Cormac Devlin (Dún Laoghaire, Fianna Fail)
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196. To ask the Minister for Environment, Community and Local Government if his Department has examined waste heat recovery from potential electric arc furnace operations for district heating or industrial users; the proposed supports available under the heat retrofit or Exchequer-funded schemes; and if he will make a statement on the matter. [47217/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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District heating is a proven technology that can play a key role in improving energy efficiency and reducing emissions in the heat sector. It also offers a unique opportunity to decarbonise and modernise heating for public and heritage buildings that are not suited to deep retrofit.

Government policy recognises the contribution that district heating can make to Ireland’s energy and climate goals. This is underpinned by the findings of the SEAI’s 2022 National Heat Study, which concluded that a substantial portion of heat demand in Ireland could be met by district heating. This was further explored by a District Heating Steering Group, whose recommendations were approved by Government and published in 2023.

The expanded use of district heating, based on the use of renewable energy and/or waste heat, in line with the Energy Efficiency Directive definition of "Efficient District Heating", is envisaged to play a key role in the drive towards decarbonising the Irish heat sector. The amended Energy Efficiency Directive, which my Department is currently transposing, contains further provisions to promote the utilisation of waste heat.

The State has to date financially supported the development of district heating networks in Ireland through both the Climate Action Fund and, to a lesser extent, through Exchequer funding, and my Department is currently preparing a business case seeking to establish future State funding (2026-2030) to support efficient district heating projects.

In addition, I have approved the allocation of €5 million through the Climate Action Fund to support pre-construction development costs for efficient district heating projects in Ireland. This support is being introduced to ensure efficient district heating projects are in position to avail of future funding to support the construction phase of these projects.