ADBA Responds to the Proposed Gas Shipper Obligation Consultation

DESNZ consulted on the establishment of a levy and obligation for gas shippers to support the production of low carbon hydrogen. This affects the AD sector because the obligation would be set on the volume of gas moved by the shippers.

ADBA responded to the Consultation on the proposed Gas Shipper Obligation on the 9^th of April, clearly arguing  that any volume of renewable gas, such as biomethane, in the mix should be removed from the obligated volumes and resulting levy payments of gas shipper. This will help to both drive demand for renewable gasses and achieve the desired outcome of national scale decarbonisation. Most importantly this means that the polluter pays principle is maintained so shipping of fossil gases contribute to the production costs of low carbon hydrogen and the load would then not fall on any biomethane shippers.

For more information, contact our Policy Team at policysupport@adbioresources.org.