British Gas and Bio Group recently announced that they have signed an agreement to build a facility that will convert commercial food waste in to renewable gas. The project will be the UK's first purpose-built site to benefit from the Renewable Heat Incentive (RHI).

The £5 million facility, in Stockport, which will open in April 2012, will use food waste from local hotels, restaurants and even British Gas' own offices, to generate enough renewable gas to supply up to 1,400 homes every year. It will be built on an old landfill site.

The RHI incentivises renewable gas generation by providing to the gas supplier a premium over the actual gas price paid. It is being heralded by British government as the first financial support scheme for renewable heat in the world.