
Significant opportunity to deliver renewable heating solutions using solid biomass
7th October 2025
Encouraging customer participation in Ireland’s low-carbon energy market
7th October 2025
Pictured at the Energy Ireland Conference is Ireland Country Manager at CycleØ James Manley and Head of Business Development at Gas Networks Ireland Karen Doyle signing an MOU outlining the collaborative engagement between Gas Networks Ireland and CycleØ to connect CycleØ’s biomethane plants to the gas network in support of government targets of the delivery of up to 5.7TWh of indigenous biomethane by 2030.
Gas Networks Ireland’s Pathway to a Net Zero Carbon Network represents a bold and strategic vision for the future of Ireland’s energy system. Gas Networks Ireland aims to repurpose, resize and fully decarbonise Ireland’s gas network within two decades, aligning with the country’s overarching climate goals.
What is green hydrogen? Green hydrogen is produced by using renewable electricity to split water into hydrogen and oxygen in a process known as electrolysis. As such, it is produced without the release of carbon dioxide (CO2) and so is both a carbon free and renewable gas. |
By 2045, the national gas network will be fully decarbonised and is set to transport 100% renewable gas, divided between biomethane and hydrogen; and contributing significantly to Ireland’s climate and energy goals. Through its phased approach and commitment to innovation and sustainability, Gas Networks Ireland is poised to play a pivotal role in Ireland’s transition to a carbon-neutral economy.
Progress in 2025
The first half of 2025 saw progress being made in the Foundation phase of the pathway:
Strengthening biomethane partnerships
In July 2025, Gas Networks Ireland announced a Memorandum of Understanding with CycleØ, a leading builder and operator of biogas plants. The agreement will support the connection of CycleØ’s biomethane facilities to Ireland’s gas network, helping to deliver on government targets of up to 5.7TWh of indigenous biomethane by 2030. Partnerships such as this are central to enabling greater volumes of renewable gas onto the system and accelerating the decarbonisation of heat, transport and industry.
Collaborating with National Gas
A separate MoU signed with National Gas in June 2025 provides a framework for closer cooperation between Ireland and the UK on renewable gas solutions. The agreement will see both organisations share expertise and explore joint projects on biomethane, hydrogen and blended gases. This collaboration highlights the importance of regional cooperation in scaling new technologies and ensuring secure, low carbon energy supplies across neighbouring markets.
Driving innovation through research
The launch of the €2.7 million Research Ireland-Gas Networks Ireland Innovation Challenge marked another key step forward. This joint initiative invites multidisciplinary teams to develop transformative technologies in renewable gas, energy integration, and artificial intelligence. With phased funding of up to €200,000 for successful projects, and a €1 million prize for the most impactful breakthrough, the challenge is designed to accelerate high potential research that can directly contribute to Ireland’s climate and energy goals.
Advancing the European agenda
At European level, Gas Networks Ireland has played a prominent role in highlighting biomethane’s potential. At the launch of a Gas Infrastructure Europe (GIE) study in Brussels, the utility underlined the scale of opportunity in renewable gas, presenting evidence that existing infrastructure can deliver up to 101 bcm of biomethane across the EU by 2040. This reinforces both Ireland’s and Europe’s commitment to harnessing biomethane as a homegrown, sustainable energy source.
Renewable Heat Obligation
In July 2025, Minister Darragh O’Brien TD obtained government approval for the Renewable Heat Obligation (RHO) Bill, marking a transformative step for Ireland’s biomethane industry and the decarbonisation of our gas network. This legislation, set to be implemented in 2026, will position Gas Networks Ireland at the forefront of Ireland’s clean energy transition.
Driving growth in the biomethane sector
The RHO mandates that energy suppliers for heating incorporate renewable energy, with a strong focus on indigenously produced biomethane. The RHO was a key support mechanism outlined in the National Biomethane Strategy and supports the delivery of the goal of producing 5.7 TWh of biomethane annually by 2030. By facilitating biomethane injection into Ireland’s gas network, rural economies will be supported, jobs created, and farmers will be provided with new diversification opportunities through sustainable feedstocks.
What is biomethane? Biomethane is derived from agri-food and industrial waste produced via anaerobic digestion (AD) and can be used for injection into the gas network or liquefied to produce renewable fuel for road and maritime transport. In addition, the AD process produces digestate, a nutrient-rich and renewable alternative to synthetic fertilisers that helps to improve soil health and reduce the carbon intensity of farms. |
The RHO will also support some of Ireland’s largest industries who rely heavily on natural gas for heating and processes. The RHO will provide more certainty to the market making it easier for these organisations to transition to biomethane and reduce their carbon footprint.
Advancing decarbonisation of the gas network
The heat sector accounts for 37% of Ireland’s energy-related emissions, and the RHO is a critical tool to reduce this footprint. Starting with a 1.5% obligation rate in year one, increasing to 3% in year two, the scheme will significantly boost the renewable share in heating, currently at 7.9%—the lowest in the EU. Ireland’s gas national gas network will play a pivotal role in delivering renewable gas, supporting Ireland’s 51% emissions reduction target by 2030 and net zero by 2050.
Enhancing energy security
By prioritising domestic biomethane, the RHO reduces Ireland’s reliance on imported fossil fuels. This will strengthen energy security and help shield Ireland from global price volatility. Gas Networks Ireland’s expertise in managing the gas network will ensure a seamless integration of renewable gas, making clean energy accessible.
Collaboration is key
The success of the RHO will depend on close collaboration with all stakeholders, government, energy suppliers, farmers, renewable energy producers and wider communities who will either host a biomethane project or provide feedstock for one.
Gas Networks Ireland is committed to working hand-in-hand to develop a mature biomethane market, ensure compliance with EU regulations, and addressing environmental considerations like sustainable feedstock sourcing.
Powering Ireland’s energy transition
Gas Networks Ireland’s Pathway to a Net Zero Carbon Gas Network by 2045 sets out a clear and achievable roadmap for Ireland’s clean energy future. By harnessing the potential of biomethane and green hydrogen, advancing innovation through research and building strong national and international partnerships, Ireland’s gas network will evolve to become a cornerstone of a carbon neutral economy. Legislative measures such as the Renewable Heat Obligation will accelerate progress, while collaboration across government, industry and communities will be essential. Together, these efforts will ensure secure, sustainable and resilient energy infrastructure that supports Ireland’s climate and energy ambitions.
Gas Networks Ireland