The government is being urged to introduce a range of targeted measures in Budget 2027 to support the growth and development of the bioenergy sector in Ireland.

The Irish Bioenergy Association (IrBEA) said it believes the government is in a position to utilise bioenergy to tackle a range of issues if funding is allocated in the budget.

IrBEA CEO Sean Finan said: “Budget 2027 presents a unique opportunity for government to recognise the significant role of bioenergy in addressing Ireland’s climate, energy security and rural economic challenges.

“With the right measures in Budget 2027, Ireland can stimulate investment, create rural jobs, displace fossil fuels and deliver meaningful carbon reductions."

Finan added that, while other EU countries are far ahead, "this budget is the opportunity for Ireland to catch up".

Key asks

IrBEA represents the biomass, biogas/biomethane, liquid biofuel, biochar, wood fuel and energy crops sectors, working to deliver a sustainable renewable energy future.

Members of the IrBEA have a list of key asks for this budget.

Under the banner of “biogas and biomethane sector mobilisation”, the group is asking for:

Urgent introduction of the "long-awaited" Renewable Heat Obligation and other dedicated supports and measures to develop the sector;
Introduction of the biomethane capital support programme, through Infrastructure, Climate and Nature Fund (ICNF) funding: IrBEA calls for a frontloaded grant rate of 50% on the first €5 million of investment with a 25% grant on the remaining investment to a maximum grant per project of €10 million;
A dedicated ringfenced budget in the biomethane capital support programme for €3-4 million to support the construction of up to 15 farm-scale biogas plants.

The association said: “This scale of production can contribute to farm emission reductions and to farm income, while also raising awareness within rural communities of the positive benefits of biogas plants.”  

Other asks include: 

Support Scheme for Renewable Heat (SSRH): Continued budget provision for the SSRH including provision for an increase in the biomass tariff rates and add support for the replacement of older biomass boilers in commercial and industrial facilities;

Liquid Biofuels Sector Support: Introduction of a mineral oil tax relief scheme for indigenous liquid biofuel production;
VAT treatment of wood fuel appliances vs other renewable options: Currently heat pumps have a 9% VAT rate; solar panels have a 0% VAT rate and Biomass appliances have a 23% VAT rate. IrBEA calls for VAT equalisation across the different technologies and that the VAT rate on biomass appliances be lowered to 9%, "like heat pumps".

The association also has a “Wood Fuel Drying Infrastructure Capital Support Scheme Proposal”.

This is calling for an introduction of a capital support scheme for wood fuel producers to assist with the development of wood fuel drying infrastructure to meet the new Air Pollution Act (Solid fuel Regulations) moisture content requirements.

The IrBEA is also calling for:

Kerosene fuel measures: Any measures introduced for kerosene fuels “must not disadvantage renewable fuels from a taxation or cost perspective”;
Biomass and renewable fuel appliances (pellet and log appliances as well as liquid biofuel appliances) being eligible appliances in the proposed oil boiler scrappage scheme;
Eco-design heating appliances: Extending domestic home grants to cover the replacement of fossil fuel appliances with biomass stoves, boilers and renewable fuelled appliances.

The association has also requests dedicated funding for renewable energy training programmes and resources for additional staff in departments, state agencies and statutory bodies to implement renewable heating targets, enforce the Air Pollution Act (Solid fuel Regulations) and consider planning appeals.

Finan said: “Our proposals are practical, cost-effective and deliverable.

“Supporting indigenous bioenergy will reduce dependence on imported fossil fuels, strengthen energy security, and provide a fair pathway for farmers, foresters householders, businesses and rural communities to participate in the renewable energy transition.” IrBEA said that it wants the government to to "seize this opportunity and ensure that bioenergy is placed at the centre of Ireland’s renewable energy, climate and economic policies”.