Biomass CHP included in UK low carbon subsidy scheme

Date: 12 June 2014

Biomass CHP is included among eight renewable energy projects totalling 4.5 GW, which have had contracts signed under the UK government’s new low-carbon subsidy regime.

The projects also include coal-to-biomass conversion plants and dedicated biomass plants with combined heat and power within the UK.

The contracts were awarded under DECC’s final investment decision enabling for renewables (FID-ER) process that offered an early version of the Contracts for Difference support system that will replace the Renewables Obligation.

FID-ER was designed to help developers “take final or other critical investment decisions, directly impacting on the time to commissioning their project”.

Biomass schemes include: Drax’s 645 MW conversion project in North Yorkshire; Lynemouth Power’s 420 MW conversion project in Northumberland; and MGT Power’s 299 MW dedicated biomass CHP project on Teesside.

Energy Minister Michael Fallon said the eight facilities will provide around 15TWh or 14 per cent of the renewable electricity expected to come forward by 2020.

They will reduce around 10 Mt CO2 from the UK power sector per annum compared to fossil fuel generation.

Source: COSPP