Mr. P.J. McCarthy:

There are technological options for renewable heat, in particular. When we were considering our policy document, we considered the most economic use of biomethane. There are separate studies that examine all the different technologies for renewable heat, in particular, and acknowledge the role of certain technologies, including geothermal options such as air-to-water systems. Those technologies all have a role to play and are economically applied. The most economically advantageous use of biomethane is in thermal demand and heat. Transport must also be considered. If we are considering value for money, and assume a cost of circa€2 billion, it is like any other technology and policy in that we need to be in a position to be able to deliver. We have already missed our 2020 targets. We have seen indications this morning that we are on the road to miss the 2030 targets. As was mentioned earlier, the danger here is that we are looking for the position of perfection before we even start. The danger is that we will never reach perfection unless we start somewhere. By collaborating with the Government, industry and the farming representative groups, and developing an AD charter and alignment with European and national policies, we are acknowledging that everybody has a key role to play. What we are doing specifically with the integrated business case is taking the heavy lifting away from the Government. All we are asking of the Government is to provide policy support through the renewable heat obligation, RHO, and capital funding. We are not looking for enduring Exchequer funding.

We recognise there are challenges. We must collaborate with the academic expertise of Teagasc, MaREI and other institutions to design this correctly. They will guide the industry to ensure we eliminate or avoid any negative environmental consequences. We are never going to reach perfection before we even start is my point. I think that €2 billion and another €1 billion in capital grants is extremely good value for money when we can decarbonise two of the most difficult sectors, namely, transport and agriculture, and support our pillar industries in an agrifood sector that is exporting nearly €16 billion per year, employs 140,000 people and is the backbone of our rural economy.