Ireland continues to make significant strides in expanding its renewable energy capacity, yet natural gas remains a vital component of the country’s energy mix. Approximately 80% of Ireland’s natural gas is imported from the United Kingdom, with the remaining 20% sourced from the offshore Corrib gas field. According to David Kelly, CEO of Gas Networks Ireland (GNI), natural gas accounts for an average of 40 to 45 percent of the country’s electricity generation, providing essential backup to renewable sources that fluctuate with weather conditions. Gas also supplies heating to nearly 40% of homes in Ireland.

While renewables have advanced rapidly, Kelly emphasizes that natural gas, which emits less greenhouse gas than oil or coal, remains necessary as a transitional fuel. GNI foresees a gradual shift in domestic heating toward electrification, including the use of heat pumps, augmented by low-consumption gas boilers and hybrid heat pumps that operate on electricity but switch to gas during peak demand or extreme cold. However, industrial sectors such as food, drink, and pharmaceuticals are expected to continue relying on natural gas longer-term, as many industrial heat processes are difficult to electrify.

To address the ongoing dependence on gas while reducing carbon emissions, GNI is actively pursuing decarbonized alternatives like biomethane and green hydrogen. Biomethane, produced through anaerobic digestion of agricultural and food waste, is being integrated into the gas network. Two such biomethane projects have recently begun operation, with more underway. GNI aims to connect 50 to 60 large-scale biomethane plants, potentially meeting 10 to 15 percent of Ireland’s gas demand with this carbon-neutral fuel.

The company is also preparing for expanded offshore wind capacity, which the Irish government plans to leverage partly for hydrogen production, targeting up to 5 gigawatts of surplus energy. GNI’s modern gas network and newly installed backup generation plants are designed to be hydrogen-ready. Pilot initiatives are underway to develop five industrial clusters powered by green hydrogen, supporting the production and transport of hydrogen and hydrotreated vegetable oil. These clusters could form the foundation for a national hydrogen system.

Furthermore, Ireland’s offshore wind resources offer potential for hydrogen exports to countries like Germany, where demand is growing. GNI operates two subsea gas interconnectors with Scotland that could potentially be adapted for hydrogen transmission.

Investment in the gas infrastructure is increasing substantially, with GNI planning $300 million in capital expenditures this year and a rise to approximately $580 million annually over the next five years. Key projects include the development of a floating liquefied natural gas terminal, expected to be operational by 2030 as an emergency reserve, along with regional network reinforcements and infrastructure upgrades. Efforts are also underway to decarbonize compressor stations in Scotland, aiming to reduce emissions by about 41% and enhance interconnector capacity.

In addition to these initiatives, GNI partners with various organizations on sustainability projects, including producing bricks using biomethane and incorporating carbon-neutral cement in construction. Kelly reported that the company currently manages around 200 decarbonization projects, underscoring a strategic focus on reducing fossil fuel dependence and advancing cleaner energy solutions throughout Ireland’s gas network.