Mr. P.J. McCarthy:

The Renewable Gas Forum Ireland is an industry forum that represents the interests of the biogas industry in the whole island of Ireland. The RGFI represents the full supply chain of the renewable gas industry from the biogas producers, technology providers, academia, innovation and the end gas consumer. The RGFI is consumer led and is an advocacy body for all gas consumers and for members seeking to decarbonise. We take a consultative approach with Government agencies and Departments to find solutions and a cost-effective route to carbon-neutral pathways for decarbonising gas as a primary energy. The core objective of RGFI is to inform policy makers and decision makers of where solutions can be found.

Under consumer demand and climate change obligations, approximately 60% of total heat energy consumption in Ireland is provided by gas, 80% of which is consumed by our large manufacturing and processing companies. The ETS manufacturing processing companies operate in Ireland predominantly in two sectors, being the FDIs in agrifood and the beverage sector. The proposed policy in the energy White Paper excluded the ETS manufacturing sectors, perhaps unintentionally, and it states that they are not accessible to the renewable support heat scheme. This will significantly impact on competitiveness and on attracting and retaining FDI industries and jobs in this country and will severely impact the agrifood sector in its drive to decarbonise and compete internationally with its consumer products. There are €13.6 billion in exports crying out for solutions to decarbonising. Sustainable energy is now a mandatory criterion for the majority of these companies as they look to secure new markets and competitiveness as well as retain existing employment.

On the potential for biomethane in Ireland, the EU has issued a report outlining that Ireland could be a net exporter by maximising the use of its own resources. It states the wider economic and environmental benefits of utilising agri-residues, excess crops, the rotation of cash crops and cattle slurry and manures, which would significantly reduce greenhouse gas emissions from agriculture creating a circular economy and a valuable indigenous biogas industry leading to security of supply and revenues.

Biomethane supply can be utilised in various sectors to decarbonise energy in heat-thermal, renewable electricity generation in CCGT, transport in the public and private sectors and HGV haulage. The provision of renewable gas injection into the grid can utilise existing infrastructure without major capital cost and it can use existing high-efficient technology all at low cost to citizens, industry and commercial gas consumers. The existing high-efficient use of gas can achieve efficiencies of up to 90%.

Business and domestic consumers make decisions on their energy sources for the long term. By excluding renewable gas, namely, biomethane and BioLPG, in the proposed first phase of the RHSS, essentially locking out energy users from investment decisions that will fundamentally alter the market in Ireland, we will place the roll-out of biomethane and BioLPG technology in jeopardy.

We are proposing to Government that carbon tax be utilised to support the renewable gas industry. Every gas consumer pays a carbon tax on gas consumption and in 2016 the Irish consumer paid €126 million. If utilised to support the renewable gas industry to roll out biomethane, it would contribute to 7% of the national gas grid's consumption. There are opportunities in this area.