The REA has recently submitted to key officials at BEIS a paper setting out its position on a future support scheme for green gas. This reflects the views and feedback gauged from members over the past twelve months.
Key highlights (with excerpts):
- A request for an immediate, time-limited extension to the RHI, to keep the industry going while a new support scheme is designed for the medium/long term. ‘Unless clear signals on a future support scheme post-RHI are given by the Government as a matter of urgency, we anticipate adverse consequences for companies across the supply chain, especially those involved in the manufacturing, construction and installation of biomethane plants, as well as grid connections and grid-entry units. With no prospect of new development and growth, these companies will either go out of business or will have to move away from this sector, with considerable loss in terms of British-based jobs and skills.’
- The request for a mechanism in the medium and long terms for green gas that rewards technologies and renewable gases that deliver the largest carbon savings, whilst driving best practice and innovation.
- The REA’s preferred mechanism would be a green gas obligation on gas suppliers to meet a gradually increasing GHG reduction target over a period of time. In order to meet this target they would have to source the gases that deliver the largest and cheapest carbon savings. Similar approaches already exist for renewable transport fuels in the UK and for somewhere else in the world (e.g. California). ‘The strength of the proposed approach is that it could provide a technology neutral incentive for gas suppliers to decarbonise their supplies, and for renewable and low carbon gas producers to continually strive to reduce the carbon intensity of their gas, stimulating innovation and investment in technologies and feedstocks with a low (or possibly even negative) carbon profile. Carbon Capture Usage and Storage (CCUS) technology when paired with bioenergy, delivers negative emissions. CCUS would not only expedite the route to net zero via greenhouse gas removals, but increase the supply of renewable and low carbon gases whilst providing wider benefits (e.g. to the bioeconomy).’
The REA will meet BEIS officials on 21st November to discuss the contents of the paper in the depth. For further information, please contact Kiara.