1. Biofuels and (Waste) Legislation- Presentation to Funding and Legislation Workshop 29 th March 2011 Dave Gorman Head of Environmental Strategy Scottish Environment Protection Agency

2. Brief overview of environmental legislation that may apply Pollution Prevention & Control (PPC) Waste Management Licensing and exemptions (WML and WMX) Control of Major Accident Hazards (COMAH) Controlled Activities Regulations (CAR) Waste Incineration Directive (WID) Waste Framework Directive Animal By-products Regulations (ABPR) (administered by Scottish Government – Animal Health)

3. Requirements If under PPC or WML then you need an environmental license before you can start operating If WMX then you need to register an exemption with SEPA If under CAR then depending on the scale of the activity you will need a licence, registration or follow a general binding rule If COMAH you need to notify HSE & SEPA and then depending on scale prepare & submit a safety report for assessment before you can start If WID then you need a PPC permit (as above) If ABPR you will need permission from Animal Health as well as a licence from SEPA

4. Biodiesel: a case study Making biodiesel from waste vegetable oils. Uses physical and chemical processing (trans-esterfication) Prescribed as an activity for control under PPC Part A as a chemical process. There is no lower throughput threshold level

5. Biodiesel:a case study (2) May not be a Chemical PPC activity if not commercial or at industrial scale. SEPA undertook a review and with Scottish Government concluded that if capacity is less than 200 tonnes biodiesel production per year then would not be considered to be subject to PPC Part A A new waste management exemption was issued to allow <200 tonnes per year biodiesel production without need of a licence (still require to comply with certain conditions and other legislation)

6. Developments – gasification Kerosene for aircraft fuel using mixed wastes such as municipal waste. Gasification to produce carbon and hydrogen rich syngas followed by Fischer-Tropsch reaction to produce hydrocarbons Gasification - PPC Part A Producing Hydrocarbons – PPC Part A

7. Developments – biological route Anaerobic Digestion producing syngas currently burned in gas engine/CHP Syngas could be used either in Fischer – Tropsch reaction or used as feedstock for bio fermentation (ethanol/butanol) or Used in a fuel cell “Traditional” AD plants would likely be regulated under WML or WMX unless taking animal by-products >10 tes/day which would require PPC Syngas conversion would probably be PPC Part A

8. Developments – fuel cells As with previous routes generate syngas to be used directly in a fuel cell Syngas generation will probably require a licence of some kind

9. Developments - biomass Several large biomass plants already in operation Eon Stevenscroft, Lockerbie UPM Kynmee, Irvine PPC Part A combustion with WID controls (due to potential for contaminated biomass) 4 proposed by Forth Ports (currently at Section 36 Electricity Act (planning) stage) Not all biomass burning requires licence depends on scale and source/type of waste biomass

10. Waste Framework Directive Recently Revised Requirement to hold a licence or exemption to undertake waste disposal or recovery operations (In UK through either PPC, WML or WMX) Key question in this sector will be “Is biofuel made from waste still a waste?”

11. Bio fuel – Is it still a waste? Treating or processing a waste material does not mean that the ”product” will automatically be considered to be fully recovered and not a waste Several tests have to be applied Guidance on ‘Is it waste?’ on SEPA’s website If product still considered to be a waste then burning as a fuel will require PPC Part A permit with WID controls Example Biodiesel made from vegetable oils and tallow by Argent Energy – not a waste (other outputs might be still a waste e.g. residues). Biodiesel produced can be blended with fossil diesel at the refinery with no further environmental licence controls required

12. Working with Industry SEPA happy to engage with industry sector level and others Establish positions, protocols, interpretation at high level Consistency of approach Advise Scottish Government of legislative changes that may be required (e.g. WMX for biodiesel) Example FREDS Sub Group on hydrogen economy

13. Energy Position Statement Sets out our strategic view on energy and renewables: http://www.sepa.org.uk/about_us/news/2011/s epa_sets_out_how_it_will_help.aspx http://www.sepa.org.uk/about_us/news/2011/s epa_sets_out_how_it_will_help.aspx Launched February 2011 Supportive of renewable energy including bio- energy but with caveats…

14. Advice Complex area Speak to local SEPA office… NETREGS: netregs.gov.uk… SEPA website – position statements; contacts for offices etc….