A new renewable fuel obligation scheme for the heat sector, which will assist in the development of an indigenous biomethane industry, is set to commence by 2024.

Earlier this year, the Government significantly increased its 2030 target for indigenous biomethane production to 5.7 terawatt hours. This will require 150 to 200 large-scale agricultural anaerobic digestion plants to be developed within eight years to supply around 10% of Ireland’s total gas demand.

However, in the absence of financial support, this target remains impossible.

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The obligation scheme is seen as the first step towards addressing this and will incentivise the use of renewable heat fuel, while spreading the cost across all non-renewable fuel types. The Department will soon open a second phase of stakeholder consultation for the scheme.