DfE/DAERA consult on developing biomethane sector for renewable energy

The Department for the Economy (DfE) and the Department of Agriculture, Environment and Rural Affairs (DAERA) have launched a public consultation on a strategy and policy framework for developing biomethane as a renewable energy source and an alternative to fossil fuels for businesses and homes in Northern Ireland.

Policy context

DfE and DAERA identify several areas where a biomethane strategy could help address challenges in Northern Ireland, including:

• Replacing fossil fuels with regionally produced alternatives.
• Supporting the decarbonisation of industry and agriculture.
• Developing skills for green jobs through training and reskilling.

Conversely, the consultation document also summarises responses to a DfE Call for Evidence held in 2024, which identified challenges to developing a local biomethane sector, among them:

• While there is interest in developing the sector, there is no consensus on its primary role, including its potential use in hard-to-abate sectors.
• Economic viability remains uncertain, with further evidence needed on the potential for sustainable revenue generation in the regional context.
• Network connection costs, planning delays and cross-government coordination remain barriers to development.

Selected proposals

DfE and DAERA have identified nine “preferred policy positions” covering different aspects of biomethane sector development, alongside a range of proposed actions.

Those of potential interest to built environment professionals could include:

• Considering how anaerobic digestion (AD) of organic matter could support future gas policy to improve energy resilience and provide long-term energy storage.
• Making better use of existing biorefinery facilities, upgrading sites where necessary and feasible to increase their capacity and capabilities.
• Not introducing a levy or obligation on fossil gas suppliers to incentivise biomethane uptake, unlike the approach adopted in the rest of the UK through the Green Gas Levy (GGL).
• Spreading the cost of essential gas network upgrades needed to connect biomethane producers across all gas consumers, rather than requiring the first producer in an area to cover the full cost.

Have your say

The consultation closes on Tuesday 15 December 2026.

The full consultation details can be accessed here.

RSUA is considering a response to the consultation. If you would like to share your views, please contact Curtis Large, RSUA Policy and Public Affairs Officer, at curtis@rsua.org.uk