The State remains heavily reliant on natural gas, with an estimated 725,000 homes and businesses depending on the network for heating, cooking and industrial use. The majority of this, some 80 per cent, is imported from Scotland, while the Corrib gas field supplies the remaining 20 per cent, meaning the State is hugely import dependent.
In line with the energy transition, efforts are being made to decarbonise the gas grid. The Government has set a target of 5.7 terawatt hours (TWh) of indigenously produced biomethane by 2030, meeting 10 per cent of the national gas demand. Central to this is the development of up to 200 anaerobic digesters by 2030, producing biomethane gas from various types of waste but principally from agriculture.
According to Russell Smyth, partner and head of sustainable futures at KPMG in Ireland, biomethane will be essential to the State’s climate strategy, particularly for sectors where electrification is not possible, such as high-temperature heat and heavy transport.
“These sectors require dense, dispatchable energy that electricity alone cannot reliably or economically provide,” he explains. “Biomethane, produced sustainably from organic waste, is carbon neutral and can directly replace fossil methane using existing gas infrastructure.”
RM Block
It also supports the agriculture sector. “A domestic biomethane industry would boost rural economies through job creation and farm income diversification.”
But while the Government’s target of 5.7TWh of biomethane by 2030 is a positive and realistic starting point, Smyth maintains that it remains a “modest ambition” when compared with other European countries.
Denmark, widely regarded as a biomethane success story, already has biomethane making up 33 per cent of the gas in its grid and is aiming for 100 per cent by 2030, while France has also made significant progress, nearly doubling its installed biomethane capacity since 2022 and reaching close to 12TWh by the end of 2024; it has set a target of 44TWh by 2030.
“While Ireland’s agricultural sector differs in structure from those of Denmark and France, there is still considerable untapped potential to expand biomethane production and contribute more meaningfully to decarbonising the gas network,” Smyth says.
At the current pace of progress, meeting the 5.7TWh biomethane target by 2030 will be challenging. Only a small number of the 200 anaerobic digesters are currently operational. However, more facilities are expected to begin injecting biomethane into the grid by the end of the year. Momentum is beginning to build, Smyth admits.
“The introduction of the Renewable Heat Obligation is expected to reduce policy uncertainty and establish a viable route-to-market for indigenous biomethane,” he says. “This should provide the foundation for rapid growth in the sector over the coming years.”
While natural gas continues to play a central role in meeting Ireland’s energy needs today, particularly in sectors that require high heat and reliability, the long term ambition is to progressively displace it with renewable gases, according to Gas Networks Ireland’s head of business development Karen Doyle. “Decarbonising sectors that are difficult to electrify, such as manufacturing, heavy transport and industrial heating, will require scalable, dispatchable alternatives like biomethane and green hydrogen.”
Gas Networks Ireland is working to deliver a repurposed, resized and fully decarbonised gas network by 2045, capable of transporting 100 per cent renewable gas, with a split of approximately 30 per cent biomethane and 70 per cent green hydrogen.
With the State identified by the European Commission as having the highest per capita biomethane production potential in Europe, the sector is well positioned to make a significant contribution to both energy and economic resilience,” says Doyle. “We’re building a €32 million central grid injection facility in Mitchelstown to enable biomethane injection from remote locations. It’s expected to support 12 per cent of the 2030 target, with strong market interest already exceeding capacity.”
Gas Networks Ireland has also signed memoranda of understanding with CycleØ and Nephin Renewables, both active in developing anaerobic digestion plants, to accelerate the integration of biomethane production into the national gas network.
“These partnerships reflect growing market momentum, and we expect to formalise further agreements with additional producers as the sector continues to scale. We are also working closely with large energy users who are actively considering how biomethane can support their decarbonisation goals and be integrated as part of their overall energy mix, with some already entering into long-term agreements that help underpin the commercial viability of new projects.”
