New government funding signals fresh momentum for Ireland's biomethane sector

Shani Stallard and Garrett Monaghan were commenting as the Irish government closed expressions of interest (EOI) for a €200 million capital grant scheme that is expected to boost biomethane development in the country.

The three-week process, which closed on 30 October, invited prospective developers to submit information on projects that may be eligible for support under the scheme.

Darragh O'Brien, minister for climate, energy and the environment, hailed the scheme as an “important milestone” in delivering Ireland's national biomethane strategy (675KB / 54 pages PDF), which aims to produce up to 5.7TWh of indigenous biomethane annually by 2030.

Biomethane developers were invited to submit EOIs for projects eligible for capital support under the scheme. The scheme will operate through a number of funding rounds between 2026 and 2030 and will be followed by a formal application process.

Stallard, an energy sector expert with Pinsent Masons in Dublin, said the process marked a meaningful juncture in developing Ireland’s nascent biomethane sector. “The scheme represents an important development for developers seeking to bring anaerobic digestion and biomethane projects through development and into operation,” she said.

The biomethane sector is already building momentum, with seven anaerobic digestion plants recently completed or under construction.

However, the EOI follows recent warnings issued by Renewable Gas Forum Ireland, an industry group that represents the views of the renewable gas industry, that the country still has insufficient infrastructure in place to support the government’s ambitious goals for biomethane.

In early October, Gas Networks Ireland opened a new €32 million central grid injection facility. Once fully online, the plant is expected to inject up to 700 GWh of biomethane annually into the national gas network, but this is still equivalent to only around 12% of the government’s 2030 target.

Stallard said this EOI provided developers with an early opportunity to bring forward projects and demonstrate their overall project readiness. However, she said it was important for developers also to recognise that submitting an EOI was not a guarantee of funding, nor was it a prerequisite to participating in the subsequent formal application process.

Commenting on the EOI, Monaghan, an energy industry expert with Pinsent Masons in Dublin said: “Developers should use this period to stress-test project readiness ahead of the formal funding call, including planning and permitting strategy, feedstock arrangements, grid connection or alternative offtake routes, land rights, financing requirements and delivery timelines.” When participating in such processes, Monaghan said developers should always pay attention to the eventual state aid and funding conditions, and how any grant support would “interact with their project’s wider financing and commercial structure”.