Wednesday, 03 November 2021
On 2 November, the UK Office of Gas and Electricity Markets (Ofgem) released their decision with final guidance on 'Further validation of NDRHI/RTFO interaction by biomethane producers'. The document details the process regarding audits to verify the interaction between the two schemes, to mitigate double claiming for a given volume of produced biomethane.
The initial proposal was open for comment earlier this year; the complete timeline:
For respondents were noted:
It should be noted that these respondents collectively represent several stakeholders in the UK green gas sector, particularly in the case of the GGCS.
The full decision document can be found here.
Grid Injection (NDRHI) versus Transport (RTFO)
Renewable Gas Guarantees of Origin aside, biomethane producers are able to be compensated in the way of a feed-in subsidy (via the NDRHI), or they can receive Renewable Transport Fuel Certificates (RTFCs) via the RTFO scheme.
The degree of compensation for producers via the two schemes is difficult to compare; while the NDRHI has prescribed rates for volumes produced, RTFC value is determined by the market.
Generally, RTFCs become more attractive where biomethane from waste/residues is concerned, as the resulting fuel is considered advanced and is eligible to receive twice the number of certificates which would normally be granted for a given volume.