York, 28th November 2018: Farmers operating AD plants can now viably
maximise biomethane production, benefitting from the highest Renewable Heat
Incentive (RHI) tariff and “top up” with additional Renewable Transport Fuel
Obligation (RTFO) payments, as part of a government incentivised policy for decarbonising the transport sector.
“Up until
recently, biomethane producers have generally either injected gas into the grid
to receive RHI payments or they supply the transport sector and claim Renewable
Transport Fuel Certificates (RTFCs). Combining the two historically hasn’t been
done,” says Lucy Hopwood from NNFCC.
This is because before
now and again since tariff levels were reinstated in May this year, the RHI
alone has been lucrative enough. However, with a degression likely at the start
of January, and the budget for RHI tariff guarantees becoming tight, it’s
likely to be more financially viable to claim both.
According to Lucy,
farmers not pushing to maximise biomethane production beyond the Tier one
tariff break (40,000MWh per year) may benefit significantly from this new
development. “Farmers could in theory double production, claiming RHI for half
of their output and RTFCs for the other half.”
“There is also an
opportunity to double the number of certificates awarded for each unit of gas
if biomethane is generated from agricultural waste,” she says.
“It’s also useful
to underline that feedstock restrictions were introduced in May 2018 to new
plants claiming RHI and FITs, and support can only be received where greater
than 50% of biogas outputs are from waste or residues,” adds Lucy.
For those wanting
to compare the RHI and RTFO values they can access an online calculator to see
which scheme gives the most revenue by visiting: https://www.nnfcc.co.uk/publications/tool-biomethane-rtfc-calculator.
Lucy Hopwood will
be speaking on the subject of ‘Maximising support for biomethane from AD – claiming
RHI and RTFO’ at the Energy & Rural Business event taking place in
Telford next February 6 and 7.
The NNFCC offers
advice to anyone planning or operating an AD plant, looking at what farmers
have in terms of capacity or resources and advising them on what they should
do.
“Renewable energy
and transport are becoming more and more linked. This is why we have introduced
the Low Emission Vehicles Expo alongside Energy Now Expo at the Energy and
Rural Business Show next February,” says David Jacobmeyer.
The Low-Emission Vehicles Expo will
have on-stand demos and presentations and the latest vehicles and machinery for
rural businesses on show. Energy Now Expo will feature an exhibition, a
dedicated energy storage theatre, a one-to-one advice clinic, and conference
streams devoted to each type of renewable energy. Also new for 2019, The Rural
Business Expo will have ‘how to’ workshops from industry experts and farmers
who have implemented successful new business ventures or have integrated new
projects with existing initiatives.
The event is free to attend, and
places can be booked today: http://www.energyandruralbusiness.co.uk/visit/register-to-visit.