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Joint Committee on Agriculture, Food and the Marine díospóireacht -
Wednesday, 3 May 2023

Biomethane Renewable Gas: Discussion

On behalf of the committee, I convey condolences to Mr. Hubert Higgins on the death of his father who passed away recently.

Before we begin, I remind members, witnesses and people in the Public Gallery to turn off their mobile phones. All persons present are asked to exercise personal responsibility to protect themselves and others in regard to the risk of contracting Covid-19.

I bring to the attention of those present that witnesses giving evidence from within the parliamentary precincts are protected by absolute privilege in respect of the evidence they give to a committee. This means witnesses have a full defence in any defamation action arising out of anything said at a committee meeting. However, they are expected not to abuse this privilege and may be directed by the Chair to cease giving evidence on an issue. Witnesses should follow the direction of the Chair in this regard. They are reminded of the long-standing parliamentary practice to the effect that, within reason, no adverse commentary should be made against an identifiable third person or entity. Witnesses giving evidence from a location outside the parliamentary precincts are asked to note they may not benefit from the same level of immunity from legal proceedings as do witnesses giving evidence within the parliamentary precincts and may consider it appropriate to take legal advice on this matter. Privilege against defamation does not apply to publications by witnesses outside the proceedings held by the committee of any matters arising from the proceedings.

Members are reminded of the long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against either a person outside the Houses or an official either by name or in such a way as to make him or her identifiable. Parliamentary privilege is considered to apply to utterances of members participating online from within the parliamentary precincts. There can be no assurance regarding participation online from outside the parliamentary precincts and members should be mindful of this when they are contributing.

The purpose of today's meeting is to undertake an examination of biomethane renewable gas. In the first session the committee will hear from representatives from Mr. Seán Finan, CEO; and Mr. Pádraic Ó hUiginn, project executive, Irish BioEnergy Association; Mr. David Kelly, director of customer and business development; Mr. Brian Mullins, director of strategy and regulation; and Ms Karen Doyle, head of business development, Gas Networks Ireland; Mr. Declan Murray, CEO; and Mr. Matthew Macken, accounts manager, Biocore Environmental Ltd; and Mr. P.J. McCarthy, CEO; and Mr. J.P. Prendergast, chairperson, Renewable Gas Forum Ireland. Their opening statements have been circulated to members and will be taken as read. I will now call on each group to make its five-minute opening remarks. We will then go into questions and answers. I call Mr. Murray.

Mr. Declan Murray

As members will be aware from reading the opening statements, BioCore Environmental Ltd is here specifically to talk about the role biomethane can play in decarbonising the economy and providing some security in our energy supply. The benefits we see going forward are the integration with the agricultural side of the community and how we can deliver savings to both the farmer and the producers and consumers of electricity. We have looked at some of the regulations as they changed in Europe. As we look forward we will see some changes coming in Ireland. I am specifically thinking of a recent decision in the European Parliament that all wastewater treatment sludges are to go to anaerobic digestion, AD, where possible. We have a million tonnes of that in Ireland. We need to get our biomethane industry up and working to make sure we are in a position to deal with all of that.

A number of issues are happening on the farming side of the house where our spread window is getting narrower and the storage window gets longer. Farmers are having difficulties with what they are putting out on their land and how much they can put out. We believe that the anaerobic digestion industry can offer a mutually beneficial arrangement to farmers whereby we can take in slurries and probably pay for grass sileage or some sort of crops such as that and then provide them with fertiliser at a time of the year when it is important for them to put out fertiliser rather than at a time of year when they have to put it out because all their slurry tanks are full from long winters. Some of the rain we had in past few months has brought that home to roost, particularly in the west where our plant operates.

The benefits from AD do not stop there. We have a number of ongoing trials on our organic fertiliser or digest data. At the back end of our plant, Mr. Macken, who is here with me, has run a couple of crops at this stage using no chemical fertilisers whatsoever and using purely AD. We believe we need to get to a point where the regulations governing the use of slurry as an import and digestate as an export need to be brought in line with the current legislation that exists throughout the rest of Europe where there are standards for digestate. If we reach those standards, it will become accepted as a class A biosolid fertiliser. We have a fairly unique situation in Ireland where a farmer can take a tank of slurry from his slurry pit, put it out on the field, and that is fine. However, the minute he drives out the gate and brings it to me in an AD it becomes a waste. That makes no sense. Indeed it causes problems for farmers. A number of farmers, particularly throughout the past number of wet winters, turned up at the plant asking whether we can take some stuff in. Where we can help, we help. However, a plant of our size in County Roscommon should be able to take in 5,000 to 6,000 tonnes of slurry every year and process it through the plant.

Finally, I bring the attention of members to the difficulties we have seen in price rises for our gases. We have to import almost all our gas. I am sure the representatives from Gas Networks Ireland will back that up. It comes in from abroad bar the bit from the Kinsale gas field. With a fully supported industry, we could provide 20% of the requirements for the gas network in Ireland over five to ten years. Looking at this in terms of how much energy bills have increased in the past year for residential customers, to generate a 20% saving on that, it would not be a huge amount of investment by the State to get the fully funded AD industry up and running. We recently had talks about a 50:50 co-investment scheme to get some ADs built. That is welcome. We look forward to that being crystallised and getting the industry to a standard and a volume where it can make a real difference to providing energy for the country. The interesting thing about biomethane is that it is one of the few naturally produced products that can be stored as a gas. It can be used as a gas. It can be upgraded to go into the national grid. However, it can also be used as a transport fuel. Road transport is one of the hardest areas to decarbonise in any country. Natural gas, biomethane compressed into compressed biomethane can reduce the carbon footprint of a truck by 85%.

On behalf of BioCore, I thank the committee for this opportunity today. I am happy to answer any questions as they arise.

Mr. David Kelly

I thank the Cathaoirleach and committee members for inviting us here today to outline Gas Network Ireland's position on the development of biomethane in Ireland. I am director of customer and business development. I am joined today by my colleagues, Mr. Brian Mullins, director of strategy and regulation, and Ms Karen Doyle, head of business development.

Gas Networks Ireland owns and operates Ireland’s national gas network. The network is a €2.7 billion, State-owned, vital source of energy for Ireland, transporting energy solutions to 725,000 customers across 22 counties, providing for 34% of Ireland’s overall energy needs and generating 50% of Ireland's electricity. Our licence to operate does not allow us to produce gas, so we are here as the State's network operator to share our views on how the renewable gas industry can develop.

Ireland currently imports almost 75% of its gas from the UK, via our interconnectors with Scotland, with the remaining 25% being accounted for by indigenous supplies from the Corrib gasfield in County Mayo. This dependency on imported natural gas is expected to rise to 90% by 2030 as the Corrib gasfield depletes. It is vital that Ireland diversifies its energy supplies, and developing a biomethane industry can introduce an indigenous, sustainable and renewable source of energy. Biomethane is a renewable gas derived from organic sources such as landfill, food waste and agricultural waste. In less than seven years, with the right structures and policies having been put in place, Ireland can achieve the Government target of producing 5.7 TWh, as set out in the climate action plan. This is approximately 10% of the country’s current gas demand. Gas Networks Ireland is confident that this is not only an achievable ambition, but potentially even a conservative one.

Today, the national gas network transports 99% natural gas and just under 1% biomethane via our injection facility in County Kildare. There is no impact for customers when natural gas is replaced with biomethane in our network. It is completely interchangeable, requiring no investment from the end user. We are also progressing a central gas injection facility in Mitchelstown, County Cork. When operating at full capacity, it will have the potential to inject up to 700 GWh of renewable gas into the gas network. This represents 1.2% of total gas demand and will reduce emissions by approximately 130,000 tonnes of CO2 per annum. We are also progressing several direct connection inquiries from biomethane producers, which will further increase the volume of biomethane in our national network.

We believe Ireland’s gas network can be a key enabler of, and help to accelerate, the development of this new national biomethane economy, and, importantly for Irish farmers, it can also help to reduce agricultural emissions. This is not something we are doing in isolation, as across Europe, in countries such as Denmark, this approach has been a remarkable success story over recent years. We believe there is a significant opportunity for the agricultural and energy sectors to join forces and create a thriving biomethane economy in Ireland by 2030.

There are several direct benefits for the agricultural sector in Ireland. For rural Ireland, this industry could provide a new revenue stream as farm waste can become a source of income. Achieving the climate action plan ambition of providing 5.7 TWh and replacing natural gas with biomethane in the national gas network would result in a carbon abatement of 1.1 million tonnes of CO2. These emissions savings could support the achievement of sectoral emissions targets. An important byproduct of biomethane production is digestate, which can replace imported fertiliser, protect our watercourses by reducing nitrates and diminish Ireland’s exposure to international fluctuations in price and supply.

There are also broader benefits in respect of climate action and security of supply for Ireland. Biomethane provides Ireland with an opportunity to improve energy independence and security of supply. A biomethane production industry could replace the declining Corrib gasfield, so that Ireland would not be completely reliant on a single source of gas from the UK in the future. Biomethane is a proven source of energy to rapidly decarbonise hard-to-abate sectors. We are already seeing demand from industrial, high-heat sectors connected to the network that are seeking a consistent source of green energy to fuel their operations. An indigenous biomethane industry will replace the purchase of natural gas on international markets and allow the money spent to remain in Ireland. Equally, 5.7 TWh of biomethane could displace approximately €750 million worth of natural gas, and this money would be injected into local economies right across the country.

As gas experts in Ireland, we are actively engaging with large energy users, suppliers and our counterparts in Europe to assess the market potential here. The industry feedback we have received directly from biomethane producers shows that approximately 20% of natural gas could be replaced on the national network, which is double the current target. To deliver these benefits, we need a comprehensive biomethane strategy that provides clarity on appropriately balanced feedstocks, maximises waste to energy options, ensures community engagement and introduces appropriate market structures to ensure the industry grows in a sustainable manner. Ireland has already been successful in supporting the development of renewable energy and we need to leverage these lessons to support the development of a biomethane industry.

Ireland has a real opportunity to develop a biomethane industry at scale which will benefit our agricultural economy in numerous ways, aid the decarbonisation of our economy and allow for the development of a key indigenous energy resource in the coming years. We look forward to questions from the members, and we can provide follow-on material, if required.

Mr. Seán Finan

On behalf of our members, we thank the Cathaoirleach and the committee members for having us here to present. My colleague, Pádraic Ó hUiginn, has specific responsibility for delivery of our national just transition-funded midlands bioenergy development project and he will deliver the second part of this statement.

The Irish Bioenergy Association, IrBEA, was established in 1999 as the representative body for the bioenergy sector on the island of Ireland. Our members and work span the sustainable bioenergy sectors of biomass, biogas, biofuels, biomethane, biochar, energy crops and wood fuels. Our biogas members cover the full supply chain and include farmers, feedstock suppliers, biogas developers, technology providers and energy users. IrBEA is an active and proud member of the European Biogas Association, EBA.

The biomethane sector is booming across Europe while the sector’s potential in Ireland has not been realised. There are more than 20,000 operational anaerobic digestion plants around the EU, and several million globally. Favourable policies are driving this development across Europe. Currently, France is commissioning as many as three to four biomethane plants per week, while Denmark has a new support policy in development. Ireland is far behind its EU counterparts in policy development terms and in using this technology, with currently only approximately 20 AD plants operating here.

This AD technology to produce biogas and biomethane can be deployed at many different scales. Micro-scale units can be used in processing domestic food waste to produce biogas for domestic use. Small-scale units can be deployed on farms or business premises where on-site wastes and residues are used to offset existing fossil fuel-based energy sources. The scale of this development will need capital support to be economically viable, and the level of capital support required in this regard is being assessed through IrBEA’s Department of Agriculture, Food and the Marine European Innovation Partnership-funded small biogas demonstration project. At a medium- to large-scale, co-operative-style basis, which we are here to speak about, feedstocks would be sourced from many different suppliers, with the energy output supplied to a grid or distribution network. This scale, however, would need ongoing support in the form of operational support in the medium to long term to make it viable.

The development of favourable policy incentives for wind and solar in the form of the renewable electricity support scheme, RESS, is proof that, with a supportive policy structure, projects will be built, the market mobilised and the sector developed. While the renewable electricity sector has its challenges, it has a supportive policy environment, is on the road to delivery, and can focus on the regulatory challenges to the roll-out of projects. From the perspective of the biomethane sector, though, we are barely at a starting point and waiting for this basic first step. This means development of the biomethane strategy needs to be fast-tracked and delivered urgently.

