Chesterfield BioGas extends upgrade technology and marketing agreement

Posted: Tuesday 14th June 2011

Chesterfield BioGas Limited (CBG) has reached a revised, exclusive agreement with Greenlane® to market and manufacture biogas upgrading equipment in the UK and Eire. The licence has now been extended in perpetuity at a one-time cost of £800,000 and replaces the current 5-year licence arrangement between the two companies.

CBG provides solutions for the cleaning of raw biogas produced from wastewater treatment and anaerobic digestion of organic waste. Once upgraded, the resulting biomethane can be stored and is suitable for injection into the gas grid. The company also sells and installs a range of compressed natural gas filling stations for CNG powered vehicles.

It recently completed a successful biogas upgrading project when injection of organically produced gas was made directly into the national gas grid at the wastewater treatment site of Thames Water site at Didcot, Oxfordshire. This achievement is a ‘first’ for the UK energy sector and the success of the project is being monitored by many in the renewable energy industry.

Although this technology is proven on many sites overseas, the UK market has remained under-developed due to prolonged uncertainty over the level of subsidy the UK Government would provide under the Renewable Heat Initiative (RHI). On 10 March 2011, however, the Department of Energy and Climate Change announced that it had set the RHI for biomethane combustion or injection at 6.5 pence per kWh, allowing CBG’s technology to compete directly with combined heat and power projects in the UK.

Following the announcement of the RHI tariff, CBG has experienced an increase in the level of sales enquiries and a number of large utility companies are setting up development teams, dedicated to exploiting the potential of biogas-to-grid projects. The company believes that the announcement of CBG’s new licence agreement with Greenlane® will further boost its prospects.

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