Northern Ireland’s biomethane opportunity: nearly half of gas demand — and 3.6 TWh of project interest

The Taskforce estimates that Northern Ireland has sufficient sustainable feedstock to produce 8 TWh of biomethane annually. Measured against current demand, that volume reads three ways depending on the denominator:[1]

Livestock waste is among the largest potential sources identified, yet only an estimated 2.5% of organic farm waste is currently used to feed anaerobic digestion plants. The report states that this resource could be used without affecting food production.

Project interest is a smaller number than resource potential. Northern Ireland’s gas-network operators’ 2024 request for information identified 84 prospective projects, representing approximately 3.6 TWh of annual production capacity. Their assessment suggested that the more advanced projects could deliver around 1.6 TWh annually by 2030.[2]

By 2050 the report estimates £5 billion in Gross Value Added and 3,000 jobs, alongside a larger supply of renewable, locally produced gas and investment in the rural economy. Wages in the sector could be 33% above the Northern Ireland average, with a significant proportion of jobs located outside the major cities.

The report also estimates how much of each pound invested stays in the domestic economy, through spending across farming, engineering, construction and local supply chains:

Biomethane producers in Northern Ireland cannot access the Green Gas Support Scheme which offers tariff payments for up to 15 years in England, Scotland and Wales.[3] To the south, the Republic of Ireland is developing its own sector with a target of up to 5.7 TWh of indigenous production annually by 2030.

Northern Ireland’s 2026 Energy Strategy Action Plan commits the Department for the Economy to developing a draft biomethane policy integrating energy, agricultural and environmental considerations.[4]

On 7 September 2026 the Economy Minister confirmed that the Treasury had agreed in principle to redirect unused Renewable Heat Incentive funding towards a biomethane support scheme. Policy development, a business case and further approvals remain necessary.[5]

Northern Ireland’s gas network is relatively new compared with other parts of the UK and Europe, extends for more than 6,000 km, and is technically capable of handling up to 100% biomethane. By the end of 2025 around 345,000 properties, about 40% of the region’s homes and businesses, were connected. Biomethane uses existing infrastructure and domestic boilers without changes for consumers.

Regulatory progress has already occurred. The Utility Regulator’s 31 March 2026 licence-modification decision, effective from 27 May, established changes covering renewable-gas connections, operational arrangements and charging.[6]

Nevertheless, permission to connect does not guarantee capacity to inject. Network operators’ analysis explains that local injection capacity depends substantially on minimum demand, rather than annual consumption. Reverse compression into transmission pipelines and shared injection hubs are among the potential solutions.[2]

This makes GD29, the next gas-distribution price control, relevant to delivery. It concerns network revenues, performance and investment — not production subsidies.[7]

The Taskforce case includes benefits beyond energy. Anaerobic digestion produces digestate, which can be processed into bio-based fertilisers and partly used in place of imported mineral fertilisers, improving nutrient management and reducing nitrogen and phosphorus losses.

The evidence is not one-directional. The Department for the Economy’s 2025 evidence report recorded both proposals for nutrient recovery and warnings that poorly managed digestate could worsen nutrient pressures.[8]

EnDepth’s database identifies three operational biogas or biomethane plants in Northern Ireland. These facilities demonstrate that commercial deployment has begun, but the biomethane market remains at an early stage.