Future biomethane policy support should be structured around carbon intensity, according to a UK Government consultation response to the Green Gas Support Scheme (GGSS) Mid-Scheme Review.
While there was no consensus from the Anaerobic Digestion (AD) industry and trade bodies on the most appropriate support mechanism, respondents expressed a preference for a Contracts for Difference (CfD) mechanism creating a floor price for biomethane.
The consultation, launched in March 2023 and published by the Department of Energy Security and Net Zero (DESNZ), also suggested this could be achieved by exempting biomethane emissions in the UK Emissions Trading Scheme for biomethane extracted from the gas grid, using carbon tax credits, or by designing a scheme that rewards producers based on the carbon intensity of the fuel produced – which was favoured by most respondents.
Several expressed the need for carbon capture and storage (CCS) to be either incentivised, or made mandatory under a new framework. Some sided with supporting CHP conversions and a ’technology neutral’ approach for biomethane production to encourage innovative technologies.
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