Biomethane will need to achieve a 60 per cent greenhouse gas saving compared to fossil fuels to qualify for the Renewable Heat Incentive, DECC has confirmed.
In spring, the Government will introduce sustainability criteria for the Renewable Heat Incentive (RHI) that will enter into force in the autumn.
All RHI participants using all forms of biomass that do not meet these criteria will not be eligible for support and DECC has clarified that biomethane will need to ensure this 60 per cent greenhouse gas saving.
Biomethane is typically produced from anaerobic digestion plants treating food waste, energy crops and agricultural and industrial residues. It can be used in gas engine vehicles or injected into the gas grid to heat homes and businesses.
Trade associations REA and ADBA have worked with DECC to come up with the new rules.
REA chief executive Nina Skorupska (pictured) said: “DECC has engaged constructively with stakeholders across the industry and shown that it supports the sustainable development of the UK green gas sector. Getting these new greenhouse gas rules finalised before the election is good news for the long-term stability of the sector. We look forward to working with DECC to further develop these rules to reflect the full environmental costs and benefits of green gas.”