The promised biomethane strategy needs to be, and we ask the committee to seek to ensure it is, developed in consultation with key stakeholders, including the AD facility operators who understand the cost of production and the economic models. It must also contain medium- to long-term supports, incentives and measures, and details of these aspects, to mobilise the Government target. Additionally, the cost gap must be bridged through long-term policy, support, incentives, and measures. The support introduced must be adequate to give market certainty and ensure that it is enough to be able to develop, operate and maintain facilities. It must be recognised that a fair return is required along the supply chain for all stakeholders, from the farmer producing feedstocks to the operator running the plant and all those involved in that regard.

To deliver the Government's target, we must undertake this endeavour on a phased basis. It must also be ensured that amendments can be made based on the lessons learned across each phase. Equally, it must be ensured that the biomethane sector is complementary to our agricultural and farming sectors rather than competing with them. We strongly encourage this committee to exert its influence in ensuring the biomethane strategy is developed in a timely manner and that the key areas that have been listed are all addressed in the strategy. I hand over to Mr. Ó hUiginn now to deliver the final part of our statement.

Mr. Pádraic Ó hUiginn

I thank the Cathaoirleach and Mr. Finan. I am conscious of the time, so I will paraphrase a little as I go. Overall, the lack of progress in developing an Irish biogas and-or biomethane industry is a missed opportunity for Team Ireland. This technology can bring numerous benefits, many of which have been well outlined by the previous speakers from Biocore Environmental and Gas Networks Ireland. I will, therefore, focus on two or three of those outlined. Digestate, the other byproduct from biogas production, potentially offers the opportunity to transition from chemical fertilisers and the current spreading of slurry on land. Transitioning to the use of digestate presents an opportunity economically and environmentally. There is also the opportunity for alternative farm enterprise revenue streams. Additionally, there is the opportunity outlined by the representative of Gas Networks Ireland in respect of moving away from fossil fuel imports.

It is important that a biogas industry based on grass and silage does not lead to direct competition for feedstocks with the dairy sector, driving up costs for both. Like any new development there is a need for public awareness of the technology benefits. We see European examples of biogas-biomethane plants located next to residential areas in villages with no issues arising. In Ireland, we have seen some biogas plants welcomed by communities and others meeting sustained objections locally. There is a need to help local government around the planning and in terms of understanding biogas technology and addressing the concerns of local communities and being able to find the right balance in looking after their needs and issues.

Mar is eol don chomhchoiste, tá plean ag an Aontas Eorpach méadú mór a dhéanamh ar an méid den bhithmheatán atá á chur ar fáil sna ballstáit. Tá sé beagnach bliain anois ó sheol an Coimisiún Eorpach an beartas nó plean REPowerEU, le spriocanna uaillmhianacha chun aistriú ón ghás nádúrtha go bithmheatáin faoin bhliain 2030. Tá go leor de na ballstáit eile chun tosaigh orainn air seo. Cur i gcás, tá pleananna uaillmhianacha ag an Danmhairg cheana féin agus tá sí á gcur i bhfeidhm.

Both the EU’s REPowerEU and our national climate action plan set ambitious targets for biomethane. Denmark is a good example and, hopefully, we will get an opportunity to discuss it as an example with members. For Ireland, it is not feasible to consider replacing all current fossil gas supply with renewable biomethane. Long-term policy must consider conserving the renewable gas we produce for specialist tasks like power generation, transport fuel for larger long-haul vehicles and high-end heat uses in industry. Solid biomass in particular and district heating run on bioenergy. Other areas of the sector can help with the heavy lifting and we concentrate renewable biomethane on the most valuable and challenging areas to replace natural gas.

Glacaimid buíochas leis an gcomhchoiste as an deis cur i láthair a thabhairt dó anseo tráthnóna agus táimid ag súil le haon cheisteanna atá ag na baill. We thank the committee for the opportunity to present here today and look forward to answering any questions.

I now invite Mr. P.J. McCarthy to make his opening statement.

Mr. P.J. McCarthy

On behalf of RGFI, I thank the Cathaoirleach and the members for inviting us to the meeting to discuss the merits of biomethane. Renewable gas - biomethane - is produced from organic biodegradable materials such as slurry and crop residues when they are broken down in an oxygen-free environment such as an anaerobic digester. Anaerobic digestion, AD, is an important pillar technology of the Irish and European circular bioeconomy utilising natural resources. It mitigates greenhouse gas emissions, recycles nutrients in the form of organic fertilisers and supports mitigation measures to improve water and air quality, biodiversity and soil health.

As the national co-ordination body for biomethane, RGFI membership represents the full supply chain of renewable gas biomethane and includes academics, centres of excellence, AD operators, community organisations, farmers, shippers, suppliers and industrial consumers in the agrifood, beverage and transport sectors. At European level, RGFI is a very proactive member and on the board of the European Biogas Association, EBA, which is one of the key stakeholders in the biomethane industry partnership task force. This is a joint secretariat established by the Frans Timmermans cabinet and the EBA to deliver on the biomethane element of the REPowerEU strategy.

I am chair of the national associations platform, which co-ordinates and supports other member states in the establishment and implementation of national targets for biomethane in collaboration with the biomethane industry partnership task force. In this capacity, we are working closely with the Departments of the Environment, Climate and Communications and Agriculture, Food and the Marine, which are responsible for the development of the Irish national biomethane strategy.

It has been mentioned previously by colleagues that Ireland lags well behind other EU member states in not having policy and legislation to support the establishment of a scalable indigenous biomethane industry. The RGFI vision is for an agriculture-led, farm-based and scalable AD biomethane industry as a central enabler of the circular bioeconomy. With our grass-based agricultural systems and ready availability of sustainable forage as well as animal slurry feedstocks, Ireland is particularly suited to the production of sustainable biomethane and biofertiliser production and to pursue the bioeconomy opportunities and potential that are available. Recent research from Teagasc has confirmed the availability of 2 to 4 million tonnes of sustainable feedstock for AD biomethane and shows how a move to mixed species sward pastures and other sustainable forage can further improve the sustainability of renewable energy value and environmental benefits with approximately only 2% of land required for sustainable feedstock supply and in the region of 735,000 hectares of under-utilised permanent pasturelands available for use to grow incremental feedstocks to supply indigenous and sustainable AD biomethane and bioeconomy industries.

Momentum is now gathering in Ireland to embrace sustainable indigenous biomethane and biofertiliser production and use with strong consumer demand and collaboration from key consumer market segments of manufacturing and processing, which involves thermal demand, along with sustainable food production and transport. The most economical use of biomethane is in thermal demand and transport.

The legally binding framework is provided through the Climate Action Bill and Climate Action Plan 2023. With current Government policy support, we now have a strong opportunity to develop thriving indigenous biomethane and bioeconomy industries supporting energy security and, importantly, for Irish farmers, an opportunity to reduce agricultural emissions, support sustainable food production and help to secure the long-term economic, social and environmental sustainability of the sector.

Regarding the business cases for biomethane in Ireland, I refer the committee to the three most significant business cases and public consultations we have conducted in recent years. In 2019, we commissioned KPMG to conduct the first fully integrated business case on the establishment of policy and economic support for an indigenous Irish biomethane industry. KPMG undertook a full economic assessment in compliance with the requirements of the public spending code. The second deliverable was building on this fundamental piece of work around the integrated business case. In 2020, on behalf of the CEOs of the Project Clover collaboration, which includes Danone, Wyeth Nutrition, Tirlán, Dairygold, Carbery, Lakeland Dairies and Tipperary Co-op, we commissioned KPMG to examine the commercial proposition and environmental sustainability of agri-based biomethane and biofertiliser production. The KPMG Project Clover feasibility study concluded that sustainable agricultural feedstock-based AD biomethane can assist in decarbonising the supply chain; provide complementary technology to help to address issues of animal slurry management while producing organic fertilisers, displacing artificial fertilisers and improving water and air quality and soil structures; generate additional revenue streams to support on-farm sustainability without reducing the national herd or disrupting food production; support the commercial sustainability and competitiveness of the Irish food and drinks industry; and create and sustain 3,000 jobs across rural Ireland.

Last year, RGFI as partner and target country for the EU Horizon-funded Regatrace project in Ireland and having consulted key public and private stakeholders, published an agreed vision and road map for AD biomethane in Ireland and contributed to the "Beyond Energy - monetising the whole system of biomethane" 2023 report finding that for every €1 invested in AD biomethane, €1 is returned to the economy in a positive way.

Regatrace is informing REPowerEU on the capacity of EU member states to produce biomethane and address the energy security issues.

The RGFI vision strongly aligns with national and EU policy, including the EU Green Deal, the Farm to Fork Strategy, the CAP 2023 -2027 Strategic Plan, and the Climate Action Plan 2023. RGFI has developed a draft anaerobic digestion, AD, charter, building on the work we have done to date and incorporating the Paris Agreement in the recast renewable energy directive, RED II, which will underpin all developments to ensure the responsible delivery of environmental, economic and societal commitments and benefits that it can deliver. This approach also supports the national policy statement on the bioeconomy, biodiversity and carbon-neutral farming.

Today we are asking the committee to support the development of a scalable and sustainable indigenous biomethane industry which we believe will be beneficial to Irish farmers as they seek to meet the twin objectives of future-proofing the continued viability of family farms and maximising the environmental and social sustainability of the sector. The main barrier to the development and expansion of sustainable biomethane is cost. An enduring solution in supporting a robust AD biomethane industry is required. The RGFI is actively consulting the Government on both the renewable heat obligation, RHO, and the national biomethane strategy and in that context, we have a number of key requests. We call for capital funding of 50% in matching funding and additional capital support for the bioeconomy opportunities. We also want to see the speedy implementation of the RHO scheme and consultation on the optimum economic and environmentally beneficial structure for a national carbon-farming initiative to benefit farmers. As we are now on the cusp of the development of this sector in Ireland, we ask that members of this committee, as our public representatives, ensure that the Irish farmer is supported in availing of the opportunities presented by biomethane and the associated bioeconomy opportunities.

Before I open the floor to members, I just want to ask how we can have a situation where slurry that is removed from a farm is classified differently here from the rest of Europe. How can we have a different classification such that when the slurry goes out the farm gate, it is waste but the same thing does not apply in the rest of Europe? Slurry has become a very valuable product on farms, given the price of chemical fertiliser. There is far more of a focus on the viable utilisation of slurry now than was the case a number of years ago. Will the digestate that is produced be of a common standard? Will a farmer have to test it? What would the expected components of digestate be or does that depend on what raw materials go into it on a particular day? I ask our guest to answer those questions and then I will move on to committee members.

Mr. Declan Murray

The first thing to talk about is the classification of slurry. We do not have a classification for digestate in this country. This leads to a problem because the inputs going into the digestate are certified individually. In Europe, however, whatever goes into the plant is tested, conforms to a standard and then becomes a digestate at its back end. There is a problem with the EPA's understanding of what slurry is being used for once it is exported from the farm. We are a small, new and growing industry and this was not the case in the past. It is my understanding that the original classification of slurry as waste if it left the farm was to prevent too much intermingling of slurries between farms but that has now become less of an issue with anaerobic digesters, whereby one can use the available capacity, we can get a benefit from it and the farmer gets a benefit from it too.

That leads me on to the Cathaoirleach's second question. In terms of digestate, the different types of feedstock put into a plant will have an overall effect on the proportion of nutrients that are in the fertiliser that comes out the back end. That is handled every year by each plant testing its digestate to understand how much nutrients there are in it and in what quantities.. We then do a nutrient management plan for the farmer to provide only the amount required to grow the crop, as specified in the plan. Mr. Macken can talk about his experience with moving away entirely from chemical fertilisers over to organic digestate.

Mr. Matthew Macken

I have been putting my money where my mouth is by using digestate at home. I ran some trials last year on some arable and grass land. Option one involved some silage ground using some chemical inputs. Option two was silage ground in the same plot with digestate only at a rate that was constituted with the outputs of the plant to match the 100 units of nitrogen required to grow a sufficient crop of silage and also some cover crop such as forage redstart and some spring barley. All of this was grown completely using organic digestate.

At what rate per acre?

Mr. Matthew Macken

Roughly 3,000 gallons to the acre. We had yields of spring barley tipping the scales on the weighbridge of 3 tonnes to the acre, which is exceptional. It was a good year and everything else but even still, that was a very good return. It matched everything else we had done previously. It matched what my father and my uncle had done in previous decades. On some recent trial digs on the soil, I have noticed a fair improvement in earthworm activity, some loosening and better aeration in the overall soil structure down through the A and B horizons.

