The Government’s plans to develop an anaerobic digestion (AD) sector are in turmoil, as a key feature of its flagship support scheme has been found to be incompatible with EU rules, the Irish Farmers Journal understands.

The long-awaited Renewable Heat Obligation (RHO) is a new scheme that would legally require Irish suppliers of fossil fuels used for heating to source a proportion of their supply from renewable sources.

Multiplier

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The scheme was expected to stimulate a significant market for biomethane gas produced from AD plants. A key element of the scheme was a multiplier, whereby one unit of biomethane produced in Ireland would count as 1.5 units towards a supplier’s obligation. This would have made Irish biomethane more competitive than imported biomethane, stimulating the market in Ireland.

The Irish Government notified the European Commission of its proposed RHO scheme last December. In response, the Commission issued a formal Detailed Opinion to the Irish authorities in late March.

Incompatible

However, the Irish Farmers Journal understands that the Commission found the multiplier to be incompatible with EU internal market rules.

As a consequence of the Detailed Opinion, Ireland is required to postpone adoption of the draft legislation for six months from the date of notification as a new path forward is found.

Without the multiplier in place, Irish biomethane is likely to become uncompetitive, rendering many planned AD plants unviable.

More on this story is available on farmersjournal.ie.