Why UK AD Plant Owners Need Updated RTFO Biomethane Price Information

It is no secret that the UK government is committed to ambitious targets for decarbonising road transport, while simultaneously reducing crop based diesel bio-fuel production. It has to be able to show rapid increases in renewable energy use in transport, to have any hope in maintaining credibility for its pledges for climate change reduction.

Despite the current price being low for RTFO Certified Biomethane and comparatively little biogas being sold as such, there is a good chance that this will soon change.

The year 2018, may be the year when government and commercial imperatives come together to create a level of demand which will raise prices paid for biomethane, reduce current price volatility, and make supplying energy into the transport sector attractive to AD plant owners.

However, until quite recently there were no freely published, regularly updated, (weekly) figures which those in the anaerobic digestion and biogas industry could monitor for the RTFC-RHI spread (waste based biomethane).

Start-up company Energy Census has identified this as a potential opportunity, and is plugging the gap in the available published market price information with their weekly [RE]fuel report. 

It is offering regular free [RE]fuel, bio-fuel market price reports from their website at www.census.energy. 

The spreads that [RE]fuel are publishing in their current reports (RTFC-RHI) show the difference in pence per kwh and pence per litre between what an AD plant would receive for their gas if they were to supply into the transport sector vs the heating sector – ie, at current prices (December 2017), they would get twice as much per unit of gas sold, if they supply into transport.

Andrew Goodwin ( [RE]fuel MD) said:

“Energy Census is delighted to be able to offer a RTFC pricing service to help minimise financial risk for the anaerobic digestion and bio-resources industry at this time of growing production. We look forward to serving the industry as it grows to became a highly significant player, providing much needed renewable fuel into the renewable transport market. This market growth is one which with others will help the global community achieve the decarbonisation (CO2 emissions reductions) essential to attaining the UK’s climate change targets.”

We have published a more detailed assessment of How AD Plant Operators Can Sell Biomethane Into the Bio-fuels Market and Make the RTFO Work for Them - on our main blog here. Visit that article now to understand why AD plant operators, and related biogas professionals need to keep themselves informed about this, or possibly miss out on an opportunity to improve their biogas income.