Dáil Éireann Debate, Thursday - 20 February 2025
83. Deputy Roderic O'Gorman asked the Minister for the Environment, Climate and Communications if he will provide an update on the implementation of the national biomethane strategy; and if he will make a statement on the matter. [6797/25]
View answerCould the Minister give an update on his Department's progress on the implementation of the national biomethane strategy that was published in May of last year? In particular, could he give an outline of when producers will get some certainty regarding the renewable heat obligation, RHO?
I thank Deputy O'Gorman for raising this important question. The Government has committed to deliver up to 5.7 TWh of indigenously produced biomethane by 2030. In response to this ambitious target, my Department, in partnership with the Department of Agriculture, Food and the Marine, published the national biomethane strategy in May 2024.
Implementation of this strategy is ongoing and requires collaboration across key Government Departments and agencies. The strategy contains 25 key strategic actions to ensure the necessary supports and infrastructure are in place to develop a biomethane industry of scale. These supports include capital grant funding, the first round of which has been delivered by the Department of Agriculture, Food and the Marine to support the development and upgrading of anaerobic digestion plants throughout 2025. My Department will then lead on a second round of capital grant funding to support the industry from 2026 onwards. That is being worked through now. The strategy also commits to the publication of the renewable heat obligation, RHO, that the Deputy asked specifically about. That is a scheme designed to increase renewable fuels used in heat, thereby supporting long-term demand for biomethane. This scheme is currently in its final stage of development. There is a requirement for engaging with the European Commission. There will be a meeting with the Commission next week at official level. It will be brought to the Government as soon as it is ready post that engagement with the Commission.
Delivery and monitoring of all actions is undertaken by the biomethane implementation group, which was established in 2024 and is chaired by my Department. The preparation of the strategy’s end-of-year report for 2024 is currently under way and once it is available we will publish it. That engagement with the Commission has started and there will be further meetings at official level. We will move swiftly after that to bring it to the Government.
Ireland has a real opportunity to grow an industry that will help us to cut our carbon emissions and also provide new income streams for farmers and across rural areas. Biomethane can replace diesel and other fossil fuels in transport and industry, allowing us to cut those emissions. As we know, we have a significant supply of agricultural waste and silage which can be converted into biomethane, benefiting rural economies. We need to support this sector. There is a need for capital funding to support the development of anaerobic digestion facilities. The Minister mentioned a small amount there. His predecessor had proposed that €300 million from the Infrastructure, Climate and Nature Fund would be reserved specifically for this area to give real certainty to those considering investing in biomethane facilities. The Minister's party and Fine Gael blocked that at the end of the last Government; what is done is done. In his new role, will the Minister commit to fighting for at least €300 million to provide the capital to develop those essential anaerobic digestion facilities, so that we can cut our emissions and provide more income streams in rural areas?
I agree with the Deputy's analysis that there are major opportunities with biomethane. The original grant scheme was to the tune of about €40 million with 22 applications received. Within that, some of those are to expand existing facilities and others for new ones. The RHO will be an important component in allowing us to grow the sector even further. It will operate similar to the existing renewable transport fuel obligation which has been in place since 2010. We are actively engaging with the Commission. I do not want to give a timeframe yet because we are dependent on that engagement with the Commission, but we want to conclude it very quickly.
All Departments, including mine, will have a particular interest in the Infrastructure, Climate and Nature Fund. Regarding alternative fuels and biomethane in particular, and alternative energy sources, I see this as having a particular fit in that regard. I will not commit to a figure because further discussions need to take place. I am very focused on concluding the work with the Commission and then moving forward with the RHO.
Undoubtedly every Department will be looking to get their hands on that money. That is why I want to hear that the Minister will fight for at least €300 million. That is why we thought it would have been better to state that this money will be there for an industry that is in its infancy and that needs clarity and certainty. As that certainty is not there, the sooner the Minister gets in there to say that this is the amount of money available, the sooner that clarity will be available for the industry.
The Minister said that there would be engagement with the Commission on this soon. One of the real threats to our domestic biomethane industry is hydrotreated vegetable oil, HVO, being imported and used as a substitute. This is problematic because it is palm oil. We are seeing biodiversity destroyed to have these large plantations, which goes against biodiversity targets and is undermining domestic production. What will Ireland do to protect our domestic biomethane industry and not allow it to be undermined by imported and sometimes fraudulently marketed HVO?
The best way we can protect this sector is to grow it and support it. That is where the work on the RHO is particularly important. The Deputy can be assured that I see the Infrastructure, Climate and Nature Fund as a very obvious fit within my Department and the work we are doing on energy transition. That is something we will be discussing and agreeing with colleagues. The previous Government and the previous Minister have very clear views on that, many of which I would support. The best way to protect our indigenous sector in this industry, which is in its infancy, is to grow it further and support it. We can support it through another round of grants in 2026, which we are preparing, and also particularly through the RHO. I would like to see the work with the Commission concluded as expeditiously as possible. Once that is done, I will bring that to the Cabinet to get Government agreement on it and we can move it forward from there.
