ADBA welcomes Tories heated debate

ADBA PRESS RELEASE

Lord Redesdale, Chairman of the Anaerobic Digestion and Biogas Association, has welcomed the Cabinet Office Minister Oliver Letwin’s indication that the Renewable Heat Incentive will be set at a level to stimulate growth in AD.

Speaking at the Conservative Party conference yesterday (5 October), Letwin said that his government’s:

incentive for renewable heat will give us a huge expansion of anaerobic digestion, enabling us to produce huge supplies of home-produced, low carbon gas.

The level of the incentive is due to be announced in the Comprehensive Spending Review on 20 October, and while Lord Redesdale said the government’s commitment was welcome, he also warned that the tariff needs to be set at a level which would fully stimulate the industry.

Oliver Letwin’s words of support for AD are welcome, as is his statement that the Renewable Heat Incentive is set to stimulate expansion in the industry.

 

However, the level of the RHI must be higher than that proposed in the government’s consultation – this fell short even of parity with the Feed In Tariff, which official figures show has so far failed to stimulate new construction.

 

ADBA has been lobbying hard for a level of RHI which makes new plants commercially viable.

 

If the coalition does not set the RHI at a significantly higher level than FIT, its own commitment to a ‘huge increase’ in AD will be in severe jeopardy.