The Department for Economy (DfE) and the Department of Agriculture, Environment and Rural Affairs (DAERA) have today published a joint consultation on a Biomethane Strategy and Policy Framework for Northern Ireland (NI). This consultation follows the DfE report on biomethane production in NI published last year following a call for evidence.
The consultation marks an important milestone for the biomethane sector in NI . Industry participants have long highlighted NI’s strong agricultural base and feedstock availability as offering great potential for a domestic biomethane industry. However, unlike neighbouring jurisdictions, NI has lacked a dedicated policy framework to support the production, injection and use of biomethane. The consultation is therefore an important step in establishing the regulatory and commercial foundations necessary to support biomethane production.
What are the key themes emerging from the consultation?
- Decarbonisation of gas sector: The consultation highlights the opportunity for biomethane to support decarbonisation across the gas network to support domestic heating and industrial processes. It offers a practical route to reduce emissions without requiring significant changes to existing infrastructure. This aligns with wider policy objectives contained within Northern Ireland's energy strategy to replace fossil fuels with renewable sources of energy, and the UK's wider net-zero ambitions.
- Leveraging Northern Ireland’s agricultural strengths: The consultation highlights that NI is well positioned to develop a domestic biomethane sector with its large agri-food industry and established anaerobic digestion (AD) sector. It notes that 80 anaerobic digestion plants are already successfully operating across the region and references research which shows that agricultural and other organic feedstocks could produce and support 80% of our regional gas demand.
- Nutrient management and environmental protection: One prominent theme emerging is the importance of nutrient management and wider environmental protection. The consultation repeatedly acknowledges that any expansion of AD and biomethane production must be considered alongside wider environmental challenges, in particular, nutrient surpluses and water quality including issues affecting Lough Neagh. It clearly recognises the potential for biomethane production to support these challenges and develop a more sustainable circular economy.
Why is a biomethane policy important?
- Revenue certainty: Whilst the consultation highlights the benefits of supporting biomethane production in NI, a clear policy and support mechanism is required to provide long-term revenue certainty for developers and investors in this sector. This will help to reduce overall investment risk, improve project bankability and unlock capital investment for new AD and biomethane infrastructure projects.
- Reduced volatility: Supporting indigenous biomethane production will ensure we have a more secure and resilient energy system, reducing our exposure to global gas price shocks. Given the current global climate and unprecedented energy prices, this should be welcomed by all domestic and commercial consumers.
- Supporting our rural economy: Biomethane production offers a valuable opportunity for our rural economy by creating new income streams for farmers and strengthening rural supply chains. AD not only converts agricultural residues, food waste and other organic materials into renewable gas but also produces nutrient rich digestate and biogenic CO2 which opens new economic opportunities for developers and helps to support a circular economy.
What happens next?
The consultation closes on 15 December 2026, after which DfE and DAERA will consider responses to shape the future biomethane strategy and support framework.
This consultation marks a significant step forward for the future of biomethane in NI. It clearly identifies how biomethane can address several interconnected challenges, from reducing emissions and supporting nutrient management to improving farm resilience and the agricultural economy. Most importantly, it highlights the potential for biomethane to deliver energy security and decarbonisation of the gas sector in NI.
For more information, please reach out to John Palmer, Partner, Elle McMaster, Solicitor or your usual Energy, Infrastructure & Natural Resources contact.
Date published: 20 October 2026
