Biogas production target could cost €1.5bn and see a reduction of 400,000 farm animals

A new target for developing biogas production in Ireland could cost at least €1.5 billion and see a reduction of 400,000 farm animals, according to an internal Department of Agriculture document.

The estimated costs are included in a note drawn up during talks between Minister for Agriculture Charlie McConalogue and Minister for the Environment Eamon Ryan on setting carbon emissions ceilings for the farming sector last July.

The final agreement set a target of 25 per cent cuts for the agriculture sector and Mr McConalogue has said “no farmer will be forced to cut their herd”.

There is a hope that the number of cattle – a major cause of carbon emissions in the agriculture sector – will fall as farmers diversify into other areas like anaerobic digestion to produce biogas. Anaerobic digestion is the conversion of feedstock by micro-organisms in the absence of oxygen into biogas, using large containers.

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In its pre-budget submission, the Irish Farmers’ Association called for new support schemes for anaerobic digestion and solar power on farms to be financed by the Department of the Environment as the majority of emissions reductions from both would accrue to the energy sector, not farming under the Government’s carbon emissions ceilings plan.

The recent carbon ceilings deal included a commitment to increase the ambition of indigenously produced biomethane up to 5.7 terawatt-hours (TWh) by 2030, up from 1.6 Twh under the 2021 Climate Action Plan.

An internal Department of Agriculture note – released under Freedom of Information legislation – outlines the large costs of developing biomethane production in Ireland.

It says the previous 1.6 TWh target could be achieved through productivity gains at farm level at a cost of between €350 million and €420 million without the requirement to displace animals and that “therefore, reductions in emissions from agriculture will be limited at this scale”.

However, it says: “Achievement of significant reductions in GHG [greenhouse gas] emissions from the agricultural sector through bioenergy and biomethane production will require the development of an anaerobic digestion industry at scale, with livestock being displaced and farmers instead using their land to grow grass/grass silage as a feedstock for the industry.”

The document points to a recent Sustainable Energy Authority of Ireland study that identifies a maximum potential of about 5 TWh of biomethane production.

The department estimates this would require a reduction of 256,000 “livestock units” – also described as “[approximately] 400,000 animals of mixed age” – and an area of 160,000 hectares (395,370 acres) converted to grass production.

The document adds that 150 to 200 plants would be needed at a capital cost of about €1.5 billion and annual operational support in the region of €300 million.

It also says: “The reduction in animal numbers at this scale of an AD [anaerobic digestion] industry can mitigate circa 0.7 MtCO2eq [million tonnes of carbon dioxide equivalent] of GHG [greenhouse gas] emissions from the agricultural sector.”

A Department of Agriculture spokesman said the recent Government decision on sectoral carbon emissions ceilings included a commitment to increase the ambition of indigenously produced biomethane to 5.7 TWh by 2030. Reaching this is said to require the development of an anaerobic digestion industry at scale with Ireland currently starting from a low base.

“The agricultural sector will have a key role to play in the production of the relevant feedstocks to develop and support this industry,” the spokesman said. “The development of such an industry at scale also provides a diversification opportunity for farmers in terms of income and alternative land use with a consequent displacement of animals.”

On the issue of costs, he said that as experienced in other jurisdictions, “operational and capital support” are required to develop the industry.

The Department of the Environment is said to be appraising the introduction of supports for biomethane as a replacement for natural gas.

The spokesman added: “To reach this level of ambition as a contribution to decarbonising the energy system and at the same time providing a viable alternative to livestock production within agriculture will require an all-of-Government approach”.

This will involve “multi-stakeholder engagement and communication with Government departments, farmers, plant developers and industry including large gas users”.