The government has extended the Green Gas Support Scheme (GGSS) until 31st March 2028, in response to industry challenges in securing waste feedstocks and supply chain delays.
The extension of GGSS aligns with municipal food waste collection plans and provides additional time for prospective applicants.
In response to consultation feedback, an exemption is also introduced for heat supplied by eligible heat pumps.
This measure prevents such heat from being deducted in eligible biomethane calculations, aligning it with the treatment of fossil fuel heat sources.
According to the Department for Energy Security and Net Zero, participants using eligible heat pumps under the scheme may experience increased tariff payments for eligible biomethane as a result of this exemption.
The government said: “Overall, respondents agreed with proposals to amend calculations for eligible biomethane to exempt heat supplied by a heat pump and agreed with the recommended calculation approach.”
The Anaerobic Digestion and Bioresources Association (ADBA) welcomed the government’s decision.
ADBA Chair Chris Huhne said: “This is good news for the UK’s growing green gas industry.
“The extension until 2028 gives investors and developers more long term certainty to build new biogas plants. It also confirms other positive proposals we recommended in our consultation response last year.”