LNG needed until offshore wind is developed — Limerick Chamber

'Industrial and manufacturing clusters will require stable energy as we transition to cleaner energy sources'

Renewables have a large part to play in our future, but there is a gap in the interim that needs to be addressed as a matter of urgency, Limerick Chamber said.

The Government must seriously look at the potential that
liquified natural gas (LNG) could play in Ireland’s energy security and diversity, Limerick Chamber has said.

In its submission to the review of the security of energy supply of Ireland’s electricity and natural gas systems, the business representative body said LNG investment should be a short and medium-term measure while "aggressive" investment in the development of offshore renewable energy takes place.

The submission to the Department of the Environment, Climate and Communications called on the Government to engage with energy providers with the view to creating a holistic strategy for energy in Ireland. But it also asked the Government to consider LNG and other short-term measures to shore up supply. The submission highlighted the potential for the Government to play a role in these ventures, rather than wholly-owned private enterprises.

"Renewables have a large part to play in our future, but there is a gap in the interim that needs to be addressed as a matter of urgency," Seán Golden, chief economist and director of policy with Limerick Chamber said.

Businesses are currently very uncertain about their future, with energy concerns mostly contributing to this. For Ireland to remain competitive and attractive globally, we need to ensure that we are secure from an energy point of view. 

"Most of the mitigation measures included in the report will not be available before 2030 — we would encourage the Government to seriously examine the shorter-term measures for both diversity of supply and gas storage."

"If we want to fully utilise our offshore potential then we need to establish industrial and manufacturing clusters, these clusters will require stable energy as we transition to implementing cleaner energy sources,” he said.

Countries across Europe have been utilising LNG to back up shortages of supply after Russia cut exports of natural gas to the continent in the wake of the war in Ukraine. 

However, Ireland has no natural gas storage facilities. A Bord Pleanála is currently assessing a planning application for a major LNG terminal in North Kerry on the Shannon Estuary. However, the project has received extensive opposition from environmental groups, including the Green Party leader Eamon Ryan.

In the longer term, a series of major offshore wind farm developments are planned off the Irish coasts. 

Limerick Chamber's chief executive Dee Ryan said there were four key areas the country must invest in if Ireland is to fully utilise the wind energy power available off the west coast. 

"They are the regulatory and planning environment, the appropriate skills, grid infrastructure to transport electricity and appropriate industrial and manufacturing policy," she said.

"These items cannot be advanced in isolation but must form part of a wider offshore renewable energy strategy for Ireland. We need to begin to send positive signals to investors that Ireland is serious about inward investment for renewables. This will go a long way in providing secure and stable energy into the future," she said.