Mr. Se?n Finan:

I thank the Deputy for his questions. We understand a biomethane strategy is being developed and we have been clear on what we believe that should contain and include. For biomethane to be deployed, we have a target of 5.7 TWh by 2030, which is reflective of Ireland's contribution to the 35 billion cu. m target at an EU level. We are clear the strategy currently being worked on needs to contain whatever incentives, supports and mechanisms are available to fully support the widespread deployment of biomethane throughout the country. The benefits for a broad range of sectors are known and have been widely articulated for many years.

There are a number of fundamental issues we feel should be addressed. One is the gap that has arisen given that fossil gas is dropping in price from the high level achieved 12 to 18 months ago. That has made the economics of biomethane more difficult. As a result there, is a gap as regards the cost of production. As carbon taxes on fossil fuels increase over the coming decade, the price of fossil fuels will increase, which will help with the economics of biomethane. However, all European countries that have mobilised a biomethane sector have given it policy and financial support. We believe that should be an ongoing support. There is talk of capital support but the volumes of capital are significantly high and we cannot bank projects based on capital support. How will we pay for our feedstocks in five, seven or ten years' time if the price of fossil gas remains at a low level? The other challenge associated with biomethane is that the price of feedstocks can fluctuate. We have seen the production costs associated with producing grass and other materials fluctuate.

There are a number of variables involved so the policy mechanism that is introduced needs to be flexible to accommodate them all. If we are to realise the opportunity that exists, an operational support will be required that is ongoing over a period of time.