The Government’s plans to see up to 18 anaerobic digestion (AD) plants built next year are now in doubt, due to further delays in the launch of its flagship support policy, the Renewable Heat Obligation (RHO).
A total of 18 AD projects secured a 20% capital grant from the Department of Agriculture earlier this year towards the cost of building a new plant.
However, it now appears unlikely that many of these projects will be built before the deadline of next December due to delays in the Department of the Environment, Climate and Communication’s RHO support policy.
First proposed in 2019, the RHO is expected to create a long-term market for biomethane gas and was expected to be in place by the end of 2024. However, the policy will now go for a third public consultation before being launched sometime next year.
Without a long-term market for the gas, many of these projects have been unable to secure finance to start building their AD plants, meaning they won’t meet the strict December 2025 deadline.
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