Managing Committee Meeting – 8-9 October 2013, Eindhoven BioenNW – Delivering Local Bioenergy to North West Europe Request for Formal Change.

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe

Request for Formal Change

• Budget change:1. From HI3 – to Eubia: €63,000 (2013 – 2015)2. From HI3 – to Aston University: €60,000 (2013 – 2015)3. From BCU – to HAUC: €90,000 (2012)• Activities:Partners defined a scope of transferred activities• Partnership:1. OREG stepped down2. HI3 replaced OREG3. HI3 – management changes4. Additional change – Energy Hills stepped down5. New partner: IZES

Approved amendments

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe

Partner Staff

External Experts/ Consultants

Travel & Accom

Meetings & Seminars Publicity Equipment Investment Audit & FLC Admin TOTAL

ERDF Funding (50%)

original budget variation

Euros Euros Euros Euros Euros Euros Euros EurosAston University 1,309,496 19,200 44,895 48,550 47,220 4,500 762,530 30,000 144,044 2,410,435 1,205,218 2,350,435 60,000Fondaterra 339,018 0 36,821 19,080 23,001 4,750 0 11,700 37,292 471,662 235,831 497,253 -25,591Birmingham City Council 169,784 18,146 27,361 14,500 8,000 2,000 0 22,500 18,676 280,967 140,483 280,967 0Birmingham City University 508,969 15,000 45,398 0 0 19,000 0 22,500 55,987 666,854 333,427 756,854 -90,000EnergyHills/IZES 215,574 13,500 15,599 4,716 500 0 0 5,950 23,713 279,553 139,776 409,970 -130,417Karlsruher Institut für Technologie (KIT) 538,128 0 49,429 0 0 0 0 22,500 59,194 669,251 334,625 669,251 0Odenwald Regional Gesellschaft mbH (OREG) 0 0 0 0 0 0 0 0 0 0 0 304,149 -304,149HI3 GmbH 550,966 273,200 111,470 18,500 22,500 2,000 364,620 31,500 60,606 1,435,363 717,681 1,123,798 311,565Cluster TWEED 135,483 15,000 48,421 40,920 20,000 1,500 0 0 14,903 276,227 138,114 276,227 0European Biomass Industry Association 140,098 0 49,937 9,600 0 0 0 16,500 15,412 231,547 115,774 168,547 63,000RITTMO Agroenvironnement 121,233 0 27,380 5,600 0 1,500 0 12,000 13,336 181,049 90,525 181,049 0Maire Des Mureaux 113,165 0 40,000 0 5,000 5,440 0 18,000 12,448 194,053 97,027 194,053 0Samenwerkingsverband Regio Eindhoven 326,389 0 51,957 29,500 20,000 2,000 0 18,000 35,903 483,749 241,875 458,158 25,591Harper Adams University College 127,346 54,196 6,477 3,154 5,042 26,430 60,416 17,400 14,008 314,468 157,234 224,468 90,000Aston University (Strategic Init) 0 0 0 0 78,949 0 0 0 0 78,949 78,949 78,949 0BIOENNW APPROVED BUDGET 4,599,821 232,546 790,281 235,770 320,769 68,891 927,120 292,950 505,980 7,974,128 4,026,538 7,974,128 0BIOENNW REVISED BUDGET 4,595,650 408,242 555,145 194,120 230,212 69,120 1,187,566 228,550 505,523 7,974,128NotesPartner 1 Staff costs includes Sub-Partners

2010 2011 2012 2013 2014 2015 TotalProject total costs 68,067 858,573 2,156,116 2,164,886 1,875,561 850,924 7,974,128Project spending profile 0.85% 10.77% 27.04% 27.15% 23.52% 10.67% 100.00%

Budget modifications

Revenues 0.00

TOTAL 7,974,128.05 7,974,128.00 0.00

Administration Costs 505,980.26 505,523.00 0.00

Sub-Total eligible costs 7,974,128.05 7,974,128.00 0.00

Investment 927,120.00 1,187,566.00 0.28

Audit costs/First level control 292,950.00 228,550.00 -0.22

Publicity 320,769.00 230,212.00 -0.28

Equipment 68,890.80 69,120.00 0.00

Travel & Accommodation 790,281.20 555,145.00 -0.30

Meetings & Seminars 235,770.00 194,120.00 -0.18

Partner Staff 4,599,820.31 4,595,650.00 0.00

External Experts & Consultants 232,546.48 408,242.00 0.76

Budget lines A. Original budget A' New budget Variation ((A'-A)/A)%

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe

• External experts and consultants: increase by 76% (by €175,696) caused by HI3 who moved significant resources from their staff budget to the external experts and consultants line (€133,200). This change however didn’t have an impact on the staff budget on the project level as majority of partners increased their staff budgets and those increases balanced a change introduced by HI3.

• Meetings and seminars: reduction by 18% (by €41,650). The number of physical meetings has been reduced and replaced by web conferences.

