Green Gas Support Scheme Extension: What It Means for CHP Projects

The recent extension of the Green Gas Support Scheme (GGSS) provides welcome clarity for organisations developing biomethane and CHP projects in the UK.

Following a mid-scheme review, the Green Gas Support Scheme will remain open to new applications until 31 March 2030, with all applications required to be fully completed by this date. For developers and consultants, this additional certainty plays an important role in long-term project planning and investment decisions.

This blog explains what the scheme supports, why the extension matters, and how CHP projects can benefit.

What is the Green Gas Support Scheme?

The GGSS provides tariff support for plants producing biomethane via anaerobic digestion, where that biomethane is injected into the gas grid.  

Tariffs are designed to compensate for:

• The capital cost of building new biomethane production infrastructure
• Ongoing operational and maintenance costs

The scheme is funded through the Green Gas Levy, which is applied to all licensed fossil fuel gas suppliers.

The GGSS followed the closure of the Non-Domestic Renewable Heat Incentive (RHI) to new applicants in March 2021 and opened on 30 November 2021.

Once accredited, registered participants can receive tariff payments for up to 15 years, helping to improve long-term financial certainty for eligible projects.

Why the Extension Matters for Projects

The extension to March 2030 gives developers and investors more time to:

• Progress projects through planning and financing stages
• Revisit schemes that were previously delayed
• Align biomethane production with on-site or local energy demand

For CHP projects, access to grid-injected biomethane can significantly improve both carbon performance and long-term fuel strategy. The extended application window reduces the pressure to rush decisions and allows projects to be developed more robustly.

The Role of CHP in Biomethane-Supported Schemes

CHP systems remain one of the most efficient ways to use gas, producing electricity and useful heat from a single fuel source.

When fuelled by biomethane, CHP can:

• Significantly reduce carbon emissions compared to fossil gas
• Improve overall system efficiency
• Support on-site energy resilience and cost control

This makes CHP a natural fit for projects looking to benefit from biomethane production supported under the GGSS.

How 2G Supports GGSS-Aligned CHP Projects

At 2G Energy, CHP systems are designed with fuel flexibility in mind. Our engines are capable of operating on natural gas and biomethane today, with options to accommodate hydrogen blends as fuel strategies evolve.

This flexibility allows CHP installations to:

• Operate efficiently using biomethane supplied via the gas grid
• Adapt to changes in fuel availability over the project lifetime
• Remain aligned with decarbonisation goals without any system changes

In addition to equipment supply, 2G provides technical support at feasibility, design and operational stages to ensure systems are correctly specified and optimised for long-term performance.

What This Means for the Market

The extension of the Green Gas Support Scheme provides increased confidence for biomethane and CHP development in the UK. With applications open until 31 March 2030, and tariff support available for up to 15 years, there is renewed opportunity to progress projects that deliver both economic and environmental benefits.

There is growing recognition that biomethane has an important role to play in decarbonising the UK gas grid and supporting Net Zero objectives. The Green Gas Support Scheme reflects this by providing long-term support for biomethane production, helping to integrate lower-carbon gas into the existing energy system.

For consultants and developers, this creates a more stable environment in which to assess project pipelines and consider how CHP, supported by biomethane, can form part of a long-term energy strategy.