In a letter to Bill Esterson MP, Chair of the Energy Security and Net Zero Committee, Energy Minister Michael Shanks said the Government did not intend to introduce a successor scheme for assets accredited under the RO, Renewables Obligation Scotland (ROS) and Northern Ireland Renewables Obligation (NIRO).
The Government defines small-scale biomass generators as those with a generation capacity below 100MW. The category includes dedicated biomass, biomass combined heat and power, sewage gas, energy from waste, anaerobic digestion and advanced conversion technologies.
Existing support will begin to expire from 2027, with different assets reaching the end of their support periods through to 2037.
Shanks said the Government did not believe the benefits of continued support warranted the development of a successor scheme.
He said continued support would not represent value for money given the relative cost of the assets and their contribution to the power system.
The Recycling and Environmental Action Programme (REA) has criticised the decision, saying it did not adequately reflect the role biomass plants play in the circular economy and waste management.
It argued that a narrow focus on the volume of electricity generated by biomass was “short-sighted” and called for a “whole-system approach” that considers the sector’s contribution to waste management and energy security.
Wood recyclers ‘deeply disappointed’
The Wood Recyclers’ Association (WRA) has previously warned that support for waste wood biomass plants beginning to fall away from April 2027 could force facilities to close, removing a major domestic outlet for waste wood.
Since spring 2025, the market has faced significant pressure, including temporary outages at end-use facilities. The resulting oversupply has already increased disposal costs and led to some waste wood being sent to landfill, according to the WRA.
Richard Coulson, Biomass Lead on the WRA Board, said the organisation was “deeply disappointed” by the Government’s decision.
He commented: “We do not believe the government has considered the full consequences of this approach.
“Without support for these facilities, material will have to be exported or sent to landfill or worse – could end up being dumped or sent to illegal waste sites.
Coulson said UK waste wood biomass plants make an “invaluable contribution” to energy security and net zero, while also providing a domestic outlet for millions of tonnes of waste wood each year.
The WRA has called for the Government to consider the material currently processed by the plants, available alternative treatment capacity, the cost and environmental impact of alternative routes, and the implications for local authority and construction and demolition waste.
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