Certified green gas could heat 30,000 homes in 2015

Posted: 15 April, 2014. Written by James Beard

Eight biomethane projects committed to Green Gas Certification Scheme

400 million units of certified green gas forecast for 2015

Barrow Green Gas (BGG), the trading name for Barrow Shipping Ltd, has secured commitment from eight biomethane producers for the purchase and sale of their green gas. BGG certifies all its biomethane using REAL’s not-for-profit Green Gas Certification Scheme (GGCS), so these contracts should see the annual supply of certified green gas increase to at least 400 million units (kWh) in 2015 – enough for the heating and cooking needs of 30,000 homes [1].

The GGCS tracks biomethane from grid injection to end use, so that suppliers and end users can be sure of its renewable origin and the associated carbon savings. The GGCS reduced its volume fees by 75% at the start of the year – from 0.04p to 0.01p per unit [2]. Once all BGG’s committed partners are up and running, it will be saving £120,000 per year thanks to the fee reduction, compared with 2013 volume fees.

The decision to reduce volume fees was made by existing GGCS members in light of the expected growth in the sector, driven by the Government’s Renewable Heat Incentive for biomethane. Members will again decide at the end of this year how to use any surplus income from the GGCS scheme for the wider benefit of the green gas industry.

REAL Chief Executive Virginia Graham said:

“As a not-for-profit scheme, we are proud that it is our participants who decide how to recycle GGCS income for the benefit of the industry. This year they’ve decided to reduce the gas volume fees, making it cheaper for new and existing suppliers alike to deliver certified green gas to end users. As the industry continues to grow, we will look at other uses for these revenues, such as research funding or skills development in this vibrant young sector of the low carbon economy.”

Peter Rayson, Director of Barrow Green Gas, said:

“Our customers believe that REAL’s not-for-profit GGCS scheme is a key enabler for the development of the biomethane market in the UK, which is now achieving significant growth thanks to RHI funding from the Government.”

BGG and REAL both presented at this year’s UK Biomethane Day at the National Motorcycle Museum in Birmingham last week. Organised by the Renewable Energy Association and biomethane specialists CNG Services, UK Biomethane Day is the UK’s longest running and largest green gas conference. 34 exhibitors and 350 delegates attended last week’s conference, which featured presentations from DECC, National Grid and several industry experts [3].

At the event, REAL explained how it is actively engaging with several Government departments to clearly identify how the GGCS can help deliver climate change policy goals [4]. This includes:

• Successfully getting Green Gas Certificates recognised as a means for bus fleet operators to claim support (at 6p/km) for Low Carbon Emission Buses within the Bus Service Operators Grant scheme [5]
• Engaging with Defra to assess opportunities for Green Gas Certificates to be recognised under corporate greenhouse gas reporting requirements [6]
• Initial discussions with DfT looking at the role of Green Gas Certificates in their plans to support advanced transport fuels [7] and low emission HGVs [8]
• Engaging with DCLG’s recent consultation on Allowable Solutions, which could use Green Gas Certificates to demonstrate off-site emissions savings under the Zero Carbon Homes policy [9].

The REA and REAL will continue to work with industry, Government and stakeholders to maximise the contribution of green gas to our environment, our economy and our energy security.

Notes to editors

• The Green Gas Certification Scheme (GGCS) tracks biomethane from grid injection to end use, so that suppliers and end users can be sure of its renewable origin and the associated carbon savings.
  
  Each unit of green gas injected into the grid displaces a unit of conventional gas. So the GGCS tracks each unit of green gas from its injection into the distribution grid, through any trades, to its sale to a consumer, or group of consumers. It tracks the contractual rather than physical flows to ensure there can be no double-counting from production to end use.
  
  The GGCS is run by the Renewable Energy Association’s subsidiary, Renewable Energy Assurance Ltd. GGCS participants oversee the way the Scheme is run, on a not-for-profit basis.
  
  For more information, see: www.greengas.org.uk
   
• Renewable Energy Assurance Ltd carries out a range of certification and consumer protection activities, all of which promote sustainable energy. REAL’s activities fall under two headings: consumer codes and certification schemes. REAL, incorporated in 2006, is a wholly-owned subsidiary of the Renewable Energy Association.
  
  For more information, see: www.renewableenergyassurance.org.uk
   
• The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with approximately 1,000 members, ranging from major multinationals to sole traders.
  
  For more information, see: www.r-e-a.net

1. The biomethane producers already committed to Barrow Green Gas include the following projects, as well as two projects as yet undisclosed:
   
   J V Energen – Rainbarrow Farm (operational)
   Vale Green 1 (operational)
   Wyke Dairies (commissioning 2014)
   Eternity/Greener for Life (commissioning 2014)
   Green Gas Oxon (commissioning 2014 )
   Yelspa Ltd (commissioning 2014)
   
   The total of these eight projects is 400 million units of certified Green Gas per year (one unit = 1kWh). Ofgem estimates that a typical household’s gas demand for heating and cooking is 13,500kWh per year: www.ofgem.gov.uk/publications-and-updates/review-typical-domestic-consumption-values-1
   
   Therefore 400 million units of certified Green Gas could meet the heating and cooking needs of 29,630 homes. However, not all of this gas will be used in homes. Biomethane can also be used in industrial processes and as a low carbon transport fuel in gas engine vehicles, including buses and HGVs.
    
2. The GGCS fees comprise two separate elements: annual membership fees for producers, suppliers and traders; and gas volume fees for suppliers.
   Annual membership fees are £500 per year. The gas volume fees have been reduced by 75% from 0.04p to 0.01p per unit, with effect from 1st January 2014. For more information, see: www.greengas.org.uk/join/scheme-fees
    
3. For more information on UK Biomethane Day 2014 and to download the presentations given on the day, visit: www.cngservices.co.uk/biomethane-day-2014
    
4. REAL’s presentation from UK Biomethane Day 2014 is available to download at: www.cngservices.co.uk/assets/Presentations/Biomethane-Day-2014/11-Syed-Ahmed-Green-Gas-Certification-Scheme.pdf
    
5. For more information, see DfT: ‘Certification of dedicated gas buses as low carbon emission buses,’ December 2013. Available at: www.gov.uk/government/publications/certification-of-dedicated-gas-buses-as-low-carbon-emission-buses
    
6. For more information, see Defra: GHG reporting guidelines - 2014 update,’ February 2014. Available at: consult.defra.gov.uk/climate-change/ac04ad33
   Government decisions on this consultation are expected soon.
    
7. For more information, see DfT: ‘Advanced fuels: call for evidence,’ December 2013. Available at: www.gov.uk/government/consultations/advanced-fuels-call-for-evidence
   Government decisions on this consultation are expected soon.
    
8. For more information, see Low Emission HGV Task Force: ‘Recommendations on use of methane and biomethane in HGVs,’ March 2014. Available at: www.gov.uk/government/publications/low-emission-hgv-task-force-recommendations-on-use-of-methane-and-biomethane-in-hgvs
    
9. For more information, see DCLG: ‘Next steps to zero carbon homes: allowable solutions,’ August 2013. Available at: www.gov.uk/government/consultations/next-steps-to-zero-carbon-homes-allowable-solutions
   Government decisions on this consultation are expected soon.