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Including Heat Demand Investigation.Pdf 2Allington 4th Line Extension FCC Environment (UK) Ltd CHP Assessment FCC Environment (UK) Ltd Document approval Name Signature Position Date Prepared by: James Bernays Project Engineer 15/05/2020 Checked by: James Sturman Lead Consultant 17/05/2020 Reviewed by: Stephen Othen Technical Director 19/05/2020 Document revision record Revision Date Details of revisions Prepared Checked Reviewed no by by by 0 21/05/2020 First issue to client JB2 JRS SMO 1 16/07/2020 Updated following Client review JB2 JRS SMO © 2020 Fichtner Consulting Engineers. All rights reserved. This document and its accompanying documents contain information which is confidential and is intended only for the use of FCC Environment (UK) Ltd. If you are not one of the intended recipients any disclosure, copying, distribution or action taken in reliance on the contents of the information is strictly prohibited. Unless expressly agreed, any reproduction of material from this document must be requested and authorised in writing from Fichtner Consulting Engineers. Authorised reproduction of material must include all copyright and proprietary notices in the same form and manner as the original and must not be modified in any way. Acknowledgement of the source of the material must also be included in all references. 16 July 2020 CHP Assessment S2856-0300-0001VBT Page 2 FCC Environment (UK) Ltd Management Summary FCC Environment (UK) Ltd (abbreviated to FCC and referred to as the Applicant ) is developing an Energy From Waste Facility (the Proposed Extension) on the site of the existing energy from waste plant (the Existing Station) in Allington, Kent. Whilst the Existing Station was constructed as CHP- Ready, the focus of this CHP Assessment Report (the Report) is the Proposed Extension in the context of the Generating Station. The Proposed Extension will operate as a merchant waste treatment facility, with fuel sourced primarily from industrial and commercial and Household waste contracts. Assuming a design Net Calorific Value (NCV) of 9.5 MJ/kg, the Proposed Extension will process approximately 300,000 tonnes per annum (at the design capacity of 37.5 tph, assuming 8,000 hours availability). The Proposed Extension has been designed to export power to the National Grid via local connections. The Proposed Extension will generate approximately 31.4 MWe of electricity in full condensing mode (i.e. without heat export) and with average ambient temperature. The Proposed Extension will have a parasitic load (power consumed by the facility under normal operation) of approximately 2.7 MWe. Therefore, the export capacity of the Proposed Extension, with average ambient temperature, will be approximately 28.7 MWe. The Proposed Extension will also have the capacity to export heat, subject to technical and economic feasibility, which will be suitable for a district heating network. The maximum heat capacity of the district heating network will be subject to the requirements of the heat consumers and confirmed during detailed design stage. For the purposes of this CHP Assessment, Fichtner has assumed a maximum heat capacity of 8 MW thermal (MWth). This capacity is considered feasible from most turbines with minimal plant modifications. The exact turbine maximum heat export capacity will be confirmed during detailed design. The Environment Agency (EA) Combined Heat and Power (CHP) Ready Guidance, titled ‘CHP Ready Guidance for Combustion and Energy from Waste Power Plants’ (the CHP-ready Guidance) requires Best Available Techniques (BAT) to be demonstrated by maximising the energy efficiency of a plant. Following the screening of potential heat consumers and the development of a network heat demand profile (see the heat demand investigation included in Appendix A of this Assessment), it has been established that technically feasible opportunities exist to export an annual average heat load of up to 2.50 MWth to local heat users and, when accounting for consumer diversity, a peak load of 7.11 MWth. While the quantity of heat demand identified is sufficient to achieve Primary Energy Savings (PES) in excess of the 10% technical feasibility threshold, it is not sufficient to be deemed ‘Good Quality’ CHP in accordance with the CHP Quality Assurance (CHPQA) scheme. At the proposed heat network load, the Primary Energy Savings (PES) was calculated to be 22.28% and the CHPQA Quality Index (QI) score was 62.2. A QI score of 105 is required at the design stage to be deemed ‘Good Quality’ CHP. The new efficiency criteria set out in the latest CHPQA guidance means that it is unlikely that any energy from waste plant will now reach ‘Good Quality’ CHP status. For reference, the Proposed Extension will require an average thermal export of at least 58.53 MWth to qualify as Good Quality CHP status. Therefore, construction as CHP-Ready will demonstrate BAT for the Proposed Extension. A CHP-Ready Assessment form has been completed and is provided in Appendix C. Article 14 of the Energy Efficiency Directive requires a cost-benefit assessment (CBA) of opportunities for CHP is when applying for an Environmental Permit (EP). An assessment of the costs and revenues associated with the construction and operation of the proposed district heating network (the Scheme) has been undertaken. The results have been considered in a CBA in accordance with the draft Article 14 guidance document issued by the Environment Agency (EA) 16 July 2020 CHP Assessment S2856-0300-0001VBT Page 3 FCC Environment (UK) Ltd The results of the CBA indicate that the nominal project internal rate of return and net present value (before financing and tax) are negative. Therefore, it is considered that the proposed heat network does not yield an economically viable Scheme in its current configuration. However, the economic feasibility of the Scheme will be reassessed annually going forward, with a report accompanying each review, to keep track of changing local heat demands and consider any subsidies that support the export of heat. The Proposed Extension will be designed as CHP-Ready to demonstrate BAT, and will be able to export heat in the future with minimum modification. This is enabled by virtue of having steam export capability designed into the turbine bleed and safeguarded space in a separate building northeast of the turbine hall to house CHP equipment. At the time of writing this Report, there are no formal agreements in place for the export of heat from the Proposed Extension. To maximise the likelihood of securing the requisite level of heat demand and to maintain momentum in the development process, an outline action plan (detailed in Section 10) has been proposed. This includes provision of annual progress targets to monitor progress and should help to ensure the heat network is delivered in the shortest possible timeframe. FCC appreciates the benefits associated with maximising energy recovery from the thermal treatment of waste, through the implementation of CHP. FCC is continuing to explore opportunities to export heat from the Proposed Extension and will periodically review this position. 16 July 2020 CHP Assessment S2856-0300-0001VBT Page 4 FCC Environment (UK) Ltd Contents Management Summary ................................................................................................................................................ 3 List of abbreviations and units ..................................................................................................................................... 7 1 Introduction ........................................................................................................................................................ 9 1.1 Background .............................................................................................................................................. 9 1.2 The Development Consent Order process ............................................................................................... 9 1.3 Environmental Permit .............................................................................................................................. 9 1.4 The Applicant and Study Team .............................................................................................................. 10 1.5 Purpose of this report ............................................................................................................................ 10 1.6 Project description ................................................................................................................................. 10 1.6.1 The Energy Recovery Facility (ERF) ......................................................................................... 10 1.6.2 Electrical connection .............................................................................................................. 11 1.7 Structure of this report .......................................................................................................................... 11 2 Conclusions ....................................................................................................................................................... 12 2.1 Policy ...................................................................................................................................................... 12 2.2 Technology description .......................................................................................................................... 12 2.3 Study Area - Heat demand investigation ..............................................................................................
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