Subsidy changes ignite the market for Pressure’s renewable gas business

GAS cylinder firm Pressure Technologies said Government subsidy changes have led to a surge in interest from companies keen to use its renewable gas technology.

The AIM-listed firm is leading a drive to create power from waste through its biogas “upgrading” division.

Sheffield-based Pressure’s biogas system captures and purifies waste methane, a by-product from decomposing sewage, using “water scrubbing” technology.

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The technology was developed by New Zealand-based Greenlane Biogas. A co-operation deal gives Pressure exclusive rights to sell the technology in the UK and Ireland.

Pressure has worked with Greenlane’s parent company, Flotech, for more than a decade on biogas projects in Scandinavia.

The company said it has extended its licence to use Greenlane’s technology from a five-year exclusive deal to an unending contract – at a cost of £800,000.

Last month the Department of Energy and Climate Change set the Renewable Heat Incentive (RHI) subsidy level for biomethane combustion or injection at 6.5p per kWh.

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Pressure said this allows it to compete directly with combined heat and power projects in the UK.

The group said its subsidiary Chesterfield BioGas “has experienced an increase in the level of sales enquiries and a number of large utility companies are setting up dedicated biogas to grid development teams”.

Pressure chief executive John Hayward said: “The securing of a long-term exclusive agreement with our partners, Greenlane, coupled with a realistic level of RHI, gives a strong platform for growth at Chesterfield BioGas. The UK gas to grid market has massive potential and we look forward to reporting significant progress in the coming year.”

The company’s share price was unchanged yesterday at 227.5p.

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Pressure’s BioGas technology removes contaminants such as water, carbon dioxide, hydrogen sulphide and siloxanes from waste methane.

The resultant gas has around 97 per cent purity and can be injected into the national grid.

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