Green Generation's descent into receivership is 'very regrettable', and highlights the need to address the fundamental issue of fraudulent activity in the non-EU bioliquid supply chain, according to the Irish Bioenergy Association (IrBEA).
It added that this biofuel is severely impacting business in Ireland.
IrBEA's bioliquid and biomethane members have highlighted the issue of fraudulent activities in the non-EU biofuel supply chain for many years, said the association.
This has had detrimental impact on business including Irish bioliquid and biomethane producers.
Seán Finan CEO of IrBEA said: “Over the last few years, IrBEA and its members have encountered a reluctance by government and the broader fossil fuel industry to even admit that there is a problem and issue with fraudulent activities in the non-EU biofuel supply chain. To make matters worse, and despite stringent opposition from IrBEA bioliquid and biomethane members, in 2023, the government proceeded to give non-EU biofuel additional renewable energy certificates which has completely distorted the biofuel market to the detriment of Irish producers.”
Finan continued: “The government needs to immediately remove eligibility of fraudulent non-EU biofuels to fulfil compliancy requirement in the Renewable Transport Obligation (RTFO) scheme and also in the proposed Renewable Heat Obligation (RHO) scheme. While we welcome that the Department of Transport has issued a notification of commencement of a statutory consultation in relation to the exclusion of Palm Oil Mill Effluent (POME) from the award of additional RTFO certificates, removing the additional half certificate as proposed, only legitimises the fraud and does not go far enough. IrBEA members call for all certificates to be removed from (POME) fuels.”
IrBEA continues to engage with the Department of Climate, Environment and Energy on the scheme design for the Renewable Heat Obligation.
Finan concluded: “For the RHO to be successful, non-EU sourced biofuel must be excluded from fulfilling compliance requirements. It is proposed that compliancy will be inter-tradable between fuels. If non-EU biofuels are not excluded, this fuel will fulfil all the RHO compliancy requirements. This is at odds with the RHO objective to develop an indigenous biomethane industry in Ireland. Indigenous biomethane production must be incentivised and supported ahead of cheaper imported biomethane. The government has mechanisms at its disposal, including multipliers coupled with an increased obligation ambition, to assist in the development of the biomethane industry in line with the government targets and the biomethane strategy. Addressing the liquid and gaseous fuels import issue is fundamental to providing market certainty to investors and unlocking biomethane investment.”
