The Renewable Heat Obligation (RHO) Scheme presents an opportunity for Irish bioenergy

What is the Renewable Heat Obligation (RHO) Scheme?

To support the decarbonisation of Ireland’s heat sector, the Government has agreed to the introduction of the RHO scheme. The RHO will obligate suppliers of fossil fuels including oil, gas, LPG and solid fuels (coal) used for heating to ensure a proportion of the energy they supply is from a renewable source similar to the way the Renewable Transport Fuel Obligation (RTFO) scheme works in transport.

Key parameters of the RHO and next steps to introduction

The obligation rate for fossil fuel suppliers will start at 1.5% in year one and move to 3% in year two and increase year on year thereafter. All renewable fuels will be eligible to fulfil the obligations including solid biomass, biogas/biomethane and liquid biofuels. Its envisaged that the legislation for the scheme will be submitted to the Government before the summer recess to begin the Oireachtas process with a target introduction of 1 January 2027.

Who will administer the scheme and how will it work?

The National Oil Reserves Agency (NORA) will function as the RHO scheme administrator. Renewable fuel suppliers such as woody biomass suppliers (chip, pellet, log or briquette), biogas/biomethane and liquid biofuel producers will be able to generate renewable energy certificates. These certificates can then be traded to fulfil an obligated parties (solid fossil fuel suppliers) obligation requirements under the RHO scheme.

WFQA suppliers and broader bioenergy sector

The RHO will present an opportunity to producers of renewable fuels. These bioenergy producers will include Wood Fuel Quality Assurance (WFQA) suppliers, biomethane developers/producers and liquid biofuel producers. The WFQA scheme is managed and administered by the Irish Bioenergy Association (IrBEA) and is funded through membership subscriptions. Promotion of the scheme has been supported to date, through grant aid provided by the Department of Agriculture, Food and the Marine (DAFM). In Ireland, there are now over 125 fully certified suppliers of wood fuels including firewood, woodchip, pellets, and wood briquettes with a further 100 more suppliers at various stages of the certification process. www.wfqa.org

SURE – Sustainability Certification

In 2024, IrBEA became a national supporting body for the Sustainable Resources Verification Scheme GmbH (SURE), a European certification body which provides sustainability certification services for biomass and biogas suppliers in compliance with the Renewable Energy Directive. For further information on SURE certification, please contact us.

Biomass, biomethane and biofuels – meeting the challenge of a decarbonised economy

Bioenergy fuels can readily meet the challenges of domestic, commercial, and industrial energy demands, predominantly for heat. Industrial use of bioenergy for heat is gaining more attention due to the large demand from higher temperature heat users in the food processing and the pharmaceutical sectors where electrical decarbonisation options are not available due to the high temperatures requirement.

Conclusion

Biomass, biomethane and biofuel production in Ireland supports indigenous jobs, local supply chains and promote energy security. Growing and developing the bioenergy sector has significant potential in Ireland. Emerging policies like the RHO and the further expansion of the Support Scheme for Renewable Heat (SSRH) means that the potential is promising. Further information on the Irish Bioenergy Association is available at www.irbea.org

Seán Finan B.E. C.Eng.,
MIEI Irish Bioenergy Association CEO
seanfinan@irbea.org