Exactly how much cash will be put on the table in future for biomethane or “green gas” is being mulled over by the Department for Energy and Climate Change.
Biomethane is biogas – with the carbon dioxide removed – which in turn comes from animal or plant waste. It can be pumped into the national gas network.
Government expects it to deliver 15% of heat deployed under the Renewable Heat Incentive (RHI) in 2015/16.
However it believes the “one size fits all” tariff it set up in November 2011 is outdated as there are now three green gas producing plants pumping into the gas grid.
It is consulting on a “well-managed adjustment” to the biomethane to grid tariff, with plans to lay the amended regulations “as soon as possible” after Parliament returns from Recess in Autumn 2014.
Two tariff options are being looked at: banding and tiering of the tariff. The first gives payments to projects of a certain size in different bands, the latter pays more for a first volume of gas put into the grid and tails this down.