Minutes:
The Committee considered the undernoted report:
“1 Relevant Background Information
1.1 Members will be aware that the Council has previously agreed that the North Foreshore, the closed waste landfill site, should be developed for waste management, bio-economy and recreational uses. The regeneration bio-economy proposals comprise the development of an environmental resource park to create an innovative “Green Technology Business Cluster” for Belfast. This would have the benefit of diversifying the economy to encourage investment and job creation.
1.2 Progress Update
1.3 The development of a green technology business park at the North Foreshore is included within the Investment Programme 2012 – 2015. Members will be aware that the Council has submitted a £8 million European Regional Development Fund Application to develop the infrastructure to develop the environmental resource park. Invest NI and DETI are currently progressing the economic appraisal to assess the application to be completed by the end of May 2013. Letter of Offer expected late August early September. SP&R approval was granted to procure consultancy service in November 2012, and Tender Documents are being prepared to procure the service.
1.4 The Council has already commenced the regeneration of the North Foreshore with the completion of the waste transfer station; NIE Substation, and the landfill gas electricity generation power plant.
1.5 In February 2008, the Council approved the appointment of Renewable Power Systems Ltd as a joint venture partner for the generation of electricity from landfill gas at the North Foreshore. This led to the installation of five x 1 Megawatt generators which became operational in September 2009. Electricity is sold to NIE and exported to the local grid via a NIE sub-station sited at the North Foreshore. The net accrued income to the Council from project commencement in September 2009 to 28th February 2013 is £4,033,646.
1.6 An agreement to lease with arc21 / NWP for an in-vessel composting facility has been agreed. They are finalising the pre planning application discussions with Planning Service to be able to submit a planning application in 2013.
1.7 In 2011 the Council approved the release of a development brief to dispose a 1.5 acre site suitable for Anaerobic Digester Facility. A financial due diligence has been undertaken to assess the development submissions.
1.8 The proposals for an environmental resource park and the creation of a cleantech cluster is generating a lot of interest from private companies and investors wishing to invest in new cleantech technologies, particularly in the production of renewable energy.
1.9 The Council approved the release of a Marketing Prospectus to dispose a 3 acre site for a cleantech biogas renewable energy generation facility in January 2013. The Marketing Prospectus is to be advertised on 22 March 2013 and the closing date is the end of May.
1.10 QUESTOR, of Queen’s University is proposing to develop a sustainable innovation R&D Centre with a focus on resource efficiency and renewable energy. They are finalising their Business Case which is to be submitted to INI/DETI. The North Foreshore site is has been identified as a potential location for the R&D Innovation Centre. There may be potential private developer interest in building a R&D Facility in the Environmental Resource Park.
1.11 Recently the Council has been approached by renewable energy companies interested in leasing sites to develop solar renewable energy projects. This has been due to the recent announcement in January by DETI that the financial incentives, known as Renewable Obligation Certificates, for Solar PV above 250 kw is to be revised for ground mounted solar PV from the 1 April 2013. They have established the Renewable Obligation Certificates incentives for the period between 2013 - 2017. DETI definition for Solar PV is:
1.12 ‘electricity generated from the direct conversion of sunlight into electricity by Solar PV equipment installed on the ground’
1.13 There is an opportunity to test this interest by way of a Marketing Prospectus offering to lease a potential site at the North Foreshore.
2 Key Issues
Solar Renewable Energy
2.1 The Council has been approached by renewable energy companies interested in leasing sites to develop solar renewable energy projects. There is an opportunity to capture this current market interest. It would appear that there is a window of opportunity to attract the private sector investment due to the attractiveness of the Renewable Obligation Certificates incentive to be introduced in April 2013. All of the interested companies have indicated that they are keen to deliver the projects quickly, as they want to be locked in to the proposed Renewable Obligation Certificates banding well before 2017.
2.2 The interest in the North Foreshore is largely due to the existing NIE substation on the site that has spare export capacity on to the local grid. This is critical because it is proving difficult to identify sites that have the capacity to export renewable electricity, because of limited grid network capacity.