Mr. P.J. McCarthy

The first principle here is to decarbonise our economy. There are clear benefits from using biofertiliser digestate as against artificial fertiliser. A European study has shown that every 1 tonne of artificial fertiliser replaced with digestate or organic fertiliser saves 1 tonne of oil, 108 tonnes of water and most importantly, 7 tonnes of CO² emissions. Not alone is the biofertiliser beneficial to air and water quality, soil health and biodiversity, it also reduces CO² emissions. For every 1 tonne of biofertiliser coming out Biocore's plant or any other AD plant, we are saving 7 tonnes of CO². If our ceilings and our sectoral targets need to be our first focus, this is one of the additional benefits we need to be aware of.

The question I asked was whether the digestate coming out is of the same standard every day. Are the components the same every day?

Mr. P.J. McCarthy

Yes, it can be of the same standard. There are fertiliser product regulations at European level under which biofertilisers can be certified. We need to move beyond the misunderstanding of the benefits.

Mr. Macken referred to 3,000 gallons per acre. The nutrient components in the slurry must be high.

Mr. Matthew Macken

Yes, they would be significant.

How much nitrogen would there be per 1,000 gallons?

Mr. Matthew Macken

Per 1,000 gallons, one is looking at around the 20 to 22 unit mark. It would be similar to cut sward, with a nice amount of phosphorous as well.

Mr. Macken got a better response than with chemical fertiliser. Is that correct?

Mr. Matthew Macken

Yes, a fantastic response because it is in a more available form. It is in a very plant-friendly form. Typically, in years gone by one might go over the limit, especially in an arable setting, with chemical fertiliser and it will literally drive the crop until it gets sick if one has overdone it but with digestate, the crop takes it up as it needs it and it is in a more readily available form. One tends to have more fibrous, stronger, cleaner and healthier growth results. We have matched, if not surpassed, results that we have had using chemical fertiliser by just using digestate, both liquid and dried.

Mr. Seán Finan

Just to add to the point, it is important to recognise, in answering the Cathaoirleach's second question, that the AD process creates nutrients in a different form.

In effect, the digestate is similar in nutrient uptake potential to chemical fertiliser. It mineralises the nutrients, whereas raw slurry takes a while to work in that it has a change from one form to another. The value and benefit of digestate, therefore, is significant on grassland. The value of this is that there is, potentially, less risk of run-off if heavy rain falls after spreading digestate in a low-emission spreading system. This is because, compared with raw slurry, the nutrients are more easily accessed by the growing plants.

Additionally concerning digestate, there is a regulatory challenge around its use. For farmers using digestate, it contributes to their 170 kg organic limit. Effectively, therefore, we are not talking about like for like when we speak about a desire to displace chemical fertiliser with digestate. Chemical fertiliser is inorganic and has a different classification-----

Surely, a balance should be allowed to farmers if they take the slurry off the farm. It should come off their calculations.

Mr. Seán Finan

Potentially, if the slurry is taken off farms, it would come off their calculations. We have, though, come across this particular problem on our EIP project, in one case, where we were exploring if we could bring in some additional feedstock to make up for a lack of it on that specific farm. We were not able to do so because that farm was stocked at the 170 kg limit in respect of its livestock loading intensity. A regulatory perspective is needed to look at this aspect to consider what can be done to ensure digestate can displace chemical fertiliser because currently the regulations, in our opinion, preclude this from being the case.

I am sorry. I ask to be indulged for one more second to ask one more question before I let the members ask theirs. How much slurry does it take to make 1,000 gallons of digestate?

Mr. Declan Murray

I think-----

I refer to the quantity of raw material required. It may not all be slurry. How much raw material has to go into producing an output of 1,000 gallons of digestate?

Mr. Declan Murray

The easiest way to explain this is to say that for every 100,000 tonnes of material we take into our plant, I would expect somewhere around 85,000 tonnes of digestate to be available. Approximately 15% of dry matter is lost during the gas conversion process because it must come from somewhere.

It is not, therefore, a huge loss.

Mr. Declan Murray

No.

I am sorry for asking so many questions.

Mr. P.J. McCarthy

To return to that question, regarding the components of 1,000 tonnes, it is important to understand as well that it would also be necessary to ensure they meet sustainability criteria under RED II. This would be about 40% slurry and 60% of the-----

Yes. I understand that. I call Deputy Leddin.

I welcome all the guests. I know some of them but others I have not met before. It is good to meet everybody now. All the witnesses are putting a strong case for this country to boldly go in the direction of producing significant quantities of biomethane. This is their role and they are very convincing. We have it locked into the climate action plan as well. I think 5.7 TWh is the target in this regard.

However, I wish to turn the conversation around because the witnesses are probably the best people to talk about another issue. I refer to the concerns, threats and risks of going in this direction. Not least, I refer to the environmental ones, because these probably exist. I note the witnesses use the word "sustainable" and I know they do not do so lightly. I refer to the threats to farming as well and changing how farming happens in this country, for good or for ill. Land use and slurry use would be linked to this, as the Cathaoirleach alluded to. I wish to discuss these aspects.

What is happening now is a fast-track approach. It is perhaps a process to catch up with other European countries. The plan is to have 200 AD plants in the country by the end of this decade. It is a significant ramping up in this regard. When there is any kind of ramping-up endeavour like this, it is necessary to be very careful to ensure there are no unintended consequences. I am interested, therefore, in hearing a little more about what the witnesses perceive to be the key characteristics of this growth that will have to be managed to allow us to get this initiative right. I refer to ensuring we will not find ourselves in seven to ten years trying to fix problems that may have been created by this fast growth.

Today is an opportunity to air some of these risks, threats and concerns on the environmental side and on the agricultural side. The members of this committee will be interested to hear about how land use will be changed and the associated impacts, perhaps not on dairy farming, because it is high-value farming, but on the lower-value farming sectors, such as beef and horticulture. Will these sectors come under great pressure to produce the feedstock required for the anaerobic digesters? If we have this open conversation, then perhaps we will be able to manage all this a little better and create a successful industry that will be, economically, socially and environmentally, as benign as possible.

Turning to Mr. McCarthy, on the 7 tonnes, it is a stark figure. I presume this is a comparison of digestate with artificial fertiliser. It would not necessarily be 7 tonnes. If that fertiliser has been made somewhere else, primarily in parts of central and eastern Europe - and Russia as well, until recently - those tonnes would already be accounted for. It is a positive aspect but those tonnes would not be accounted for in our national inventory I think, because the fossil fuels being displaced are those that would be burned in some other country to create that fertiliser. Am I correct in saying that? That is a question on the accounting side of things.

Mr. Declan Murray

What must be understood is the availability of feedstock. When we talk about some 250 anaerobic digesters, we are talking about needing somewhere in the region of about 6 million tonnes of feedstock to run them. Currently, in the country, approximately 12.5 million tonnes of material suitable for anaerobic digestion are available outside the agricultural sector. The feedstock, therefore, exists today to run them. Where we see the benefit is where we can integrate with farmers and integrate with the use of the land in a way the farmers want to do it so that it helps them over time.

We would not expect all the farmers in County Roscommon, for example, to start growing silage from my plant tomorrow morning. We would certainly be in position, however, to suggest to farmers that if land is underutilised - there might be a spare 2 acres, for example - they might cut some silage and I will then buy it off them. I am not going to take all the material from their 122-acre or 160 acre-farms. This point must be understood. Throughout the country, a large amount of feedstock is currently either going to landfill or being spread on the land. As my colleagues said, it is being spread on the land purely because it can be and not because it is necessarily the right thing to do for the grass or because the nutrients are available in the right quantity. It is being done just because it can be done. I think, therefore, the opportunity is there. If we look at the way the industry in Germany has gone-----

The opportunity is there, we agree on that. On the threats, though, is the beef sector going to be under threat? I refer to the horticulture sector, as well, and the availability of slurry being impacted. These are high-level questions, but are we completely wrong in this regard? Are there no threats here?

Mr. Declan Murray

If we go back to the Cathaoirleach's question, which concerned what would happen if Biocore were to take 1 million cu. m of slurry out of the Irish market tomorrow morning, the answer is that in 42 days' time I will have 860,000 tonnes to give back. This would be the case if I did not take in anything else and did not commingle the material, which would be the sensible thing to do, to improve the quality of the digestate-----

Mr. Declan Murray

-----and to also allow for the security of feedstock for us and for farmers. We must be realistic in this regard. We may have a dry winter and a very dry summer, for example, or there may be a shortage of feedstock for cattle. Everyone must build this industry up to a level that will be workable over the long term and which will also allow it to deal with shocks to the system as they arise.

Therefore, from a commercial point of view, we would not put all our eggs in one basket.

Mr. Seán Finan

It is legitimate that there would be concerns. We need to go through them and alleviate them. Some regulations assist in reducing those concerns. The first issue we see as important is that the sector is grown on a phased basis so a certain number of plants would be constructed and the lessons learned from those developments would be taken by the industry and all stakeholders and that in the next phase lessons would be taken and amendments made, if required. Second, the animal byproducts regulations determine how the industry and feedstocks are treated from the perspective of risk to the food supply chain and so on. We have very strong animal byproducts regulation in Ireland and all the current plants are governed by that regulation. The other is the renewable energy directive. It sets very clear sustainable criteria on the sector. Percentages of grass and other things are limited by the reduction of emissions through the renewable energy directive. That is another very important mechanism by which risk can be reduced.

On whether the sector is going to threaten beef farmers, many beef farmers are under threat as it is from the economic merits of their enterprises. We would very clearly say that any biomethane strategy that is introduced must ensure that everyone along the supply chain gets a fair return and that it is not set up on the basis that it provides renewable gas and it does not provide for paying for feedstocks, because if feedstocks are not paid for, farmers will not produce the feedstocks and we will end up with an industry that is similar to other industries that have developed where the farm might not get the percentage of the final return that they would require to be viable. That is a very important principle that our organisation adopts. Furthermore, we do not use chemical fertiliser to grow feedstocks. Any support mechanism needs to ensure that we completely eliminate chemical fertiliser, which is possible, by the use of digestate. That is an emission that would be reduced as well as potentially a reduced cost for the farmer. The other risk that concerns farmers is the competition for feedstocks. We need to locate these facilities, initially, potentially in areas of the country where there is less competition. That is what a strategy should look at. It should look at what parts of the country are potentially ready to go from the perspective of a biomethane sector, where, in other parts of the country, there might be competition for certain feedstocks. That is certainly something to look at.

Finally, there is potential concern among farmers about the movement of grass silage from livestock feed to biomethane biogas production. One thing that is very clear is there is an opportunity here. This is all in our policy paper how biomethane biogas production can very clearly act as a buffer in times of fodder shortage. It can act as a reserve in that biocore or any other facility can stockpile silage. If farmers run short for a period, and generally a fodder shortage only lasts a couple of weeks due to weather or other concerns, that can be replenished and in the meantime that feedstock could be used by farmers in the short term and potentially other feedstocks used to replace that silage in the intervening period while the reserves are built up again.

To summarise and answer the question, there are risks but we can come up with ways we can alleviate all the concerns and risks by way of what I have outlined. The current regulations we have contribute to that. Broad principle points would also help as well, backed up by policy measures, potentially.

Mr. J.P. Prendergast

Because we are last to the game here in Ireland, we have an opportunity to utilise and learn from other countries. Much of the work we are doing in Brussels at the moment, show that benefits from biodiversity, leachate from farms and slurry going on rivers has a major impact. This is providing a solution on top of the solutions here. With digestate, they are looking at horticulture as an additional industry on top of that digestate for high-value product so we have the circular economy that extends out. We are quite lucky that some of the work that we have done in the Renewable Gas Forum Ireland is that charter is to learn from the mistakes that have been made because community acceptance will be huge, location will be very important and in fairness to the work that is going on with DG GROW and the work we are doing over in Europe at the moment, acceptance is very important. Knowledge within communities and in these sectors is key to understanding for local authorities, planning and so on. We are probably lucky we are last to the table here because we can learn from it.

Mr. P.J. McCarthy

To answer the question directly on the 7 tonnes, the Deputy is probably correct that they do not all get accounted for here, but fundamentally, a significant portion would. We can look at what the EPA uses. It uses default figures for accounting for use of fertiliser. We have now got the likes of protected urea, etc. I can get back to the Deputy on some specific direction on that.

