Report Looks at Stimulating BioSNG Investment
(Bioenergy Insight) A new report, commissioned by Cadent and carried out by Ernst & Young has examined what market framework, mechanisms and incentives would be needed to roll out bioSNG (bio-substitute natural gas) plants across the UK.
According to a Cadent statement, the newly published report aims to ‘kick start an exploration of what foundations need to be in place to facilitate a green gas revolution in Britain’.
Cadent is currently backing what it calls ‘the world’s first’ commercially operating bioSNG plant, in Swindon, UK. Following a successful trial at the site, Cadent has provided £8.6 million of funding for a commercial plant which is due to begin production later this year. The facility turns household waste into gas.
The Ernst & Young report builds on this, exploring what would be required to develop a network of BioSNG plants across the country.
Anthony Legg, Head of Power & Utilities, Economic Advisory, Ernst and Young, said: “There are a range of different ways that the government and Ofgem might be able to support investors into BioSNG projects.
“These options range from grants and guarantees of loans, through to various kinds of feed in tariffs or contracts for difference, or enabling gas distribution networks to invest in BioSNG plants as part of their regulated activities.” READ MORE