Proposals for a significant new pathfinder project in Northern Ireland (NI), aimed at showcasing how a biomethane industry can be built there, are set to be presented to the Executive.

Published by the organisation Action Renewables and in collaboration with the gas network operators, the plan is seeking £30m (€36m) in funding to provide 50% capital grants for three new large-scale anaerobic digestion (AD) plants, which will produce biomethane for injection into the gas network.

A report on the project proposal, prepared by KPMG, was presented at the Phoenix Renewable Gas Conference in Belfast last week.

The Irish Farmers Journal was among the 250 delegates that attended.

North leapfrogged by south

NI has been a leader in AD on the island, with over 80 plants now in operation. However, the majority of these plants are farm-scale and produce electricity.

The focus is now on biomethane, a refined version of biogas, which can be injected into the gas grid or used as vehicle fuel. The model for biomethane production is very different from the ones currently in place in NI and will take a lot of work to establish, despite the strong appetite.

The Republic of Ireland’s (ROI) frustrating and difficult pathway to supporting a biomethane industry was the source of much discussion at the conference, as delegates heard how the ROI has “leapfrogged” NI in terms of AD development, despite no new project actually being built yet.

Despite the lack of new projects, since 2019, ROI has set a defined biomethane target, published a national biomethane strategy with an implementation group, launched a capital funding scheme and is currently developing an obligation scheme to create a market for the renewable gas.

None of this is in place in NI, so despite having 80 operational AD plants, it is five years behind the ROI.

What is a pathfinder project?

In order to catch up, the above needs to be accelerated.

However, as suggested at the conference, rather than developing the policies first and then establishing a biomethane industry, the proposal in the position paper is to build three demonstration or “pathfinder” AD plants, which would help inform the policy as it is being developed.

The project is seeking £30m (€36m) in capital support to provide a 50% grant to build three new large-scale AD plants. The three plants would be capable of producing 120 gigawatt hours (GWh) of biomethane, equivalent to decarbonising the gas demand of 10,000 homes.

It follows the same basis of support that the ROI has adopted, by providing capital grants to reduce construction costs and ultimately lower the gas price, rather than providing production support.

Unlike the ROI, however, the pathfinder projects would recieve 50% capital grants of the build costs (total build costs are estimated at £20m (€24m) per plant), compared to 20% offered there.

The average size of AD plants in development in the ROI is around 40 to 60GWh in capacity, equivalent in size to four to six times the size of the average farm AD plant in NI. This is what the pathfinder project is basing the scale of proposed projects in NI on.

Based on current planning applications for plants of sufficient scale, it is likely that the capital grant could be deployed over a two-year period to fund construction.

A matter of survival

There are five gas network operators in NI who own and operate the gas network there, unlike ROI, where it is managed by one semi-State organisation, Gas Networks Ireland.

The NI operators have banded together and are advocating strongly for the adoption of biomethane in their gas network.

In order for gas network operators to futureproof themselves, they must transition to transporting renewable gases. As pointed out by Professor Brian Ó Gallachóir of UCC at the conference, the aim is to move away from natural gas use entirely to achieve a net-zero economy and enhance energy security. Therefore, integrating biomethane into the system is crucial for the survival of these operators.

While no national target is set for biomethane yet, the gas grid operators believe this should be 1.5 TWh of biomethane by 2030, or 10% of NI gas demand

Is this needed?

Agriculture Minister Andrew Muir is strongly supportive of developing a biomethane industry, provided it contributes positively to addressing the nutrient challenges in the region.

There is significant interest in developing the sector, according to permanent secretary of the Department for the Economy, Ian Snowden, who spoke at the conference.

However, he noted that biomethane tends to be heavily subsidised in mainland Europe, and that they will need to explore ways to develop the sector here in a manner that is both economical and sustainable.

Over 50 responses have been received, following a call for evidence on developing a biomethane industry in NI, with the responses set to be published before Christmas.

The aim is to have a draft biomethane policy out for consultation in early 2025, and it may follow the ROI model of a grant scheme and an obligation.

Proponents of biomethane argue that the technology is already well established across Europe, making pathfinder projects unnecessary, and instead call for an immediate introduction of supportive policies to allow the sector to develop.

However, in reality, progress can be slow, as demonstrated by the ROI’s painstaking journey towards developing a biomethane framework.

Despite having an established AD industry, there are still many aspects that require further development. If these elements could be developed in tandem with building three modern biomethane pilot projects, the overall process might be accelerated.