Analysis: Green Gas Support Scheme and the future of AD

In the lead-up to the ADBA National Conference, ADBA’s team of analysts examine the Green Gas Support Scheme and its impact on the AD and bioresources industry…

(source: ADBA Policy Report October 2022)

The Green Gas Support Scheme (GGSS) is now open to applications. The Scheme represents the UK’s first support scheme created specifically for the AD sector, following the closure of the Renewable Heat Incentive (RHI), which covered several different technologies. Its introduction demonstrates serious governmental backing for the AD sector – up to £150m will fund biomethane production per year.

ADBA analysis indicates that the GGSS has the potential to support the development of 45-50 new biomethane plants, producing around 2.7 TWh per year. However, much like the RHI, support focuses solely on energy generation, and with the scheme’s 50% waste requirement, the development of projects will depend on the ability to source high biogas yielding waste feedstocks – primarily food waste. While Government aims to implement mandatory food waste collections in England from 2025, the continued delays to the rollout of such collections is likely to impact the deployment of new biomethane plants prior to the closure of the GGSS in 2025. The Green Gas Support Scheme is open for 4 years from the 30th of November 2021, with a final commissioning deadline of 30th November 2025. As of 15th of October 2022, the update on the GGSS applications is as follows.

❖ 13 tariff guarantee applications have been made

❖ 9 provisional tariff guarantee notices given while 1 was rejected

❖ 8 tariff guarantees granted while 2 were rejected

❖ 0 applications for registration in respect of additional biomethane

❖ Following the review of tariffs and thresholds for the GGSS on September 2022, the BEIS announced that GGSS tariffs and degression thresholds will remain unchanged on 1 October 2022.

❖ Regarding the Non-Domestic RHI, BEIS have extended the final commissioning deadline for all AD plants (including TG2 and TG3) to 31st March 2023. This deadline is considered final, and highly unlikely to be subjected to change in the coming months.

❖ AD has provided 32% of heat under the RHI with ‘Biogas’ and ‘Biomethane’ generating 5,044 GWh and 17,878 GWh respectively since the scheme opened.

❖ In 2022 Q1, Cadent and Xoserve consulted on the Future Billing Methodology – representing a key opportunity to remove the need to propanate biomethane prior to injection and support future grid connections.

ADBA National Conference poised to set post-GGSS roadmap

Given the UK has a new administration in place, the ADBA National Conference will be pivotal — setting out a roadmap for anaerobic digestion beyond the end of the Green Gas Support Scheme in 2025. The flagship conference of the anaerobic digestion and bioresources industry is 8th December in Westminster, London. 

Click here to buy tickets to the ADBA National Conference