Tánaiste Micheál Martin joined Gas Networks Ireland to officially mark the commencement of construction for a new Central Grid Injection (CGI) facility in Mitchelstown.

This €32 million investment represents a significant step forward in Ireland's transition to renewable energy. The CGI facility will enable the injection of biomethane, a sustainable and clean-burning gas, into the national gas network.

The Mitchelstown CGI facility is expected to have the capacity to inject up to 700 GWh of renewable biomethane gas annually, contributing significantly to the government's 2030 target for biomethane. By reducing CO2 emissions by an estimated 130,000 tonnes per year, this facility will play a crucial role in Ireland's efforts to combat climate change.

Furthermore, the development of biomethane production offers new opportunities for the Irish agriculture sector. Farmers can diversify their income streams by producing biomethane from organic materials, such as agricultural waste.

Speaking at the sod turning ceremony, Tánaiste Micheál Martin commented on the significance of Gas Networks Ireland's investment: "This project is a significant development in Ireland's energy infrastructure, enabling the drive towards decarbonisation, supporting both the government's commitment to achieving its biomethane production targets by 2030 and the country's efforts to achieve net zero emissions by 2050.

"This facility also represents a pivotal opportunity for our agricultural industry. By enabling farmers to diversify into biomethane production, we are opening up new revenue streams that will benefit rural communities and contribute to our broader sustainability goals. The Mitchelstown CGI facility will help us leverage Ireland's agricultural potential to produce renewable energy, reduce our dependence on fossil fuels, and drive the transition towards a greener, more resilient economy."

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This development follows a successful market engagement exercise led by Gas Networks Ireland earlier this year, where a request for Expressions of Interest (EOI) to supply biomethane to the new CGI facility in Mitchelstown drew interest from 22 prospective biomethane producers. The combined potential production capacity from these plants is 1,862 GWh per year – equivalent to powering 217,000 homes - highlighting the significant potential of the Irish biomethane sector to support the country's energy transition.

Biomethane producers across the length and breadth of Ireland who are remote from the gas network demonstrated their readiness to contribute to Ireland's renewable gas supply chain. This CGI facility in Mitchelstown is anticipated to be the first in a rollout of several facilities as previously outlined in Gas Networks Ireland's recently published Pathway to a Net Zero Carbon Network.

Speaking about the growing appetite and potential capacity within the emerging Irish biomethane industry, as well as the broader impact of the Mitchelstown project, Gas Networks Ireland's CEO Cathal Marley said: "The substantial response to our recent EOI demonstrates the growing momentum behind Ireland's biomethane industry. The 1,862 GWh of potential production from just 22 interested producers showcases the significant capacity of this sector to meet, and possibly exceed, our renewable biomethane gas targets.

"The Mitchelstown CGI facility is a key part of this vision, allowing for the injection of renewable gas into the national system and furthering our goal of a net zero carbon gas network by 2045.

"We were pleased to see the publication of the National Biomethane Strategy earlier this year. It's a good start, and the introduction of capital grants is encouraging, but more positive supports such as obligations for end users, and a potential feed in tariff to ensure the viability of biomethane production would provide further momentum to the development of the biomethane industry, reduction of carbon emissions and the diversification of agriculture.

"As Ireland pushes forward in its energy transition, projects like this in Mitchelstown will play a critical role in delivering clean, renewable energy across the country."

The EOI results build on the momentum generated by the market testing Request for Information (RFI) issued by Gas Networks Ireland in October 2022. The Biomethane Energy Report, published in September 2023, identified 176 projects across Ireland with the potential to produce 14.8 TWh of biomethane per annum, equivalent to 26% of Ireland's current gas demand. These findings, coupled with the recent EOI responses, underscore the feasibility of the Government's biomethane production target and the critical role that the sector will play in Ireland's energy transition.

The successful delivery of the Mitchelstown CGI facility is being made possible through the collaboration of two key partners, Fingleton White in terms of design and Murphy International as the construction contractor. Commissioning of the first phase is expected towards the end of 2025.

The Mitchelstown CGI facility is part of the broader Green Renewable Agricultural Zero Emissions (GRAZE) project, which is designed to showcase large scale agricultural biomethane clusters that can be replicated across the country. Supported by €8.4 million in funding from the Climate Action Fund, the GRAZE project is a testament to Ireland's commitment to advancing renewable energy and achieving national energy security.