Waste-to-Energy – Bristol Project Avonmouth, U.K.

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Overview

Blue Sphere is a global independent power producer, operating renewable clean energy facilities in waste-to-energy (WTE) and biogas in the U.S. and Europe

Seeking US$ 69 million to develop the 12 MWh WTE Bristol Project in Avonmouth, U.K.

• Short-term construction period – 14 months
• 15 years guaranteed revenue stream
• Eliminates waste and cleanly generates reliable source of renewable energy
• Utilities purchase electricity or natural gas generated from facility under long-term power purchase agreements (PPA)
• Charges for the disposal of various types of waste
• Large pipeline of WTE projects in diverse geographies
• Management team has extensive experience

ocomplex projects and evaluate technologies

oproven track record – two large scale developments and five acquisitions of operating facilities

Opportunity

• Global waste-to-energy (WTE) market projected to climb to US$44 billion in 2026E from US$26 billion 2016
• U.K. Government has a 20 years of policy of supporting the WTE market
  • pipeline of existing and planned WTE projects
• Municipality of Bristol, U.K. was one of the first to adopt a policy of reducing fossil fuel feedstocks for power generation
  • largest municipality in the U.K. generating energy from waste
  • https://www.bristol.gov.uk/policies-plans-strategies/council-use-of-renewable-energy

• Site – physical location for the physical assets of a renewable power plant
• Permits – encompasses all permits necessary for project construction and operation
• Feedstock – renewable energy fuels on which the power production will be based
• Off-take – buyer of both the energy and any other characteristics of output secured by contract, often a PPA
• Technology – based on the feedstock, regulation and financial considerations
• EPC – Engineering, Procurement and Construction contractor responsible for all the activities from design, procurement, construction, commissioning and handover of the project
• O&M – responsible for all tests, measurements, replacements, adjustments and repairs intended to maintain the full functionality of the plant
• Capital – financial resources necessary for final development, construction, commissioning and initial operations through stabilized cash flows generated by the project

Solution/Strategy

• The Bristol Project is owned by Avonmouth Bio Power Energy Ltd
  • Zinc Road, Kings Weston Lane, Avonmouth, South of England
  • originally employed gasification technology
  • approved by the Council of Municipality of Bristol, U.K. in 2014 to treat 120,000 tonnes per annum (tpa) of Refuse Derived Fuel (RDF) delivered  from a neighboring facility called “New Earth”
  • planning consent received in 2015
  • Ofgem granted the Project an accreditation of 2 ROCs until 2033E
    • generated and exported electricity to the grid
    • £45-33 per MWe received from the off-taker
  • U.K. subsidies are linked to the CPI/RPI – escalated on an annual basis (April 1st) of each calendar year

• During 2016, plant shut-down due to inability to reach targeted power production (actual production < = 50% installed power)
  • since then, preserved – turbines were disposed and regularly maintained
  • plant owners decided to sell “as-is”

• SPV has carry forward losses of about US$60 million
  • bound to the UK tax regulations