Tuesday 29th of August 2023 | Posted In: News and Views

Navigating MCPD Surrender and Relocation: A Vital Step in Boiler Ownership

In the ever-evolving landscape of energy management, compliance with regulations is of paramount importance. When it comes to the Medium Combustion Plant Directive (MCPD), surrender and relocation processes take centre stage for those involved in selling or acquiring boilers, especially those with accreditations such as Renewable Heat Incentive (RHI). At NFU Energy, we understand the significance of these processes and are here to shed light on their intricacies.

Understanding MCPD Surrender and Relocation

Are you in the process of selling or acquiring a boiler that holds an existing permit? Paying close attention to the MCPD surrender process is non-negotiable. This pivotal step ensures a smooth transition of ownership while upholding environmental standards. Let's dive into the key elements of this process:

  1. Changing Hands - Surrender and Application: When a boiler changes hands, certain steps must be followed. The previous operator is legally obligated to surrender the plant from their site permit, clearing the way for the new operator to apply for their own permit for the same plant. This crucial exchange guarantees that the necessary environmental compliance measures are maintained throughout the transition.
  2. Full Permit Surrenders: Here's the good news: if you're opting for a full permit surrender, you won't encounter any Environment Agency (EA) fees. This is a significant relief for those undergoing the ownership shift. It's a straightforward process that facilitates adherence to regulatory standards without undue financial burden.
  3. Partial Surrenders and Bespoke Permits: On the other hand, if bespoke permits are involved, particularly for partial surrenders where you are only removing one plant from your site permit, it's important to note that charges similar to variations are applicable. These charges vary in cost depending on the type of permit and are part of the responsible approach to maintaining environmental compliance during changes in ownership.

Special Considerations for RHI-Accredited Boilers and Existing Plants

For sites that are dealing with boilers accredited under the RHI or are in the process of acquiring existing plants, these steps hold paramount importance. The additional paperwork and environmental compliance responsibilities associated with such sites necessitate a meticulous approach. Ensuring a seamless transition while upholding sustainability goals is a shared responsibility and Ofgem may not complete the transfer until the new operator holds the necessary permit. This is where ensuring you have applied for the correct permit is paramount and should be submitted as fast as possible after sale completion.

Important Deadlines for Compliance

Plant owners should be mindful of the deadlines set by the MCPD Phase 2 requirements. For existing combustion plants with a thermal input exceeding 5MW, the application for a permit must be submitted by 30 September 2023 (low risk) or 01 November 2023 (requiring air quality assessment), unless already permitted. Similarly, plants with an input less than 1 MWth must initiate their permit applications by 2028, ensuring compliance before 1st January 2029. If you have both large and small plants on site, you can add the <5 MWth plants onto the permit at the same time but not have to meet regulatory requirements until 01 January 2029.

The MCPD surrender and relocation processes are pivotal steps in maintaining the integrity of environmental compliance during changes in ownership. At NFU Energy, we emphasise the importance of adherence to regulations while easing the transition for our clients. Give the team a call on 024 7669 8899 for support in every step of this journey.