Green Generation receivership highlights need for decisive action on non-EU biofuel fraud

Co-processing supermarket food waste and food processing industry fats, oils, and greases (FOG) with agricultural wastes to biomethane and digestate, Green Generation, in partnership with Gas Networks Ireland, is the first biogas producer in Ireland commissioned to inject renewable natural gas (RNG) into the national grid.

The Irish Bioenergy Association (IrBEA) is gravely concerned and distressed to hear that Green Generation had gone into receivership. We strongly empathise with all those involved in Green Generation, including the staff,  its owners, and all connected with the company who have worked tirelessly to build up this flagship biomethane business over decades, said Seán Finan, CEO of IrBEA.

According to IrBEA, Ireland currently sources most of its imported biofuels from Indonesia, Malaysia, and China. However, there are “serious concerns” about the lack of supervision of the supply chain certification for non-EU biofuels and feedstocks.

Over several years, IrBEA and its bioliquid and biomethane members have very strongly highlighted the issue of fraudulent activities in the non-EU biofuel supply chain and the detrimental impact this activity has had on businesses, including Irish bioliquid and biomethane producers.

Over the last few years, IrBEA and its members have encountered a reluctance by the 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, Seán Finan said.

According to irBEA, the volume of declared non-EU waste vegetable oils is simply not possible. The Indonesian government recently declared a crisis in palm oil markets, caused by so much virgin palm oil being falsely certified as waste and diverted into biofuels feedstock.

Indonesia exported 5 million tonnes of “waste” when only 300,000 tonnes was generated. Malaysia certifies and exports tens of times more “used cooking oil” (UCO) than it could generate.

China during COVID, with all restaurants closed, inexplicably managed to increase collection and export of “used cooking oil” by a factor of five.

The Government needs to immediately remove eligibility of fraudulent non-EU biofuels to fulfil compliance 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, Seán Finan said.

IrBEA continues to engage with the Department of Climate, Environment and Energy on the scheme design for the Renewable Heat Obligation (RHO).

For the RHO to be successful, non-EU sourced biofuel must be excluded from fulfilling compliance requirements. It is proposed that compliance will be inter-tradable between fuels. If non-EU biofuels are not excluded, this fuel will fulfil all the RHO compliance 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, concluded Seán Finan.