The State of the UK Anaerobic Digestion Industry: Growth, Challenges, and Future Trends
In this blog, Aaron Rayner, Talent Specialist at Astute People, sits down with Darren Smith, Senior Manager at BioConstruct NewEnergy Ltd, to discuss the current state of the UK AD sector.
As the demand for sustainable waste management and renewable energy solutions grows, the AD industry is experiencing rapid expansion, alongside a set of unique challenges.
Darren shares insights on the key trends shaping the future of the industry, the obstacles it faces, and the opportunities for both businesses and talent within this increasingly vital sector.
The AD industry in the UK is still fairly new. It’s been around for over 20 years, but there aren’t many large-scale plants, mostly commercial and farm-scale operations. What are your thoughts on the current state of the industry?
Yeah, exactly.
Most AD projects used to be small farm-scale setups.
Now, with larger projects, we’re dealing with sites that need five or six staff members and are funded differently — these aren’t small local farm investments anymore.
We’re talking about £35 million projects, which means a different level of demand and accountability.
The people we hire need to be equipped to handle constraints set by investors because they require detailed data.
Finding the right managers isn’t straightforward — they don’t just appear fully formed.
From my experience across landfill, waste-to-energy, and AD, finding the right people is always a challenge.
So, we often recruit from different sectors.
The key requirement is that they’re not afraid of getting their hands dirty.
Have you found that managers with an operational background from different sectors transition well into AD?
Yes, we’ve recruited managers from construction and waste sectors, and while some stay, others move on.
The ones who succeed often start in labs or operational roles and work their way up to multi-skilled plant management.
The traditional plant manager role — where one person handled everything from P&L to HR — doesn’t really exist anymore.
Today, plant managers focus on asset management, and we as a business provide the rest of the support.
I get that. Some companies expect plant managers to be hands-on, while others have them managing from an office. Have you seen a preference for either approach?
It depends on the company and site. Some plant managers are more admin-driven and rarely leave the office, while others are entirely hands-on.
For example, Evercrete and Blaise were managed differently — one was very operational, the other more admin-focused.
We support both types of management styles as long as they deliver results.
Micromanagement isn’t our approach; we want our people to grow in their roles.
What’s the biggest challenge for the industry right now?
It’s a combination of having the right skills and securing resources.
Certification schemes like the ADCS (Anaerobic Digestion Certification Scheme) help standardise operations, ensuring compliance.
We’ve developed in-house training modules and CPD courses to upskill staff.
The problem is, once they’re fully trained, some move on — but that’s expected.
Our retention rate is actually strong considering the nature of the industry.
Have you noticed any shifts in how companies treat and retain operational staff?
Absolutely. Over the past few years, we’ve seen an increase in pay, better treatment of operators, and improved retention.
It’s refreshing to check in on a company and see the same operators after three years, rather than constant turnover.
With the industry aiming for major milestones by 2028, do you see sustained growth beyond that?
Yes.
While everyone is rushing to build projects and secure accreditation before 2028, there will still be growth beyond that.
New plant development may slow down, but expansion projects will continue.
Many plants are nearing the end of their existing tariffs, and we’re already seeing a shift toward repowering and expanding existing assets.
Some sites are being sold, while others are exploring gas grid connections for long-term sustainability.
Virtual pipelines seem to be gaining traction. Do you see that as a viable solution?
Definitely. We’re seeing more sites adopt virtual pipelines, especially in places like Ireland, where infrastructure constraints make direct grid connections difficult.
We’ve debated whether to build plants first and then add grid entry or vice versa.
The model is becoming more attractive to investors, especially in markets where traditional grid connections aren’t feasible.
Do you plan on expanding into Ireland?
We’ve looked at it and completed projects like Roscommon.
But honestly, while many companies are chasing opportunities in the U.S. and Ireland, we’ve taken a different approach.
We’re looking at projects in Finland, Norway, and even New Zealand — markets that are slightly off the beaten path but have strong potential.
When securing feedstock, do you see a trend toward locking in long-term contracts before plant development?
Absolutely. Securing feedstock first is now standard practice. Investors want guaranteed supply before committing funds.
Some companies try to enter the market without a solid feedstock plan, but that’s risky.
Strategic plant locations matter. If a plant doesn’t have reliable access to waste, it won’t be sustainable.
We see many businesses assuming they can make money from food waste recycling, but major players already dominate that space.
On the staffing side, project managers and engineers seem to be in short supply. Have you had to recruit outside of AD for these roles?
Yes.
We often hire project managers and engineers from oil & gas or energy-from-waste sectors.
They tend to be more expensive, but their skills transfer well.
The challenge is that AD isn’t as lucrative as other renewable sectors.
Salaries are lower compared to wind or solar, making it harder to attract top talent.
The financial model in AD is tight — investors expect high returns, so operating costs must be kept low.
Do you think AD salaries will increase over time?
It’s unlikely to change drastically.
AD is investment-driven, and with tight OPEX constraints, there’s little room for salary inflation.
Unlike larger power stations that operate with teams of 20 – 25 highly paid staff, AD plants run leaner.
Some farm-based AD sites pay well because they are self-sufficient, but large-scale plants need to balance costs more carefully.
Salaries have increased slightly, but AD remains the ‘Old Kent Road’ of the renewable energy sector in terms of pay.
It sounds like things are picking up this year after a slow 2024. Do you expect this momentum to continue?
Yes, last year was a slow year, but activity has surged since December.
We’ve been in discussions with investors, and there’s a renewed push for projects.
The market is definitely heating up.
