Concerns have been raised that a new opinion from the European Commission could put the development of the biomethane and anaerobic digestion sector in Ireland at risk.

It is understood that the government has received a "detailed opinion" from the commission in relation to the proposed Renewable Heat Obligation (RHO), which had been expected to be introduced in the Dáil in the coming months.

The commission's opinion was delivered under the commission's Technical Regulation Information System (TRIS), the aim of which is to prevent "technical barriers to trade".

The Renewable Heat Obligation would have provided for a 'multiplier' for indigenously-produced biomethane.

Multipliers are mechanisms for increasing the credit earned for certain types of fuels within an obligation scheme. An additional multiplier would mean that for every unit of domestically produced biomethane a party places on the market, this would count as 1.5 units.

To ensure no discriminatory practices, or fragmentation of the EU single market, the use of this multiplier required formal notification to the European Commission.

It is understood that the commission has now deemed the proposed multiplier for indigenous biomethane in the Renewable Heat Obligation incompatible with EU internal market rules.

Reacting to this development, Seán Finan, the CEO of the Irish Bioenergy Association (IrBEA), said the development is "very worrying".

"The opinion from the EU Commission on the multiplier for indigenous biomethane is a very worrying development for the fledgling biomethane sector in Ireland," he said.

"The RHO and this multiplier is the government's mechanism of choice for developing a market for biomethane in Ireland. The latest development potentially risks the future and viability of many projects," Finan added.

"We are reviewing details of the opinion from the [European] Commission and will engage with the [Department of Climate, Energy and Environment] to seek further clarification on the opinion," the IrBEA CEO said.

Biomethane strategy

The country's National Biomethane Strategy, which was published in May 2024, said that the RHO, in conjunction with capital grants, was the chosen method to support the delivery of a biomethane sector in Ireland, given the need to swiftly stimulate the industry.

The strategy said that the RHO, along with other investment methods, would offer "budget certainty for the support programme while delivering a sector of scale".