1. Biomethane Roadmap in the UK
London, 16th December 2015
Dr Kiara Zennaro
Head of Biogas, REA

2. The UK Gas Grid UK has great gas grid
85% of domestic market connected to grid
95% of industry
Power generation back up to wind
To build gas grid and central heating etc. would cost around £100 billion
Vital UK asset
All our Grid Owners are very supportive and have created an attractive regime to allow projects to go ahead at lower cost/quicker

3. The drivers
45% of all UK energy is used for heating, responsible for about one third of the UK’s carbon emissions
Over 70% of the UK’s heating demand is met by gas
Renewable energy targets – 15% of energy from renewables by 2020 and UK sub-target to meet 12% heat from renewable sources by 2020
Climate Change Act 2008: 50% GHG emission reduction on 1990 levels by 2025 and 80% by 2050
UK continental resources are running out

4. Renewable Heat Incentive
Renewable Heat Incentive, introduced in 2011, is the primary policy which supports biomethane in the UK
World-first financial incentive to promote the generation of renewable heat and biomethane
Funded through general taxation
Payments made quarterly over 20 year period on basis on metered biomethane injected (p/kWh)
Initially funded until March On 25th November Government announced that RHI will be continued to 2020/21 - £700 million less than originally planned.

5. RHI Incentives

6. Biomethane projects per year 2010-2016
1 in 2012, 2 in 2013, total of 50 projects injecting gas by end of 2015

7. UK Biomethane Projects 2012-15
2015
2014
2013
2012

8. Proportion of projects in each feedstock category

9. Biomethane Market Forecast
UK total gas demand now is around 700 TWh/annum
Around 50% domestic heating, 25% power gen and 25% industry
Biomethane injected by end 2015 is around 2 – 2.5 TWh
Potential maximum biomethane by 2030 is around 20 to 30 TWh
3-4% of UK total gas demand, 7 – 10% of UK domestic gas demand. Could increase to 20% of UK gas demand if this decreases to ~150 TWh/annum

10. RHI Degression Tier 1 tariff April 2015: 7.5 p/kWh
July 2015: 7.24 p/kWh
October 2015: 6.52p/kWh
January 2016: 5.87p/kWh
April 2016 and July 2016: ?

11. Barriers Budget restraints and future tariff degression
Availability of waste feedstocks
The use of crops still under debate
Gas grid capacity
Cost of grid connections/delays
Energy content (CV) of biomethane v grid (propane)
Sustainably Criteria- in force from 5th October 2015
60% GHG savings compared to GHG EU fossil heat average
Consignment basis – no averaging
GHG criteria may be tightened up in the future

12. Biomethane in transport (1)
Considerable potential for biomethane to be used in transport, particularly in HGVs and buses
Study carried out by Ricardo-AEA for DfT (2014) showed that use of biomethane in vehicles could deliver substantial GHG savings, compared to use of petrol, diesel or natural gas
Only very limited amount of biomethane (0.1 Peta Joules) is produced for supply to the transport sector
Available biogas/biomethane goes into heat and/or power sector as current incentives provide better returns

13. Biomethane in transport (2)
Transport Energy Task Force set up by the DfT with the low CVP in 2014:
Recommendations made to increase support for biomethane for transport and to remove barriers to deployment of HGVs and buses
REA RTFG Renewable Gases Working group, working closely with DfT to identify role that biomethane and other renewable gases could play in transport to 2020 and beyond to 2030:
Potentially biomethane from AD and gasification could be around PJ/yr (E4Tech)
What’s needed to unlock this sector ?
Adequate level of support for producers of renewable gases for transport
Support for refuelling infrastructure
Support to gas vehicles R&D and development of a mass market for gas vehicles

14. Thank you Contact details Kiara Zennaro
Renewable Energy Association – REA Biogas
Thanks to CNG Services for providing data
Contact: John Baldwin