Clearfleau has joined ADBA and other renewable energy bodies asking Ministers to take urgent action on the proposed Renewable Heat Incentive (RHI) legislation.
Clearfleau is one of the UK’s leading providers of on-site bio-energy plants for food and beverage processing sites, with a number of operational plants and others planned on food, dairy and distillery sites. For more information please visit www.clearfleau.com.
The UK Government says it wants to promote low carbon manufacturing and BEIS has just published its Clean Growth Strategy. However, to stimulate business investment in bio-energy and a more circular economy, Government needs to deliver clear messages showing that Ministers are fully committed to carbon reduction. The lukewarm attitude in Westminster is in contrast to the cross-party support for renewables in Scotland.
Hence, the recent announcement of further delays to the reform of the Renewable Heat Incentive (RHI) is most unwelcome. It not only undermines the Government’s credibility over sustainability policy statements but is slowing decarbonisation of British Industry.
The RHI reforms announced in late 2016 will restore modest tariffs for the production of renewable heat to previous levels, facilitating the construction of anaerobic digestion (AD) plants that can produce renewable biogas, which can be upgraded to biomethane for injection into the gas grid. Millions of pounds of investment in AD plants on industrial sites is currently on hold, waiting for clarity and certainty from Government Ministers.
Clearfleau has written directly to BEIS Secretary, Greg Clark, asking for urgent action on the legislation, stating that the setback is “delaying injection of significant volume of biogas generated from industrial residues into the gas grid, limiting the ability to curb UK carbon emissions.” We have requested an urgent statement about the RHI.
Our main request is that BEIS Ministers make an announcement urgently to clarify the Government’s intention that the reformed RHI will be introduced as soon as possible and that the revised RHI rates will be confirmed, as previously set out in back in 2016.
Without such a statement, low carbon projects are being delayed.
Richard Gueterbock, Director, Clearfleau, said: “BEIS should support investment in smaller scale clean energy solutions as part of its industrial strategy. On site bio-energy projects can stimulate clean growth but still need modest incentive support in the medium term.
“Unless the RHI rates are confirmed quickly, viable clean energy projects will be lost and the UK food and drink sector will fall behind the competition in other EU countries with regard to low carbon manufacturing. The biogas industry has asked for a clear statement from BEIS Ministers to confirm that the reformed RHI will be introduced as soon as possible with the new rates that were announced in 2016