Impax Asset Management Group plc · LSE:IPX

Impax Asset Management — REEF Sept 2004

16 slides from Impax Asset Management's conference presentation, September 2004

  1. Slide 1: Fuel Chains – the Key to Security of Supply?

    I M P A X I M P A X Fuel Chains – the Key to Security of Supply? Melville Haggard Executive Chairman, Impax Capital September 2004 Broughton House 6-8 Sackville Street London W1S 3DG UK Tel: +44 (0)20 7434 1122 Fax: +44 (0)20 7434 1123 info@impax.co.uk www.impax.co.uk Impax Capital Corporation Limit

  2. Slide 2: Overview

    I M P A X Overview • Combustion of renewable fuels • Energy crops • Forestry by-products • Farming and forestry wastes • Biogenic part of MSW • Unlike some renewables, can make positive contribution to security of supply • Fuel supply fragmented, undermining project economics • Need to build robust

  3. Slide 3: Principal Drivers

    I M P A X Principal Drivers • Sustainability/Climate change agenda • Renewables targets (RO) • Carbon-reduction targets (EU ETS) • Waste management policy • Re-use, recycling targets • Landfill reduction targets

  4. Slide 4: The Scale of the Challenge

    I M P A X The Scale of the Challenge BMW Projected Max Landfill Diversion Baseline 2016 2016 2016 France 16 24 6 19 Germany 29 44 10 34 Spain 12 20 4 16 UK 20 34 7 27 Total 77 122 27 96 Source: European Environmental Agency. Units : Tonnes millions per annum

  5. Slide 5: “Typical” MBT Outputs

    I M P A X “Typical” MBT Outputs 30% Water Metals 53% Inerts SRF 5% 12%

  6. Slide 6: Status in the UK

    I M P A X Status in the UK A recent report on the UK says :- 2013 2020 Divert from landfill 15 19 MSW for MBT if 8 11 No U incineration RDF available for 3.4 4.6 Energy Recovery Cement + Paper 1 1 RDF Combustion 2.4 3.6 Capacity Needed Source: Fichtner UK. Units : tonnes millions per annum)

  7. Slide 7: Waste Strategy Objectives

    I M P A X Waste Strategy Objectives SRF is a route to achieving Waste Strategy objectives •Diverts from landfill •Proximity principle or Centralised ? •Existing plant / new build ? •Volume or purpose built ? •Creates a source of low carbon fuel •“Strategic” national disposal infrastructure

  8. Slide 8: Creating an SRF market

    I M P A X Creating an SRF market Transition step • Co-fire in existing power stations • Develop fuel chain integrity Moving to • New coal fired plant built to WID specification • New purpose built SRF combustion plant • Using existing sites • Using existing fuel chains

  9. Slide 9: Creating an SRF market

    I M P A X Creating an SRF market • Create liquidity • Secure financially strong SRF offtake counter-parties • Provide incentives • ROC eligible electricity • EUETS benefits • WID compliance

  10. Slide 10: Creating an Energy Crops Market

    I M P A X Creating an Energy Crops Market • Robust fuel chain counterparty • Portfolio of contracts • Security for crop producers AND generators • NFPA model • Co-firing and purpose built plant

  11. Slide 11: What needs to be done?

    I M P A X What needs to be done? • Pure biomass generation • Credit-worthy intermediary • SRF generation • ROC-eligibility for biodegradable portion • Facilitate co-firing of SRF • Avoid unreasonable application of WID

  12. Slide 12: Further Information?

    I M P A X Further Information? • Visit our Website on http://www.impax.co.uk • Contact us directly:- • Melville Haggard Impax Capital Broughton House 6-8 Sackville Street London W1S 3DG Tel: +44 (0)20 7434 1122 Fax: +44 (0)20 7434 1123 E-mail: m.haggard@impax.co.uk

  13. Slide 13: Fuel Chains – the key to security of supply?

    Fuel Chains – the key to security of supply? MELVILLE HAGGARD Executive Chairman Impax Capital Overview Two “top down” drivers are provoking interest in the development of fuel chains in the UK:- (a) the need to respond to security of supply issues (i.e. sources of fuel supply not just intermittency

  14. Slide 14: Paper continued: central government and SRF disposal

    Impax Capital diversion. This has a number of implications: first, on central government at the macro level and secondly on financiers through the credit standing of counterparties on the various legs of the overall financing structure. With regard to the first, we see local authorities adopting MBT

  15. Slide 15: Paper continued: biomass fuel chains

    Impax Capital the level of emissions related capital expenditure. Either way, creating high purity biodegradable fuel streams or installing flue- gas treatment to a WID specification will incur costs that will need to be reflected in the economics of local authorities’ waste management solutions. Bi

  16. Slide 16: Paper continued: local authorities, generators and EUETS

    Impax Capital • Local Authorities seeking waste management solutions that meet diversion objectives and enjoy support from commercial lenders; • The ‘ROC-hungry’ electricity supply arm of the vertically integrated utility on whom the Renewables Obligation is placed; and • Generators seeking to work

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