In a significant development for the Irish biomethane sector, Greengate Biogas launched a community consultation process for its first biomethane plant in Powerstown, Co Carlow in March of this year. The plant will process up to 700,000 tonnes of agricultural residues to produce approximately 250 GWh of biomethane and capture 30,000 tonnes of biogenic CO₂ annually. The biomethane will be injected into the local gas network, providing a sustainable energy equivalent to the heat demand of approximately 22,700 households.
Of even greater significance is the €32 million Gas Networks Ireland central grid injection (CGI) facility in Mitchelstown, Co Cork. The new facility, which is currently under construction, will enable the injection of biomethane into the national gas network. When fully operational, it will have the capacity to inject up to 700 GWh of renewable gas into the gas network every year, reducing emissions by around 130,000 tonnes of CO₂ annually when using 100 per cent biomethane.
On its own, this will help to meet 12 per cent of the target set under the Government’s National Biomethane Strategy of 5.7 TWh by 2030 which is sufficient to meet 10 per cent of the country’s current fossil gas demand.
There has been some doubt cast on the realism of that target but, Derarca Dennis, assurance partner and sustainability services lead, EY Ireland, believes it is “ambitious but not beyond reach”.
RM Block
“Achieving this goal would require a scale-up from the current production of 0.075 TWh annually, necessitating the development of between 140 and 200 anaerobic digestion facilities across the country,” she notes. “The Government’s National Biomethane Strategy, published in 2024, outlines a robust framework to support this expansion, including streamlined planning and permitting, financial incentives, and infrastructure development. It also proposes a dual deployment model combining large-scale grid-connected plants with smaller farm-based units feeding into central injection hubs. While the technical potential exists, especially given Ireland’s strong agricultural base, the success of this strategy depends on overcoming logistical, regulatory, and financial barriers. If Ireland can maintain policy momentum, secure investment, and co-ordinate effectively across sectors, the 5.7 TWh target is realistic, though it will require significant effort and collaboration.”
She says Ireland has strong potential to develop a significant biomethane production industry but realising that potential will require co-ordinated action across policy, infrastructure, and investment.
“Ireland’s agricultural sector provides a robust feedstock base, and the country’s existing gas infrastructure is technically capable of transporting 100 per cent biomethane, which positions it well for scale-up,” she adds. “However, the industry is still in its infancy, with only two operational anaerobic digestion (AD) plants currently injecting biomethane into the grid. To meet the 2030 target, Ireland will need to build between 140 and 200 new AD facilities, supported by capital grants and the Renewable Heat Obligation (RHO), which is expected to stimulate demand by requiring fossil fuel suppliers to include renewable sources in their mix.”
The dual deployment model balances efficiency with accessibility, enabling both large-scale and farm-based contributions to the grid, and the small-scale model is particularly attractive for rural development, Dennis points out. “It leverages Ireland’s strong agricultural base and widespread availability of organic feedstocks such as animal manure, crop residues, and food waste. These decentralised units can provide farmers with reliable income streams and contribute to circular economy goals by converting waste into energy and digestate for fertiliser use.”
On the other hand, larger AD facilities offer economies of scale and lower production costs. “Fewer but larger plants may emerge as the market matures, especially if planning and permitting processes are streamlined under EU Renewable Energy Directive provisions. These facilities can be more cost-effective in terms of capital expenditure and operational efficiency, and they simplify grid integration by reducing the number of injection points.”
Denmark is the acknowledged world leader in biomethane with 40 per cent of its gas requirements met from this source. Ireland has the potential to equal or even exceed that. Recent market testing revealed that 176 projects across the country could collectively produce up to 14.8 TWh per year, equivalent to 26 per cent of current demand, according to Dennis. “This suggests that Ireland’s production potential is far greater than the current target, and with the right enabling conditions, the country could eventually meet or exceed the 40 per cent benchmark already achieved by Denmark.”
However, several obstacles must be surmounted before this potential can be realised. “One of the most pressing barriers is the absence of a long-term, stable regulatory and legal framework,” says Dennis. “Investors and developers need certainty across the entire biomethane value chain – from feedstock sourcing and production to grid injection and end-use. Without clear and consistent policies, including feed-in tariffs, subsidies, and digestate regulations, the market remains fragmented and risk-prone.”
Unsurprisingly, planning and permitting delays also present a potential hurdle to overcome. “Scaling up to the required AD facilities by 2030 will demand streamlined approval processes and proactive engagement with local communities.”
