Farmers turn to CHP to recoup losses of failed Anaerobic Digestion projects
“As well as providing energy security for our dairy, the CHP plants will recover what we invested in a planning application for an AD plant.”
Hundreds of farmers in planning for Anaerobic Digestion (AD) plants were recently stung by heavy cuts to the Feed-In Tariff, making their projects financially unviable.Now farmers and land owners are turning to biomass Combined Heat and Power (CHP) to recoup their losses and generate their own energy on site.
Depending on the scale of the development, the Arbor ElectroGen 45 biomass CHP plant does not necessarily need planning permission and qualifies for two types of Government incentives: the long-running Renewable Obligation Scheme (ROCs) for the electricity produced and the generous Biogas Renewable Heat Incentive (RHI). Operators can see net returns of up to £85,000 per annum and 15-20% IRR over the lifetime of the investment making it an attractive option for anyone who was affected by the FiT cuts or anyone that failed in planning for AD.
Welsh Farmer comes out on top following FiT drop
Earthmill client Aled Lewis is currently installing 4 of the Arbor ElectroGen 45 plants at his dairy farm in Mid Wales after cuts in the Feed-in Tariff rendered his planning application for an AD plant financially unviable to pursue. The installation is powering the farms dairy operation as well as providing heat to a Wellvent drying floor to dry and supply woodchip. Aled will soon welcome farmers to his site to showcase the technology, allowing visitors to learn how they too can benefit from the generous Government incentives that are available for biomass CHP plants.
Aled Lewis commented, “As well as providing energy security for our dairy, the CHP plants will recover what we invested in a planning application for an AD plant here on the farm.”
Earthmill are currently offering free site assessments for farmers and business owners interested in installing CHP in Yorkshire, Cheshire and Wales. Click here to request your site assessment.