The top 10 risks to consider for your Anaerobic Digestion plant
In 2010, the British government threw its weight behind the anaerobic digestion (AD) sector, arguing that turning the 10.2 million tonnes of waste produced in the country each year into energy was a “no brainer”. This is no surprise; the UK has committed to meeting 15% of its energy needs through renewable sources by 2020. And, biogas is not only clean and green, it’s also a way of recycling organic waste that might have otherwise gone to landfill, helping restore nutrients and organic matter to soils and improve air quality.
But it’s also an uncertain time for AD. High set-up costs mean there are only a handful of operations in the UK – just 650 as of 2019. It may become increasingly difficult to push this number up when government subsidies for AD and biogas plants come to an end in 2020.
Because it’s such a small sector, it’s already an expensive area to operate in. There aren’t enough anaerobic digestion insurance policyholders spread over a variety of insurers to subsidise the cost of the claims being made. This means the price of cover and excesses is being pushed up. Claims are also consistently high – usually in the six figures, and some going into seven.
As a result, it’s vital that the entire sector understands and mitigate risks. Our whitepaper explores the top 10 risks you need to consider when setting up and running AD plants.