It would be interesting. It is still good that carbon is displaced in some other country but it might not be as beneficial as we would like.

Mr. P.J. McCarthy

We can narrow it down to an Irish context, yes. Looking at the fundamentals here, what is facing us collectively are the environmental challenges and how we deliver. There are a number of key performance indicators, KPIs, that we can look at building in and factoring into monitoring the industry. My colleagues in the AD industry may not fully agree with this but it is important that if we recognise that, as Dr. Frank McGovern from the EPA said that whatever we do, we need to be able to measure. In a recent report, the International Energy Agency stated that the measurement, reporting and verification of emissions is very important. From our perspective, as the joint licensee of the green gas certification scheme in Ireland, which is fully compliant with the renewable energy directive, RED II, and was designed by DENA and DBFZ that subsequently advised the Commission, certifying the sustainability of biomethane production we suggest going a step further and measure the other KPIs in biodiversity, water quality, soil quality and air quality. That can be easily done. Looking at good examples around the likes of Natural England, they also take that extra step. Yes, it costs money, but if we are truly going to stand over what we are doing and what we can deliver, there is a natural step to embrace those measurements. For everyone, including the interests of Ireland Inc. and industry, we need to ensure - and we have a duty and responsibility - to verify measure, and report and be able to stand over our delivery of these KPIs. We can look at supporting the agriculture sector. Teagasc income surveys show that one third of farmers are losing money, one third are breaking even and one third are doing okay. Agriculture is evolving. We can see that from ACRES. The focus is on environmental and delivering those KPIs. We have designed the integrated business case to ensure that the AD technology is complementary to existing farm practices. There is no reason for displacing any current farm family out there. We are looking to build on the opportunities so that they can have an additional diverse income; that it is sustainable and is contributing to the environmental issues and have the sustainable criteria that we require. That is why we are looking at stitching in the opportunities around the bioeconomy.

Mr. David Kelly

On the impacts on the agricultural sector, I will bow to my colleagues around the table who are closer to that. On feedstocks, the waste sector beyond agriwaste is particularly interesting.

A study that was published today and has gone to consultation shows that 2 tonnes of waste is generated per head of population in this country. Therein lies a great opportunity for us. I acknowledge this is the agriculture committee, but something we should talk about in detail is the compost and brown bin waste that is collected at an urban level.

Mr. Prendergast alluded to my next point. We have been working with our Danish equivalents, namely, Energinet and some of the other gas operators, including Evida. The figure of 200 plants has been bandied around as part of the climate action plan. Denmark started its biomethane sector in 2012, just over ten years ago. It has 55 plants live and there are now days when 100% of its gas is biomethane. It has been exporting two thirds of its gas to Germany, Sweden and other jurisdictions since the Russia-Ukraine crisis erupted. It is very doable, with a relatively minor impact compared with that arising from the large volume of plants that would need to be built.

It is 55 plants over ten years in Denmark, however, whereas we are looking at 200 plants over seven or eight years or less.

Mr. David Kelly

The point is that the nature of the plant, whether it is large, medium or industrial-sized, should be considered. Some of the plants in Denmark, and certainly some of the plants operated by the likes of Nature Energy, are large, 600 GW plants, so the art of the possible is there.

Ms Karen Doyle

One of the unintended consequences we need to look at relates to making sure we build in the right areas with the right size and get the economies of scale that are needed. We do not believe 200 plants are needed to the get to 5.7 TWh and we have conducted a lot of market consultation on this where we have gone out to see who is ready to build. We are looking at planning our own network to be able to take these plants online, and we are seeing average-sized plants, of the 40 GW size, which is significantly higher than what was anticipated in the climate action plan. That is good because where we get those economies of scale, it will, obviously, be cheaper to deliver. That is what we are seeing.

Interestingly, we are also seeing that probably twice the number of plants are ready to build than is our ambition. There is huge pent-up demand both on the developer side, that is, those who will ultimately build the plants, and on the demand side, that is, customers who are using gas at the moment, looking to decarbonise and setting out plans for the mid-2020s that they want to achieve. They are very interested in the ability to get renewable gas to disperse fossil fuels, not least in areas where electrification is very challenging.

The message from us today is that, commercially, there is a huge opportunity for Ireland and both developers and users want this to happen. The critical point is that the strategy needs to be correct to avoid unintended consequences such as those in Germany, where there was more support for building plants under a certain size that would not need specific planning permissions and so on, resulting in an awful lot of smaller plants being built for electrical purposes only. They are now having challenges keeping those plants online because they cannot compete at the price.

There must be a tension between the number of plants and their location, given transport is part of the challenge if feedstock is being produced in dairy country, or not in dairy country as the case be. This is part of the challenge.

Ms Karen Doyle

Absolutely. Commercially, however, that would play out. While we feel, as part of the study we carried out, that we can deliver 20%, not all those 20% of plants will be capable of being built because some of them will be competing for feedstock. Commercially, that will play out. Not every plant that we want to build will be able to be built because the feedstocks will not be available.

Moreover, in the strategy, it will be probably prudent to look at policy relating to how much land we want to put into use for the growing of specific product for biomethane. That will protect our use of land and what the best use of that land could be. For us, the strategy is a critical point to make sure we have learnings from throughout Ireland, such as the positives from Denmark, perhaps some of the not-so-positives from Germany and what we are seeing across Italy and France, in particular, at the moment. That needs to be baked into the strategy to make sure we do this right and have good engagement on planning with our communities such that there will be community gain as well. We are very encouraged by the fact the strategy is going to be consulted in, we hope, quarters 2 and 3 of this year, but that is where we need to get this right and ensure there will be no unintended consequences, as the Deputy suggested.

I thank the witnesses for attending and for their opening statements, which contained a lot of detailed and helpful information. My first questions are for Gas Networks Ireland. Will its representatives speak to the Government supports that exist to allow us to do what we need to do? Do they believe the renewable heat obligation that has been proposed by the Government to support the development of biomethane and the industry will be enough to realise the potential?

Mr. Brian Mullins

We believe a number of measures will be needed to bring forward biomethane at scale. Obviously, the biomethane producers would, in the absence of supports, be subject to a wholescale natural gas price that moves around. The key, as we have heard when we talk to investors on this front, is that there needs to be some level of price certainty for these producers to encourage them to come on board and make a long-term decision to make a substantial investment in AD technologies. Capital grants and the renewable heat obligation that is coming through are important as well, but the evidence we are seeing suggests there needs to be some level of price certainty that will give some assurance to the AD producers, from the commercial perspective of their business plan, regarding the value of their product for the coming years.

Ms Karen Doyle

I might add to that in regard to the transport sector. At the moment, the only support available, outside of the electricity renewable energy feed-in tariff, REFIT, 3 scheme, is in the transport sector and we are seeing considerable flows of biomethane into that sector, which is very positive. That shows that if there is an appropriate support scheme that incentivises correctly and does not over-incentivise, product will flow. The challenge we see with the transport sector is that that is a short-term view, with a one-year window, which is not enough for investors to build additional plants.

If we look to the electricity sector, where Ireland has been extremely successful to date, what we have done well, along with other countries, is give a longer-term price signal to investors, which has allowed projects to be bankable at a high level of debt and a low price, ultimately resulting in a lower price for end users. We would seek a longer-term signal in the market, under the renewable heat obligation in order that people can invest in these plants and in high-quality technology, mindful of the communities in which they are building and will operate over the long term. It is important that that support be set at the correct level in order that high-quality plants can be built and operated.

Mr. Seán Finan

If I could make one point on the currently available supports, the current support scheme for renewable heat has a biogas element but it is very small and, as far as I am aware, there have been no applications to it. The challenge we have with a lot of the existing supports for electricity and otherwise is that although they allow for the use of the fuel to produce electricity or whatever, they do not ultimately support the development of the infrastructure. As a result, the producer cannot compete. The current renewable electricity support scheme has an option for AD and biomass combined heat and power to be bid in but, in reality, they cannot be bid in because the cost of the production of biomethane or biogas is a lot higher than the intermittent renewables, and no value is placed on the other benefits that the continuous element of AD can bring.

Our opinion regarding the renewable heat obligation is that its introduction would be a positive.

However, we would have to see the detail to determine whether it is sufficient. We have not seen any detail yet. I would like to make one final point and Mr. Ó hUiginn wants to make one point too. All the European markets have been developed by an initial operational support. They have potentially diversified those supports to other forms. The reality is that if we want to get a sector up and running, we need an operational support of some form or another. We can talk about obligation schemes, capital grants or whatever. The volume of capital is significant. All the main European markets in their infancy, and to this day in most cases, have an ongoing operational aid support that is key to the development of the sector and that gives the market certainty that developers like BioCore and others need so that when they go to the bank to look for funding, they have the certainty of support over a long period. Because an obligation scheme can change, it would potentially not give that long-term certainty. We have seen recent changes in the transport biofuels obligation scheme. The number of certificates for biomethane increased. However, at the stroke of a pen, a Minister could decide to reduce that. That could put companies out of business. That is a concern with regard to obligation schemes. Our feedback is that a more long-term support in the form of an operational aid is required, similar to the way other European countries have operated.

Mr. Pádraic Ó hUiginn

Cross-sectoral support is critical. In 2011, a predecessor to this joint committee produced a report on the benefits and opportunities for anaerobic digestion. We are here 12 years later. It is excellent to be here and to have this conversation but it shows how long it takes a sector like this to make progress. Cross-sectoral support is important. The committee is vital because agriculture is relevant. Deputy Leddin's committee is relevant because support schemes relate to the Department of the Environment, Climate and Communications. The Department of Transport is relevant. Getting through the planning system relates to another Department. We are joined by a former Minister with responsibility for communities, Deputy Ring. Communities feed into this too. We need the whole of government collectively behind this. Individual schemes are necessary in each segment but we need cross-sectoral support.

I have some questions for BioCore. If we are going from ten or 20 plants to 100, 150, 200, or whatever the figure it is, that in itself will be a challenge. Mr. Murray mentioned lengthy planning processes as a barrier in his opening statement, which is, unfortunately, often the case. He used the example of Ballaghaderreen. How long was it from when the planning permission application went in until the plant was operational? What are we talking about when he refers to lengthy planning, if we take that as an example?

Mr. Declan Murray

Without being completely specific, I think we applied in 2007 and got the full go-ahead in 2017. We engaged our first consultants in 2007 and had our first pre-planning meeting.

It was ten years.

Mr. Declan Murray

Ten years. The last five to six years were probably spent in various appeals, judicial reviews and so on. To be fair, the original planning permission for the Roscommon site was not submitted by us but by a different company. It was not suitable for the site. It was never going to commercially work and it was not going to work from an energy point of view. We were probably responsible for about four of those ten years. It is a long process. People say the process can be shortened and one can go straight to An Bord Pleanála, but there is an outlay of €150,000 just to get into that process, which is commercially not viable when one does not know if one will get something.

Even if those four years were taken out, to get to the scale we need to get to, if we decide that is where we are going, which it clearly is, it will be our job here to ensure that is improved hugely if we are going to get to where we want to be. That plant is the only one Mr. Murray cited in his statement. He mentioned it a few times. He has mentioned 100 jobs created by that plant, directly and indirectly. Creating 100 jobs in a rural area is a lot. What kind of roles does that include?

Mr. Declan Murray

We have our on-site staff who are there to manage the day-to-day operations. We have five of them. We have between 20 and 25 hauliers hauling in and out of the plant every day. We have another 20 to 30 on the farming side dealing with the digestate issues. It is an eight-month process with a closed window during which stuff has to be moved. On top of that, there are all the ancillary staff, like Kelly Electrical, all the electrical contractors and engine servicing contractors. All these people are either directly or indirectly employed by us.

That is a big positive for any rural area.

Mr. Declan Murray

One interesting thing about the Roscommon plant is that we were told, when we initially started to operate there, that it would be quite difficult because it was so rural. The exact opposite has been the case. We have identified locally almost all the expertise we require, from bringing feedstock in, sourcing feedstock, keeping the plant operational, staffing the plant, getting our digestate out to farmers, doing all the technical user management plans and so on. All our electrical and engineering contractors are local. We have not felt issues.

When it comes to supplying local farmers, how many farms would one AD plant supply?

Mr. Declan Murray

It is an interesting question because, as the Deputy knows, the nature of the farms in the Roscommon, Leitrim, Galway and Sligo area is they are quite small. I do not know if Mr. Macken would say I was exaggerating if I said we were dealing with approximately 100 farmers.

