Green Gas Trading/Biomethane Certification Scheme

Realising the green premium for biomethane producers

GREEN GAS TRADING LIMITED (GGT) offers both a secure, credible process for certifying biomethane and a platform to facilitate the trading of certificates to maximise the value of this ultra low carbon fuel, at a market determined price.

The BIOMETHANE CERTIFICATION SCHEME certifies biomethane whether it is injected into the gas grid, liquefied or compressed for use as a transport fuel.

How does it work?

The Biomethane Certification Scheme issues Biomethane Certificates (BMCs) and registers them with GGT in the name of the producer. The BMCs represent the green (or ‘bio’) element of the biomethane produced rather than the physical gas and, critically, do not follow the contractual flows of the physical gas, which is transacted separately. By divorcing the green element from the physical gas, both products can be traded/sold independently allowing the producer to obtain the highest value for both the physical gas and the ‘green credentials’ of this premium product.

Benefits to producers

Biomethane producers are free to sell their biomethane certificates on GGT’s web-based, transparent, public trading platform, or transfer them to the buyer of their gas as a part of an off-take agreement. Having a uniform, easily accessible contract on an electronic platform allows the market to determine the premium that users will pay for ‘green gas’, free of the distortions casued by an illiquid, bilateral market.

Fossil natural gas in an internationally traded product and provides the base price for biomethane. Market demand for the ‘bio’ or ‘green’ element of the product then gives an extra value via the Biomethane Certificate. it is these two elements that make up the total value to the producer.

Benefits to users

Biomethane users will be able to decarbonise theit existing ‘brown’ gas supply by purchasing certificates, without affecting any exisiting contractual arrangements in place.

Biomethane users will be able to purchase BMCs directly from producers via the trading platform at an open market determined price. Biomethane users that require certification of their green gas purchases for statutory compliance will be able to provide this evidence using BMCs.

GGT is working to gain statutory recognition of the low-carbon status of biomethane as an offset against mandatory carbon reduction schemes as the CRC.

Further information

For more information please visit the GGT website or contact Grant Ashton on 07951 240 728.