Oireachtas Joint and Select Committees

Tuesday, 18 June 2019

Committee on Budgetary Oversight

Budgetary and Fiscal Implications of Climate Change: Discussion

Mr. Kevin Brady:

To talk a bit more about the biogas, the basic feedstocks would be food waste, which would include brown bins etc., but also agricultural wastes or slurries. In terms of the way that gas would go into the network and who would pay for it, there is a cost differential. Producing biogas is more expensive than fossil fuel gas. That is set out in the plan. We want to set a target for it. We have not set a specific target yet because there is more work to do on it, but it is looking at how that could be funded. There are a number of ways that could be done. One way would be an Exchequer fund for injection into the gas grid. Another would be similar to renewable electricity, namely, some sort of public service obligation, PSO, levy. An interesting one would be something similar to the biofuels obligation scheme. Even though we all fill our cars with fossil fuel at the moment, we are not selecting a biofuel or a fossil fuel handle. Approximately 5% of the fuel in both petrol and diesel cars is biofuel and it is placed as an obligation on the suppliers. That takes from the point Dr. Curtis was making about consumer choice. We are not asking drivers to pick the biofuel or the fossil fuel handle. It is an obligation on fuel suppliers. Biogas has been successful in a number of countries but it is a question of how we would support it and increase that biogas into the network.

In terms of the level that could be reached, in the draft national energy and climate plan a level of around 3% of the heat usage in the country was flagged. Gas Networks Ireland is talking about levels of 20% or 30%. There is a good deal of potential in this area, and Ireland has one of the highest potentials for biogas because of our agricultural sector in particular. However, in terms of how we would fund that and put it through, that work needs to be done over the next period.

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