In short
Green gas for business is a gas tariff backed either by Renewable Gas Guarantees of Origin (RGGOs), certificates issued for each kWh of green gas such as biomethane injected into the grid, or by carbon offsets bought to balance the emissions of fossil gas. The gas you burn is the same grid mix either way.
Ask about business gas on a green tariff
Tell us your premises, meters and renewal date and we will reply by email with options.
What green gas is
The Green Gas Certification Scheme (GGCS) describes green gases as renewable and low-carbon gases that can be used in place of fossil fuels, including biomethane, bio-propane and hydrogen. In the UK the main type produced is biomethane.
Biomethane is made by breaking down organic matter with bacteria in an oxygen-free environment, a process called anaerobic digestion. The resulting biogas is a mix of methane and carbon dioxide; the carbon dioxide and impurities are removed, and the biomethane is injected into the gas grid. Feedstocks include crops grown near the plant, food waste, sewage and residues from food and drink production.
Once in the grid, biomethane mixes with fossil gas, and nobody can track individual molecules to a particular customer. That is why green gas for business, like green electricity, is evidenced by certificates rather than by what comes out of your pipe.
Renewable Gas Guarantees of Origin (RGGOs)
The GGCS, run by Renewable Energy Assurance Ltd (a subsidiary of the Association for Renewable Energy and Clean Technology), issues, transfers and retires Renewable Gas Guarantees of Origin:
- One RGGO is issued for each kWh of green gas injected into the grid.
- Each RGGO records where, when and how that gas was produced, including the feedstock and the sustainability criteria met.
- RGGOs can be traded between producers, suppliers, shippers and other parties before they are used.
- They are retired and allocated to one consumer, and listed on a retirement or cancellation statement. The scheme exists to make sure each unit is only ever claimed once, so green gas is not double counted.
RGGOs are the gas counterpart of the REGO certificates used for green electricity for business, but they are a separate scheme, run by a different body, and counted per kWh rather than per MWh. The GGCS is clear that consumers taking gas from the grid should not claim to have physically consumed green gas; RGGOs let them match their consumption to green gas produced and claim the associated environmental benefits.
RGGO-backed tariffs versus carbon offset tariffs
Business green gas tariffs generally fall into two kinds. Neither is automatically better; they make different claims.
| RGGO-backed green gas | Carbon offset tariff | |
|---|---|---|
| What the supplier buys | Certificates for biomethane injected into the UK grid, retired against your use | Carbon credits from projects that reduce or remove emissions elsewhere |
| What it says about your gas | An amount of green gas equal to some or all of your use was produced and put into the grid | Your gas is fossil gas, with its emissions balanced by credits |
| Evidence to ask for | GGCS retirement or cancellation statements in your name or for your supply | The offset standard used, the projects and the retirement records |
| Proportion | Can cover all or part of your use; ask what percentage | Can cover all or part of the emissions; ask what percentage |
Some tariffs combine the two, for example a share of RGGO-backed gas with offsets for the rest. Ask the supplier to state the split in writing.
Not sure which option suits you? Ask us
Tell us about your premises and usage and we will explain the options that fit.
How to ask for evidence
- Ask whether the tariff is backed by RGGOs, offsets or both, and in what proportion.
- For RGGOs, ask for the retirement or cancellation statement and whether it names your business or supply. The GGCS website lets certificates be validated.
- Ask which production period, feedstock and plant the RGGOs relate to, since RGGOs carry that information.
- For offsets, ask for the standard, project details and retirement records.
- Check how your reporting framework treats certificate-backed green gas. The GGCS says it does not decide whether an emissions claim is valid; that is for auditors, regulators or the reporting scheme you follow.
Additionality and careful claims
'Additionality' asks whether your purchase caused extra green gas to be produced. The GGCS advises a conservative approach: consumers should not assume additional biomethane was produced because they bought RGGOs, though they may develop a carefully reasoned claim based on the production model behind their certificates. There is no legal definition of additionality.
If you will publish a green gas claim, the Competition and Markets Authority's Green Claims Code says environmental claims must be truthful, accurate and substantiated. Describe what you buy, for example 'gas matched with Renewable Gas Guarantees of Origin for biomethane injected into the grid', and keep the statements for each reporting year.
Want this looked at for your premises?
Tell us your sites, meters and renewal dates and we will reply by email with options.
