24/06/2025
Briefing
Northern Ireland

The Department for the Economy’s recently launched Energy Strategy Action Plan 2025 sets out clear priorities for the year ahead, outlining four strategic priorities, with 19 key actions to help drive the transition towards reliable, affordable, and clean energy in Northern Ireland.

Renewable Electricity Support Scheme and Biomethane Production

While the Renewable Electricity Support Scheme has rightly drawn significant attention, another important aspect of the Action Plan deserves closer consideration: the development of a policy framework for biomethane production. This signals growing momentum behind a technology that could turn Northern Ireland’s agricultural strengths into a valuable part of its clean energy future.

At the launch of InterTradeIreland’s recently-published report on the economic opportunities arising from the offshore wind and hydrogen industries across the island of Ireland, Minister for the Economy, Dr. Caoimhe Archibald, specifically noted that “a decarbonised energy system presents huge economic opportunities for the island”.

Call for Evidence and Biomethane Production Report

Following a Call for Evidence which gathered insights from around 50 key stakeholders, the Department has now published a report on biomethane production in Northern Ireland. This will guide the development of a policy framework to support the emergence of a sustainable, economically viable biomethane sector – one that can help us meet climate targets, strengthen energy security, and stimulate rural economies.

Agriculture and Greenhouse Gas Emissions

Biomethane is derived from organic waste materials such as agricultural waste, grass silage, and food waste through a process known as anaerobic digestion, meaning it is not only a clean energy source but also an engine for the circular economy.

In a region where approximately 75% of land is used for agriculture, it is perhaps unsurprising that the agriculture sector remains the largest source of greenhouse gas emissions in Northern Ireland.

Our region’s abundance of feedstock, such as manure, slurry, and food waste, and anaerobic digestion can transform these organic waste materials from an emissions challenge into an energy asset.

Benefits of Anaerobic Digestion

The benefits of anaerobic digestion extend well beyond renewable gas. The process produces a nutrient-rich digestate that can reduce dependence on synthetic fertilisers, lowering the carbon footprint of farming. And as a decentralised technology, it also creates skilled jobs in rural communities, from feedstock collection and logistics to plant operation and maintenance.

Realising the Potential of Biomethane

It is clear that the potential to turn organic waste into a decarbonisation solution is a win-win, but realising this potential requires action. For biomethane to become a meaningful contributor to our energy mix, government departments and public bodies must deliver a coordinated, supportive policy and regulatory environment.

Building a Thriving Biomethane Sector

With the right structures in place, Northern Ireland can leverage its natural resources and agricultural strengths to build a thriving biomethane sector – helping to meet net zero goals, support regional development, and deliver on Minister Archibald’s wider economic priorities: more good jobs, higher productivity, and a better regional balance.

Arthur Cox has already advised on a number of anaerobic digestion projects in Northern Ireland and remains committed to helping clients navigate the legal and regulatory landscape of this emerging sector. If you would like to discuss further, David White can be contacted on +44 28 9026 5530 or [email protected].