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Cash for Gas – The Green Gas Support Scheme Regulations 2021

Print publication

17/09/2021

The “Green Gas Support Scheme” (GGSS) is a Government environmental scheme which aims to increase the proportion of green gas in the National Gas Grid, as compared to natural gas. The scheme facilitates and encourages renewable generation of heat by the production of biomethane by anaerobic digestion for injection into the Grid. The scheme provides support for biomethane producers through a tariff-based mechanism, and is funded by levy payments collected from licensed gas suppliers, and the Green Gas Levy (GGL). At least 50% of all biomethane (by energy content) must be produced using waste or residue feedstock and the subsidy will not be payable in respect of the production of hydrogen or other green gases. Further, other conversion technologies such as pyrolysis or electrolysis are not eligible under the GGSS.

Applications to join the scheme may be made from autumn 2021 and registered participants will receive quarterly payments over a period of 15 years based on the amount of biomethane injected into the Grid.

Green Gas Support Scheme Regulations 2021

These draft Regulations were laid before Parliament on 9 September 2021 to establish the GGSS. The draft Regulations are subject to affirmative resolution and will be made once approved by both Houses.

  • In summary, the draft Regulations cover
  • how participants will register for the GGSS and the tariff guarantees that will apply
  • the obligations on GGSS participants and the payments they will receive
  • how the GGL will be calculated and paid by suppliers
  • compliance and enforcement of both schemes.

How we can help

This scheme provides valuable support for the anaerobic digestion sector which has an important role to play in decarbonising the UK’s heat. It is crucial that biomethane producers and others involved in green gas projects understand how the rules of the scheme and how the 15 year guaranteed tariff will work. Please contact Ben Sheppard for further information or support on green gas projects.

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