Aberdeen’s Concession Infrastructure business is focused on investing in critical public services, social mobility and decarbonisation. As such, at the same time as delivering predictable long-term returns for investors, this supports Aberdeen’s commitment to sustainability. 

A key element of decarbonisation is the energy transition, which refers to the shift away from fossil-based energy production (i.e. from oil, natural gas and coal) to lower emission energy sources. Electricity production and heating accounts for around 30% of global emissions, with electricity demand ever-increasing partly due to global warming and the growth of new technologies.  The need for decarbonised electricity production will also keep growing given the structural shift towards cleaner energy sources.

Anaerobic digestion (AD) plants – renewable energy from organic waste

One way to create energy is by using organic waste, which has the added benefit of contributing to the ‘circular economy’. AD plants divert waste that otherwise would have been destined for landfills, land spread or incineration, to produce biomethane and soil enrichment by-products (i.e. fertiliser). As such, this reduces emissions on two fronts (reducing fossil fuel consumption and emissions from waste) and is supported by UK government policy. In particular, the Green Gas Support Scheme (GGSS) provides tariff support for plants that produce biomethane via anaerobic digestion, which is injected into the gas grid. Tariffs are calculated by the regulator to incentivise the development of these plants, while ensuring value for money to taxpayers. 

The Deeside AD Project

Aberdeen Concession Infrastructure has recently invested in the Deeside AD project. This will see the construction of a state-of-the-art facility to produce biomethane from food waste at Deeside, North Wales. By converting food and other organic waste into renewable energy and green fertiliser, facilities of this type will play a major role in reducing UK emissions and supporting the UK’s transition to a circular economy. The design of the plant also embeds low carbon considerations, including the use of lower carbon materials (concrete, steel and cement), locally sourced materials, as well as the use of biomethane in vehicles that transport waste and digestate.  

AD plants utilise bacteria to break down organic waste in the absence of oxygen, producing biogas that is then upgraded to biomethane by removing the CO2 and other impurities. The gas generated will be sold to the UK national energy grid and to adjacent industrial partners, as well as being used on-site to run combined heat and power (CHP) engines to produce green electricity which will also be sold to the grid and adjacent industrial partners. The biogenic carbon emissions generated in the upgrading process will be captured, liquefied and stored on site before being sold for commercial use.  

The Deeside AD Project is an important transaction for Aberdeen’s Concession Infrastructure team in a sector that supports the UK’s energy transition, as well as aligning with our investors’ goals. The Project is a milestone for our partner, The Circular Economy Development Limited (TCE), whose key objective is promoting decarbonisation by developing a fleet of low and negative carbon renewable energy plants. 

The Deeside AD Plant should achieve an exceptionally low lifecycle emission intensity of 0.984 gCO₂e/kWh, placing it well below the 100 gCO₂e/kWh threshold set by the EU for sustainable power generation, in line with the UK’s Green Taxonomy framework. Since the plant’s emissions are primarily biogenic, this means they are part of the natural carbon cycle and will not contribute to a net increase in atmospheric CO₂. As such, the plant is also strongly aligned with UN sustainable development goals and can be described as ‘Carbon Zero’.

The whole design and construction of the plant should avoid substantial emissions, which are expected to equate to around c1.8m tCO2e over the life of the plant [1]. Included in this are: