Feedstock Procurement

How we can help?

The majority of non-operational AD plants in the UK are due to an insufficient supply of feedstock, to most this would appear to be a simple problem to solve. Unfortunately the logistics involved in securing the quantities needed for an AD plant are quite complex.
 
At New AD we have excellent links with contract growers both here in the UK and internationally along with multiple captains of industry in the food processing industry, this allows us to source large quantities of various sufficient feedstock in a much shorter timeframe than would typically be available.

Agricultural Feedstocks

Current projections suggest that there is not enough land for traditional farming purposes and for supplying AD plants. This has led to a number of leading figures in various industries, including politicians and environmentalists, calling for land appropriated for traditional farming not to be used for the production of feedstock for AD plants. This is expected to lead to increased prices for both land rental and agricultural products that already have shown progressive growth over the past 10 years.
 
The plants already in operation are calculated by the NNFCC to need 17,000ha of land a year to provide crop- based feedstock, but if all crop-based AD plants currently under development went into production, the UK AD industry’s land requirement for feedstock crops would rise to 60,000ha by 2017. This approximately represents in excess of an astonishing 1% of the UK arable land area.
 
At New AD we have excellent links with numerous agricultural product buyers who can locate and procure large quantities of a multitude of products in a very short space of time. We also have direct ontact with contract growers across the country to provide long-term stable supply chains for AD plant operators and developers.

Food Waste Feedstocks

utside of government bodies such as local council contracts for the procurement of food waste and organic fines are currently only being offered short-term (2-3 years) creating instability in the business plan of many plants. The primary reason for these short contracts is because waste management and food manufacturing companies are unwilling to commit themselves to contracts that in the very near future may be considered financially detrimental. These contracts may be considered detrimental because as the use of organic waste as a fuel continues to grow the competition for these contracts is likely to increase which in turn will increase the value of their waste.
 
In todays society the public is much more aware of the quantity of waste that they are producing and are much more conscious of the effect that this has on the environment and are looking to be more environmentally proactive. Additionally, with the situation surrounding the economy, people are constantly looking to make their money go further which means the ratio of percentage of products consumed to percentage of products thrown away has dramatically increased since 2008.
 
These factors combined with standard business practices of waste reduction has led to a reduction in the amount of food waste available to waste management companies by 21% in the past 5 years. What this means is that a company using a waste model for its AD plant without a long-term contract (15+ years) must constantly acquire new contracts to sustain the flow of feedstock making these contracts more valuable.
 

We have established relationships with a number of large and small companies within the waste industry, food manufacturers, local authorities and retail establishments. In addition, we are always developing our database of relationships, which allows us to be highly flexible in the delivery of our services. This makes us able to be constantly aware of precisely what is available, where it is located, the quality of the product and how this can benefit your organization.

For more information on feedstock procurement please contact our procurement team