Mr. Paddy Phelan:

I can come in on that. A similar question was asked on hydrogen. We secured European INTERREG funding through the South East Energy Agency. This is typically how pilot projects come about. Regional energy agencies such as the South East Energy Agency are constantly looking out for opportunities to support supply chain development. The anaerobic digestion facility in Portlaw, north County Waterford, is currently compressing. It got funding for its biomethane compression set from an INTERREG programme. For the past nine months, it has been supplying virtual pipeline gas to a Kilkenny County Council machinery yard and a Wexford County Council fire station by a canister mechanism. Subject to agreement, that project will soon be able to inject its biomethane into the gas network system. This will allow for the demonstration of both modes of roll-out of biomethane. In the initial pilot, it is for heat and the specific programme is around heat but its location in the machinery yard means there is an opportunity in the area of transport also. That is a practical example but there are economics involved in that, be it through the grid or the virtual pipe system.

We have done extensive studies and mapping and if we take a region like the south east, there are 49 urban areas that are not connected to the current fossil gas system. All the modes and opportunities are needed, including electricity, pipeline gas with an increased blending of hydrogen - I believe it can potentially be up to 23% - as well as an increased potential for biomethane injection. However, that biomethane will not hit the system if it does not get the supports Mr. Finan mentioned and we touched on earlier in terms of operational supports. Biomethane is more expensive to produce than wind and solar but it provides significant upstream and downstream benefits around the circular economy, and also jobs and rural economies.