ADBA backs support scheme extension as mandatory food waste confirmed

The Green Gas Support scheme is overseen by the Department for Energy Strategy and Net Zero (DESNZ). It aims to provided financial incentives for new anaerobic digestion biomethane plants to increase the proportion of green gas in the gas grid.

Registered participants will receive quarterly payments over a period of 15 years. Payments are based on the amount of eligible biomethane that a participant injects into the gas grid.

On Saturday (21 October), to coincide with the Simpler Recycling Announcement, DESNZ said it was extending the deadline to apply to the Green Gas Support Scheme from the proposed 31 March 2026  in its Mid-Scheme review consultation to 31 March 2028.    

ADBA outlined that this offers a two-year additional window for AD plant operators to ensure that at least 50% of the biomethane output from new AD sites is generated from organic wastes – the key criteria to receive government funding through GGSS.

This coincides with Defra’s announcement of Separate Food Waste Collections needing to be put in place in England by 2026 – which will “significantly increase the volume of organic waste feedstock available to AD operators”. 

 ‘Great news’

Chris Huhne, chair of ADBA, welcomed the announcement:  “This extension of the application deadline for the Green Gas Support Scheme is great news for the industry.  It follows the recommendation we had made to DESNZ in response to the mid-term scheme review they issued back in March. We had specifically requested at least two more years to allow AD operators to put the appropriate contracts and infrastructure in place to achieve the GGSS-eligibility ratio, and this will enable them to do so.”

He added that the announcement means a “good amount” of new biomethane plants will be coming coming online in the coming years – “driving a spike in sector growth similar to when the Renewable Heat Incentive, Feed In Tariffs and Renewable Obligation schemes were introduced”.

Mr Huhne concluded: “Not only is this good for the industry, it’s also great news for society as a whole, as we address the impacts of climate change and seek to ensure energy and food security in the UK.”