Periodic Reporting for period 1 - p-DRIVE (Pyrolysis of Derived Residues of waste, providing Improved gas for Vehicle Engines)
Reporting period: 2015-12-01 to 2016-02-29
The Clean Gas Company (“CGC”) is a UK-based developer of an innovative modular pyrolysis technology that converts waste or any other carbonaceous material into a ‘product gas’ that has a very high energy and methane content. This gas can be subsequently upgraded (into Biomethane) to be suitable to be used as a fuel for transport applications, substituting diesel, petrol and natural gas.
We have performed a Feasibility Study in which the viability of the project has been confirmed after reviewing all the relevant technical, commercial and financial aspects. It has also allowed us to define the work plan for the project. After its accomplishment, PDRIVE will be upgraded, tested and validated (both the technology and the business model for the international exploitation), and CGC will be ready to commercialize the service and execute the plan for the international expansion.
We have performed a Feasibility Study in which the viability of the project has been confirmed after reviewing all the relevant technical, commercial and financial aspects. It has also allowed us to define the work plan for the project. After its accomplishment, PDRIVE will be upgraded, tested and validated (both the technology and the business model for the international exploitation), and CGC will be ready to commercialize the service and execute the plan for the international expansion.
In addition to several assessments devoted to technical issues and market studies performed to demonstrate the technical and commercial viability of PDRIVE, the following tasks have been developed according to the plan proposed in the Phase 1 contract:
Task 1. Technical Issues:
Validation of the viability of upgrading the biogas produced by our existing project for its use in vehicle engines. Including cost analysis and state-of-the art analysis. We have confirmed that we the most suitable technology for our process will be pressure swing adsorption.
Having evaluated available technologies and costs associated to upgrading our biogas to Biomethane, we have gained further insight into the technical requirements and the business case. The output of these tasks supports the calculation of the levelized cost of our Biomethane and the profitability for the end users.
Task 2. Market and Commercial Issues:
An evaluation of the current stage of the market, drivers and barriers, as well as predicted market development has been conducted to establish the potential deployment of CGC’s technology, as well as to identify and adapt the business plan and strategy. We have conducted a thorough evaluation of the potential market available for p-drive adoption in order to plan our commercialization strategy and forecast realistic growth of the company based on strong foundations.The result of this task is twofold:
1.Evaluation of the countries showing the greatest potential for vehicle usage of Biomethane (Demand evaluation).
2.Evaluation of the availability of our target feedstock: refused derived fuel (feedstock evaluation) and against other feedstocks/processes.
Task 3. Partnerships, suppliers and subcontracting:
Market evaluation and technical scope planning have led to the preparation of complete work packages with the tasks we will need to perform in order to manufacture and assemble the demonstration gas clean-up system and further preparation of commercialization. We conducted an assessment of the required tasks to search and evaluate the best fit to achieve our objectives. Resulted in the strengthen of our agreement with Feedstock supplier (777), establishing contacts with dissemination partners (Low Carbon Vehicle Partnership, Gas Alliance Group), and thorough evaluation of key suppliers (HRS).
Task 4. Intellectual Property:
The developments carried out by CGC have also been subject to IP protection with 3 patents filed on behalf of CGC in UK during 2015. We have already started the process to protect our innovations and core IP, and selected mature and proven processes to complement our technology’s applicability to the field of transport applications. The IP management carried out so far ensures freedom to operate in Europe..
Task 5. Environment Certification:
We have researched the existing certification frameworks that would potentially provide a competitive advantage to the Biomethane generated by the p-DRIVE technology. As part of the innovation project, we will engage with the accredited auditing body of the RSB standard in order to comply with the Renewable Transport Fuel Obligation and be able to claim Renewable Transport Fuel Certificates. These certificates will be then sold at the highest market value possible. The process will require the allocation of resources to comply with the self assessment contemplated in the standards, as well as the audit to our production site in Croydon.
Task 6. Global Business Strategy
To ensure our deserved competitive advantage in the gas market of being based in waste processing, by obtaining the corresponding identifier of Renewable Origin within the Green Gas Certification Scheme (GGCS), the Green Energy Supply Certification Scheme (GESCS) or similar.
Task 6. Global Business Strategy:
As a result of the analysis performed over the previous tasks, we have analysed technical viability and production costs. This intelligency has been translated into an updated business plan.
