Dáil debates

Tuesday, 18 May 2021

Saincheisteanna Tráthúla - Topical Issue Debate

Natural Gas Grid

Photo of Joe FlahertyJoe Flaherty (Longford-Westmeath, Fianna Fail)
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The Minister of State, Deputy Chambers, is well aware that the midlands is the battle line for decarbonisation following the fast-tracking of the closure of the Bord na Móna peat-production process. The just transition fund was introduced to compensate the midlands and help to ensure it will not be left behind, with its local economy being forced to adjust, as the rest of the country reaps the carbon-reduction benefits.

Thanks to Center Parcs, the gas pipeline was extended to Ballymahon. As we seek to offset the impact of fast-tracked decarbonisation in the midlands while at the same time safeguarding future energy supplies for local industry, it is vital that we seek to extend the pipeline to Longford town and Edgeworthstown. This would facilitate connections to major energy users. There are as many as ten major industries across the two towns, employing nearly 3,000. The pipeline would allow them to reduce their energy emissions, utilise energy efficiently and apply renewable technologies while exploring expansion potential. At least two of the industries are finalising major expansion plans. A positive indication regarding the availability of gas would certainly be welcome at this point. This would take place in tandem with Longford County Council's plans to develop an anaerobic digester in the Lanesborough-Mountdillon area as part of the just transition process following the closure of the local power station. At the heart of the anaerobic digester plan is the determination to deliver renewable energy back to the grid, driven and supported by the local communities most affected by the process of climate action.

This holistic package will help to develop employment opportunities and economic development, enhancing biodiversity and environmental quality while promoting community-based innovations to decarbonise the difficult areas of agriculture and transport. Longford County Council has made a compelling case for the gas line extension to Longford town and Edgeworthstown under the climate change action plan.

I am aware that the application is currently being reviewed by the Department of the Environment, Climate and Communications. The hope is that the proposal will find favour in the next round of capital funding. As it stands, however, the funding gap that exists makes the project unviable without the benefit of capital funding. Members will be aware that we discussed the Climate Action and Low Carbon Development (Amendment) Bill 2021 at length in this House over the past two weeks and indeed we have been discussing it for much longer than that. The truth is that this is an innovative, timely proposal from a capable and far-sighted local authority. It has the potential to replace carbon-intensive peat-fired energy production with a carbon neutral energy source and, through the extended gas line, also decarbonise other difficult areas. However, it can only be delivered with investment at scale. It is crucial that the next round of capital funding acknowledge the well articulated case to extend the gas line to Longford and Edgeworthstown.

Photo of Jack ChambersJack Chambers (Dublin West, Fianna Fail)
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I appreciate Deputy Flaherty providing me with the opportunity to respond to this important issue. I am answering on behalf of my colleague, the Minister, Deputy Ryan. The routing of gas pipelines, or the connection of towns to the gas pipeline network, are matters for Gas Networks Ireland which is a commercial State-sponsored body under the aegis of the Minister for Housing, Local Government and Heritage, and for the Commission for Regulation of Utilities, the statutorily independent energy regulator. Gas Networks Ireland is mandated under section 8 of the Gas Act 1976, as amended, to develop and maintain a system for the supply of natural gas that is both economical and efficient. The Commission for Regulation of Utilities has, since 2002, been charged with all aspects of the assessment and licensing of prospective operators which wish to develop and-or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002. The Minister for the Environment, Climate and Communications, therefore, has no direct statutory function in relation to the connection of towns to the gas network.

The programme for Government commits to an average 7% per annum reduction in overall greenhouse gas emissions from 2021 to 2030, which is a 51% reduction over the decade, and to achieving net zero emissions by 2050. Any measures taken to reduce energy emissions will be coherent with our overall decarbonisation goals.

