.

The REA operate a Safety Alert service to incidents affecting safety and the environment that have
occurred in the Anaerobic Digestion and biowaste industries. Serious incidents related to slurries
and manures on farms outside the industry will also be included. The service is intended to raise
standards and reduce incidents by building trust across the industry to report, share and learn. REA

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Safety Alert will demonstrate that the industry is aware of the importance of safety and
environmental standards and is prepared to take continuous measures to improve performance.

5.5.2 Duty of Care

The duty of care is a law, which says you must take all reasonable steps to keep waste safe. You
have a legal responsibility to ensure that you produce, store, transport and dispose of waste without
harming the environment. Introductions to duty of care can be found in these documents by Defra
and the Environment Agency.

5.5.3 Animal by-product Regulations

Manure and digestive tract content are classified as a category 2 ABP, but they can be used without
processing as raw material in a biogas plant. However, where manure or digestive tract content is
sent to a biogas plant for treatment with other ABPs (including catering waste) the plant must be
approved and the mixture treated to approved standards.

Further information can be obtained from the Animal and Plant Health Agency (APHA)6.

5.5.4 Permits for spreading digestate

Material that has reached PAS 110 and Quality Protocol standards is no longer regarded as a waste.
However, to spread waste material (prior to achieving PAS110 accreditation) to agricultural land to
confer benefit or ecological improvement you will have to apply for a permit or register for an
exemption.

Spreading exemptions relate only to digestate produced under T24 or T25 with a quantity limit of
50 tonnes per hectare and a storage limit of 200 tonnes, at any one time.

U107: spreading of digestate from pre-defined feedstock on agricultural land to confer benefit

There is a standard rule permit for spreading waste material to land (if you do not fit the criteria for
an exemption) Standard permit SR2010 No.4 allows the spreading of no more than 250 tonnes per
hectare and that no more than 3,000 tonnes of waste material is stored at any one time and for no
longer than 12 months. For each spreading of material to land there is a charge related to the type of
material being spread, relating to lower risk, medium risk and high risk.

6 https://www.gov.uk/government/organisations/animal-and-plant-health-agency/about
7 https://www.gov.uk/guidance/waste-exemption-u10-spreading-waste-to-benefit-agricultural-land

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The Environment Agency have also issued guidance for Seeding AD Plants8 – to explain when a
permit or exemption may apply during plant start-up.

5.5.5 Environmental Permitting

Environmental permitting (EP) is a scheme in England and Wales for regulating business activities
that could have an impact on the environment and human health. All AD plants will be required to
obtain a permit or exemption to operate and to spread digestate – completing an application for with
relevant technical information and demonstrating that you are competent to operate the plant.

To apply for environmental permit operators must demonstrate their technical competence. There
are currently two approved schemes for England and Wales; the CIWM/WAMITAB9 scheme and
the ESA/EU Sector Skills scheme.

In this case the first level (exemption) of permitting will be sufficient, which applies for small scale,
non-waste facilities (no charges apply).

It is required to register with the EA and provide some technical information, no charges will apply.
T2410: anaerobic digestion at premises used for agriculture and burning of resultant biogas. There
are specific waste types that can be used under this exemption (including manures, slurries and
plant tissue) and a total quantity of waste treated or stored at any one time must not exceed 1,250
cubic metres. The appliance used must have a net rated thermal input of less than 0.4 megawatts.

6. Bibliography
1. Professors Hilary Stone and Martin Ratcliffe lecture notes.
2. “Biogas da liquame in un azienda di 100 vacche da latte, cogenerazione da un impianto da biogas
di piccolo taglia”, Case study Biogas, AIEL (associazione italiana energia agroforestali),
agriforenergy.com
3. “Energia Elettrica e Calore dal Biogas, una concreta opportunità per gli agricoltori”, ”, Case
study Biogas, AIEL (associazione italiana energia agroforestali), agriforenergy.com

8 https://www.gov.uk/government/publications/seeding-of-anaerobic-digestion-plants
9 http://www.ciwm.co.uk/ciwm/training-and-development/operator-competence/ciwm/training/operator-
competence.aspx?hkey=9b1fcd64-03f0-4a45-9f5d-0c7677b6794c
10 https://www.gov.uk/guidance/waste-exemption-t24-anaerobic-digestion-at-premises-used-for-agriculture-
and-burning-resulting-biogas

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