AD Development – Technical & Commercial Due Diligence

The Brief

WRM was appointed by East Midlands Freeport (EMF) to explore the technical feasibility and commercial viability of developing an anaerobic digestion (AD) facility at a site located in Derbyshire, UK. EMF required a detailed view of the potential and requirements for developing AD infrastructure that can supply green energy to proximate stakeholders.  WRM’s credentials as a waste and renewables consultancy including specialism in AD technology positioned WRM as the ideal delivery partner for the work.

The Solution

WRM applied our specialist knowledge of waste markets and AD infrastructure to deliver a comprehensive technical feasibility and commercial viability assessment. Key WRM services applied within this project included:

  • Agricultural, municipal and commercial feedstock quantification;
  • Competitor analysis, capacity utilisation and feedstock availability;
  • Electrical and gas grid connection feasibility;
  • Digestate landbank calculations;
  • Planning and permitting risk assessment;
  • Application of WRM’s AD techno-economic model;
  • Mass balance and energy flow modelling;
  • Commercial and carbon and assessment;
  • Technological options evaluation, including private connection, public connection and Bio-CNG;
  • Market engagement.

A summary of the work packages and project outcomes is provided below:

Siting and Sizing

WRM assessed the scale and location requirements for the proposed AD facility, reviewing energy demand, suitable land parcels, infrastructure needs, and grid connection options. The assessment incorporated feedstock availability and competitor analysis to ensure sufficient supply and a viable market context. Transport, accessibility, environmental, and planning considerations were evaluated, and a draft delivery programme with key milestones and risks was developed.

Commercial Case

WRM developed the commercial case for the facility, estimating capital and operational expenditure and projecting potential revenue over a defined period. The analysis considered the impact of relevant subsidy schemes and evaluated options for private wire, private pipeline, grid injection, and on-site Bio CNG refuelling. A full quantitative assessment of each operational model was conducted, comparing commercial viability and carbon performance to communicate the relative advantages and disadvantages of each option.

Market Assessment

WRM engaged with the market to understand the capabilities and capacities of AD developers. Discussions focused on feedstock security, technology flexibility, innovation potential, PPA terms, and land arrangements, helping to test key assumptions and inform the feasibility of the proposed facility within the regional market context.

Market prospectus

WRM consolidated findings into a market-facing prospectus to support the next phase, highlighting the benefits of the AD facility, delivery timelines, policy context, and energy opportunities.

WRM provided project management throughout, coordinating activities, timelines, and deliverables to ensure the work progressed efficiently. Engagement was maintained with potential delivery partners to ensure alignment with the broader project objectives.

Outcome

The project delivered a comprehensive understanding of feedstock availability, market capabilities, and operational options for the proposed AD facility. WRM’s findings provided clear insights into the scale, siting, and commercial feasibility of the development, tested key assumptions, and highlighted opportunities and constraints within the regional market. The outputs enabled the client to make informed decisions, engage with stakeholders effectively, and plan the next steps for progressing the project with confidence.

The Legacy

“WRM’s expertise in AD development and knowledge of the market were instrumental in understanding the opportunities for East Midlands Freeport. In particular WRM helped to demonstrate the viability of different delivery models across multiple energy, size and grid options. Project management was excellent with WRM working to challenging timelines and providing flexibility where needed.”

 – Katie Greenhalgh – Head of Green Growth and Inclusion, East Midlands Freeport