With Anaerobic Digestion on the rise in the UK, there is a huge emphasis on the competency of AD plants which currently varies up and down the country.
All plants need to reach acceptable levels of health and safety and risk management standards. If the industry does not reach a higher standard, the EA may be forced to regulate further than they already are and it may prove more difficult to attract funding. If the industry fails to raise its standards then insurers, due to claims levels, will either apply premiums that are unsustainable or not offer cover at all,†“Without an insurance policy to de-risk the bank sheet, will financiers want to invest?â€.
Health & Safety
When reviewing the risks of an AD plant, there is of course a lot to consider health & safety wise, the top three considerations are visitors on site, employees and regular reviews.
One key issue to think about will be the safety of people visiting the site. The correct signage will need to be implemented to highlight any potential hazards including:
- Explosion risk
- Toxic gases
- Moving vehicles
- Trips
- Noise
Another key health and safety consideration is the safety and knowledge of your employees. This will include checking that all employees:
- Have had adequate training
- Know the emergency procedures
- Have had confined space awareness training
- Are equipped with personal protective equipment
AD operators should consider the following health and safety questions:
- Are the installed gas metering devices tested and working?
- Do they have evidence of operating competency?
- Do you regularly review your Health & Safety policy?
Preventative Measures
In addition to a robust Health & Safety policy, it is also important to have operational preventative measures and equipment in place. For example the risk of a plant fire can be thought about during the design phase and steps can be taken to minimise that risk:
- Take a look at how your system is arranged
- Consider the locations of equipment such as fire extinguishers, fire and gas detection, and prevention equipment
- Avoid storing oil in the engine room
- Conduct a Fire Risk and Dangerous Substances and Explosive Atmospheres Regulations (DSEAR) assessment, paying close attention to any pressure equipment that will require statutory inspections
- Hazard and Operability Study (HAZOP) assessment, which should be carried out with the operator present to reduce risk
Of course this is not an exhaustive list, but by combining the above with a solid risk management plan, you can decrease the risks and challenges that these systems pose significantly.
Broker relationship
And finally, don’t be afraid to ask for help. The input of an experienced insurance broker with access to risk management service providers, and who has previous claims experience in the AD sector, can be invaluable in helping to mitigate these risks.