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Gas Networks Ireland is set to go to the market to secure 250 gigawatt hours (GWh) of biomethane.
The operator of the gas network will use biomethane to supply its shrinkage gas requirement.
The move will see Gas Networks Ireland contract with a number of producers to provide biomethane. The contracts could be for up to 15 years, which will help kickstart the biomethane market in Ireland.
According to the national biomethane strategy, the average-sized anaerobic digestion (AD) plant will produce 40GWh of biomethane, so Gas Networks Ireland could support over six new plants.
A key problem facing AD developers currently is the lack of long-term gas purchase agreements.
Shrinkage gas
The network operator is seeking to procure a portion of its shrinkage gas from indigenous biomethane producers.
Shrinkage gas is defined as own use gas (OUG) as well as gas required to replace unaccounted-for gas (UAG).
OUG is gas that is consumed by Gas Networks Ireland in operating its network - for instance, gas required to run compressors. UAG is gas whose use is not accounted for - examples include theft and leakages.
The initial step is to issue a prior information notice and request for information on eTenders. Following market engagement, the final procurement strategy and the heads of terms will be decided.
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