The Deputy also raised the issue of how large energy users can reduce their energy emissions, utilise energy efficiencies and apply renewable technologies. In this regard, a range of other supports and schemes for businesses are also funded by the Department under the Sustainable Energy Authority of Ireland, SEAI. These include the excellence in energy efficiency design, EXEED, grant scheme supporting businesses to undertake design, construction and commissioning projects using the EXEED certification process. It also includes the support scheme for renewable heat, which financially supports businesses in adopting renewable energy for heat, including heat pumps and heating systems using biomass or biogas. Project assistance grants help to fund feasibility studies and business cases for energy performance improvements. They also include SEAI's training, information and advisory services, which include the online, free-to-use SEAI energy academy and the SEAI's large industry energy network where members work together to improve energy performance and share experiences.

While I cannot specifically provide any assurance in relation to extending the gas grid to Longford, I hope that some of the information about how businesses can be supported to reduce their emissions is of benefit to the Deputy.

I will provide further detail on the importance, as the Deputy mentioned, of the just transition. We have a strong programme for Government commitment on the just transition for the midlands region, including the Deputy's home county of Longford, counties Westmeath, Offaly and Roscommon and many other areas currently affected by the transition process and our decarbonisation goals. The ongoing investment in the midlands region and its strengthening will be important for jobs and also in ensuring that communities are brought with us in a constructive, collaborative way.

The Deputy referred to the importance of the just transition and investment in the midlands region. I will provide further detail on that in a moment. I will also bring the specific information about this proposal to the attention of the Minister.

Photo of Joe FlahertyJoe Flaherty (Longford-Westmeath, Fianna Fail)
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I thank the Minister of State. I know that he appreciates that the proposal from Longford County Council is far-reaching and on the button as we work on climate action and towards our hefty 2030 targets. There is considerable debate in County Longford on the future of the now dormant Lough Ree energy plant. Local man and engineer, John Hanley, has ambitious plans for an energy hub on the site. A transition to a renewable gas network for high energy use industries would certainly create the opportunity to potentially utilise the existing infrastructure at the ESB Lanesborough site. Crucially, the proposal would also increase the attractiveness of Longford as a destination for inward investment in line with identified Project Ireland 2040 rural development initiatives. As the Minister of State correctly said, just transition is important for the midlands but, crucially, it needs to do exactly what it says on the tin. For half a century, Longford and the midlands were the cradle of Ireland's energy production. Extending the gas line, the development of an anaerobic digester and the creation of an alternative energy hub on the grounds of Lough Ree power plant would certainly put the county back centre stage in the quest for decarbonisation.

Photo of Jack ChambersJack Chambers (Dublin West, Fianna Fail)
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I thank Deputy Flaherty for the opportunity to respond. As I said, the routing of gas pipelines or the connection of towns to the gas pipeline network are matters for Gas Networks Ireland and the Commission for Regulation of Utilities. The Minister for the Environment, Climate and Communications has no direct statutory function in relation to the connection of towns to the gas network.

The Government is committed to a just transition in the midlands region and has dedicated significant funding to supporting workers, companies and communities. A significant package of supports has been put in place in the midlands for the transition away from peat-fuelled power. This includes €20 million for the midlands retrofitting project, €108 million for the Bord na Móna peatlands restoration project, €25 million for the just transition fund, and €90 million for the National Parks and Wildlife Service peatland scheme. The Government announced provision of funding offers to over 60 projects throughout the region, including private sector and local authority projects for communities to create a strong, green, sustainable economy. These projects will contribute to making the midlands a more attractive and sustainable place to live and work. The Government has signed contracts with 17 projects so far. Some 16 projects are already up and running in the midlands, supported through the fund. They have created 28 full-time jobs and will result in 175 indirect jobs. The five projects in strand two which have received final offers to date are worth €2.5 million. The Department is assisting remaining projects through due diligence and expects these to be finalised in the coming weeks.

The Department will publish a full profile of anticipated expenditure and project impact to the midlands region by the middle of this year. I note the range of supports being developed under the climate action plan, as I set out, for the SEAI to help businesses to decarbonise.

I will raise the important points which the Deputy has outlined with the Minister for the Environment, Climate and Communications. The Government takes seriously the whole principle of a just transition and supporting workers, communities and everyone in the midlands region as we go about this change. I appreciate the Deputy prioritising this matter and raising it tonight. I will bring the details to the attention of the Minister.