Biomass CHP loophole policy briefing


Stop subsidy for large-scale inefficient biomass CHP projects like MGT’s 299MW Teesside plans.

Currently subsidy for the the so called ‘good quality CHP’ scheme rewards only the electricity generated so there is no incentive for the operator to use the heat effectively or significantly exceed the extremely low efficiency threshold of 35%. This is less efficient than some electricity-only power-station conversion biomass power stations. EU rules say that Biomass should be at least 70% efficient. Additionally these projects don’t have to capture any heat for 5 years.

NB the government has rolled back from the initial small-scale CHP cuts mentioned in this briefing after intensive lobbying by Renewable Energy Association (who run the Back Biomass campaign)