New report shows pathway to unlocking rural Ireland’s net zero transition with renewable liquid gas
Liquid Gas Ireland launches pathway to deliver 100% renewable liquid gas by 2050 through an integrated European energy market combined with the development of a domestic industry
Ireland is poised to potentially deliver up to 100,000 tonnes of renewable liquid gas per annum through domestic production, meeting 60% of current liquid gas demand, by 2050. That’s according to ‘Delivering Net Zero for Rural Ireland – Pathways to Renewable Liquid Gas’, a new report published today (16.09.25) by Liquid Gas Ireland (LGI) at the National Ploughing Championships.
The report sets out a clear, evidence-based strategy for a transition to 100% renewable liquid gas, accelerating the decarbonisation of rural homes and businesses located off the natural gas grid. Supported by third party research consultants Talan, the report identifies three clear pathways to develop domestic production over the next two decades with the right level of government support.
These include:
- Co-production from biomethane anaerobic digestion (AD) plants – With the long-term expansion of AD capacity under the National Biomethane Strategy, co-producing renewable liquid gas could become an attractive pathway to scaling indigenous supply.
- Production as a by-product of hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF) production – A supportive policy framework which drives domestic HVO and SAF production should incentivise producers to sell a share of renewable liquid gas produced as a by-product.
- Purpose-built renewable liquid gas facilities using advanced gasification technologies – Clear market signals and certainty around future renewable liquid gas offtake and price could attract investment in a purpose-built, first-of-a-kind renewable liquid gas facility in Ireland.
Ireland’s access to a growing integrated European renewable liquid gas market will be pivotal to driving increased renewable supply while the potential for domestic production is explored and developed.
LGI Senior Director for Government Affairs & Policy, Alan Farrell said: “The scale of opportunity renewable liquid gases present for the decarbonisation of rural Ireland is significant. However, a phased approach is needed to realise this potential which considers multiple supply and production routes for renewable liquid gases, both here in Ireland and across Europe. Meeting the sector’s climate action objectives is a bold and necessary ambition, which requires an energy transition that is not only effective, but is fair and inclusive.
“The SEAI’s National Heat Study has shown that electrification, while essential, cannot reach every home and business. Even with efficiency upgrades, many older homes and businesses simply are not suitable for heat pumps. These are communities that largely rely on high carbon oil, coal, and peat for heating and energy. The vast majority are located outside urban settings without access to the natural gas grid, and without new decarbonisation solutions they risk being left behind in the journey to net zero,” Mr Farrell added.
“Lower carbon liquid gas is already playing a critical role in helping rural homes and businesses reduce emissions. This has established a pathway for renewable liquid gases to deliver greater carbon savings, supported by Ireland’s access to a growing integrated European market coupled with domestic production potential. Home-produced renewable liquid gases could meet up to 60% of demand by 2050, enabling rural Ireland not only to participate in a ‘Just Transition’, but to lead it.”
Policy supports required
Renewable liquid gas has the capacity to reduce greenhouse gas emissions up to 90% against the set values of fossil fuels, in accordance with the European Union Renewable Energy Directive. LGI has set out a detailed overview of the policy framework required to fully unlock the potential of renewable liquid gas. Key mechanisms shared focus on:
- Encouraging widespread consumer adoption through fair and targeted incentives.
- Ensuring integration of renewable liquid gases into Ireland’s broader energy and climate policies.
- Supporting renewable liquid gas pathways to 2050, including the opportunity to establish a domestic renewable liquid gas industry.
Reflecting the policy supports needed to deliver the transition, Mr Farrell added: “To accelerate this transition, a two-pronged policy approach is needed: short-term consumer and business supports, alongside long-term investment in developing a domestic renewable liquid gas sector. By embedding renewable liquid gases at the core of Ireland’s energy strategy, every household and business, regardless of location, can participate in, and benefit from, a clean energy future.”
“Government now has a clear choice. Extend full policy recognition and targeted support to renewable liquid gases, or risk prolonging reliance on high-carbon fuels, undermining national climate targets and equity commitments. The liquid gas sector is fully committed to achieving net zero by 2050, and with industry collaboration, clear production pathways, and strategic government support, Ireland can not only participate in a fair and inclusive energy transition but lead it,” concluded Mr Farrell.
For more information about Liquid Gas Ireland, visit: www.lgi.ie.
See the full report below, along with remarks from the Minister for Climate, Energy and the Environment, Darragh O'Brien TD.
