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The Government of Ireland, in particular the Department of Agriculture, Food and the Marine (DAFM) and the Department of Environment, Climate and Communications (DECC) have prepared Ireland’s National Biomethane Strategy May 2024, setting out the vision, policy framework, and actions to develop a sustainable biomethane industry of scale in the Republic of Ireland, in order to meet the Government’s target of producing up to 5.7TWh of indigenous biomethane by 2030.
According to the Strategy, the Government has approved the inclusion of a biomethane section, upscaling a biomethane industry in Ireland, within Ireland's REPowerEU chapter. This chapter sets out that DAFM is to receive funding of €40m for a capital grant scheme for biomethane production plants. This funding is subject to European Commission and Council assessment and approval.
The Strategy states that the capital grant scheme will be open to both anaerobic digestion (AD) plants currently operating to produce biogas and new AD plants that will produce biomethane and other biobased products. The scheme will be launched through a competitive call for funding in the coming weeks.
The Strategy also indicates that a key aim of the initial grant support will be to support development of agri-led AD plants, meaning that the feedstock should be mainly derived from agricultural sources such as animal manures and grass silage. The Strategy also emphasises that all capital grant supports will have sustainability as a key consideration and that the sustainability requirements under the Renewable Energy Directive will need to be stringently adhered to in all funded projects.
The Strategy does not specify the maximum amount that a project can claim under the capital grant scheme, but it suggests that the scheme will contribute to 1 TWh of indigenous biomethane by 2025, which is the target set by the Climate Action Plan 2024. Assuming a linear distribution of the funding over the target, this would imply an average grant of €40 per MWh of biomethane produced. However, the actual grant amount may vary depending on the scale, location, feedstock, and sustainability of the project, as well as the level of competition and the availability of other sources of finance.
If you are interested in applying for the capital grant scheme, you should monitor the DAFM website for the announcement of the call for funding and the detailed eligibility criteria and application process.
The Strategy can be found here.
For further information in relation to this topic, please contact Mark Stockdale, Partner, John Dallas, Partner, Ross Moore, Partner, Aisling O'Donoghue, Senior Associate, Adam Magill, Solicitor, or your usual Belfast or Dublin Energy, Infrastructure & Natural Resources contact.
Date published: 14 June 2024
