Offtake opportunities assessment for Melton Renewable Energy UK Ltd
- Client Name
- Melton Renewable Energy UK Ltd
- Location
- Various locations, UK
SLR completed an assessment of electricity, heat and CO2 offtake opportunities from the client’s fleet of biomass power stations to inform future business strategy and model development.
Challenge
The client operates a number of biomass power stations which generate and export electricity to the UK National Grid under government renewables subsidies.
Uncertainty regarding the expiry of these government subsidies resulted in the client seeking alternative business models for its facilities, which have long term feedstock supply contracts in place.
The aim of SLR’s commission was to assess (both at fleet and individual facility level) the potential for operating private wire electricity supplies, and generating additional revenue streams from offtake of untapped heat and biogenic carbon dioxide (which could be captured).
Solution
The SLR project team explored the potential for diversification of revenue streams from the client’s current business model by undertaking a multidisciplinary assessment of the potential for commoditisation and offtake of power station outputs.
SLR developed and applied a detailed methodology, to identify and profile potential target offtaker industries. Site specific assessments were carried out on three sites, which included consideration of local planning implications and restrictions likely to be applicable to any potential new infrastructure required to facilitate offtake of outputs.
The site-specific assessment methodology which SLR developed was designed to be applicable to the other sites as required in the future.
Impact
SLR’s work provided the client with an enhanced and informed understanding of potential offtake opportunities to consider as part of a possible diversification of its power station business models.
The project identified a refined list of industries which could be suitable (in principle) to accept the relevant facility outputs. SLR’s project deliverables provided a future reference point for the client to inform consideration of potential offtakes (and attraction of offtake industries) from any of the assets within its portfolio.
Site specific analysis identified existing developments, those in construction, those within the planning process and those with local plan allocation, which could be approached by the client to discuss and investigate offtake opportunities.
