Shannon LNG site developers in discussion with renewable energy companies

Developers of the Shannon liquefied natural gas (LNG) site have told Taoiseach Micheál Martin they are in discussions with renewable companies to develop the site for hydrogen and to connect offshore renewables to the electricity grid.

New Fortress Energy, the company behind the bid to bring the LNG terminal to Ireland, distributed a leaflet to locals last May. In it, they shared a copy of a letter Wesley R Edens, the company’s chief executive officer, wrote to Mr Martin.

Mr Edens claimed the LNG terminal was “necessary” to support “intermittent” renewable energy sources in Ireland. He said the facility would “not increase” gas use or “lock-in” natural gas. “As the State or EU is not investing in the LNG terminal, no taxpayer funding is at risk irrespective of usage. Hence, no State funding is diverted away from investment in renewable generation. The reality is that our flexible 600Mw power plant and LNG terminal are necessary to support intermittent renewables in Ireland.”

Mr Edens said the project was “shovel ready”, saying it could be constructed in a year: “The necessary safety, ecology, environmental, navigation and engineering studies have all been completed.” He also said that right-of-way agreements had been “executed with all landowners along the pipeline route”.

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“No other energy development in Ireland is so advanced,” he said.

The leaflet also pointed out that other EU states were “rapidly” building LNG terminals in light of the war in Ukraine on the basis that every new “molecule of LNG into Europe is a 1-for-1 replacement of gas from Russia”.

Mr Edens said the company looked forward to playing a “leading role” in Ireland’s transition to net zero. He said the proposed development only occupied 100 out of the 603 acre site. “Future developments could include other energy projects such as strategic gas storage, offshore renewable development and green hydrogen production.”

He said the proposed facility can transition to hydrogen gas in the future and can “connect offshore renewable developments to the electricity system”.

“We are actively developing our plans in these areas with discussions under way with big international renewable developers who recognise the significant opportunities the site offers in terms of its location on the Shannon estuary with access to high-capacity gas and power transmission infrastructure.”

The LNG terminal project has attracted significant controversy over the last number of years.

The State backed out of plans to support the plant in the 2020 programme for government, but the developer lodged a planning application and still enjoys the support of some in Fine Gael — and is firmly opposed by its Coalition partners in the Green Party. The Government adopted a policy statement in opposition to importing fracked gas in May 2021, but decided against a legal ban in light of EU treaties and laws governing the internal energy market.

A decision by An Bord Pleanála on whether to grant planning permission to the development is expected early next month. Green Party leader and Minister for Environment Eamon Ryan has already written to the planning body to say that he does not support the venture.