Mr. Matthew Macken

Closer to 200.

Mr. Declan Murray

Some 200, sorry. We have some very small farmers and mid-sized farmers. The best way to explain it would be that our average nutrient management plan for grass silage in the Roscommon plant is for approximately 300 tonnes a year. We are using approximately 32,000 tonnes in total, which would come from 100 or 150 farmers.

Finally, Ms Doyle mentioned being mindful of communities. Mr. Finan from IrBEA referred to biogas plants being welcomed and others meeting sustained objections locally. He spoke about taking the lessons from communities. We will expand these AD plants. There will be a role, and fears and risks, which have been discussed a little, for really rural communities. Taking that as an example, what has been learned and what can be taken from community buy-in or no buy-in? Are there benefits to the community beyond just supplying farmers that can bring that buy-in?

Mr. Declan Murray

One thing that we clearly found out early on was that we were the only gig in town in that neck of the country. It had never been done before. No one had ever heard of it before. There was a fear factor and question of what these people are going to do. Now we have the plant and we have never closed its gates. Any local school, business, or anyone who wants to come to see our plant is welcome and we tell them to come on down. It is an educational process. We probably have someone call into us every week. There is a visit next Tuesday. The other benefits to the community relate to how we can integrate ourselves into the community and what having a plant there means for that. If we take something as simple as protecting jobs in Aurivo, for example, it is looking at how it can cut its costs and become more profitable. All its dairy byproduct was going to Kildare. It is now all coming to us. It is cheaper for Aurivo and we are getting more use out of it. It is then going back to local farmers as digestate.

One of the things which we are constantly looking at is how we can get involved in what the local community is doing. We are not spending a huge fortune of money. We do some sponsorship for the local men's shed and for local schools. Generally, it is an educational process and the more people we can get to see what we do the better. One of the things that I keep saying to people when they talk about noise and smell is that with anaerobic digestion, the clue is in the name. There is no air; it is sealed. If I have air, I have a much bigger problem than anyone who has a smell. I would have a big €20 million problem at that stage.

Mr. Seán Finan

I would like to make one point in response to the Deputy's question. What we have seen is that a lot of the issues around planning permission in local communities stem from a lack of knowledge at all levels. That is, knowledge among the community, at a local regulatory level and sometimes at a political level. There is a lot of upskilling which needs to be done from the point of view of all stakeholders being made aware of what this technology is and what it is not. Sometimes, one would hear stuff about different types of things being put into the plants, and different issues arising, which are completely and utterly fabricated. It is not correct, in that you do not put in dead animals, and all that type of stuff.

There are a lot misnomers out there around what anaerobic digestion, AD is, and what it is not. We see across Europe that there are AD units built at the end of houses, on or connected to the same building. We have seen in Luxembourg, Germany and other countries where they are integrated within towns, villages and communities, without any issue arising. Those communities have accepted them on the basis that they do not cause an issue, and that they understand what the technology is doing for them in terms of their needs, reducing fossil fuel usage and decarbonising their system. If it is a combined heat and power, CHP unit, the heat might be going to the local community centre. There are benefits and values that can be gained from it. Education and knowledge is key, and it is also very important that political leadership be shown in advocating the benefits of these units across the country, and explaining the broader context of why we are doing it, namely, reducing emissions, global warming etc.

I would like to make one final point around the Deputy's question about jobs. Our policy paper very clearly sets out that for every 1 MW of biomethane production in the country, there are 5.9 direct jobs. If we look at the 5.7 TWh, our target, that is approximately 710 to 715 MW based on 8,000 operational hours. Multiply that by 5.9 and it is a couple of thousand people directly involved. Mr. Murray has spoken about the broader benefits. One is talking about multiples of that in terms of broader benefits, supply chains, equipment suppliers and local contractors. Regarding direct jobs, 5.9 is the metric we use.

Ms Karen Doyle

I would like to make two quick points to the Deputy regarding the study that we completed before Christmas. From some of the data that we have collected, we looked at what is available and what has gone through the planning permission process, some of which may still be stuck in that process and under judicial review etc. The heartening point is that when you compare what is probably 0.75 TWh of plants which are either in or have come through that process to the 5.7 TWh target we have for 2030, there are actually a lot of projects which have decided to go ahead and progress. We need to be heartened by the fact that there are significant projects which have gone through that planning process already.

The other point is that when we look at community benefit and gain - this is a point I am personally quite committed to - and at other renewable technologies which have been developed in Ireland, there has been a very strong focus on community engagement and gain. If we look to the wind sector, in 2021 there was €4.3 million of funding that was provided to communities across 19 different counties. There are obviously job benefits and income directly to projects, farmers and communities which are supporting these projects. However, the wider community can actually benefit as well. That is why it is really important, when we look at the strategy and the renewable heat obligation, RHO schemes, that we look to see what has worked well in our energy refit schemes and our contracts for difference, CFD schemes which are currently operating. From there, we can look at how we take the best of those schemes and ensure that a community which hosts a biomethane plant is being treated in the same way as a community which hosts a solar or wind farm, and that it should have the same community dividend or benefit. That is an important point which we cannot lose sight of as we go through the strategy, making sure that we keep our communities at the heart of this.

Mr. J.P. Prendergast

I have done a lot of work with communities and with the Sustainability Energy Authority of Ireland, SEAI, which work with sustainable energy communities, SECs. Outside of Renewable Gas Forum Ireland, RGFI, we work with 60 or 70 SECs, and we work with 70 communities around solar and wind. Due to REPowerEU and under the small-scale generation support scheme, biomethane is now included in that sector. There is already a platform where SEAI itself can become part of that community engagement as trusted advisers. That is a level of trust, because these plants are all about trust. More than anything else, it is trusting the developer that they are going build what they say they will build. Certainly, there is an opportunity there to use an existing platform for sharing of information, engaging through SECs and allowing those communities, as a gathering, to understand all of these projects as one. It is certainly is something that could be investigated.

To conclude, the community buy-in is really important. If we are going to have AD plants here, there and everywhere, and more than likely a lot of them are going to be in rural communities, that engagement from the very beginning is really important. It does not always happen. Witnesses have spoken about the importance of education, but if this is just foisted on a rural community, there is an onus and responsibility on the company to do that part with regard to education and engagement at the start, and that will perhaps avoid judicial reviews and all of that. It would be a win-win.

I thank the Cathaoirleach, and the witnesses for coming. I want to come back to the public buy-in as well. As Deputy Kerrane said, a lot of projects fall because communities have a fear. I cannot believe that it is just because of the smell and the noise. The witnesses have said that some communities have bought in to these and in others there have been concerns. Where they have been successful, what was the selling point and where people have given out or objected to it, what is the big sticking point?

Mr. J.P. Prendergast

I thank the Deputy. One of the key issues is engagement at the beginning. However, it is location. One finds that a lot of problems stem from the location of projects. It is very important that the developer, as part of the community, engages with the local council, because that in itself will give advice as to where these plants can go. Certainly, from a communities point of view, if one is going to build something at the back of my house, there is going to be an immediate objection, so it is very important. One of the things we have worked on is farmer-led projects - farm-led, on-farm based projects, where farmers themselves become the owners of these plants. From that point of view, one has got an immediate solution whereby on the farms themselves one develops these projects and farmers become part of this as a co-operative, since they develop these projects. Then one has an issue that as farmers are within the community, it is outside the locality of housing etc. Then it is certainly an option. With communities, absolute trust is necessary.

Second, one has to understand that everyone has a value on their house and where they come from. If they see anything going behind that within the locality, they are going to have an objection. The opportunity would be for farmer-led projects on the farms where the technologies can be. That is certainly an option that can be investigated.

Mr. P.J. McCarthy

Answering Deputy Browne's question specifically, I have been involved in a number of planning processes with AD developers and advising around the location and the approach. Pre-planning is absolutely key. The engagement and consultation with local residents and communities has been very beneficial in those projects which we have provided some guidance on. Planning permission has gone relatively smoothly. However, the time is invested up front in engaging with the local community, presenting the site layout and 3D photo montage and explaining to people and giving them the time. It is important that the public consultation is done on time and that there is an opportunity to follow on with questions thereafter.

There are some very good examples of how that has worked really well and we would promote, with any AD developer, the need to give that pre-consultation and public community engagement. It has genuinely paid dividends to a number of those projects. However, in cases where projects have gone through local observations and they are due for decision, and somebody from the suburbs of Dublin city objects to that project in rural Ireland, the merit of that has to be questioned.

What is the outlook for the development of community heating projects based on this technology?

Mr. Declan Murray

Where community heating is successful from the AD point of view, it is carried out with waste heat from combined heat and power, CHP, engines. The future will be in producing the biomethane, that is, the renewable gas, which will not have a heat element in the sense of a waste heat element, so community heating would not be there. Leading on from the Deputy's last question and some of the answers there, I have heat available in Roscommon and would love to use it, but I am too far away.

Mr. David Kelly

I am not sure if the Deputy is aware of how the gas network was built and how some locations in the country have gas and some do not. We have 15,000 km of grid infrastructure in place and pretty much 100% of it is underground. What justifies GNI building infrastructure is an anchor load, typically a commercial load, that justifies the commercial investment. The regulator oversees that. It is highly auditable and is a very thorough process. What we are seeing now, where there is not a justification to build out further gas grid, is where there is a large concentration of feedstock and a large anaerobic digestion plant could be built, that potentially justifies the build-out in a community of a heating platform using the thermal from that AD as it is designed and built. There are a number of projects under consideration. It is very early days. There are a number of obvious locations where there is a concentration of feedstock, largely in the waste space, and it is something we are exploring. However, it is early days.

I have three specific questions for the different groups. The Irish Bioenergy Association says it believes the biometric sector is only at a starting point. The association has a road map for development with six points, one of which is that "a fair return is required along the supply chain for all stakeholders". Who is likely to fall foul of the supply chain or be left behind?

Mr. Seán Finan

This was a key principle we had in our 2019 policy paper and it continues through. It was put in because when we engaged extensively with a wide variety of stakeholders in developing the policy paper, there was a concern, especially among farmers and the farming community, that the industry would be developed, but at their expense. By this I mean there would need to be mechanisms built in to ensure farmers would get a fair return for their feedstocks. We have seen reports published where silage prices, going back the years, have not been near where they need to be to make it economically viable to produce that feedstock. We are saying we need to be cognisant of all the stakeholders along the supply chain. There is no point in putting in place supports, measures and incentives without being cognisant of the challenges some stakeholders along the supply chain have, such as what farmers are paid for their feedstock. If the price and the supports introduced are correct, the plant operators will have the ability to pay for those feedstocks, which they need to do in order to get them.

In reality, the feedstock will not be produced, in that farmers will not produce silage, unless it is economically viable for them to do that and it gives them a return for their investment, time and land. When we engaged with some of the State agencies and the farming organisations that was very strong on their agenda. We need to learn from the experience of developing certain sectors where people are not necessarily getting their fair share along the supply chain. That is why that point was put in there. There is a need for all policymakers and those developing and improving strategies to be conscious of the need to ensure farmers get paid for their feedstocks and that the plant operators like Biocore have the ability to pay those farmers via the support systems they get to produce the gas.

Yes. Will GNI give me an update on the Mitchelstown plant and what has been learned so far with the development there?

Mr. David Kelly

The Mitchelstown project got planning permission a couple of years ago and we are at a final design phase now. We have gone out to the market and we are tendering for that. The expectation is it will be completed at some point next year. That it is the timing. It is on track.

Okay. The RGFI is part of the national co-ordination body for the biomethane that consists of AD operators, community organisations, farmers, shippers, the industrial consumers and the food and transport sectors. The forum is also a member of the board of the European Biogas Association, EBA. What have we learned from the European experience about the challenges we will face as we go forward?

Mr. P.J. McCarthy

On learning for developing the strategy to develop the industry, I have a presentation from back in 2019 from the DG for Agriculture and Rural Development that advocates the opportunities for the biomethane sector from an agriculture and CAP perspective. The single biggest advantage is we are informed, we understand what is happening with policy and legislation and we can represent the Irish interest across agriculture, transport, manufacturing and processing. We can understand from the lessons learned by colleagues around the table what is working and what is not. Some of the board members are from Italy, France and Germany.

We are across the table from representatives who are looking at the lessons being learned in Germany from its approach. The AD plants are too small. They use very valuable primary energy to produce expensive electricity. Changing the whole strategy on AD bioplants is being considered to produce biomethane. Italy has a fantastic support scheme and a good platform that supports the industry around Consorzio Italiano Biogas, CIB, which is coming up with a programme to promote how biogas can be done right. That involves communities, farmers, the supply chain and right the way through, as we have discussed. In our engagement through the Biomethane Industrial Partnership, which is the joint secretariat with the Commission and the EBA, we are learning the support regimes in place in the past, be it in Germany, the UK or France, are now all moving under RED II to implement Article 23, which is the renewable heat obligation scheme. It is the most cost-effective way and an enduring solution to supporting the price gap between producing biomethane and the price of natural gas.

Mr. Pádraic Ó hUiginn

I wish to address two points raised earlier by Deputies Browne and Kerrane. On the learning, in one sense the sample we have in Ireland is probably a bit small, but in terms of learning from France, where there has been much more deployment, we worked on an EU-funded project called BioBase4SME with an agricultural chamber of commerce, namely, the Association of the Chambers of Agriculture of the Atlantic Area, AC3A. Its key learning was early engagement with communities. That was one key learning.

A brief point on district heating. While biomethane will be generated in an area where, as was outlined earlier, the heat demand is not there and the biomethane will go to a higher end use, for district heating the waste which was mentioned from data centres will be key for district heating. The likes of wood chip will also. A bioenergy solution for district heating is wood chip rather than biomethane. That is being used to some extent across Europe.

I have a couple of brief questions and I apologise if they have been covered.

There was a Vote in the Seanad so I missed part of this meeting and I hope that I will not repeat any questions. I am intrigued to learn about anaerobic digesters. How is there balanced supply by virtue of the fact that both grass and slurry are seasonal? Can anaerobic digestion use different products at the same time or is it slurry one week and grass the next week? How is the balance of supply kept right to keep anaerobic digestion running all year round? People depend on a supply of grass for the summer months but a couple of years ago there was a drought so grass was at a premium. Is there a contingency plan to maintain a steady supply?

Before I had to leave this meeting there was a lot of conversation about byproducts or slurry digestate. What byproducts or digestates from other materials are used in an anaerobic digestor?

Our guests have said that farmers will buy in if they get a price for their product, grass or whatever and the proposition is economically viable. How can we get the sector other than individual farmers to buy in?

The distribution of carbon credits is a big selling point for the agricultural sector. If, hypothetically speaking, in ten years' time we were flying in terms of using anaerobic digestors, the transport sector would gain more from carbon credits with the use of gas and the agricultural sector would still be the flogging boy of the class. How do the witnesses see the carbon credit being given back to the agricultural sector?

Finally, how much has the AD technology evolved, developed and improved since we started the conversation compared with when we started installation? Do the witnesses think that there will be major technological advances in the sector in the future?

Mr. Declan Murray

I will start with the question on how we deal with feedstocks. Anaerobic digestors are a bit like humans or cows because they are like a stomach and digestion is done in a sealed environment at a particular temperature but that does not mean the same thing is eaten every day. In fact, our digestors do not like getting the same single feedstock every single day of the week. We co-mingle our feedstock. For example, in County Roscommon we could get 30 tonnes of dairy byproduct from Aurivo and then we might not have anything for four days. In the grand scheme of things over an average period, where the amount of time we keep stuff in the tanks is 42 days, it generally is a uniform product. We will always have an ability to swap out products. We keep an eye on the markets so we know what is coming in and out of season. The Senator is quite right that summertime is not a good time of the year for slurry because all of the cattle are back in the fields and nobody is looking to get rid of too much slurry. However, summertime is our busiest time for other feedstocks. There is seasonality throughout with the way feedstocks are fed into the plant. We will probably have six or seven feedstocks coming into our AD plant, which vary in consistency. The final output is the digestate.

The next question that the Senator asked was what is the make up of the digestate. We put something through our tanks where it is digested and that then goes into a storage tank. We have about 7,000 or 8,000 tonnes of storage on our site in County Roscommon. The product in the tanks is tested every week, bi-monthly, six-monthly and on annual basis for nutrients. We then do a nutrient management plan based on what is in the tanks. We have not seen any real difference in the last four years of annual testing of biosolids, which may be 1% down in nitrogen this year and 2% up next year but within normal parameters. Each year, a nutrient management plan is updated for farmers.

I shall skip the Senator's question about giving carbon credits to farmers. On improvements in AD technology, the major improvements in the last ten years have been in front-end processing, that is the way you deal with raw materials coming into plants. For example, the brown bin was mentioned in one of our discussions earlier today. Historically, a brown bin would have been put through what is called a hammer mill, which is a high-speed hammer and is very basic technology. That process has now been changed entirely into a dry cleaning process with less plastics and all of that sort of thing. When we originally started in 2008 gas upgrading was primarily done using technology from the USA, which, I think, was created in the early 1970s and it was oxygen washing, which is taking carbon dioxide out of biomethane. That process was fun and games as it was 15 m high towers where you literally drizzled gas down through water, and the water became carbonated so it turned into soda water. The process was inefficient to say the least. That process has now changed into membrane upgraders and there is a whole different way of doing things so there is much less kit. The type of materials used moves on all the time. Our roofs and tanks will now last for between 15 and 20 years whereas before they had to be changed every four years. New materials come online and things get improved all the time. There have been major steps forward in gas upgrading and in feed-in technology. I think that carbon capture will probably be the next to experience a big technological jump.

Mr. Seán Finan

I will respond to the questions that Mr. Murray did not answer. A key part of our published policy paper is around AD acting as a buffer and reserve of silage feedstock, which I may have mentioned earlier when the Senator was absent to attend a Vote. The development of the AD industry in Ireland can act as a buffer and a reserve for silage feedstocks and that feedstock could be built up over a period and used during a fodder shortage. In general, a fodder shortage is short lived from the point of view of a change in weather and the grass grows again. Anaerobic digestion could act as a buffer for feedstocks. There is potential for farmers to utilise feedstocks in times of drought or shortage with AD operators or facilities, potentially, using other feedstocks which may be available at that time. In previous fodder shortages or crises feedstocks have come in from the AD industry across Europe to help farmers in Ireland get through short-term issues and then were replenished at a later point.

On the use of carbon credits by the agricultural sector, the one thing about the AD industry is that the benefits of biomethane are energy-based currently in terms of the inventory. As we understand it, the contribution that the farmer makes in terms of producing feedstocks is accounted in agricultural emissions. That issue needs to be looked at as part of the international counting of emissions, which is the challenge.

On the broader mobilisation of the sector, we need to utilise existing stakeholders and supply chains with which farmers and the agricultural industry are familiar such as the co-operative movement. There is a big opportunity whereby the co-operative movement could be used as a vehicle by which feedstocks are mobilised. The dairy co-operatives and marts network are tried and trusted avenues for farmers. So we can utilise existing infrastructure and stakeholders to mobilise feedstocks and, potentially, develop these facilities. A target of 200 anaerobic digestion plants in the country has been set so a number of plants will be built in every county.

The question is where they will be located in each county. Utilising existing supply chains and existing networks would be beneficial.

I am over time and we have other witnesses waiting outside, so I ask Mr. McCarthy to be brief.

Mr. P.J. McCarthy

On the carbon credits, there is a real opportunity here. In our statement and engagement with the Government, we called for this to be pursued by looking at creating a structure where farmers are rewarded economically but, from an environmental perspective, as mentioned earlier, we deliver on the key performance indicators that we are all pursuing. Under the Intergovernmental Panel on Climate Change guidelines, there are clear opportunities and guidelines around carbon farming. It promotes measurement, reporting and verification, MRV, which is called out in the International Energy Agency document on MRV. That is an important distinction as against using default figures because it presents higher values for those carbon credits. If we are looking at designing a carbon farming model for Ireland, we would implore the public representatives to support the robust approach that will result in a higher value for those carbon credits for farmers. We believe that farmers should be rewarded because ultimately they are the custodians of the land and are central to buy-in on this and to developing at scale. Separately, the Commission has also offered case studies around what carbon farming looks like. There is also further guidance coming in the second quarter of this year. There is already some information around what it would look like, but it is up to each individual member state to structure the carbon farming. We are calling for that to be pursued in favour of rewarding farmers.

I thank the witnesses for a very informative session. I thank the four different organisations for their contributions. We will now suspend for two minutes to allow the witnesses for the second session to come in.

Sitting suspended at 7.32 p.m. and resumed at 7.36 p.m.

Before we begin, I bring to the attention of those present that witnesses giving evidence from within the parliamentary precincts are protected by absolute privilege in respect of the evidence they give to a committee. This means witnesses have a full defence in any defamation action arising out of anything said at a committee meeting. However, witnesses are expected not to abuse this privilege and may be directed by the Chair to cease giving evidence on an issue. Witnesses should follow the direction of the Chair in this regard. They are reminded of the long-standing parliamentary practice to the effect that, within reason, no adverse commentary should be made against an identifiable third person or entity.

Witnesses giving evidence from a location outside the parliamentary precincts are asked to note they may not benefit from the same level of immunity from legal proceedings as do witnesses giving evidence within the parliamentary precincts and may consider it appropriate to take legal advice on this matter. Privilege against defamation does not apply to publications by witnesses outside the proceedings held by the committee of any matters arising from the proceedings.

I welcome the second set of witnesses from Teagasc: Professor Pat Dillon, director of research; Dr. Fiona Thorne, research officer; and Mr. Barry Caslin, energy and rural development specialist. I call Dr. Dillon to make Teagasc's opening statement.

Dr. Pat Dillon

I thank the committee for the opportunity to speak on the topic of biomethane renewable gas. Teagasc as an organisation is fully committed to embracing biomethane and the establishment of a demonstration AD facility at our Grange campus.

Various EU and Irish policy and industry targets exist that provide a key role for biomethane in the decarbonisation of the energy sector and a diversification opportunity within agriculture. As the agricultural industry is Ireland’s largest contributor to greenhouse gas emissions, accounting for 37.5% of the emissions in 2021, it is a key area of focus for reductions. The EU has set the target of building a net-zero carbon economy by 2050, as outlined in the European Green Deal in January 2020, along with ambitious goals in the farm to fork strategy.

On a national level, the Food Vision 2030 and Ag Climatise reports both include goals around AD. Climate Action Plan 2023 increased the target for AD to 5.7 TWh of biomethane by 2030, which will require in the region of 150 to 200 AD plants. This recognises the role AD can play in reducing emissions and creating a circular bioeconomy. We have considerable ground to cover between now and 2030 to achieve these targets.

AD is legislated within the EU by RED II, which sets a target of 32% of energy coming from renewable sources by 2030. RED II sets limits for greenhouse gas emission offsets by the generation of renewable fuels of 65% for transportation fuels and 80% for electricity, heating and cooling by 2026. Ensuing from these various EU policies and industry documents, it is also recognised that the agricultural sector will have a part to play regarding the decarbonisation of the energy generation sector.

The development of biomethane energy generation in agriculture has the potential to have three benefits for Ireland, including the agriculture sector. Enhanced energy security through the displacement of fossil fuels will bolster our national economy's self-reliance through the consumption of locally generated renewable heat or electricity in place of electricity or heat generated from imported fossil fuels.

Second, in respect of farm diversification, income generated from selling biomass to an AD biogas plant will provide additional income streams for farm families in rural areas and provide a land use alternative. Third, renewable biomethane generation is better for the environment and will help to contribute to our national efforts in the area of decarbonising the heat and electricity sectors.

The Department of Agriculture, Food and the Marine, in partnership with the Department of the Environment, Climate and Communications, is currently developing a national biomethane strategy that will define the strategic direction for the production and delivery of the 5.7 TWh of indigenously produced biomethane. Teagasc is a contributor to this working group.

I will talk about AD in Ireland in context. AD has been operational in Europe on a small scale in niche areas, particularly since the oil crisis in the late 1970s. On a small scale, the biogas generated, which typically comprises 55% methane and 45% carbon dioxide, is combusted for heat. Since the 1990s, there has been a development of large-scale AD utilising the biogas for electricity generation, driven by legislation and incentives. The electricity is generated from a combined heat and power, CHP, unit, with a trend to increasing biogas storage on site and providing power on demand at a premium. More recently, biomethane has come to prominence whereby the biogas is upgraded to greater than 99% methane, which can be injected into the gas grid, with certificates generated and traded for this renewable or green gas.

To date in Ireland, the development of AD has been slow by comparison with other EU countries. A combination of planning and licensing, grid connection costs, prevailing electricity tariffs, financial issues and uncertainty in waste policy have led to relatively few plants in Ireland to date. AD plants generally require financial support to compete with fossil fuels, which has been the case in establishing the respective industries across Europe.

I will move on to the role of Teagasc in biomethane renewable gas research. Teagasc has been very active in the area of energy in agriculture for many years and launched its first dedicated publication on energy use in agriculture in 2011. Furthermore, Teagasc has compiled a suite of factsheets on energy use and renewable energy generation covering all farm enterprises, which were updated recently. Biogas has been a key measure in the Teagasc marginal abatement cost curve, MACC, since it was established in 2012. Teagasc is also a key partner at the Energy in Agriculture show at Gurteen College each year.

The Climate Action Plan 2023 target of 5.7 TWh of biomethane by 2030 is equivalent to approximately 10% of the total natural gas demand in Ireland. Meeting this target will require a substantial quantity of feedstock that is both biomass and manure. With more than 80% of agricultural land in Ireland in grassland, the potential for grass resources is substantial. Indeed, the national heat study showed that the available biomethane grass resource could be 4% to 8% of Ireland’s current gas fuel demand, and that could rise to 11% of current gas demand by 2030 if changes to livestock occurred and land was freed up from other areas. It is evident from this that the 5.7 TWh target by 2030 is achievable and biomass-based resources, such as grass-clover silage, will have a key role in meeting this potential, provided economic, environmental and social sustainability is considered.

Teagasc estimates that at a national level, the total land area of 120,000 ha, which is less than 3% of available land, will be needed to provide silage to feed the AD biomethane plants required to reach the 5.7 TWh target. In addition, winter slurry from 1.3 million cattle will be required, which represents approximately 20% of all cattle slurry produced in Ireland. The above assumes an equal mix of grass silage and slurry on a fresh weight basis. The above land area requirements are based on current average yields on Irish grassland farms, in which case some displacement of livestock is a likely consequence, or it could displace some existing tillage crop production. The availability and transportation costs associated with the slurry is an important consideration such that proximity of the AD biomethane plants to large resources of livestock slurry is paramount.

Research at Teagasc has indicated that there is substantial scope to increase the availability of forage from Irish livestock farms in excess of livestock requirements by improving grazing management practices. For example, beef farms typically utilise about 6 tonnes of grass dry matter per hectare, which is far below that being achieved on the top-performing demonstration farms, where grass utilisation typically exceeds 10 tonnes. In a scenario where grassland management and utilisation practices improve, the Climate Action Plan 2023 target could be met with little livestock displacement. Importantly, however, increasing the availability of forage should not be achieved by increasing the application of nitrogen fertiliser due to its impact on greenhouse gas offsetting and forage production costs. Also, use of chemical nitrogen to grow biomass for anaerobic digestion would make it difficult to achieve RED II sustainability criteria.

Current research at Teagasc indicates that the production of forage crops with the capacity to produce high yields with low levels of fertiliser nitrogen, such as red and white clover crops, are best placed to meet the feedstock requirement for the AD industry. Furthermore, improving grasslands to support biomethane must be consistent with the national biodiversity strategy, which aims to conserve biodiversity in the wider countryside through the enhancement of high nature value farmlands.

The use of grass resources for AD biomethane has a distinct advantage from a farm diversification perspective in that it is a familiar practice for livestock and crop farmers. In this context, the willingness to adopt land use change is being assessed by an SEAI-funded farm level economic, environmental and transport modelling, FLEET, project led by Teagasc, which is identifying farm scale, landscape level and national level economic and environmental implications of farm-supplied alternative feedstocks for AD at a regional level. Clearly, the financial returns to the farmer will have an important bearing on the acceptability of producing grass for AD biomethane. The traded value of grass silage can be used as a guide for this diversification option; however, an additional premium is likely necessary, the extent of which being influenced by the individual farmer’s commitment to their existing enterprise and prevailing attitude to innovation and change.

Digestate is the residue of the feedstock that remains following the digestion process. The nutrient content of the feedstock is largely retained and, therefore, digestate is a valuable nutrient for grassland and cereal crops and can replace artificial fertiliser. Nutrients in agricultural AD digestate, particularly nitrogen, are more freely available for plant uptake than in untreated organic slurry or waste sources. For example, nitrogen availability in digestate is increased by up to 10% and, for this reason, application using low-emissions slurry spreading and-or post-processing options, such as separation, acidification or ammonia recovery, is recommended. Odour from agricultural AD digestate is generally not as strong as undigested feedstock material. The AD process can also reduce microbial pathogens and the germination capacity of weed seeds found in raw feedstock. Digestate is an important resource that could be processed to replace chemical fertiliser. Research in Teagasc is investigating a wide range of processing technologies to reduce emissions from land spreading and to recover digestate nutrients to replace chemical fertiliser.

Teagasc research at Grange and Johnstown Castle is investigating the sustainable production of AD feedstocks, including the impact of recycling of the resultant digestate as a source of nutrients for plant feedstocks and its fertiliser replacement value. The project includes various plant diversity communities to better understand their availability to the AD system. This project is also pursuing the optimisation of the AD process to improve biogas and biomethane yields. Opportunities to deploy chemical amendments to reduce gaseous emissions from the slurries and digestate, thereby improving biomethane yields during the AD process, are being assessed.

Teagasc is committed to the development of an agri-centric AD industry in Ireland and has invested heavily to resource its research and knowledge transfer capabilities in this area, particularly in the new Teagasc climate action strategy. We have recently recruited two permanent staff in this area. We have invested €1.6 million in a pilot-scale AD biomethane plant in Grange. The Teagasc Grange plant will produce 70 cu. m to 100 cu. m of biogas per hour. The annual gross output of the plant can be specified as roughly 3.42 gigawatt hours, GWh. The biogas will be converted to biomethane, which will be compressed and injected into the gas grid or used to fuel trucks or tractors onsite.

As to the recommendations, the Department of Agriculture, Food and the Marine and Department of the Environment, Climate and Communications-led working group on the development of the national biomethane strategy will be essential in the development of the industry and achievement of the CAP 2023 targets. A prerequisite to the successful development of a biomethane AD sector in Ireland which is agri-centric is that it should be sustainable from an economic, environmental and social perspective, with research gaps on business models and assumptions evident. There is an urgent need to demonstrate agri-centric AD biomethane at scale. The Grange pilot plant will play a key role in achieving this important objective.

To conclude, a prerequisite to the successful deployment of a biomethane industry is that it should be profitable and provide confidence to investors and farmers who decide to provide crop feedstocks on a contractual basis to future biomethane plants. I thank the committee for the opportunity to present this information and welcome any questions the members of the committee would like to ask.

I thank Professor Dillon for a comprehensive and interesting statement. My question is similar to the one I asked at the previous session, although I am not sure if the Teagasc representatives were listening to that. Our guests at the previous session did a very good job of outlining the opportunities for the sector. I ask the Teagasc representatives to guide us on the concerns and risks that might be there, given they might be in a better position to answer that. What should we be looking out for in terms of the environmental risks, as well as the social and economic risks? It seems that if we are to pursue the climate action plan target, it is a very fundamental change in how we do agriculture and energy in this country. While we should be ambitious and recognise the opportunities, we also need to be mindful of whatever risks there might be. The witnesses might tell us more about those. I am alluding to land use change and the impact on sectors within agriculture, and also the environmental challenges that might be there.

Another question is around potential leakage from plants. I had the pleasure of chairing the climate committee when the witnesses’s colleague, Dr. Ciara Beausang, came in last year. She did very interesting research before she joined Teagasc, when she was in UCD, and she seemed to outline that leakage is a reality in AD plants. Is that something Teagasc has looked at or is aware of? Is it factored into the analysis of the risks of AD?

Dr. Fiona Thorne

To address the first set of questions in terms of the concerns and risks, in the opening statement we were at pains to say from a Teagasc perspective that when we are developing an AD industry, we need to be cognisant of sustainability. When we think of the era we are moving into, when an AD industry is going to be developing, it will be in the context of RED II and RED III, and that will take care of the environmental sustainability credentials that we are all governed by within this AD industry. We also need to be cognisant of the economic and social considerations. If we do not take that three-legged stool approach to the AD industry, we will have issues reaching 5.7 TWh.

When I talk about economic sustainability from the Teagasc perspective, I am really talking about the economic sustainability of the farming sector and the business models that will need to be in place. We need to think about competition with existing systems of agriculture and the price of feedstocks that will be required to make that economically sustainable. Learnings that we have from the FLEET project, which is funded by the SEAI, show us there has been a substantial increase in the cost of the grass-based feedstock for the AD industry over the last 18 months in particular, with the increase in fertiliser costs evident at farm level. If we are talking about developing an agri-centric AD industry, the economic sustainability of the farming systems that are in place needs to be observed.

From the FLEET project we have also seen that competition with the existing systems that are in operation at farm level will have a big impact on the economic sustainability and viability of the supply of feedstocks to the AD plants. If we look at the dairy system in particular and the economic returns, the price of feedstocks that are talked about within the industry are not compatible with the level of income we are seeing. To move on from the dairy side to look at the tillage system, it really depends on the price that is on offer, but the increase in the cost of producing silage over the last 12 to 18 months is having an impact there. It is really the beef and the sheep systems, based on economic sustainability on its own, that show there are opportunities within those systems. However, we need to be cognisant of the increase in fertiliser costs and the impact that will have on economic sustainability going forward.

There is economic opportunity for beef and sheep farmers, which is good, but there will be an element of displacement of land use as well. How does that work its way through the system?

Dr. Fiona Thorne

Based on the opening statement, we have set out to reach the 5.7 TWh and we will be talking about some level of livestock displacement in competition with those existing systems of production, in particular the sheep and beef systems. We need to remember that it is not all about economics and we need to remember social sustainability and what are the incentives behind movement. Inertia is a big problem. We look at the beef system in particular, where the economics within that system did not happen just today or yesterday. Incentives to move will be important, not just looking at covering costs of production, but also at providing an incentive for those farmers in whatever region of the country we are talking about to move systems of production.

The only other comment I want to make is on social sustainability. Some of the AD plants that have gone for planning permission in recent years are running into issues of social acceptance. That is something we would like to look at in terms of future research looking at social acceptability, not just at farm level but across communities. It is a research gap that is there.

Related to that, is the planning side something that Teagasc has looked at? The whole Planning Act is being reformed at the moment. Has Teagasc considered how that might help the process?

Dr. Fiona Thorne

The only place where we have started to talk about that is within the biomethane working group in terms of the development of a biomethane strategy, so it is being talked about within that sphere. In terms of ongoing research that we have at the moment, it is not something we have looked at. However, in terms of the future research agenda and particular research grants that we have in at the moment, it is on the to-do list. It is something we see as a research gap regarding acceptability and the issues that are there in terms of gaps.

Has Dr. Thorne anything to say on potential leakage?

Dr. Fiona Thorne

I will start and Mr. Caslin will continue on that. Fugitive emissions have been incorporated into the bioeconomic modelling work that has been done using the Grange model. A range of different fugitive emissions from the AD plant have been looked at. That is not my area of expertise so Mr. Caslin might want to comment further on it.

Mr. Barry Caslin

I thank the Deputy for the question. He mentioned land use change and fugitive emissions. There are concerns regarding new plants that will be built over the coming years. Approximately 200 plants will be required, depending on the size of those plants, which are generally between 20 GWh and 40 GWh. If we look at the Continent, there is a different approach where it has been a CHP rather than a biomethane approach. Our journey of travel appears to be more down the biomethane route of upgrading biogas to biomethane and injecting that gas into the national gas grid. There may be opportunities for farmers to use some biomethane on farms, possibly using it for their tractors in future.

To be clear about the CHP route, is it that biogas is being burned and power and heat are being generated on a farm?

Mr. Barry Caslin

It could be used on a farm if you had a use for the heat on the farm. It is always a challenge to make use of such heat in a rural area. That can be a challenge with CHP. The other challenge is getting grid connectivity and supporting that electricity back to the grid. That is where size or scale is probably needed to justify CHP.

Our journey of travel at present appears to be around biomethane, which is what this meeting is about. Land use change will obviously be required but the question is whether we will plough up grassland to grow perennial rye grasses and remove biodiversity in swards. That is one potential environmental issue that could crop up. There are ways around that. We could use existing swards, maybe by stitching in clover, to fix the nitrogen in those swards. There may be ways around this. It may mean we have lower yields per hectare but the consequence may be more hectares to balance that out.

Fugitive emissions have been a challenge on the Continent in the past. This has been an issue in Germany and Denmark in the past but we have learned from many of the mistakes. Modern plants have become better managed. It is all down to the management of those plants that there are no fugitive emissions. The spreading of digestate so that 85% of what goes into a digester will come out as digestate in the end has to be managed carefully to minimise emissions. You could not splash-plate that slurry or digestate back onto the land. It would have to be injected to minimise any ammonia emissions because, essentially, you are dealing with nitrogen in ammonia form. That could be an environmental issue, if it is not directly injected.

I did not know you could directly inject digestate into the land. The Chair will know much more about farming practices than I do.

Mr. Barry Caslin

The digestate is generally approximately 4% to 5% dry matter and 95% water. There is a lot of water in it. There is an opportunity to separate the dry matter, which contains more of the phosphorous and potassium, from the liquid component where the nitrogen content is. There is the opportunity to separate it, if nutrients have to be transported a distance.

I have a couple of questions. Social acceptance and community buy-in was spoken about. That was something we discussed a lot with the groups that appeared before the committee previously. It is obviously very important because we are looking at potentially moving from ten to 20 AD plants in Ireland today to possibly 100 or 150. In many cases, we will see these plants being established in rural communities. We discussed the importance of early engagement, having that buy-in from the community, and the benefits that go beyond just providing for the local farmers. On the research Teagasc hopes to undertake on that, is it looking to engage with plants already in existence? Biocore representatives were before the committee. The example they used was a plant the company has in County Roscommon. They spoke a little about community benefit and actions Biocore takes locally. How does Teagasc see that research? Does it have a timeline for when it expects to complete it? That will be very important if we are to grow and ramp up as much as is expected.

Dr. Fiona Thorne

I thank the Deputy for her questions. We have work ongoing at present on social acceptability, but it is about acceptance at farm level. That is an important issue too. It is about the inertia and what incentives might be needed at farm level. Those questions are being fielded through the Teagasc national farm survey at present. The results regarding the appetite at farm level to supply these feedstocks will be available later this year. That is at one point within the supply chain but, at the other end, there is definitely the issue of community buy-in and acceptance. We see that replicated throughout the country where there have been issues to date.

As part of the current thematic call from the Department for research grant applications, we have submitted a research proposal on community acceptance that will use some qualitative research methods to look at the issues out there at present. We would like to look at community benefits, including perhaps the methods that have been used in respect of windfarms and those types of measures, using qualitative methods. It is about using existing technologies, such as those in the wind sector, and looking at what has and has not worked there. We have limited results due to limited examples from the AD sector of what has and has not worked. We will possibly look at the Northern Ireland example as well in that regard. On the timeframe, that research is only at the application stage. It has only been submitted recently so it will be later this year when, hopefully, we will begin that research.

That will be very important and will be key. On the 5.7 TWh target that has been set for 2030, does Teagasc know approximately how many AD plants that will equate to in order for us to reach that target? Different figures were given during our last hearing. Is there even a rough figure?

Mr. Barry Caslin

I will come in on that. It will be in the region of 200 plants. The target is 5.7 TWh. If the plants are 20 GWh, we will need many more of them - probably up to 300. It will probably be a mixture of 20 GWh and 40 GWh plants. They have to be at that scale to justify it because these plants, as far as I can see, need to produce approximately 200 cu. m of biomethane per hour for them to be economically viable. The larger they are the more economically viable they will be. The biggest challenge will be to mobilise feedstocks around those larger plants.

Planning was the other issue that came up. It was mentioned in Teagasc's opening statement. Biocore representatives stated the planning for the plant it cited was submitted in 2007 and was granted, fully finished, in 2017. There was a judicial review and other issues but they said, more or less, that if those issues were taken out, it would take approximately four years. If we are to get to up to 200 plants between now and 2030, and that is a job of work for the committee, planning will obviously be critical, if we are to reach that potential.

Mr. Barry Caslin

Yes. We had the same issue in the past with solar photovoltaics, PV. Solar PV has been sorted, which has made it much easier to get it on the rooftops of sheds and farms to facilitate the whole process.

This issue will not be as easy to solve.

Mr. Barry Caslin

It will not be as easy but it highlights how important the whole area of planning is in streamlining all this to make it happen. I am familiar with the plant in Tibohine because I live not too far away from it. I am aware of the issues with planning and the complications in getting these things over the line and getting public buy-in. It is a major challenge. Many people are taking the approach of having public meetings in their areas to explain their project to the local community. In some situations, and I see this is done in places such as Denmark and Germany, community-type projects are developed around digesters. The community could buy in to the project through buying shares in the digesters and being investors in the project. That may be one area that could be looked at in getting community buy-in.

The agriculture sector is getting credit for these plants. At the end of the day, we have a very significant target for the reduction of emissions from the sector. We will be using waste and a lot of output from the agricultural sector, whether it is grass, a crop, fodder beet or whatever.

Would the agricultural sector get full credit for the energy that would be produced from these plants?

Mr. Barry Caslin

I know where the Cathaoirleach is coming from in this regard. Very often the credits go to the energy sector as opposed to the agricultural sector. In the particular one that we have looked at we will be producing a MACC, which will be published in the next few weeks. The preliminary figures indicate that almost 1 megatonne of carbon dioxide will be abated within the cultural sector as a result of this measure. About 600,000 tonnes will be from livestock displacement, assuming that 50% of the average stocking rate on those lands will be displaced. In addition, around 350,000 tonnes of nitrous oxide would be avoided through the use of the digestate instead of using chemical fertilisers. Almost 1 megatonne of carbon dioxide will be credited to the agriculture sector.

Will we get full credit if, by using digestate, we reduce our chemical nitrogen by whatever percentage Mr. Caslin is talking about? The previous witnesses were very strong about the value of the digestate and the nutrient value that it would contain. I was surprised at the figures they gave regarding the nutrient value and the consistency of the product that would be produced. If we reduce chemical nitrogen by a certain percentage, will that go into the balance sheet for the reduction of the emissions from the agricultural sector?

Dr. Pat Dillon

We have committed to reducing chemical measures by around 30%. If the digestate is used as a replacement for chemical fertiliser, which we hope it will be, it will reduce chemical nitrogen and indirectly that would be accounted for in the inventory.

That would go on the balance sheet for the agri-sector? That can go towards meeting our 25% target?

Dr. Pat Dillon

Yes.

We have heard from representatives from various sectors. The biggest problem I see with this is that we are not making any more land. The competition for land is going to be intense. If one were to try to source ground at the moment to feed these plants, I do not know how it would be economically viable to do so. Banding and the pressure on dairy farmers to meet their stocking rate requirement is putting huge inflationary pressure on land. Tillage farmers are saying they are losing ground because of the extra competition that exists. If we put another stakeholder into the equation, adding more competition, it is going to cause more inflationary pressures. It is like a cake and the cake is not expanding. That is how I see it. Do not get me wrong; I am not against this innovation and this technology. I am always very much of the view that we have to embrace modern technology to reduce our emissions. This is a way of doing so by being able to use municipal waste and waste from processing plants as well as agricultural products to produce energy. I am fully in favour of these ideas but in economic terms I do not know how the equation can be balanced with the huge competition that exists for land at the moment.

Dr. Fiona Thorne

I take it as a given that the supply of land is finite. Supply and demand interact to generate the price. If our supply of land is fixed and the demand for land increases as we are looking at using agricultural-based feedstocks for these anaerobic digestion plants, based on the principles of economics, land rental prices will go up. We have seen over the last couple of months what the nitrates banding has done for the prices that are being talked about. A recent study from Teagasc and the Chartered Surveyors of Ireland showed that the pressure on land rental prices will mean an increase of 14% or 15% for this year alone. Much of that is being attributed to the nitrates banding issue. If we fast forward then to an AD industry and we have increased competition for land rent, I would take an increase in land prices as a given.

We visited UCD Lyons Farm last week. I was extremely impressed by the trials on multispecies sward. We were shown three lots of cattle that were being grazed. One lot was completely on a multispecies sward, clover and ryegrass. No table was necessary to show the increase in performance. Professor Dillon has said that he does not want any chemical nitrogen on underutilised land to increase forage. The multispecies sward must have a huge part to play in that aspiration. Hopefully the ryegrass will have product in the springtime and then the legumes, etc. take over from early summer onwards. I know you are doing trials on them as well and I am not trying to be vexatious in referring to another research station but this was the first time that I was really impressed with multispecies sward. There would be issues as regards farmer practices and getting them grazed but as for producing products for an AD plant, it must have a role to play without the use of chemical nitrogen.

Dr. Pat Dillon

Yes, I agrees that legumes such as red and white clover are very important. Red clover is especially important for producing biomass for AD plants. For the last number of years, we in the Grange animal and grassland research centre have been doing research on this plant. We are now getting up to 20 tonnes of dry matter per hectare from it using just slurry, without any chemical fertiliser. There are opportunities with the legumes and we can also add the forages, plantain and chicory for example. Legumes have a really important role to play in reducing chemical nitrogen and producing high yields of product. There is no doubt about that.

With regard to the carbon credit, the opening statement cited the famous 37.5% of emissions for which agriculture is accountable. I understand the answer that was given to the Chair regarding how the agricultural sector will get some credit. Before I say any more, I will state that I am pro anaerobic digestion. I just want to tease out a few issues. If all the credit goes to the transport and energy sectors, our 37.5% will not change and more pressure will be put on the sector to reduce production in other areas. Mr. Caslin stated the figure that will be credited to the agriculture sector is calculated through the reduction of chemical fertilisers and also livestock and cattle displacement because of land use change.

I am playing devil's advocate here. Where in this debate do we meet the line of food security if we have the target of 5.7 TWh and our forestry targets? As the Chairman correctly said, we are not making any more land. When and where are we are going to come to the line where the debate has to be about food security? If our solutions always seem to be a reduction or a change of land use, which is to non-food producing and reduction in numbers and output, that debate cannot be too far away. From the witnesses' perspective, how far away is that or how do we square the circle and achieve both goals of being food secure and meeting our energy targets?

I have a final question for Mr. Caslin on digestate. Excuse my ignorance but I always imagined that product as being in dry, granular form.

Mr. Caslin said it is 90% water and needs to be injected back into the land. Is there any other use for that other than going back into the land? Would it be difficult to dry and process it so that it could go out in granular form? Is that even a runner?

Mr. Barry Caslin

I will start off with the question on food security and the use of the digestate. Dr. Thorne or Professor Dillon might want to come in on food security. Regarding food security, I often get asked this question. We export over 90% of our beef and dairy products. We import about 60% of our energy. When the Corrib oilfield dries up, which is expected over the next eight to ten years, we will be importing over 90% of our energy. There is a balance to be found in terms of our use and AD is one of those. The target of 5.7 TWh will mean 10% of our annual fossil fuel gas being displaced in this country. There will be other technologies. I always say a jigsaw of technologies will be needed for us to meet our targets. It will be a combination of wind and solar, technologies supplying intermittent energy, along with AD and biomass boilers. A combination of all these technologies will be required in the future.

We certainly need to be looking at AD as one technology. We are talking about 3% to 4% of the grassland area of Ireland being dedicated to AD plants. It is not a lot of grassland and it would not displace current food production. There are a lot of what we call hidden hectares where land is underutilised and not farmed to its full potential. We could add digestate to pastures that are there at the moment without upgrading or ploughing them, which could potentially emit carbon, and increase the yields to optimise it, possibly involving the addition of lime. The addition of digestate also raises the pH of those soils because it has a pH of around 8. The addition of digestate onto agricultural land is a valuable nutrient, in terms of nitrogen, phosphorus and potassium, but also in terms of raising the pH of those soils.

In terms of food security, I would be saying we need to look at our land base, while not affecting food production by using that 3% of the land.

Dr. Fiona Thorne

We also need to be cognisant of existing national and EU policies. Food security is one policy we have but we also have energy security. The REPowerEU policy at a European level is all about trying to decrease our dependence on imported energy. There is a balancing act between food security and energy security but that is the reality of the world we live in today.

I thank the representatives of Teagasc for appearing before the committee this evening. I am sorry for keeping them waiting earlier. Their research into this issue is very welcome. If we are to meet the challenges of the modern world, we need to embrace this modern technology. Producing renewable energy is a key part our battle against climate change.

At our next meeting, we will undertake an examination of the new school of veterinary medicine in Ireland.

The joint committee adjourned at 8.24 p.m. until 5.30 p.m. Wednesday, 10 May 2023.
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