10/06/10
Today Marks and Spencer is reported finding it hard to meet its commitment to help farmers create green energy. More reason for policy-makers to encourage other high-potential sources.
This is one of very few hitches reported by the retailer in a justifiably upbeat assessment of progress towards sustainability.
Indeed, the context was an announcement by the in-coming chief executive that there would be no pull-back from the the admired Plan A for environmental and ethical action due to tough trading conditions.
In March M&S restated and extended its Plan A commitments. In the Waste pillar it said: "We’ll now work with our food suppliers to help them recycle their remaining volumes that still go to landfill by using the most carbon efficient approach available, for example anaerobic digestion (AD) or composting".
But now we read* that "farmers have baulked at the expensive technology required" and that "the technology turned out to have limited application to M&S operators".
Water company potential
Accepting that it might not be typical, this development nevertheless strengthens the policy case for active encouragement of other sources of renewable energy - especially if they offer a prospect of good returns.
Water and sewerage companies are surely at the head of this category. They have long experience of using AD to treat sewage and produce energy; and they operate related assets worth hundreds of millions of pounds in which they continue to invest (more in note below).
Regrettably, however, this capacity and experience is not fully exploited because of uncertainty about how to regulate mixed waste streams and poor incentives to invest at the required level.
The water industry is keen to develop better incentives for investing through the renewable obligation system. And on co-digestion of waste, it must be possible for ministers, regulators and operators to work together to find a way forward.
Government action
In the government's manifesto "The Coalition: our programme for government" (20 May) ministers underlined their commitment to environmental policies including: "We will introduce measures to promote a huge increase in energy from waste through anaerobic digestion."
There is a good case for allowing water companies more scope to contribute their expertise and assets to help meet demanding sector and national targets for renewable generation.
* Daily Telegraph 10 June 2010
For more information please contact:
Water UK Communication
020 7344 1809 (out of hours 07833 450544)
Note
Water and sewerage companies have long experience of anaerobic digestion in managing sewage sludge to produce valuable fertiliser and biogas as renewable energy. Read more
