UK gas group eyes biomethane boost in 2030 decarbonization view

The UK must establish "appropriate" support schemes to accelerate green gas uptake if it hopes to tackle ambitious decarbonization goals set for 2030, according to a Feb. 5 statement by UK gas group, Future Energy Networks.

The additional support from policymakers and regulators would engender "realistic, deliverable and cost-effective" measures to achieve decarbonization goals, cutting the UK's carbon budget deficit in buildings and industry by a quarter in 2035, according to the group's latest report.

The report, "Accelerating Progress towards 2030s Carbon Budgets," noted existing policies in the UK were "insufficient" to meet legally binding carbon budgets set out in the country's 2008 Climate Change Act.

It follows a 2025 analysis by the UK's Climate Change Committee which said low carbon investment in buildings and industry was "off-track," with the gap in the sectors between required abatement and incumbent emissions projected to reach some 47 million mt/year of CO2 equivalent by 2035.

Transporting more green gas through biomethane uptake, low-carbon hydrogen via new or repurposed networks and increased support for hydrogen blending could offset some 11 million mt CO2e/year in the sectors by 2035.

"Our gas network is an incredibly reliable and efficient national asset that with augmented support from the government could significantly accelerate our progress to achieving net zero," FEN CEO James Earl said.

The reduction of methane emissions through advanced leak detection could save a further 500,000 mt/year CO2e, while "whole system measures" such as increasing gas hybrid pumps and district heating could lead to a further 3.1 million mt/year CO2e in abatement, according to the report.

The UK government, together with energy regulator Ofgem, would need to bolster biomethane injections by the end of 2025, with Ofgem expected to review its support during its network price control period 2026-31.

Over the same period, the recommendations suggested the government would need to make a "strategic decision" on transmission-level hydrogen blending, noting the requirement for a program on distribution blending.

By the first half of 2025, Ofgem should clarify how it hoped to finance hydrogen networks, and establish shrinking and leaking measures that go beyond current legislation by the end of the year.

Through the UK's Boiler Upgrade Scheme, the government would also make financial support available for hybrid installations by end-2025 and, by the end of 2026, ensure sufficient funding for district heating following the end of the Green Heat Network Fund.

The report stated collaboration between the government and regulator would be required, namely in establishing business models consistent with low-carbon ambitions, financing network expenditure and addressing barriers to entry.

It also recommended clarity on support beyond 2028, when schemes such as the UK's Green Gas Support Scheme expire. The UK government was "considering options" for a future policy framework to follow the closure of the GGSS in 2028, FEN said in the report.

Platts, part of S&P Global Commodity Insights, assessed the spot UK Renewable Gas Guarantees of Origin (RGGO) for crop-based feedstocks at Eur8.96/MWh on Feb. 4, up 2% on the day.

UK crop-based RGGOs have recovered from an all-time low of Eur5.01/MWh in June 2024, but remain well below their peak of Eur28.61/MWh in June 2023, according to Platts data.