Ireland’s biomethane boom: Driving renewable energy and sustainability

17 Sep 2025

Flogas’ Energy Services and Renewables Director Barry Murphy shares insights into the company’s offtake agreement with Nephin Renewable Gas (Nephin), and the role it plays in Ireland’s long-term energy goals.

Ireland is on a renewable energy mission. While countries like Germany and Denmark are leading the way in this sector, until recently Ireland lagged behind due to a lack of framework and guidance — despite having one of the largest potentials for biomethane production in Europe thanks to its large agriculture sector.

"As a country we can produce, per head, probably some of the largest volumes in Europe, but the policy and legislation hasn't been there as yet, which has been frustrating, and a lot of corporates got frustrated because the sources of supply haven't been in Ireland,” Barry Murphy, Energy Services and Renewables Director at DCC business Flogas Ireland, explains.

That picture is changing fast. Ireland’s National Biomethane Strategy, launched in May 2024, sets out the government’s goal to deliver 5.7 TWh of indigenous biomethane annually by 2030 — a huge leap from output of roughly 70 GWh for 2024. Biomethane is more than just another renewable; as Barry notes: “It's a renewable alternative to natural gas or fossil methane. So, for our customers that want to be greener and meet their sustainability goals, biomethane will be key to helping them decarbonise.”

This partnership shows we're very, very ambitious; we believe in biomethane, we want this to work and to build an indigenous industry in Ireland.

Barry Murphy

Energy Services and Renewables Director, Flogas Ireland

A partnership to accelerate biomethane production

For Flogas, Ireland’s strategy presents the perfect opportunity to continue pushing its cleaner energy solutions on a larger scale, but it isn’t a solo journey. Flogas recently signed a long-term offtake agreement with Nephin Renewable Gas, who have plans to become Ireland’s largest producer of biomethane, beginning with three sites. The offtake agreement is for 250 GWh of biomethane per year once completed, and also critically important in helping Nephin secure financing for its plants.

“This is really a major boost for the biomethane industry in Ireland,” Barry says. “It shows we're very, very ambitious; we believe in biomethane, we want this to work and to build an indigenous industry in Ireland. Nephin, ourselves along with DCC all have the same ambition and the same goals to help our customers reduce their carbon emissions and meet their net zero goals.”

WHAT IS

BIOMETHANE?

Biomethane is a renewable gas made from organic materials such as food waste, farm manure, and grass silage. It’s produced through a natural process called anaerobic digestion, where microscopic organisms break down these materials in an environment without oxygen. This process generates biogas, a mixture of gases that includes methane and carbon dioxide.

To create biomethane, the biogas is then purified — removing carbon dioxide and other impurities — until only methane remains. This purified gas is called biomethane.

Unlike uncontrolled decomposition, which releases harmful greenhouse gases into the atmosphere, producing biomethane in a controlled way helps capture and use methane as a clean energy source. Because biomethane has the same chemical properties as fossil methane or natural gas, it can be used in the same way, such as for heating, electricity and vehicle fuelling.

The role of the Renewable Heat Obligation (RHO)

Central to achieving these ambitions is the Renewable Heat Obligation (RHO) legislation in Ireland, set to be implemented in 2026. Under this policy, suppliers of more than 400 GWh of fossil fuels for heating must ensure a proportion of their supplied energy is renewable. Starting at 1.5% in 2026, the requirement will rise to 10% by 2030, with the framework expected to extend until at least 2045.

Barry sees it as a crucial piece of the puzzle in unlocking the potential of Ireland’s agricultural-based economy: “The Renewable Heat Obligation is going to drive the cause. It's going to put an obligation on suppliers like us to meet our targets to have 10% of our natural gas volumes as renewable biomethane by 2030. That helps generate a market that helps the likes of Nephin and gives them a route to market, ensuring their anaerobic digestion (AD) plants get built.”

The RHO is going to put an obligation on suppliers like us to meet our targets to have 10% of our natural gas volumes as renewable biomethane by 2030.

Barry Murphy

Energy Services and Renewables Director, Flogas Ireland

Beyond heat: other sectors poised for biomethane adoption

While heating is a key focus, biomethane also has strong potential in the transportation industry, particularly for heavy vehicles where electrification is less viable. Large-scale industrial users, including data centres and pharmaceutical companies, could also benefit with the right incentives.

"We want to do a lot more in the industrial and commercial sectors,” he says. “For corporates, up to now there hasn't been that reliable, secure source of biomethane in Ireland. The government also needs to look at how to incentivise corporates to move away from natural gas to biomethane, as there is a cost premium involved in this transition.”

“The circular economy process benefits everybody”

These developments are not just about meeting climate targets They also bring tangible economic benefits to local Irish farms and communities. Since anaerobic digestion relies on feedstock, farmers can secure new income streams by supplying material to Nephin’s plants.

Moreover, the production of biomethane will also support the growth of crops, as Barry says: “The feedstocks that will go in will also produce biofertilisers. That will be a cheaper alternative for farmers on their lands and a replacement for chemical fertilisers. The circular economy process benefits everybody.”

Time is of the essence though, Barry stresses, as the race is on to reach Ireland’s targets around carbon emissions by 2030. “To meet the timelines of having the RHO in place by mid 2026 and not have any delays, that's key to delivering certainty to the marketplace. If there's an ask of government, just don't delay any further — get the legislation in place,” he urges.

17 Sep 2025