Northern Ireland steps closer to sustainable biomethane strategy

The Northern Irish government has taken further steps towards unlocking the region’s biomethane potential following a call for evidence.

In April, the government published a report outlining the responses to a public consultation, which closed in August 2024, to devise an effective policy framework to support the development of an economic and sustainable biomethane sector in the province. The government also reaffirmed its commitment to developing a sustainable biomethane strategy as part of its latest Energy Strategy Action Plan.

During the annual Energy Ireland conference in June, Northern Ireland’s economy minister, Caoimhe Archibald, commented on Northern Ireland’s emerging biomethane strategy, saying that the responses to the call for evidence had given the department considerable "food for thought". 

There has been significant interest in the province in exploiting the potential of biomethane, a purified form of biogas which is produced by the anaerobic digestion (AD) of organic matter in an oxygen-free environment, to support Northern Ireland’s path to net zero. In November 2023 the first injection of locally produced biomethane was welcomed into the gas network in Dungannon.

Local gas network companies have established a target for 1.5TWh biomethane in the network by 2030, but the latest research indicates that Northern Ireland has the potential to produce over 6.12 TWh per annum of biomethane from agricultural waste and underutilised grassland – equivalent to more than 80% of the distribution network’s current gas demand.

The government’s report sets out the responses from industry stakeholders on a range of issues, including the potential for setting specific biomethane targets; the need for effective management of feedstocks and nutrients that are crucial to sustainable production of biomethane; the best approach – large-scale vs small-scale – to help the sector grow effectively and sustainably; potential options for an affordable mechanism to support the sector’s development; consideration for the economic regulation of the production of biomethane; options for the certification of biomethane as a renewable gas; and policy options relating to the fair treatment of network connection costs and any associated impacts on consumers.

Due to the relatively high costs of producing biomethane compared with natural gas, biomethane production in other countries is typically subsidised. The report endeavoured to identify challenges, a policy framework and additional added value streams that could support the biomethane sector to become economically viable without the help of long-term subsidies.

Commenting on the sidelines of Energy Ireland, Catherine Burns, energy expert at Pinsent Masons, welcomed the minister’s comments and the government’s response, but said the report made it clear there were still significant challenges ahead of developing a sustainable, large-scale biomethane sector in the country. “A sizeable portion of respondents backed the large-scale approach, citing advantages such as improved nutrient recovery, stronger environmental oversight, streamlined grid connections, and lower operational costs,” she said. “However, nearly as many – 39% – challenged this model, warning of increased traffic from long-distance feedstock transport, degradation of material quality whilst on route, and more complex permitting processes.”

Burns also highlighted that the consultation elicited strong support for a cooperative model, which has already proved successful in Northern Ireland’s agricultural sector. “The large majority of respondents – 65% – endorsed shared ownership structures to reduce costs, streamline logistics, and distribute benefits more equitably,” she said.

There has been growing interest in establishing AD plants to produce biomethane across Northern Ireland. There are already 90 AD plants in operation, most of which receive a subsidy under the NI Renewables Obligation (NIRO) scheme to produce biogas to generate electricity, which is then fed back into the local grid. The report cited that some respondents suggested that cooperative models “could be used in developing larger plants to allow for greater farmer involvement and/or ownership.”

Ciaran McNamara, an infrastructure specialist at Pinsent Masons, said it was clear from the report that there was still demand for more AD plants. “Many respondents of the call for evidence agreed that Northern Ireland’s overall biomethane strategy should focus on large-scale AD plants, developed through cooperative models,” he said. “This approach, underpinned by Northern Ireland’s rich and diverse feedstock base, is seen as the most effective way to maximise resource use and deliver meaningful progress toward net zero.”

Burns said the call for evidence report underscored “strong support for a coordinated, sustainable, and economically viable biomethane sector that aligns with Northern Ireland’s long-term climate and energy goals.”