According to the Committee on Climate Change, bioenergy alone could provide up to 15% of UK energy demand in a low carbon economy by 2050. It is now the largest contributing renewable technology in the UK, providing 7.4% of primary energy supply.
Bioenergy offers investors an ethical, environmental and green investment which will provide a good return. It is an excellent choice for venture capitalists, fund managers and individual investors looking to build an ethical portfolio in the UK and beyond.
It is also a smart investment for electricity generation, energy and waste management companies. The production of bioenergy from waste offers a wide range of benefits including the efficient production of renewable, green energy and effective waste management.
Bioenergy – a major growth area for investment
There are a number of factors which are making Energy-from-Waste (EfW) a major growth area:
Growing interest from Local Authorities (e.g. Birmingham in the UK has made a commitment to reduce Birmingham’s CO2 emissions by 60% by 2026)
Pressure from International and European climate change directives requiring the reduction of CO2 emissions
The UK landfill tax making it expensive to dump waste
Lack of landfill sites
The rising cost of carbon credits
The increasing demand from the public for green, renewable energy
The rising cost of gas and electricity from energy companies
These factors will intensify in the future making it more attractive to produce energy from waste. There are a number of groups that can benefit from investing in Energy-from-Waste.
Bioenergy – a smart investment for electricity generation, energy and waste management companies
- Electricity Companies
There is an increasing demand from customers and businesses for green energy. In 2005, npower, a leading UK supplier of electricity, launched a green energy scheme called ‘Juice’. Customers could buy energy generated from green sources (such as wind farms) at a 20% premium. The scheme was quickly over-subscribed with demand far outstripping the available green energy. There is still a growing demand from UK customers and businesses for energy produced from green sources. An electricity company can invest in Energy-from-Waste and market this as a major selling point to existing and potential customers.
- Energy Management Companies
Bioenergy from waste offers an excellent opportunity for energy management companies to provide their business clients with cost effective, green energy. In 2013, EBRI opened a new building on the Aston University campus in central Birmingham which can be be powered by its own bioenergy technology housed behind it. This is used as demonstrator and testing unit for different types of waste.
- Waste Management Companies
Bioenergy offers businesses that produce waste a way to reduce both their energy and waste disposal costs. Energy from waste can provide a factory with a way to efficiently dispose of its waste while generating the electricity and heat it needs. Waste disposal is becoming increasingly expensive and a bioenergy reactor can effectively process a wide range of waste, including contaminated waste and plastics.
Fund managers, individual investors, electrical generation, energy management and waste management companies wanting more information about investing in bioenergy should contact EBRI.