Anaerobic Digestion and Bioresources Association chief executive Charlotte Morton told Utility Week biomethane could meet 30 per cent of UK domestic gas demand, while reducing greenhouse gas emissions by 4 per cent and improving energy security.
This, she said, means RHI support for the sector will be “vital” in ensuring that the UK meets its renewable heat targets in a cost-effective way.
The warning comes amid mounting concerns that the government, which has recently cut a number of renewables subsidies, will scrap the RHI. Incoming energy secretary Amber Rudd has signalled a wish to see renewables technologies such as biogas become self-sufficient so as to reduce consumer costs.
“The government’s decision to remove Levy Exemption Certificates in the Summer Budget, a cut worth £11 million for the AD industry alone, and to fast-track a four-week consultation on removing pre-accreditation from FIT for electricity projects over the holiday period has alarmed both developers and funders,” said Morton.
However, she added that rumours “are just that at the moment”. “We are working with our members to ensure that the value of supporting AD is recognised by government, and expect to know their decision when the Chancellor of the Exchequer delivers his Autumn Statement.”
Speaking to Utility Week yesterday, Renewable Energy Association head of biogas Kiara Zennaro said if RHI subsidies were to be scrapped it would be “absolutely detrimental” to the development of the sector.
“The government committed to keeping the RHI open to new applications until 2020 and it is paramount that the new government sticks to this commitment,” she said.