The introduction of the Renewable Heat Obligation (RHO) and a new round of capital funding for anaerobic digestion (AD) plants remains on track.

A spokesperson for the Department of Climate, Energy and the Environment (DCEE) said it expects the RHO bill to be finalised before the end of the summer legislative programme.

The long-awaited RHO aims to place an obligation on suppliers of fossil fuels used for heating to demonstrate that a proportion of the energy they supply comes from renewable sources. It is expected to be a key enabler of Ireland's AD, sector but has faced significant delays.

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Concerns had been mounting within the industry that the bill would be delayed until the autumn, further postponing the introduction of the initial 1.5% obligation rate.

In a statement, the DCEE said the RHO "remains a key priority". It added: "Once approved, the department will begin the legislative enactment process, ensuring the necessary statutory basis is in place ahead of its introduction."

New AD grants

Concerns had also been growing that the €200m second round of capital grants for AD plants would be delayed.

However, in a statement, the DCEE said it is developing the scheme in partnership with its consultants.

It said a market notice/expression of interest process is expected to begin during the third quarter of 2026, with the full application process opening shortly afterwards for applicants that meet the relevant criteria.

It is understood that KPMG is the consultancy firm designing the scheme.

Grant rate

It remains unclear what grant rate will be offered. The industry is calling for a 40% grant rate - a significant increase on the first AD scheme, citing higher construction and material costs.

Industry representatives have also pointed to the department's failure to secure a multiplier for biomethane produced in Ireland, which they argue leaves Irish biomethane uncompetitive compared with imported biomethane gas.