2.3 Disposal of land (by way of lease) at the North Foreshore for a solar energy project would:
i. Be a good fit for the sustainable cleantech environmental theme for North Foreshore and demonstrate the City’s low carbon green credentials.
ii. Showcase an alternative form of renewable energy generation.
iii. Attract Private Sector investment and job creation opportunities.
iv. Form part of the proposed North Foreshore renewable energy hub to create a unique selling point for the development of the cleantech environmental technology cluster
v. Provide Council with an income stream.
vi. Demonstrate council leadership to strengthen the City’s resilience in an era of growing energy insecurity, increasing energy cost and fuel poverty.
2.4 At the northern portion of the North Foreshore there is approximately a c10 acres site with a south facing slope and a gentle gradient with minimal gas pipes and wells infrastructure constraints that has been identified as suitable. This northern portion has limited development potential due to the nature of the ground conditions but solar panels, for example, can be ground mounted on concrete slabs. This site is also relatively close to the NIE substation.
2.5 It is proposed to release a Marketing Prospectus for the disposal (by way of lease) of a site up 10 acres for a solar renewable energy project.
2.6 The Marketing Prospectus will require interested parties to submit detailed bids clearly outlining the proposed use; funding sources and financial details; a development programme; proposed lease terms and the financial return to the Council, by way of rent or otherwise. The submission bids will be subject to an evaluation and due diligence process which would include a financial evaluation to test the robustness of the bids and ascertain the ability to fund and deliver a sustainable development in this current economic climate
2.7 Following exposure to the market by way of Marketing Prospectus and the subsequent evaluation of bids a report will be brought back to Committee.
2.8 Decommissioning one LFG Electricity Generator
2.9 Each 1 mw generator requires a supply of 600 m³ of landfill gas per hour to operate at maximum efficiency. In September 2009, the gas field was producing in excess of 3000 m³ of landfill gas per hour, sufficient to supply 5 x 1mw generators.
2.10 In 2011 gas levels had declined to 2400m³ per hour and council approved the decommissioning of one generator.
2.11 As expected, a gradual natural decline in the volume of gas has continued and output is now in the region of 1700 m³ per hour. It is anticipated that the volume of landfill gas will continue to decline over the foreseeable future but at a slower rate. It is not possible to give accurate predictions of gas volumes as this depends on the composition of waste, the rate of decomposition, temperature, rainfall, seasonal weather conditions and atmospheric pressure.
2.12 On the advice of Renewable Powers Systems Ltd, our joint venture partner, a second generator must now be removed to operate the facility at maximum efficiency.
2.13 The joint venture procurement process evaluated the set-up and operational costs associated with this facility. This included the cost of removing a second generator during the fourth year of operation. This cost is £62,377. The removal of one generator will reduce the council’s plant fee cost by £15,584.21p to £73,987.87p per annum.
3 Resource Implications
3.1 Financial
The Marketing Prospectus will require the bid submissions to specify the financial return to the Council for the lease of the land and this will be brought back to Committee for approval.
3.2 Assets
The development of this site represents a regeneration opportunity for Belfast and has the potential to create economic and social benefits
3.3 Resources
Staff resource, primarily from Property & Projects and Legal Services.
4 Equality and Good Relations Considerations
4.1 None
5 Recommendations
5.1 It is recommended that Members give approval to the release of a Marketing Prospectus for the disposal (by way of lease) of a site up to 10 acres at the North Foreshore for a solar renewable energy use. A further report will be brought back to Committee following receipt and evaluation of any submissions.
5.2 To note the removal of a second generator.”
After discussion, the Committee adopted the recommendations and agreed further that a letter be forwarded to Invest NI requesting it to consider favourably the application for the development of a green technology business park at the North Foreshore, that the overall plan for the North Foreshore be considered on the agenda of the next meeting of the North Area Working Group, following which a meeting of the North Foreshore Steering Group be convened to consider the matter.
Supporting documents: