The managing director of Local Power has welcomed a commitment from Taoiseach Simon Harris to develop a viable biomethane industry.
The Fine Gael told his party’s recent Ard Fheis that he wants to implement the National Biomethane Strategy “so farmers can earn a good income, while protecting our environment”.
The purpose of the strategy is to deliver on targets set by government under the Climate Action Plan to develop a biomethane industry here that will deliver 5.7TWh/year of gas – around 10% of Ireland’s current natural gas demand.
However, Pat Smith said that the government’s commitment will be measured by the level of supports put in place for anaerobic digestion (AD) projects and the farming communities that support them.
He said there is a major opportunity now for government to “shift the dial” on the broad adoption of renewable energy right across Irish society and the economy.
“For too long the anaerobic digestion and biomethane sector have been bedevilled by false dawns and undelivered promises,” he said.
Biomethane
Smith said that a capital grant of at least 40% will be required to assist in the development and building of AD plants.
He said a “meaningful capital grant” would help promoters finance projects with domestic funds rather than with funds from foreign investors and pension funds.
“Such supports will have major knock-on benefits for farmers and right through the economy.
“It will increase the supply of biomethane and help lower the cost of biomethane for businesses, including the agri-processing sector.
“These large users of energy will be required to purchase biomethane to meet their renewable heat obligations,” he said.
Smith said that the Renewable Heat Obligation being imposed on the corporate sector should include a double credit for businesses who purchase indigenous renewable gas as opposed to buying it from abroad.
This precedent already exists in other EU member states that have put preferential measures in place to support their own biomethane sectors.
Farmers
Smith said that favourable regulation and supports should accompany any agri-based biomethane industry.
“Farmers, who dedicate land to feedstock production for biomethane should be able to retain all their existing CAP and tax supports.
“Critically, farmers must be able to export slurry to an AD plant and receive an equivalent volume of pasteurised digestate back.
“This will help them manage the nitrates issues and reduce bought-in fertiliser costs.
“Farmers should also be given capital grants to facilitate dedicated storage of digestate so that they can optimise the fertiliser benefit and minimise costs on their farms,” he said.