Biomethane and the Renewable Heat Incentive

Andy MorrallManager – Non-domestic RHI

27/01/2014

RHI.enquiry@ofgem.gov.uk0845 200 2122

Overview

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1. Key requirements

2. Payments

3. Application process

4. Regulatory changes

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Key requirementsThe Regulations define injection as ‘the introduction of gas into a pipe-line system operated by a gas transporter’.

The Regulations define gas transporter as ‘the holder of a license granted under section 7 of the Gas Act 1986(1)’.

• Injection must have commenced before an application can be made

• No grant funding

• Metering and measurement requirements:• Volumes• GCVs• Heat

• How biomethane is produced:• Feedstocks: for AD, solid/liquid biomass, liquid waste only• Upgrade process

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Where :A is the biomethane tariff

B is the kWh of biomethane injected in any quarterly period;

C is the kWh of propane contained in B;

D is the kWhth of heat supplied to the biogas production plant (other than heat contained in feedstock to produce biogas by anaerobic digestion) which produced the biogas from which the biomethane was made, from any heat source other than heat generated from the combustion of that biogas;

E is the kWhth of heat supplied to the biomethane production process; and

F applies only in relation to biomethane made using biogas produced from gasification or pyrolysis, and is the proportion of biomass contained in the feedstock used in the relevant quarterly period to produce the biogas.

The application process

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• Managed online via the RHI register

• Each applications has 2 levels of checks before ‘Delegated Authority’ sign off

• Ofgem liaise with applicant to ensure necessary information is provided.

• Initial meter readings and measurements required – payments are (typically) calculated from the date of submission

The application process

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Regulatory changes

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• Setting capacity in accordance with Network Entry Agreement

• Additional capacity

• Allowing preliminary registration

• Heat supplied to biomethane production process

• Granting Ofgem (and authorised agents) inspection rights