Government considering transitional support for waste wood biomass plants

Addressing this, Energy Minister Graham Stuart has indicated that the Government acknowledges the significance of waste wood biomass and is exploring assistance for the sector following the proposed conclusion for Renewables Obligation Certificate (ROC) and Renewable Heat Incentive (RHI) subsidies.

Stuart's remarks were included in his recent reply to a letter sent by the Wood Recyclers' Association (WRA) in October to the Department for Energy Security and Net Zero (DESNZ).

Within the letter, Richard Coulson, Chair of the Wood Recyclers' Association (WRA), urgently sought clarification regarding the future support for waste wood biomass. This request stems from the impending conclusion of the ROC and RHI subsidies, with all subsidies scheduled to conclude by 2038, the earliest being in the mid-2020s.

The ROC scheme was designed to encourage the generation of electricity from eligible renewable sources, such as wind, solar, hydro, and biomass.

Under the scheme, renewable energy generators received ROCs for every megawatt-hour (MWh) of electricity they produced. These certificates could then be sold to electricity suppliers, who were required by law to source a certain percentage of their electricity from renewable sources.

Similarly, RHIs provide financial incentives to encourage the adoption of renewable heat technologies in the non-domestic and domestic sectors. The programme aims to reduce greenhouse gas emissions and increase the use of renewable energy for heating purposes.

In his response to the WRA’s letter, Stuart said: “The Government recognises the important role of sustainable biomass, including waste wood biomass, in achieving the UK’s net zero targets, and in balancing the energy grid/ensuring security of supply.”

Commenting on the ROC and RHI subsidies nearing their conclusion, the Minister added: “We are currently considering whether transitional support may be appropriate for facilitating the transition from biomass electricity generation to power bioenergy with carbon capture and storage (BECCS). The Government is planning to consult shortly on eligibility for any such potential transitional support.”

BECCS

In the letter, the WRA also sought reassurance that the waste wood biomass sector's contributions would qualify for consideration in the development of longer-term business models and support mechanisms. This encompasses the business model aimed at encouraging the implementation of power BECCS.

As per the existing proposals, this initiative establishes a limiting threshold of 100MW, effectively preventing waste wood biomass plants from qualifying for support.

Commenting on this, Graham Stuart said: “Setting a 100MWe threshold differentiates power BECCS business model support from wider greenhouse gas removal support by emphasising the scale of the power generated by the process.

“Power BECCS plants of a smaller size (less than 100 MW) may be able to apply for [Greenhouse Gas Removal] support that will compensate for negative emissions. These proposed eligibility criteria may be subject to change for the future.”

Responding to the letter, Richard Coulson called for longer-term support for the sector: “We are delighted to receive this response from Energy Minister Graham Stuart and to hear that the government recognises the benefits of waste wood biomass and is considering vital transitional support for our sector.

“This is important because without the ROC and RHI schemes, the benefits these plants provide could be lost, creating a domestic waste wood processing gap and leading to the loss of secure low carbon, domestic baseload power. This could also hinder the UK’s Net Zero 2050 ambitions.”

“However, our sector also needs longer term support. The eligibility criteria for power BECCS support remains restrictive and under current proposals, excludes the UK’s waste wood biomass fleet and the important contribution we could make. By using waste as a fuel, our sector is already making significant carbon savings meaning we are ideally placed to deliver further carbon savings through power BECCS.

“We also need support in place for those waste wood biomass plants which are not able to retrofit BECCS. We look forward to working closely with DESNZ to ensure all the benefits of our sector are protected now and in the future.”