MEMBER PRESS RELEASE: QED welcomes RHI reforms as a step in the right direction for the AD industry

QED Environmental Systems, the leading international supplier of environmental monitoring equipment, has welcomed the reforms to the Renewable Heat Incentive (RHI) scheme, a move by the Government that is expected to kickstart the development of some 50 biomethane plants across the UK by 2020.

The new tariffs received the seal of approval in May this year ushering in a better deal for Anaerobic Digestion (AD) plant operators. Further changes including the permission to allow replacement plants where an original installation breaks down, amend the circumstances under which ‘estimated data’ can be submitted and clarification that RHI installations must have the necessary environmental permits, came into effect on 1 October 2018.

The Anaerobic Digestion & Bioresources Association (ADBA) estimates that these favourable rates will bring an investment of up to £400m, providing a much-needed push to the national biomethane industry.

The ADBA stated that the number of new AD plants being built in the UK had fallen in recent years, in line with decreases to the RHI tariffs. However, with the new RHI regulations providing a much-needed boost to the amount producers can claim, ADBA forecasts that the restored tariffs will encourage up to 50 new plants to be built over the next two years alone. This could generate up to an extra 2tWh of renewable heat per year, equivalent to a 50% increase in the biomethane industry’s output.

Graham Sanders Major Account Manager at QED, Geotech said:

We strongly believe that AD industry can substantially contribute to the government decarbonisation goals across heat, electricity, farming, waste, and transport. The RHI reforms definitely supports the industry to achieve this and it is a step in the right direction for all of us. QED is very excited about the exciting new opportunities these reforms have sparked and look forward to contributing to its development over the next few years. We are now, like the wider industry, keenly awaiting further news on where these plants may be.

The new tariffs for biogas and biomethane are as follows, with the rates for biomethane being reset to 1st April-1st July 2016 levels:

•             Biomethane Tier 1 – 5.60p/kWh

•             Biomethane Tier 2 – 3.29p/kWh

•             Biomethane Tier 3 – 2.53p/kWh

Small biogas combustion (<200 kWth): 4.64 p/kWh
Medium biogas combustion (200 kWth<600 kWth): 3.64 p/kWh
Large biogas combustion (≥600 kWth): 1.36 p/kWh

There are a few T&Cs to be aware of – the tariff rates are applicable to new schemes or applications for additional capacity only. Biomethane installations registered between 14 December 2016 and 22 May 2018 also qualify for an uplifted tariff.

Under the revised regulations, at least half of the biogas produced by AD plants will have to be derived from feedstocks classified as wastes or residues (agricultural waste like manure, crop and food waste) in order to receive the full tariff.

Charlotte Morton Chief Executive at the ADBA said:

Biomethane produced through AD not only produces much lower levels of emissions than natural gas but is also home-grown, allowing the UK to increase its energy security and be less reliant on energy imports from abroad. AD is already reducing gas imports by 2% and has the potential to reduce them by as much as 16%.

 

The restored RHI tariffs will give a vital boost to the AD industry’s ability to produce green gas over the next few years, but with emissions from heat accounting for a third of all UK greenhouse gas emissions and no clear government strategy yet identified for decarbonising heat, it’s imperative that the government commits to long-term support for biomethane beyond 2020 while the industry works to bring down costs to become financially self-sufficient.

For more information, call +44 (0)333 800 0088 or contact us at sales@qedenv.co.uk or visit www.qedenv.com

 

-ENDS-

 

Media information:

For further information, please contact Sarah Taylor on 01676 526568 or Aamina Mohamed on 01676 526882

 

Notes to editors:

About QED Environmental Systems, Inc.

QED Environmental Systems, a subsidiary of Graco Inc., is the leading international supplier of pumping systems for groundwater sampling, remediation and landfill liquids as well as gas management applications into industrial, environmental and renewable energy markets.

QED supports its customers around the globe through the industry’s most experienced network of local technical sales specialists backed by an in-house technical sales and customer support team dedicated to providing expert help and quick response.

In addition to its own groundwater and liquid control products, QED supplies a range of internationally recognised products including Geotech portable and fixed gas analysers, Landtec portable fixed gas products, En Novative Technologies soil sampling products and Viasensor CO2 gas monitoring products.

Together, these products serve a global industry for a wide range of environmental applications, including groundwater sampling, groundwater remediation pumping, landfill leachate and condensate pumping, landfill gas collection and control, landfill and biogas analysis, air stripping and VOC removal, and wireless data acquisition.

QED Environmental Systems’ international headquarters are located in Coventry, United Kingdom and headquarters are based in Dexter, MI. QED serves customers from support centres in Michigan, California and England.

For more information, call +44 (0)333 800 0088 or contact us at sales@qedenv.co.uk or visit www.qedenv.com