Dairy farmers affected by Wednesday’s news that the derogation level will drop from 250kgN/ha to 220kgN/ha will be the drivers of the first wave of anaerobic digestion (AD) development in Ireland.

This is according to Minister Eamon Ryan, who was speaking at Thursday’s Energy Ireland Renewable Gas Conference.

Minister Ryan explained that the 3,000 farmers affected are typically dairy farmers with higher levels of capital than other farmers.

More land

He said that while some farmers may take on more land to deal with the new limits, one option for dairy farmers is to become involved with the energy transition to biomethane.

Minister Ryan explained to a packed room of conference delegates that if the dairy farmers produce grass for AD plants instead of producing grass to feeds cows, thereby reducing cow numbers and slurry production, then this will help them to meet the new limit.

He said that he believes a lot of dairy farmers will see this as a profitable option for them to meet the new limits and they will be central in the first wave of AD development.

The new limit comes into effect in January 2024. The Irish biomethane strategy is due to be published within weeks and there is currently no new AD plants in development.

Ryan committed to de-risk planning, policy and financing around AD projects and reaffirmed his belief that Ireland’s 2030 targets are achievable.