Government support for biomethane and what it means for certificates
The government supports UK biomethane production through the Non-Domestic Renewable Heat Incentive and the Green Gas Support Scheme, both administered by Ofgem. The GGCS labels RGGOs for gas that received a production subsidy at the point of injection as 'Production Support – Yes'. Government support schemes also set sustainability criteria for biomethane, for example limits on lifecycle emissions and rules on the land used to grow crop feedstocks, and RGGOs record which criteria have been met.
For a business buyer this matters in two ways. First, it is part of the information on the certificate, which you can ask to see. Second, some reporting frameworks and sustainability advisers treat subsidised and unsubsidised green gas differently when judging claims. The GGCS itself leaves that judgement to the reporting scheme you follow.
How a green gas tariff is billed
A green gas tariff is billed in the same way as any other business gas supply: your MPRN, meter readings converted from volume to kWh, a unit rate and a daily standing charge, plus Climate Change Levy and VAT where they apply. What changes is the tariff itself and the evidence the supplier gives you, so check:
- Whether the green element is built into the unit rate or charged as a separate line
- Whether the green share applies to all of your gas or a stated percentage
- When and how you will receive the RGGO statement or offset records
- What happens to the green element if the contract rolls over at the end of the term
Our business energy bills explained guide covers the rest of the bill, and Climate Change Levy for business explains how the levy works.
Who green gas suits
Green gas tariffs tend to suit businesses where gas is a large part of their energy use and their reported emissions, such as those heating large buildings, running commercial kitchens or using gas for process heat. Gas burned in your own boilers and equipment is usually counted as a direct (Scope 1) emission, so it is often where a sustainability plan looks first. Smaller gas users may start with a partial green gas tariff and review it at renewal. Manufacturers can read more on energy for manufacturers.
Getting a green gas quote
Green gas options vary by supplier, and not every business gas supplier offers them. To explore them, contact us with a recent business gas bill and your MPRN. We introduce you to Fidelity Energy, which can ask the suppliers it works with for green gas options, and we help you understand what evidence each offer comes with. If you also want green electricity, the two can be priced together as dual fuel for business or separately. For comparing green offers across suppliers, see our sister site on comparing business energy.
How Forever Communications helps with business gas and electricity
Forever Communications is part of Forever Group, which looks after phone systems, business mobiles and connectivity for UK organisations. For business electricity and gas, we work as an agent of Fidelity Energy, an independent business energy broker that prices your requirements with the suppliers on its panel. We are not an energy supplier, and neither is Fidelity Energy.
- Make sense of your bills: we can help you read unit rates, standing charges, meter details and the other costs on your invoices
- Like-for-like quotes: we help you gather your meter numbers, consumption and contract end dates so suppliers quote on the same basis
- The right tariff type: we can talk you through fixed, flexible and pass-through contracts, green electricity and green gas options before you decide
- Better timing: we help you plan a renewal ahead of your contract end date, or move off deemed and out-of-contract rates when you move premises
- Your choice: you decide which quote, if any, to accept; prices and terms are set by the suppliers and confirmed at quote, including the broker commission
We work with offices, shops, hospitality, landlords, manufacturers and multi-site organisations. Send us a recent bill and we can take it from there.
Frequently asked questions
What is green gas?
Green gas means renewable or low-carbon gases used in place of fossil gas. In the UK it is mainly biomethane, made by anaerobic digestion of organic matter, cleaned up and injected into the gas grid.
What is an RGGO?
A Renewable Gas Guarantee of Origin is a certificate issued by the Green Gas Certification Scheme for each kWh of green gas injected into the grid. It records how the gas was produced and is retired and allocated to one consumer so it is not double counted.
Is green gas the same as carbon neutral gas?
Not quite. RGGO-backed green gas means green gas equal to your use was put into the grid. 'Carbon neutral' or offset gas usually means fossil gas whose emissions are balanced by carbon credits from elsewhere. Ask which one a tariff uses.
Does my business actually receive green gas?
No business on the grid can receive only green gas, because biomethane mixes with fossil gas in the pipes. Green gas tariffs work by certificates, which is why the GGCS says grid users should not claim to have physically consumed green gas.
Can I use RGGOs in my carbon reporting?
It depends on the reporting framework you follow. The Green Gas Certification Scheme does not decide whether a claim is valid; your auditor or reporting scheme does. Keep the retirement or cancellation statements as evidence.
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