Open letter to the Chancellor: Join industry in supporting the UK AD & biogas sector

Dear Chancellor, 

We are writing ahead of your upcoming Spring Statement, marking eight months since your landslide election. 

Since then, several anaerobic digestion (AD) plants have closed, and many more are at serious risk of shutting down—jeopardising over 2TWh of renewable electricity that could be lost before 2030. The Prime Minister has set out clear missions for his Government, including achieving clean power by 2030 and reaching net zero. However, the lack of action to support our clean power sector makes these targets increasingly difficult to meet. 

Currently, AD produces more than 13TWh of biogas which is used to produce renewable electricity and over 7TWh of renewable gas. This is expected to reach a combined total of at least 30TWh by 2030, significantly contributing to your clean power objectives. AD power is often generated in rural areas, supporting small businesses, farms, and communities across the country. Additionally, it plays a crucial role in decarbonising wastewater treatment, food recycling, and the UK’s world-renowned food and drink manufacturing sector. 

The sector is poised for rapid growth but requires positive action from your government to realise this potential. At least £1 billion of investment in the UK AD sector is waiting to be unlocked, with interest from global investors as well as homegrown British businesses. 

Urgent support is needed for AD and biogas in their role in achieving net zero, including: 

• Equal treatment with other renewables under the UK Emissions Trading Scheme 

• Suitable support schemes to replace existing tariffs and certificates due to expire in the next few years 

• Recognition as a key component of the UKs national energy infrastructure 

As highlighted in our recent net zero study, supporting AD would allow for significantly greater offsetting savings in offshore wind, energy transmission, and hydrogen production. 

If your government makes the right decisions and the Treasury provides further support to the Department for Energy Security and Net Zero, the AD sector will experience significant growth, attracting billions of pounds of investment in the coming years. This will ultimately help you achieve your key growth mission. 

The sector is alive, ready, and capable of playing its part in delivering net zero while generating homegrown, cheaper, greener, and more secure energy for the future. However, it requires action from you and your government to reach its full potential. 

Signed,
ADBA 

The Anaerobic Digestion and Bioresources Association (ADBA) is the trade association for the UK anaerobic digestion (AD) and biogas industry. ADBA’s vision is to unlock the full potential of the UK AD industry so it can help the UK achieve its emissions targets and other policy goals, creating a truly circular economy.
www.adbioresources.org 

Co-signed, 

ADBA Members