The Department of Climate, Energy and the Environment (DCEE) has confirmed that a new capital grant scheme to contribute towards the cost of building anaerobic digestion plants will be introduced in 2026 and run until 2030.

There was concern within the emerging biomethane industry last week when no specific mention of the previously promised capital grants was made.

However, in a statement to the Irish Farmers Journal, a department spokesperson said the Government has committed to providing a second capital grant programme which will support the development of the indigenous biomethane sector.

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Funding for this second capital grant programme will come from a share of the €500 million allocation for the DCEE under the Infrastructure, Climate and Nature Fund in the revised National Development Plan.

“The intention of the overall allocation to the Department is the development of newly emerging markets, including our national biomethane market, and as such a proportion of this funding will be used to deliver the second phase of grant support across 2026 TO 2030,” it said.

Timeline

An announcement on the allocation for all the programmes, including the biomethane programme, is expected to be made in November.

A further announcement on the level of funding available per project, eligibility criteria and expected timelines for the launch of the programme will follow at a later date.

It is expected that a full new application process will be required for this second phase of funding, and all applicants who meet the required grant criteria will be deemed eligible, the spokesperson said.

RHO

The Department also said that priority drafting of the Renewable Heat Obligation Bill 2025 is now underway, and the Department is working with NORA, the recently appointed scheme administrator, to develop the more detailed scheme terms and conditions.

NORA is now engaging with key stakeholders, including obligated parties, RHO account holders and interested parties, to ensure market readiness ahead of introduction, which is still expected to come into effect in 2026, it said.