Four biomethane projects inch forward in NI

Last month, I said there’s been little progress on biomethane in Northern Ireland (NI). While I still believe development needs to accelerate to meet legally binding2030 targets and beyond, perhaps I was a bit harsh. I recently attended the NI Renewable Gas Conference, hosted by Phoenix Energy at the Titanic Hotel in Belfast, a venue long associated with industrial innovation. At the event, my earlier comments were echoed by Russell Smyth of KPMG, who said he hoped to see more progress in the year ahead than we’ve seen this one. One line that stood out was his remark that “the tenacity of AD developers should be commended”. That’s true. Despite NI falling behind the Republic of Ireland(ROI) in policy, legal targets and general progress, four biomethane projects are currently moving through development and could be injecting gas into the grid by 2027.This update came from Jonathan Martindale, Director of Business Development at Phoenix Energy, who opened the day with an optimistic tone. While the specific projects weren’t all named, we know one is Greenan Generation in Derry, with the others likely located in Tyrone and Antrim.

How will this work?

How this will work in practice is still unclear. With no new support scheme in place in NI, and none likely before 2027,these projects may need to follow the ROI’s route, which is not straightforward. They will need to find a large energy user in NI willing to commit to buying unsubsidised biomethane at or near full market price for 10 to 15 years. There are other options. Exporting gas to Britain is one, but that really defeats the purpose. Exporting to the Republic may also be possible. However, despite the grids being technically connected and sharing the same island, gas would need to be routed through Britain before being imported back into the Republic. Charges would apply at each step. There is another complication. If the Republic secures the critical multiplier mechanism that underpins its Renewable Heat Obligation, biomethane produced in NI may not qualify as indigenous. That could make it less competitive than gas produced within the Republic.

Risk vs rewards

So why am I telling you this? Because developing a biomethane plant in NI is risky. Developers are taking a calculated gamble that policy or market appetite will evolve in their favour. This is similar to the early days of biomethane in the Republic. It’s a good bet that it will, but timelines are uncertain. But NI’s would-be developers are not alone. As the conference made clear, the region’s gas grid operators, particularly the three distribution companies, Phoenix Energy, Evolve and Kinecx Energy, are eager to see renewable gas on the network. And if I’m reading between the lines correctly, they may well play a role in helping these early developers join the dots to make their projects financially viable. If developed, the four projects would produce around 0.26 terawatt hours (TWh)of biomethane, contributing to the gas network operator’s stated target of 1.5 TWh by 2030.Of course, there are many other factors needed to make a biomethane project work in Northern Ireland, not withstanding clear planning, air and nutrient regulations and a robust digestate management plan.

Realpolitik

MLAs and MPs from each of the five main political parties in NI shared their views on biomethane. From the outset, there
was broad political agreement that biomethane should be developed in NI, with clear targets set, citing both environmental and energy security reasons. That level of political consensus does not even exist in the ROI. But views soon differed. Phillip Brett , DUP MLA, offered a frank assessment. He said there needs to be a grown-up conversation about the fact that NI’s 2030 targets will not be met. He pointed out that the NI Energy Strategy Action Plan, published earlier this year, promised a consultation on biomethane policy, but this still hasn’t happened. He said he does not expect to see any support schemes in place before 2030, accusing politicians of continuing to pay lip service to the issue. He added that the understanding of energy within the NI Assembly is simply not there, and that due to NI’s scattergun approach to politics, they are not advancing any of the energy policies. Matt hew O’Toole, SDLP MLA and opposition spokesperson, said much of what Brett said was true. He called the situation a shambolic policy position and said people at the conference were looking to the Executive for clear biomethane targets and a roadmap for delivery. David Honeyford, Alliance Party MLA, agreed with many of Brett ’s points but said scrapping targets is not the answer. He argued for the creation of a dedicated energy department, saying energy policy should not be bundled in with everything else. Robbie Butler, UUP MLA, acknowledged that the ambition behind NI’s climate targets is commendable, but said there must be realism about how and when they are achieved. He clarified that he does not want to abandon ambition, but believes the timescale needs to be reassessed. He cited the blocking of the A5 road project under current climate legislation as an example of the unintended consequences of policy constraints. He also referenced the elephant in the room, the failed RHI scheme, as a major reason for political reluctance to engage with new heat-related support schemes. Cathal Mallaghan, Sinn Féin MP, took a direct stance. He said that when it comes to biomethane, this is quite literally a matter of energy security for the country, and setting a target is the necessary first step.

Smart Grid

Just because a site appears ideal for a biomethane plant does not necessarily mean the gas grid can accommodate it. If network flow or demand is insufficient, plant capacity may need to be limited, or operators could face seasonal reductions in gas production. Gas network operators are currently working on a project to identify key constraints in the gas distribution system and explore ways to enable greater biomethane injection in areas with lower fluctuating demand. Findings are expected by the end of the year. However, operators were cautioned not to repeat the mistakes of neighbouring networks that introduced overly complex, highly regulated, and costly solutions to similar challenges. John Baldwin, Managing Director of UK-based CNG Services and a stalwart in the renewable gas industry, offered a clear answer: reverse compression. This system takes gas from the low-pressure distribution network and feeds it into the high-pressure transmission network, the opposite of the usual process. The technology could unlock the grid, allowing multiple new projects to connect. Baldwin said that more than 60 reverse compression installations have already been completed across Great Britain and that Northern Ireland needs the same approach. He emphasised that the systems do not need to be complex, expensive, or bespoke. Standardised units could be deployed to remove grid constraints across NI, he explained

Article Published 1st November in Farmers Journal NI