WS2007 stated that where biomass waste cannot be reused or recycled, it makes economic and environmental sense to use it as a renewable fuel3.
The consultation on a Heat and Energy Saving Strategy for the UK (HES) made it clear that the waste Private Finance Initiative (PFI) programme offers a platform for new EfW infrastructure. The waste PFI programme seeks to support CHP or heat-only generation in preference to electricity-only EfW plants.
The EU has set itself a target to generate 20% of its energy from renewable sources by 2020 and the UK has committed to deliver its share of 15%. The UK Renewable Energy Strategy (RES) says that waste biomass is an under-used resource which could provide a significant contribution to our renewable energy targets and reduce the total amount of waste that is landfilled in the UK4, although it should be noted that only the biomass portion of the SRF or Municipal Solid Waste (MSW) would count towards it.
Economically, the benefits of this approach derive from the production of renewable electricity as provided for by the current EfW with CHP provisions in the Renewables Obligation Order along with Levy Exemption Certificates (LECs) as described later in this Information Note. In the future benefit should also come from Renewable Heat Incentive payments for the generation of useful heat.
Besides contributing to achieving our renewable energy targets the environmental benefits are three fold: potential displacement of fossil fuels in energy generation, greater efficiencies from the production of energy and security of fuel supply.
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3 The Office of Climate Change's analysis suggested that with moderate financial support in place, the potential for heat from waste could be approximately 4 TWh a year, and with more ambitious policies in place the long-term potential to generate energy from waste might be in the order of 45 TWh.
4http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/res/res.aspx (see page 108 of the RES)