Mr. P.J. McCarthy:

I appreciate that. Recent work has determined that, with appropriate Government policy and legislative supports, AD biomethane utilising sustainable agricultural feedstock has the potential to replace natural gas in a way that is technically feasible and commercially viable, with associated biofertiliser benefits. This would reduce emissions by approximately 700,000 tonnes per annum by 2030, utilising the aforementioned methods. It would, at the same time, provide farmers with a diverse and reliable income stream, support the development of a circular bio-economy and rural economy and develop opportunities to diversify incomes.

Our policy ask is for implementation of article 23 by 2023. That would see the introduction of a renewable heat obligation, RHO, scheme to socialise the cost of biomethane production. Members of the RGFI and the Project Clover industry-led collaboration have been proactive in urging the Government to introduce an RHO as early as possible and welcomed the opportunity for public consultation in October 2021. A Government announcement on an RHO is expected this year but timing is of the essence, given the imperatives in respect of sustainability and energy security requirements.

Subject to Government approval, RGFI and Project Clover have secured €24 million in funding from the Ireland Strategic Investment Fund, ISIF, subject to commercial terms and conditions, to help develop this project. However, capital funding supports are necessary to support sustainable agricultural feedstock and the roll-out of those target plans. The industry is ready, willing and able to play its part in the proposed integrated business case for biomethane and support the transition to carbon neutrality. However, the right market conditions to support a scalable and renewable agri-based biomethane industry are essential if we are to remain competitive and sustainable.

We are asking the Government and the committee to provide declared policy support for the long-term strategy and a roadmap for a national biomethane strategy, implement the renewable heat obligation scheme by 2023 with a mandatory target and allocate capital funding of €24 million for pilot projects to 2025 and capital funding for full roll-out to 2030. In addition, we are seeking consultation on the optimum economic and environmental benefit structure of a national carbon farming initiative.