Renewable Gas Forum Ireland (RGFI) has called on the Irish government to immediately revise financial supports for biomethane in order to "keep projects moving".

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

The RHO proposed to provide a 'multiplier' for indigenously-produced biomethane.

Multipliers are mechanisms for increasing the credit earned for certain types of fuels within an obligation scheme.

However, it is understood that the commission has now deemed the proposed multiplier for indigenous biomethane as incompatible with EU internal market rules.

RGFI

Responding to the development, RGFI said that while the RHO can proceed without the so-called "multiplier", urgent action is now required to ensure projects remain viable and investment is not delayed.

"The RHO remains the government’s central delivery mechanism for Ireland’s biomethane sector and can and should proceed," Nick Bennett, interim CEO of RGFI, said.

"The RHO must now move ahead without delay. Projects are already in development and awaiting a clear signal - any further delay risks slowing momentum at a pivotal stage for the sector," he added.

Biomethane

RGFI said that the issue relates to the design of financial supports, not the overall policy direction, and that the strategic case for biomethane remains strong.

As the volatility around energy prices and security of supply are under continued pressure, RGFI said the case for an indigenous renewable gas sector has never been stronger.

The organisation said it will be engaging with government departments, including climate, environment and agriculture, to support the development of a revised approach.

"We need to maintain momentum and ensure Ireland does not fall further behind in developing this critical sector," Bennett said.