The good news regarding the UK’s energy consumption is that it has been going down steadily since 2005, with 2020 being the lowest year for energy consumption since the 1950s according to a recent government report. Britain is also generating more and more power through renewable sources.
The bad news, as everyone will be all too aware in 2022, is that the cost of energy is rocketing, causing severe problems for households and businesses alike.
Source: Department for Business, Energy & Industrial Strategy
Gas prices are at record levels because of increases in world demand as economies recover from Covid, plus the impact of the Russian invasion of Ukraine.
The UK produces nearly half of its own gas, largely from the North Sea, but the remaining 52% is imported, primarily from Norway. This means UK gas prices have also gone up dramatically in line with world prices, as the chart below illustrates.
Dramatic increases: UK wholesale gas prices (Source: Ofgem)
A growing number of communities in Britain no longer get their gas from the North Sea or abroad. Instead, Ixora and other biomethane producers supply nearly all of their gas by converting farm and food waste. This process helps the economy by making the UK less dependent on gas from overseas and allows our limited North Sea reserves to last longer.
What’s the solution?
Biomethane is also much better for the environment as it simply utilises carbon that is already in natural circulation. Conversely, “natural gas” pumped out of the ground continually adds huge quantities of fresh carbon on top of the amount already in circulation.
Under 1% of Britain’s gas currently comes from biomethane (gas from food and farm waste), according to calculations from The Anaerobic Digestion and Bioresources Association (ADBA). This figure contrasts with countries such as Denmark, a leader in biomethane production, which already has 26% home-grown biomethane – a target the UK should aim for.
You will have read recently that the UK government announced many billions of pounds to create new nuclear power stations, but these will not start providing power until the next decade at the earliest.
In comparison, a substantial increase in UK biomethane production would quickly start to reduce the UK’s reliance on costly imported gas. Additionally, unlike nuclear power, biomethane does not have the same capital costs nor long-term problems of dealing with spent radioactive material. The “leftover material”, known as digestate, gets turned into a natural fertiliser for local farmers!
Given that 52% of gas used in the UK is imported, the UK economy is spending around £40 billion each year on this. John Baldwin of specialist gas consultancy CNG Services estimates that the UK could save £20-£30 billion annually by not importing all gas.
So, how could this be achieved?
Almost half of imported gas is used to generate electricity during peak demand periods and the government is pushing for more wind and solar generation (wind and solar energy generation has reached maturity and no longer requires subsidies to be economic).
It is time for the government to take the same approach with biomethane. If the UK reached Denmark’s level of 26% of gas in the grid being biomethane (up from our current level of below 1%), this would replace the other half of our imported gas. Achieving this would enable the UK to save billions, become almost entirely energy self-sufficient, and the environmental benefits would be huge.
But why is this win/win not happening?
Money that could be used to support ongoing biomethane production is currently being spent on expensive imported gas, rather than fixed-cost home-grown green gas.
As a nation we seem to have a strong ‘Not In My Back Yard’ attitude to new developments and the planning process. More can be done to locate green gas generation plants in the countryside where nearby agricultural by-products, wastes and food wastes need disposing of.
The planning process required to allow construction of such digesters should be sped up. For instance, it currently takes years from initial enquiry to planning permission, even when there are few objections. The climate emergency and our economy need these in place much more quickly.
The UK AD industry is now both mature and efficient, with world class companies capable of meeting all requirements needed of the UK regulators. With site construction taking less than 12 months, once approvals have been given, AD is capable of being deployed at scale around the UK rapidly – but it needs better support from planners, regulators and the UK government to allow this to happen.
How can you help reduce Britain’s imports of costly and harmful gas?
South Molton in Devon is the UK’s first town to run entirely on green gas. We urge all members of the public to write to their local MPs asking for active support in achieving this (you can find your MP’s contact details here: https://members.parliament.uk/).
Does your letter matter? Yes! When MPs receive a couple of letters on a particular subject, they start to take notice, so your letter can have a huge impact.
To find out more about the benefits of biomethane production, download our free guide; ‘Why AD is Crucial in a Net Zero World’, or contact the team.
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