Mr. Se?n Finan:

On behalf of our members, we thank the Cathaoirleach and the committee members for having us here to present. My colleague, Pádraic Ó hUiginn, has specific responsibility for delivery of our national just transition-funded midlands bioenergy development project and he will deliver the second part of this statement.

The Irish Bioenergy Association, IrBEA, was established in 1999 as the representative body for the bioenergy sector on the island of Ireland. Our members and work span the sustainable bioenergy sectors of biomass, biogas, biofuels, biomethane, biochar, energy crops and wood fuels. Our biogas members cover the full supply chain and include farmers, feedstock suppliers, biogas developers, technology providers and energy users. IrBEA is an active and proud member of the European Biogas Association, EBA.

The biomethane sector is booming across Europe while the sector’s potential in Ireland has not been realised. There are more than 20,000 operational anaerobic digestion plants around the EU, and several million globally. Favourable policies are driving this development across Europe. Currently, France is commissioning as many as three to four biomethane plants per week, while Denmark has a new support policy in development. Ireland is far behind its EU counterparts in policy development terms and in using this technology, with currently only approximately 20 AD plants operating here.

This AD technology to produce biogas and biomethane can be deployed at many different scales. Micro-scale units can be used in processing domestic food waste to produce biogas for domestic use. Small-scale units can be deployed on farms or business premises where on-site wastes and residues are used to offset existing fossil fuel-based energy sources. The scale of this development will need capital support to be economically viable, and the level of capital support required in this regard is being assessed through IrBEA’s Department of Agriculture, Food and the Marine European Innovation Partnership-funded small biogas demonstration project. At a medium- to large-scale, co-operative-style basis, which we are here to speak about, feedstocks would be sourced from many different suppliers, with the energy output supplied to a grid or distribution network. This scale, however, would need ongoing support in the form of operational support in the medium to long term to make it viable.

The development of favourable policy incentives for wind and solar in the form of the renewable electricity support scheme, RESS, is proof that, with a supportive policy structure, projects will be built, the market mobilised and the sector developed. While the renewable electricity sector has its challenges, it has a supportive policy environment, is on the road to delivery, and can focus on the regulatory challenges to the roll-out of projects. From the perspective of the biomethane sector, though, we are barely at a starting point and waiting for this basic first step. This means development of the biomethane strategy needs to be fast-tracked and delivered urgently.

The promised biomethane strategy needs to be, and we ask the committee to seek to ensure it is, developed in consultation with key stakeholders, including the AD facility operators who understand the cost of production and the economic models. It must also contain medium- to long-term supports, incentives and measures, and details of these aspects, to mobilise the Government target. Additionally, the cost gap must be bridged through long-term policy, support, incentives, and measures. The support introduced must be adequate to give market certainty and ensure that it is enough to be able to develop, operate and maintain facilities. It must be recognised that a fair return is required along the supply chain for all stakeholders, from the farmer producing feedstocks to the operator running the plant and all those involved in that regard.

To deliver the Government's target, we must undertake this endeavour on a phased basis. It must also be ensured that amendments can be made based on the lessons learned across each phase. Equally, it must be ensured that the biomethane sector is complementary to our agricultural and farming sectors rather than competing with them. We strongly encourage this committee to exert its influence in ensuring the biomethane strategy is developed in a timely manner and that the key areas that have been listed are all addressed in the strategy. I hand over to Mr. Ó hUiginn now to deliver the final part of our statement.