The UK Government has passed the Green Gas Support Scheme Regulations, 2021, which is a government environmental scheme that facilitates the production of bio methane for injection by anaerobic digestion. The Regulation comes into force from November 30, 2021.
Key highlights:
- The Regulations provides the financial incentives for new anaerobic digestion biomethane plants to increase the proportion of green gas in the gas grid. The scheme is open to applicants in UK for four years from 30 November 2021.
- The regulation provides rules on the application for tariff guarantee and budget allocation under the Green Gas Support Scheme.
- A producer of biomethane who has been granted a tariff guarantee which has not been cancelled may apply to the Authority to be registered as a participant in relation to the equipment used to produce biomethane to which that tariff guarantee applies.
- Registered participants will receive quarterly payments over a period of 15 years. Payments are based on the amount of eligible biomethane that a participant injects into the gas grid.
- There are two separate budget caps set for the scheme:
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- Applications Budget Cap (ABC): a cap against which applications to the scheme are checked to ensure that there is available budget based on their estimated production and resulting spend.
- Overall Scheme Expenditure Budget Cap (OSEB): set above the ABC, this cap directly correlates to levy collection.
- The Green Gas Support Scheme is funded by the Green Gas Levy which is applied to all licenced fossil fuel gas suppliers.
- The Green Gas Levy places obligations on licensed gas suppliers, including a requirement to make quarterly levy payments, in order to fund the Green Gas Support Scheme.
- The scheme follows the Non-Domestic Renewable Heat Incentive (RHI) Scheme which was closed to new applicants on March 31, 2021.
- The Scheme has opened on November 30, 2021. It will be open to applicants for four years. Registered participants will receive tariff payments for 15 years.