Market Conditions (June 2024 update)

We would characterise the mitigation market in the catchment as reasonable. Some schemes are beginning to come online, there is still a limited supply of phosphorus credits. Mitigation is being priced ~£40,000 to £55,000/kg.
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The area has a variety of levels of nutrient stripping technology at the wastewater treatment works for phosphorus. New houses currently require between < 0.1 kg to 0.89 kg of phosphorus mitigation per house This creates significant opportunities for landowners looking at mitigation schemes.  

We forecast demand outstripping supply for at least the next year, despite new schemes coming online (see below).

Water Treatment Upgrades

‍There are approximately 71 wastewater treatment works in the Nutrient Neutrality area in Somerset. Two of these works are already at operating at technically achievable limits (TAL) for phosphorus removal.  Over the current upgrade cycle (AMP7), running to 2025:

• 3 treatment works already have permits and are not being upgraded
• 19 treatment works are being upgraded to have phosphorus stripping technology with limits that are above TAL.

In order to meet the upgrade requirements that may be brought in under the Levelling Up and Regeneration Bill, referred to as the ‘TAL upgrades’, 25 treatment works will be upgraded to have phosphorus removal technologies by 2030. This means 46 treatment works will remain above the most stringent phosphorus removal requirements. Developments connecting to these treatment works will need more mitigation than those connecting to the 19 treatment works getting TAL upgrades.
As per our research into water treatment upgrades, we do not believe that it is likely that the water companies will be able to deliver all the upgrades in this cycle.