The Non-Domestic Biogas Renewable Heat Incentive (bRHI) is a Government environmental program, providing financial incentives to increase the uptake of renewable heat. For the non-domestic sector broadly speaking it provides a subsidy, payable for 20 years, to eligible, non-domestic renewable heat generators in the UK, subject to the detailed scheme rules.
The Arbor ElectroGen 45 is the first CHP plant to be accredited by OFGEM to qualify for the generous ‘Biogas RHI’ worth 7.62p per kWh.
Based on 8,000 running hours per annum, the Arbor 45 will generate 656,000kWh of RHI eligible heat. Therefore:
656,000(kWh) x 7.62 pence = £49,987 of RHI income
To claim the Non-Domestic RHI for biogas you must be prepared to demonstrate that your installation meets the strict eligibility criteria.
Regulations stipulate the RHI will support heat that is used to:
– Heat a space in an enclosed building or structure that is permanent or ‘long lasting’
– Heat water within a building for commercial use such as in hospitals or hotels
– Carry out a process within a building such as industrial cooking, drying of wood or use in manufacture
– Carry out a process outside of a building for commercial cleaning and or drying
To see if your heat requirement would qualify for RHI support; speak to a member of our team who can provide advice on eligible heat uses. We also strongly recommend that you visit www.ofgem.gov.uk to learn more and keep up to date with the latest updates.
The ArborElectroGen 45 is most efficient when run at maximum output. Many of our clients however have a heat requirement where the ‘baseload’ (the permanent minimum heat load that is required at their site) is less than what a CHP system will produce. In these instances rather than reduce the output of the system (and therefore reduce efficiency), the preferred option is to use this as an opportunity to diversify and create new commercial operations such as drying biomass fuel for commercial resale and drying their own fuel to reduce fuel costs. A drying floor used to produce their own fuel and provide continuous heat loading, maximizing benefits.
Renewable Obligation Certificates (ROCs)
The Renewables Obligation (RO) is designed to encourage generation of electricity from eligible renewable sources in the United Kingdom.
Renewable Obligation Certificates (ROCs) are awarded for the generation of renewable electricity from eligible sources and depending on the technology different levels of certificates are awarded.
The ArborElectroGen® qualifies for 1.9 ROCs for every MWh of electricity it produces under the Advanced Gasification tariff. These ROCs can then be market traded to convert the certificates into a revenue stream for the plant owner.
ROCs are currently valued at around £42 each. The Arbor Electrogen 45 will generate 320 MWh (based on running for 8,000hrs per annum). Therefore:
320(MWh) x 1.9 x £42 = £25,536 of available generated revenue from ROCs.