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A clear opportunity to establish nineteen Bio-CNG stations in the southeast region has emerged following the findings of a report that biomethane could solve 47% of the region’s energy needs and create 240 jobs.
The South East Energy Agency (SEEA), a not-for-profit organisation that covers Carlow, Kilkenny, Wexford and Waterford, recently unveiled the report — part-funded by Gas Networks Ireland — entitled ‘The Potential of Renewable Gas and the Development of Bio-CNG in Ireland’s South East'.
The SEEA, which works in partnership to deliver energy-saving projects for the local authorities, communities and businesses concerned, envisages that the region could become a leader in sustainable efficient use of locally produced clean energy delivering low carbon homes, jobs and enterprise. The report positions biomethane as a critical solution for decarbonising transport and achieving our net-zero goals.
CEO of South East Energy Agency, Paddy Phelan, who is an engineer, welcomed the report saying it highlights “an incredible opportunity to create a self-sufficient energy landscape in Ireland. It underscores the importance of embracing biomethane In parallel to supporting the national renewable electricity acceleration programme in parallel to drive Ireland’s sustainable energy ambitions.”
Phelan says there are two pathways for the south east. “While Bio-CNG refuelling stations would support heavy goods vehicles in the shift to low-carbon transport, this locally produced green gas solution also provides a direct and affordable way for SMEs and public sector entities to decarbonise their heating systems.” He adds that there is a straightforward solution.
“By replacing old oil or gas boilers with a new gas boiler commissioned to burn green biomethane, businesses and public sector facilities can immediately cut their carbon emissions as we’ve seen at Wexford Fire Station and Kilkenny Machinery Yard Depot.”
Ireland is currently ranked last on the EU leader board in terms of its overall share of renewable energy usage, at 13.4%. (All energy across heat, transport and electricity) Phelan says that we often hear positive stories about wind and clean energy in this country.
“We are middle to high on the table when it comes to the percentage of renewable electricity. But electricity makes up about 30% of our total energy basket. With about half of that renewable, that’s where our 13%-14% of renewable energy is coming from. The EU average is 23.9%.”
It’s important to understand that across Europe, bio-energy is responsible for 40%-50% of the total energy basket, says Phelan. We have not had any meaningful policies that could have been taken up to help with renewable energy, he points out.
“Our 2020 renewable energy target was 16% delivering 12.3% of all our energy from total renewables — and we remain behind our 2020 targets. We are now almost a full thirty percentage points behind the 2030 target.”
By 2030, Phelan would like to see the south east have 50%-60% of its energy provided by electricity with almost 100% of it renewable.
“From a rural employment perspective — and we don’t want to see any further rural depopulation — that’s a big drive for the EU as well. It wants sustainable energy communities.”
Bio-energy provides jobs in the long term.
“Whether it’s from solid liquids or gases, it requires people to operate and maintain it. To produce renewable energy, there are jobs with all renewable at the development, construction and commissioning phases. The number of jobs associated with wind and solar renewable energy are lighter whereas with bio-energy, you need to fully supply chain delivery every day from locally sourced biomass residue and then producing a gas bio-liquid which is storable and transportable.”
To fully realise the potential of biomethane, the SEEA has outlined three critical actions the Government must take.
The critical first step is to provide financial-viability operational support for biomethane production rather than meagre 20% capital grant schemes.
A clear actionable Renewable Heat Obligation Scheme to incentivise the switch to biomethane for heating systems in SMEs and public sector buildings.
The Government must address regulatory obstacles and planning challenges, while also focusing on public perception by highlighting the natural circular economy benefits of biomethane.
While the figure of 240 jobs being created in the south east from the direct production of biomethane is attractive, Phelan points out that there would be significant additional jobs arising locally in the wider supply chain around plant, equipment and services for those core jobs in BioEnergy.
Additionally, the monies retained in the Southeast region currently exported to Middle East, Balkins, South America for our imported energy would reside locally in rural regions and make their way into the communities, such as in pubs, hotels and shops.
“The central economic consideration here is that from every litre of oil we buy, about 40%-50% of that value leaves the country because we don’t make oil in Ireland. We import it. The value of it goes abroad. Of our natural gas, which we refer to as fossil gas for clarity, because it’s not renewable, 80% of it is imported from abroad. We understand the impact of that with the Ukraine war.”
Bio-energy, be it liquid, solid or gas, that is collected from within the southeast region would stay within it.
“That allows for more disposable income in people’s pockets. There’s an extra 40 cent to whatever Euro we spend on energy, retaining it rather than exporting it.”
A bit of a “revolution”, is something that we’ve seen with the adoption of rooftop solar panels, says Phelan.
“It was made possible for everyone in their homes to put some solar panels on the roof and get a small dividend in return. For years, if you put solar on your roof, you couldn’t get any value for your excess energy, i.e. money. You exported it or put it into the network. So I think it needs to be made easier for all levels of renewable energy when you can get access to the grid. Why is it so expensive to produce renewable gas or renewable electricity in Ireland? It’s because the cost of the grid connection to all forms of energy is excessive in comparison to our European partners, both electricity and gas grid connections.”
We see commitment today from EU Commision to provide EU State Aid Exemption to the Swedish BioMethane and Sweden leads the way on renewables as a % of total energy supply
