Dr. James Browne:

I will outline to the committee some of the practical realities when one goes down the decarbonisation route. It is very important to understand that when we talk about electrification, we are talking about very high energy-efficiency technologies such as industrial heat pumps and mechanical vapour compression technologies that look to recycle heat within processes. From an energy-efficiency point of view, it is very good because one is taking the overall energy usage down by several factors. There are a couple of problems in Ireland. First, the cost differential between electricity and natural gases is considerable by comparison with many European countries.

One point to note is that the infrastructure upgrades required are significant and industry is having to bear the full cost of those upgrades. For example, Irish Distillers and Midleton Distillery now have to pay for an upgrade to our electrical supply from 10 KV to 38 KV. The cost of that infrastructure is in the tens of millions with long lead times. All the effort is having to be put in by the industry and all the costs borne by industry, yet we are trying to decarbonise our processes not only for our internal goals and targets but also as part of the national effort to decarbonise the industry.