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13 Jun 2018

AMP calls for RHI to be extended to meet UK heat targets

Clean energy business AMP has called for the RHI to be refocused and extended to avoid the renewable heat industry facing a future cliff edge.

AMP, which owns the leading biomass fuels business Forest Fuels, and operates and manages 900 biomass boilers through its majority share in HWEnergy, has called on the Government to send out a clear and early message that a consistent support mechanism will continue after the RHI ends in 2021.

In addition to supporting the decarbonisation of off-gas areas and the phasing out of high carbon fossil fuel heating, AMP is also urging the Government to target support at decarbonising the UK industrial sector.

The comments have been made in AMP’s submission to the Department for Business, Energy & Industrial Strategy’s ‘A Future Framework for Heat in Buildings’ Call for Evidence.

Richard Burrell, Chief Executive of AMP, said: “The renewable heat industry in the UK has grown significantly but the UK Government remains significantly behind its 2020 target for renewable heat. We support the vision to decarbonise off-gas heating customers but believe that the energy affordability implications of this are such that it can only be credibly achieved by continuing with the well-established RHI support mechanism. In addition to targeting off-gas areas, we also believe that decarbonising UK industry is an obvious fit with the Clean Growth Strategy and can be achieved cost-effectively.

Without a clear message from Government to provide reassurance by extending the RHI, we are in danger of creating a cliff edge and risk the collapse of the renewable heating industry at the exact point in time when it is needed most to meet the UK’s decarbonisation targets.”

Alongside the two traditional funding mechanisms available to the Government, AMP has suggested two innovative ways the Government could extend the RHI – by introducing carbon heat credits which are tradable; or by introducing an incentive scheme with a ‘floating tie’ to fossil fuel prices.

AMP has significant biomass industry experience and through its wholly owned subsidiary Forest Fuels sells high quality wood pellet and wood chip to end customers to around 4000 customers throughout the UK. It also provides operation and maintenance services to around 900 biomass boiler and CHP systems via AMP’s majority share in HWEnergy.

If you would like to read AMP’s full consultation response please email amy.carton@ampplc.co.uk.