Task 1. Technical Issues:
Validation of the viability of upgrading the biogas produced by our existing project for its use in vehicle engines. Including cost analysis and state-of-the art analysis. We have confirmed that we the most suitable technology for our process will be pressure swing adsorption.
Having evaluated available technologies and costs associated to upgrading our biogas to Biomethane, we have gained further insight into the technical requirements and the business case. The output of these tasks supports the calculation of the levelized cost of our Biomethane and the profitability for the end users.
Task 2. Market and Commercial Issues:
An evaluation of the current stage of the market, drivers and barriers, as well as predicted market development has been conducted to establish the potential deployment of CGC’s technology, as well as to identify and adapt the business plan and strategy. We have conducted a thorough evaluation of the potential market available for p-drive adoption in order to plan our commercialization strategy and forecast realistic growth of the company based on strong foundations.The result of this task is twofold:
1.Evaluation of the countries showing the greatest potential for vehicle usage of Biomethane (Demand evaluation).
2.Evaluation of the availability of our target feedstock: refused derived fuel (feedstock evaluation) and against other feedstocks/processes.
Task 3. Partnerships, suppliers and subcontracting:
Market evaluation and technical scope planning have led to the preparation of complete work packages with the tasks we will need to perform in order to manufacture and assemble the demonstration gas clean-up system and further preparation of commercialization. We conducted an assessment of the required tasks to search and evaluate the best fit to achieve our objectives. Resulted in the strengthen of our agreement with Feedstock supplier (777), establishing contacts with dissemination partners (Low Carbon Vehicle Partnership, Gas Alliance Group), and thorough evaluation of key suppliers (HRS).
Task 4. Intellectual Property:
The developments carried out by CGC have also been subject to IP protection with 3 patents filed on behalf of CGC in UK during 2015. We have already started the process to protect our innovations and core IP, and selected mature and proven processes to complement our technology’s applicability to the field of transport applications. The IP management carried out so far ensures freedom to operate in Europe..
Task 5. Environment Certification:
We have researched the existing certification frameworks that would potentially provide a competitive advantage to the Biomethane generated by the p-DRIVE technology. As part of the innovation project, we will engage with the accredited auditing body of the RSB standard in order to comply with the Renewable Transport Fuel Obligation and be able to claim Renewable Transport Fuel Certificates. These certificates will be then sold at the highest market value possible. The process will require the allocation of resources to comply with the self assessment contemplated in the standards, as well as the audit to our production site in Croydon.
Task 6. Global Business Strategy
To ensure our deserved competitive advantage in the gas market of being based in waste processing, by obtaining the corresponding identifier of Renewable Origin within the Green Gas Certification Scheme (GGCS), the Green Energy Supply Certification Scheme (GESCS) or similar.
Task 6. Global Business Strategy:
As a result of the analysis performed over the previous tasks, we have analysed technical viability and production costs. This intelligency has been translated into an updated business plan.
Technical, commercial and financial viability is well proven, moreover we determine that the development of the p-DRIVE project supports the strategic line of growth of our company. After validation of the cost at which the Biomethane will be produced, we have concluded that fleet operators will benefit from fuel savings when switching from diesel to CGC’s Biomethane. The levelized cost of energy for a typical plant processing 145k tonnes of RDF/year is €0.71/kg Biomethane, which provides a very favourable case for the production of Biomethane compared with average refuelling station price of €1,08/kg
The commercial deployment of OSPRE’s technology and business model will positively and significantly contribute to several EU-wide challenges related with waste management and renewable energy production: (i) reduction of volume of landfilled waste and increase the volume of waste recycled, (ii) increase of production of biogas, (iii) increase of share of biofuels use in vehicles, (iv) reduction of GHG emissions (both through the use of BioMethane as a fuel and through the reduction of landfills use), and, (v) establishment of sustainable communities based on local Circular Economy models.
The commercial deployment of OSPRE’s technology and business model will positively and significantly contribute to several EU-wide challenges related with waste management and renewable energy production: (i) reduction of volume of landfilled waste and increase the volume of waste recycled, (ii) increase of production of biogas, (iii) increase of share of biofuels use in vehicles, (iv) reduction of GHG emissions (both through the use of BioMethane as a fuel and through the reduction of landfills use), and, (v) establishment of sustainable communities based on local Circular Economy models.