• Travel and accommodation: reductions by 30% (by €235,136) as result cuts in the meetings and seminars budget and cuts in travel costs for the Observers who agreed to travel to the events organised by the BioenNW using their own resources.

• Publicity: reductions by 28% (by €90,557). The development costs of designing a website and creating an electronic repository were overestimated. The LP obtained a very competitive quote which accounted for 50% of the original publicity budget. The LP encouraged collaboration with 2 Interreg IVB strategic initiatives in the UK which will result in optimising the strategic communication budget by organising joint strategic events promoting achievements of those projects in the field of the bioenergy.

• Investment: increase by 28% due to a planned purchase of a gas CHP unit. It will cost €200,030 to purchase the gas CHP engine however the total budget of Investment 2 is proposed to increase by €260,446 (€60,416 represents an increase proposed by HAUC to cover costs of spare parts and engine testing originally not included in the approved application). The proposed amount of €200,030 has been recovered from Aston’s budget.

• Audit costs: reduction by 22% due to adjustments made by individual partners based on agreements for first level control services signed between partners and their auditors

Budget line modifications

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe

• A new project management team was formed and individuals indicated in the original application were replaced by dedicated staff.

• The new LP Project Manager and Financial Manager were appointed in March 2012.• At the same time a new Communication Manager was appointed as the previous person

left Fondaterra's (FON). • New coordination mechanisms have been put in place to manage the partnership in a

more effective manner. The coordination role has been moved from BCC and Energy Hills and allocated to the LP to coordinate activities via regular monthly videoconferences with 3 working groups: Communication, Work Package Leaders, and Bioenergy Support Centres Steering Group. The latter is supported by TWEED who chairs the meetings of the Group.

• The partnership formed 2 management committees: Steering and Management. The Management Group meets twice a year and the Steering Group once a year and its meetings coincide with the meetings of the Management Group.

Management changes

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe

• In an early stage of project delivery (Q1 2011) OREG decided to step out. Their budget (e.g. €304,148) and associated activities were transfer to HI3.

• Later in 2012 Energy Hills decided to step out. They already spent a part of their €409,970 budget (€29,750) and delivered a part of activities.

• The LP identified a new partner in Germany to take on their responsibilities – IZES. They are also a partner in the Arbor project and in this way we build internal bridges between the two Interreg strategic initiatives.

Partner changes

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe

• The new partner – IZES, took on Energy Hills activities except for the management of the relationship with the Observers. The majority of the remaining budget of Energy Hills (€249,800) was offered and accepted by IZES.

• The remaining €130,417 was allocated to HI3 to manage the relationship with the Observers.

• A part of testing activities worth €90,000 was moved from BCU to HAUC. • When OREG stepped out HI3 agreed to take on their activities and budget (€304,149). • Partners agreed that some activities originally allocated to HI3 should be reallocated

the Aston and EUBIA as they are better placed to deliver them e.g. testing of samples of residue waters fractions coming from various stages of the AD and pyrolysis processes. The value of those activities is: €60,000 for AU and €63,000 for EUBIA. EUBIA will use their extensive network of partners to test biomass samples provided by the partners. HI3's budget as a result of those transfers increased by €311,565 in total.

• FON decided that they will not require €25,591 so this was reallocated to SRE.

Budget changes

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe

• An extension to Investment 2 was requested. AU planned to purchase a gas CHP engine to increase efficiency and capacity of the Pyroformer.

• Gas CHP engines coupled with Pyroformer allow to use wider range of feedstock used to feed the Pyroformer, as the final product – gas – is a better quality fuel than oil mix with diesel. Pyroformer can perform independently and is not linked to a particular type of feedstock or a supplier. This is important for the project as only a flexible and easy to adapt to external conditions biotechnology can be successfully deployed across NW Europe in demonstration sites/use cases. The gas CHP engine will allow utilising equipment for testing various types of feedstock.

• Testing could be done together with the partners and contribute to their knowledge and results of testing would be included in the Decision Support Tool.

• It will cost €200,030 to purchase the gas CHP engine however the total budget of Investment 2 will increase by €260,446 (€60,416-an increase proposed by HAUC to cover costs of spare parts and engine testing originally not included in the application). €200,030 has been recovered from Aston’s reduced publicity budget (overestimated costs of developing a website and repository by €70,600) and travel budget (cut off observers travel budget by further €129,430).

Additional Investment 2

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe

• June 2012 – budgets, roles and a scope of transferred activities ultimately confirmed

• July 2012 – a request submitted to JTS by LP• August 2012 – Energy Hills – formal letter • September 2012 – JTS advised to keep RfC on hold to include new partners;

JTS supported proposed changes• October 2012 – IZES submitted LoI

October 2012 – LP submitted a final RfC• January 2013 – JTS formally approved the RfC• New budgets and spending profiles 2013-15 circulated to the partners – March

2013• Formal letter of Approval from JTS – 9th September 2013• Revised application – to be circulated asap

Timetable

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe

Managing Committee Meeting – 8-9 October 2013, EindhovenBioenNW – Delivering Local Bioenergy to North West Europe