The future of Anaerobic Digestion – Investment, skills, and feedstock challenges
Chris Mallia is the Head of Commercial UK at Generate Upcycle, bringing over two decades of management experience, with the last ten years dedicated to the energy sector.
Having developed extensive expertise in leadership, decision-making, and strategic operations, Chris has effectively navigated various challenges while successfully guiding teams to meet complex objectives.
At Generate Upcycle, Chris plays a pivotal role in advancing the company’s commercial operations within the anaerobic digestion (AD) industry. In a recent conversation with Aaron Rayner, Senior Anaerobic Digestion Recruiter at Astute People, Chris shared his insights on the future of anaerobic digestion, touching on critical issues like investment, skills, and feedstock challenges in the sector.
The industry seems to be ramping up investment again after a quieter period.
What’s your take?
“There’s certainly a lot of interest and investment coming into the UK AD Market especially Food Waste AD.
“Investment companies are seeing there is more to renewable energy than just wind and solar.
“With Food Waste AD you don’t just create renewable energy, you create a natural fertiliser that is spread on land and of course you prevent food waste going to landfill by utilising it as the fuel to feed the AD process.
“You often see Investment portfolios that have a renewable energy allocation and it’s great more are becoming involved.
“However, it does create a more competitive market as more food waste AD plants come online, making securing sufficient volumes and quality of feedstock more challenging.
“A few years back, when gas prices were higher and more stable, the budgets for feedstock were more manageable.
“You could afford to rebate for higher gas yielding food waste as you knew the gas revenue return was good.
“Obviously, every AD Company had variable PPAs in place and some have private wire agreements which create a better revenue but as the older AD plants reach the end of their higher priced offtake agreements and subsidy regimes, it’s clear that we can’t continue with the same feedstock pricing models.
“I expect to see a drive back towards more gate fees as companies look to recover profit margins.
“Many industry players have already started implementing gate fees or reducing rebates. We recently made a similar change, which led to a non-renewal of an existing contract.
“Despite the waste being of good quality, against our pricing model, it had a negative contribution to our gross margin.
“It’s not all doom and gloom! With the introduction of the Simply Recycling Scheme and new reform regarding household food waste collections, the new proposals state that councils in England must make a food waste collection every week by March 2026.
“This will drive further investment in new and existing plants, making for exciting times ahead.”
From a skills perspective, what roles are most in demand at the moment?
“Project Managers, Plant Managers and High-Level Commercial Managers with at least five years’ experience are in high demand.
“It can be easy for people to talk their way into roles by using the right industry jargon.
“However, with AD, it really is a specialist industry and as tariff structures change and the industry grows with investment, companies are looking to streamline Commercial and Operations within their AD Business, so seeking more experienced professionals is a must.
“Having experienced staff with proven knowledge is a great advantage.
“On reflection we are seeing increased demand for candidates with strong Commercial Food Waste experience.
“Some people with only two years in the field are landing senior roles, which is surprising but when talking to other big players in the industry, more companies now prefer professionals with five or more years’ experience.
“Without proper knowledge of feedstock breakdown and gas output efficiency, plants can run inefficiently, and companies are realising the importance of expertise.
“Regarding Plant Managers/Project Managers, they need to be highly experienced, as larger AD companies prioritise efficiency.
“But let’s not forget Engineering roles, as they are also in high demand.
“The biggest challenge is finding Engineers willing to work in food waste processing. It’s not the easiest to stomach. Clearing a blockage on a processed food waste soup line is quite the experience, I can tell you.”
That’s a challenge we come across frequently.
Some candidates are put off by the working conditions.
How does that impact recruitment?
“Many people opt for supermarket or processing maintenance jobs, where conditions are cleaner, even if the pay is slightly lower. In our industry, you deal with smelly waste — digested food, blood, and other unpleasant materials — which can deter candidates.
“It’s one of the toughest recruitment challenges for operational roles.
But AD does offer stability.
Even during COVID, many sites kept running because they provide gas to the grid.
It’s a key industry that doesn’t shut down easily.
“Absolutely.
“The AD industry never stops, we run 24hrs a day 365 days a year.
“AD is still a growing market and offers individuals continuous growth and stability because let’s face it, there will always be food waste. I always say that education plays a big role.
“You should take it upon yourself to complete courses and really understand AD.
“If you have the backing of the company, you work for then that’s great.
“Once you grasp its impact and benefits, you’re probably more likely to stay in the industry.
“When I first entered this industry 11 years ago, I came from the motor trade, where workshop environments were clean.
“I walked into my first AD site and saw wet meat all over the floor. It was a shock.
“But I quickly saw how the industry was evolving in a positive way and decided to stick with it.
“AD, whether Agri – based or food waste, is a fantastic field for everyone, from administrators, compliance, engineers and operations professionals but also inexperienced people that want to learn. It’s just about convincing them to adapt to the environment for the long – term benefits.
The environment isn’t just about the physical conditions.
Some sites can be challenging culturally, especially when staff have been there for years.
Have you faced that?
“Yes, I have inherited teams that have had historical structural challenges, but the key is to focus on the positive change.
“Change is something people struggle with however good communication regards business activity and being open with staff members will create a better culture.
“One of the best changes to implement is investment in the staff members.
“Employers should identify training requirements that’s needed.
“Training includes WAMITAB, First Aid, People Management, Microsoft packages, operational courses such as working from height etc.
“Employees will start seeing long term career growth and Employers will feel the benefit of a committed workforce.”
What about Plant Managers?
There are different types; some who’ve grown into the role under senior guidance and others who can independently streamline operations.
What type are you looking for?
“It depends on the company and the plant size. In our structure, we have a Head of Operations who oversees all sites, with individual Plant Managers supported by assistant Plant Managers. Health & Safety and Compliance comes under the Plant Managers role but overseen by an AD Regional EHS Manager.
“For us, the Plant Manager runs the day-to-day operations — monitoring SCADA, handling site issues, overseeing onsite staff, and reporting.
“Some AD companies don’t have specific compliance or health & safety managers, meaning plant managers must oversee these areas.
“This varies by company size. A 1 MW plant can operate differently from a 5MW plant, and the support structure needs to reflect that depending on size of company.
You’ve already touched on industry challenges, particularly feedstock and procurement.
Are feedstock managers becoming more critical in securing long – term contracts?
“Yes and no really, I suppose it depends on the definition of long term.
“A big issue is rising feedstock costs.
“Residual waste disposal even going to EFW is becoming more expensive.
“To compensate, AD companies are charging more for packaged food waste processing.
“It’s a balancing act, and managing feedstock supply will be one of the industry’s biggest challenges going forward but that’s not anything new.
“Long term contracts at fixed rates once upon a time was the way forward but you will find now, some AD’s may only fix for 12 months due to PPA changes.
“The role of feedstock managers is more challenging than ever.
“Some ADs will be nervous securing a 2–5-year contracts at a fixed disposal rate, especially if it’s a rebate.
“However, as I said earlier all AD’s have different PPA’s in place so it’s just a case of working out your feedstock & digestate budgets against the gas production of the feedstock supply, then running that against the PPA revenue you will receive. You then make a decision.
Join the Conversation – Share Your Expertise
The AD industry is at a turning point, with investment on the rise but key challenges in workforce expertise and feedstock security.
As businesses navigate this evolving landscape, collaboration and knowledge – sharing will be vital.
We’re gathering insights for our upcoming Anaerobic Digestion report.
If you have thoughts on skills gaps, investment trends, or feedstock challenges in the sector, we’d love to hear from you.
Get in touch with our Renewables team today to share your expertise.
