NEPHIN AND FLOGAS KICK START IRELAND’S GREEN GAS REVOLUTION

• Flogas, a DCC plc business and Nephin sign landmark offtake deal – the first of its kind and largest to date in Ireland
• Nephin is developing three state-of-the-art anaerobic digestion (AD) plants, the initial projects in their development pipeline – through this agreement, Flogas will be the offtake partner for the renewable gas produced
• The projects will create hundreds of direct and indirect jobs across three rural communities, providing a significant boost to local economies and farming incomes in those areas
   

Ballinrobe, Co. Mayo, 11th September 2025 – Construction has officially begun on Ireland’s largest agri-based biomethane plant, located near Ballinrobe in County Mayo. To mark this significant milestone, Minister of State at the Department of Climate, Energy and the Environment, with responsibility for Circular Economy, Alan Dillon TD, joined senior leaders from Nephin, Flogas and DCC plc, at an official groundbreaking ceremony this morning.

Once operational, the Ballinrobe plant will process 90,000 tonnes of farm waste annually – including manures and slurries – to generate over 85 GWh of sustainable, Irish-produced biomethane. It will also create over a hundred direct and indirect jobs over its lifetime, while providing farmers with long-term, reliable income streams.

The ceremony also marked the signing of a landmark biomethane offtake agreement between Flogas and Nephin. Under this agreement, Flogas will be the offtake partner for the renewable gas produced by the three state-of-the-art anaerobic digestion plants being developed by Nephin across the country. These plants, once operational, will deliver over 250 gigawatt-hours (GWh) of sustainable, Irish-produced, biomethane annually – enough to heat over 33,000  homes. The Ballinrobe facility will be the first to come on stream in 2027, with details of the two further plants to be announced later this year. This partnership, a first of its kind in Ireland, marks a major step in Ireland’s green gas transition, directly supporting the Government’s target to produce 5.7 TWh of biomethane by 2030.

Minister Darragh O'Brien stated: "It is fantastic to see two industry leaders join forces to drive meaningful growth in the biomethane sector and deliver economic and environmental benefits for rural communities. This is more than just an agreement; it's a cornerstone deal that clearly demonstrates the immense growth potential within our green gas sector. Projects like this are vital for driving economic activity, creating rural jobs, and accelerating our transition away from fossil fuels. It's a practical, tangible example of how innovation and collaboration can deliver real progress towards our climate goals."

Minister Dillon hailed the agreement as a pivotal moment for Ireland’s energy landscape: "This strategic collaboration between Nephin Renewable Gas and Flogas represents a significant leap forward for Ireland's green gas transition. It directly supports the Government’s ambitious decarbonisation targets, particularly our critical goal to produce 5.7 TWhs of biomethane by 2030, as outlined in our National Biomethane Strategy. The recently published Heads of Bill for the Renewable Heat Obligation (RHO) has provided crucial clarity to the market, and this project is a tangible example of how industry partnerships, driven by supportive policy, can deliver clean energy, revitalise rural economies, and reduce our reliance on volatile imported fossil fuels."

What is Biomethane?

Biomethane is a renewable gas that can seamlessly replace natural gas on the gas grid today, helping to cut emissions in hard-to-decarbonise areas like heating, transport, and industry. It is produced through anaerobic digestion (AD), a natural process where farm and food waste emissions are captured and converted into energy in a controlled environment. This process can transform agricultural waste (such as slurries and manures) into valuable energy, significantly reducing the country’s carbon footprint.

Tom O’Brien, Group Chief Executive of Nephin Energy said: "Today marks a major milestone for Nephin and a decisive first step toward our ambition of becoming Ireland’s leading biomethane development company. Biomethane will play a central role in Ireland’s future energy mix, and we are proud to be driving growth in this sector. Partnering with Flogas, a recognised leader in sustainable energy, accelerates our development pipeline while unlocking the economic and environmental benefits that biomethane can deliver to rural communities across Ireland."

Speaking at the groundbreaking ceremony, John Rooney, Managing Director of Flogas said: “Flogas is incredibly proud to partner with Nephin Renewable Gas who we believe will be Ireland’s leading producer of biomethane over the coming years. Flogas, a DCC plc business, has always been focused on renewable gas, having been the first energy supplier in Ireland to secure indigenous biomethane in 2020. This is the largest domestic biomethane agreement of its kind to date in Ireland, representing a significant boost for our agricultural sector and national net-zero progress. This investment aligns with national energy policy, and we progressed it against the background of having the Renewable Heating Obligation (RHO) in place, which we welcome. This legislation needs to be enacted without delay. Our partnership demonstrates how industry leaders can work together to achieve national climate goals, paving the way for a sustainable and low-carbon future for Ireland.”

How will this agreement benefit rural Ireland? 

This initiative represents a substantial investment in green infrastructure, driving much needed economic growth in rural areas. Nephin anticipates that an AD plant of this size will contribute up to €200 million to the local economy over its lifetime. Additionally, the three new AD facilities are expected to generate hundreds of direct and indirect local jobs spanning vital sectors such as contracting, logistics, maintenance, mechanics, and support services, feedstock aggregation and biofertiliser recovery.

It also provides farmers with long term, reliable income opportunities through feedstock supply and delivery of various agri-services, while helping farmers lower their own emissions. Furthermore, the project champions a true circular economy model by processing agricultural waste into nutrient rich, cost competitive biofertiliser. When spread on land, this product improves soil health and displaces chemical fertiliser. Each AD plant is expected to process c. 90,000 tonnes of agricultural waste each year.

If you’re a farmer and would like to learn more about feedstock contribution opportunities and how you can become part of Ireland's sustainable energy future, please contact Nephin's management team directly at contact@nephinrenewablegas.com.

Graeme Lochhead, Managing Director, Nephin Renewable Gas said: “Today is a proud day for the Nephin team and for the biomethane sector in Ireland. We are deeply grateful for the support we’ve received from the Ballinrobe community — from the landowner and feedstock suppliers to local residents and Mayo County Council. From the very beginning, our goal has been to build an agri-centric business that genuinely contributes to and collaborates with rural communities across Ireland. We look forward to bringing that vision to life over the coming years."

How will this agreement benefit businesses? 

This investment, a catalyst of greener industrial growth, provides Irish businesses — particularly large energy users — with a reliable, indigenous source of biomethane produced by Nephin’s state-of-the-art anaerobic digestion plants. Flogas, as the offtake partner, is empowering businesses to not only meet their critical Scope 1 and 2 emissions targets, but also to enhance their sustainability credentials with a proven, readily available renewable energy solution. Through Proof of Sustainability certificates (PoS), businesses receive verifiable certifications that the gas they purchase originates from renewable sources, providing a tangible, transparent pathway to greener operations. This collaboration between Nephin and Flogas aligns with both national climate goals and consumer demand for sustainable energy.

Donal Murphy, Chief Executive of DCC plc. said “DCC has a unique energy business, providing multi-energy solutions to our customers including biomethane. Today’s announcement exemplifies the power of collaboration — bringing together the expertise of DCC, Flogas, and Nephin to deliver innovative solutions that accelerate the cleaner energy transition. Through this partnership, we are also offering our customers greater energy independence and security of supply through locally produced energy. DCC is committed to becoming a global leader in the sales, marketing and distribution of energy products and services by investing in secure, cleaner, and competitive solutions for our customers. "

If you are a large enterprise and would like to learn more about how you can switch to sustainable biomethane, please contact Flogas on 01 884 9400 or email enterprise@flogas.ie