How does it work for biomethane buyers?

What are BMCs?

The Biomethane certificate is a guarantee of origin certificate for biomethane. The BMC is a reliable, audited way to ensure that the green gas you have purchased is genuine and that there has been no double counting. This provides certainty to gas users and ensures that gas consumers that wish to use their BMCs to evidence biomethane purchases in statutory compliance schemes may do so, knowing that there is a full audit trail for their certificate.

The BMC is denominated in MWh, which is the same basis as energy companies are required to bill their consumers.  This  denomination is also the same as is used on certificates in the European Energy Certification Scheme (which is presently only for electricity).

Each certificate contains information in code and text form about the energy that is certified on the certificate, about its origin, where and when it was produced, by who and data relating to its sustainability.

This sustainability factor is important, because it gives an audited determination as to the amount of “new” carbon that has been saved by using biomethane as opposed to fossil gas. This forms the basis for the BMCs use as an offset or as a part of carbon footprint reporting.

How to buy certificates?

BMCs may have several sources, all of which relate back to Green Gas Trading Limited and the Registry, which is the issuing body.
As a gas consumer you may be sent an end user certificate by your energy supplier as evidence of your green energy use as a part of a green gas tariff you have purchased from them. This energy supplier may have purchased them directly from a biomethane producer or via the exchange.

You might wish to buy certificates yourself directly from the exchange, this can be effected in two ways:

  1. A commercial user of BMCs can join the exchange themselves by purchasing a financial (“F”) share in GGT, which allows them to trade directly in the exchange and have access to the trading platform. This would allow them to buy BMCs for their own use or to act as an intermediary in order to buy and on-sell these certificates to their customers. This is the route by which most of the energy companies will acquire BMCs for onsale to consumers.
  2. An individual or smaller user might buy BMCs from one of the F share intermediaries who are a member of the exchange, usually for a small commission.

More information about membership of the exchange and/or who could offer BMCs is available from the company.

How to use certificates?

In order for a gas user to use their certificate for compliance or reporting, it needs to be cancelled or “notified” to the exchange. When this is done Green Gas Trading will issue an End User Certificate to the beneficial owner of the certificate, in return for a small fee. This End User Certificate can be issued in electronic or paper form (or both) and evidences that the energy on the certificate has been cancelled as used. The Registry entry for that certificate is blocked and that particular BMC as evidenced by its specific identifier may never be re-used.