Green Gas Support Scheme: mid-scheme review
Read the full outcome
Detail of outcome
The government response to our Green Gas Support Scheme mid-scheme review consultation summarises the responses received and sets out our final policy decisions.
We are making the following changes:
- extending the GGSS to 31 March 2028 to provide sufficient time for prospective applicants to commission on the scheme before it closes. This follows feedback on the challenges faced by industry in securing waste feedstocks and supply chain delays affecting deployment
- introducing an exemption for heat supplied by eligible heat pumps to stop it being deducted as part of eligible biomethane calculations in the same way that fossil fuel heat sources are. Scheme participants using an eligible heat pump may receive increased eligible biomethane tariff payments as a result
We have made the following decisions across the remaining areas:
- we will maintain the current waste feedstock threshold. We expect an increase in waste feedstock availability following the forthcoming changes to municipal food waste collections in England. The increase in availability of waste feedstocks could support applicants utilising more than 50% waste feedstocks but mandating a higher threshold at this time may limit deployment under the scheme
- we will maintain requirements for managing digestate under the GGSS, given the lack of current evidence to inform implementing additional requirements
- we will maintain the current eligibility criteria for the GGSS and not allow CHP conversions under the scheme. This is because we did not receive sufficient or compelling evidence to demonstrate this would deliver value for money. However, we will consider the role of CHPs as part of a future biomethane policy framework
- we will take steps across government to develop our understanding of monitoring and mitigation practices to reduce methane emissions in the production of biomethane
- we will not amend tariff guarantee and commissioning window deadlines, given the broader extension to the scheme
Next steps
- we intend to make the necessary regulatory changes from this mid-scheme review in Spring 2024, when parliamentary time allows
- we have set out plans to test our thinking on a future biomethane policy framework and will gather further evidence on this in 2024
Detail of feedback received
We received 24 responses to this consultation from a variety of stakeholders, including:
- the anaerobic digestion industry
- the energy sector
- academia
- other organisations
Original consultation
Consultation description
Update 21 October 2023
We announced that we intend to extend the Green Gas Support Scheme to 31 March 2028 via the Mid-Scheme Review.
We intend to publish our full government response this winter.
The Green Gas Support Scheme (GGSS) provides tariff-based support for biomethane produced using anaerobic digestion (AD) and injected into the gas grid, as a direct replacement for natural gas. The scheme opened for applications on 30 November 2021 and at present runs to 30 November 2025.
In March 2021, we committed to a mid-scheme review of the GGSS to consider the effectiveness of the scheme and review several areas for potential amendments. In this consultation, we’re seeking views on our proposals for policy amendments as part of the mid-scheme review, and aim to implement any amendments during the 2023-2024 financial year.
Areas under consideration include issues we previously committed to reviewing in our Future Support for Low Carbon Heat and the Green Gas Levy: Government Response. We are also consulting on additional aspects of the scheme.
The areas for consultation include:
- the scheme’s close date
- how we will treat tariff guarantee and commissioning deadlines
- the waste feedstock threshold
- the scheme mitigation requirements for digestate emissions
- the eligibility of Combined Heat and Power plant conversions to biomethane injection
- heat deductions from total eligible biomethane
- fugitive methane emissions monitoring and mitigation
Additionally, we are gathering views on a future biomethane policy framework which would follow the GGSS.
Our proposals continue to be focused on providing support for biomethane injection, as per the original intent of the scheme. This consultation invites responses on these proposals from stakeholders to inform our final decisions on the recommendations for this mid-scheme review.
Identifying impacts from food and farm digestates report
Alongside this consultation, we have published the Identifying impacts from food and farm digestates report. The report was commissioned in 2021 by the Department for Business, Energy and Industrial Strategy, to inform the mid-scheme review of the Green Gas Support Scheme in order to better understand the potential environmental impacts of the generation and use of the digestate from AD. This was particularly in reference to the potential effects from digestate on air, soil and water quality from components such as ammonia, nitrates and plastic.
The report sets out the evidence gathered for options to mitigate:
- ammonia emissions from digestate during storage and use
- methane emissions during digestate storage
- plastic contamination of digestates
See our consultation privacy notice.
Documents
Updates to this page
Last updated 25 January 2024 + show all updates
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Government response published.
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We have announced that we intend to extend the Green Gas Support Scheme to 31 March 2028.
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First published.