Mr. P.J. McCarthy:

In 2019, through the collaboration with industry-led initiatives, and recognising that the Government has significant tasks across sectors in looking at solutions of decarbonising, we looked at the opportunity of what industry could do by way of coming up with solutions. We engaged with KPMG. We did a full economic assessment of AD biomethane in full compliance with the Public Spending Code, first to inform policy in Government around the opportunities, options and support schemes and obviously to advise on the size and scale of AD plans. It is important that we focus on the industry's need to be competitive and aligned with our European counterparts on the cost of producing biomethane. From then, the interest has been significant both at industry and gas consumer level, and more importantly, in the agrifood production sector. Operators in the sector are looking at their scope 1 and scope 2 emissions, which AD biomethane will significantly reduce. The sector has already implemented many of the recommendations on energy efficiency that have been brought to bear with current policies. Operators are looking at the scope 3 emissions, in particular, because there is a significant carbon footprint attached to that category of emissions. We are dealing with a very well-educated, commercially-minded agriculture sector and specifically the beef and dairy sectors. Everybody is realising that there are challenges and that we need to move at pace. In particular, under article 23 of the renewable energy directive, member states must seek to implement the obligations that we have promoted under the renewable heat obligation scheme. It is our opinion and belief that entering into a public consultation is probably not the best use of our time. It is included in the renewable energy directive as an option to exercise. We should have exercised it a lot sooner. We should not be consulting and over-consulting. The policies have already been drafted and consulted upon at a European level. It is a missed opportunity and we need to move our timelines on a bit quicker. The support mechanisms are designed so that it is not an enduring subsidy regime requiring Exchequer funding. The industry has come up with an integrated business case that is complementary to all farm disciplines. There is no question of giving up one discipline over supplying into an AD plant or a contract to supply. They mechanisms are being designed to look at diversification, but will retain some of the core principles, obviously. Our experience across Government Departments is that they have been very engaging and our engagement has been constructive. The Departments are overwhelmed. If we have any feedback for the committee, it is that more resources need to be provided to the Departments. They have a lot of work to do. We work closely with our colleagues in the Departments in bringing forward these solutions and in trying to make them as easy and implementable as possible.

Our key ask of Government is very simple. The cornerstone is the RHO scheme. We are asking for 50% capital grant funding. We must get the industry to an adequate level of maturity. We also need to accelerate the process and ramp it up, in line with the REPowerEU Plan. The four key dimensions to realising that include feedstock mobility, which is relevant to our feedstock and pasture lands. The second dimension is planning. I do not need to go there. We need to resource local authorities and communities and inform and educate them. We must also resource up our planning system. The third dimension relates to the market conditions. We must look at what we need to do to debunk some of the regulatory barriers that we are facing right now and how we can do that. Lastly, there is the funding dimension. We are fortunate to be in a position to work closely with Ireland Strategic Investment Fund, ISIF. It has agreed in principle, subject to terms and lending conditions, to fund 50%. We have the anchor fund. There are a number of other funders that want to get involved. We have looked at €200 million. That can be a roll-up facility. The important thing is that the farmer is central to all of it. We are looking at end-to-end funding over a 15-year period.