Ofwat has taken the next steps to open the new bioresources market that uses treated sewage to generate energy.
The water industry regulator has set out guidelines and requirements for water companies to share common, consistent information about the waste – including about quantities and its moisture content – so those interested in buying it can make informed decisions on the value of the product they are buying.
The guidance has been issued to each of the 10 largest water and sewerage companies in England and Wales, namely:
- Anglian Water
- Dŵr Cymru Cyfyngedig (Welsh Water)
- Northumbrian Water
- Severn Trent Water
- Southern Water
- South West Water Thames Water
- United Utilities
- Wessex Water
- Yorkshire Water
The treated sewage – known as bioresources – produces biogas, or green gas, which can be cleaned and injected into the gas grid or used to generate low-carbon electricity. When processed it can also be safely used in the agricultural sector as a fertiliser.
Introducing the new guidance, Ofwat said that analysis of the market had indicated that it is challenging and costly for incumbents and potential entrants, both other water and sewerage companies (WaSCs) and firms in wider waste markets, to identify profitable trades or optimisation opportunities.
At present there is no readily available supply-side information on where bioresources are produced, their quality or quantity. According to the regulator, the analysis revealed that market information is key to supporting bioresources markets through promoting and encouraging efficient entry, as well as monitoring market progress and development.
The purpose of companies publishing bioresources market information is to allow third parties to identify market opportunities and thereby facilitate discussions between third parties and the WaSCs about such opportunities.
The data will be used either:
- to identify opportunities to supply services in the treatment, transportation and disposal of bioresources and promote contract negotiation discussions between parties; and/or
- for Ofwat to assess market development.
Companies are free to update their published information as frequently as they deem necessary, in order to reflect current market status as closely as possible. However, Ofwat expects published data to be updated at least annually.
Commenting on the new guidance, David Black, Ofwat Senior Director of Water 2020, said:
“We’re always looking for opportunities for customers to get better value. Sometimes that means thinking creatively about how we can get more from all parts of the water sector – even those that might make some of us feel a little squeamish.
“The idea of reusing waste to create low-carbon electricity works and can deliver environmental benefits and could also result in lower bills for customers. “
Click here to download Bioresources market information guidance
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