Lower biomethane growth in 2017, rebound in 2018

ADBA now expect between 8 and 20 new biomethane plants to be commissioned this year, down from our previous projection of 10 to 25.

The RHI tariff offered for Tier 1 Biomethane plants (those injecting up to 40 GWh/year) is currently down at 3.56 p/kWh. Although the reform to the RHI scheme was due to raise the tariff back up to 5.35 p/kWh, the calling of the General Election meant that the Department for Business, Energy and Industrial Strategy (BEIS) was not able to put the reforms to the RHI before Parliament.

Our view is that a new minister will likely be supportive of the RHI reforms, however, there is the risk of the legislation taking some time to be passed, taking us into the autumn.

The delay to the proposed new legislation means that many biomethane projections have been delayed, and are likely to be pushed back to next year. Therefore after slower growth in 2017, we expect the market to rebound in 2018.

Positively, we are still aware of 57 biomethane plants at various stages in the planning process, with the potential to inject up to 35,000 m3/hr of biomethane into the grid. We still expect around 20 plants/year to be built over the next few years.

Interested in biomethane? Be sure to attend UK AD & Biogas and World Biogas Expo 2017 for more expert discussion and insights.

• The “Biomethane: Find out the latest technologies and market opportunities” session on 5th July 12.00-12.55 will discuss the role of biomethane in decarbonising gas grids around the world, and the opportunities that are arising for this technology.

If you have any questions about the industry, please feel free to send me an e-mail (emiliano.lewis@adbioresources.org).