Ireland’s bountiful resources in renewable wind energy could support the development of a vibrant cleantech sector. What is the scale of the opportunity and what is being done to exploit it?
Cleantech encompasses products, services and processes designed to minimise environmental impact, enhance resource efficiency, and support the sustainable use of natural resources, says Daniel Blanchfield, group sustainability manager, FLI Global.
“It represents a critical shift toward more environmentally conscious solutions across various sectors including energy, mobility and transport, manufacturing, agriculture and food, land use, and the built environment,” he explains.
“While cleantech often focuses on making existing technologies more sustainable, it is distinct from climate tech, which goes a step further. Climate tech involves innovative solutions specifically aimed at mitigating climate change, such as technologies for carbon capture, afforestation or other methods to remove greenhouse gases from the atmosphere. Together, these technologies are pivotal in addressing global environmental challenges.”
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Ireland boasts a growing cleantech ecosystem, particularly in renewable energy, with a strong presence in onshore wind, says Stephen Prendiville, sustainable infrastructure leader, Deloitte.
“The country is also expanding in green hydrogen and biomethane,” he adds. “While carbon capture and storage are still in the early stages, each sector has active representative bodies and community groups. However, a unified ‘clean tech industry’ is yet to emerge.
“The potential for Ireland’s R&D ecosystem remains vast, offering significant opportunities for growth and innovation.”
Ireland has made substantial strides in the cleantech sector in recent years, says Declan Barrett, founder and CCO, UrbanVolt: “The Government has committed to ambitious targets for reducing carbon emissions, transitioning to renewable energy sources, and becoming carbon-neutral by 2050. In particular, renewable energy including wind and solar is a significant part of this transition.
“Ireland’s cleantech landscape includes more sophisticated financial models like energy-as-a-service solutions that remove barriers to adopting clean technologies. However, while wind energy has long dominated the Irish renewable energy landscape, Ireland still has untapped potential for solar energy – especially given its relatively low reliance on solar compared to other European countries.”
A recent PwC report, The Irish Climate Tech Opportunity 2024, highlighted that there are more than 300 companies in Ireland working on innovative solutions to tackle climate change, Blanchfield points out.
“Ireland has emerged as a leader in cleantech, particularly in renewable energy, with wind energy accounting for 34 per cent of electricity generation,” he says. “Key areas of focus include green hydrogen, energy storage and smart grid technology.”
Europe’s Green Deal, with its €1 trillion investment, represents a significant opportunity for cleantech innovation, says Prendiville. “Ireland serves as an ideal living lab for testing and piloting new solutions, which can then be scaled across mainland Europe.
“Ireland’s unique circumstances, such as transitioning from biomethane to hydrogen, direct connections to offshore wind, and linking renewable energy with data centres and district heating, provide fertile ground for new solutions.”
Fostering new clustering and innovation hubs and enhancing public-private collaborations will be essential to fully exploiting these opportunities, Prendiville says. “These efforts will help leverage assets and achieve decarbonisation objectives, driving sustainable growth in the region.”
The cleantech sector in Ireland faces challenges such as grid capacity limitations, regulatory hurdles and financing barriers for early-stage companies, says Barrett. “However, there are also enormous opportunities to capitalise on international demand for green energy solutions, especially as EU regulations push member states to meet stricter emissions reduction targets,” he adds.
“The global push for decarbonisation also opens new markets for Irish cleantech companies to export their solutions, whether it’s solar, energy storage or other innovative technologies.”
Wind energy is just one of a wide range of cleantech solutions that Ireland can utilise, says Blanchfield: “Wind energy plays a significant role, accounting for more than 30 per cent of electricity generation [but] Ireland is diversifying its cleantech portfolio. Solar energy is rapidly expanding, with government support driving adoption in both residential and commercial sectors. It is very quick and easy to install solar panels on your home or business, so it is an easy step on your sustainable journey.”
Ireland is also investing in energy storage solutions, such as battery systems, to enhance grid stability, continues Blanchfield.
“A more stable grid will allow for better utilisation of renewable energy from various sources. Government policy and initiatives on the circular economy are also driving businesses to adopt more cleantech solutions,” he adds.
While wind energy is Ireland’s most established and dominant source of renewable energy, Barrett agrees that it is not the only cleantech solution: “Ireland is well situated to benefit from a variety of clean technologies, including solar energy, energy storage and smart grid technology, green hydrogen, and energy efficiency solutions.”
The scale of opportunity in cleantech in Ireland is enormous, he believes: “According to estimates, renewable energy generation could significantly exceed domestic consumption, positioning Ireland as a net exporter of green energy to the rest of Europe.”
Ireland has a significant opportunity to position itself as a global leader in cleantech innovation, in Blanchfield’s view.
“With a highly educated workforce and a strong legacy of creativity and invention, Ireland is well placed to drive meaningful advancements in the sector,” he says. “While progress has been made, there remains considerable untapped potential to further enhance our focus on cleantech solutions. This opportunity is not just an advantage but an imperative. Ireland is currently falling behind on its legally binding greenhouse gas emission reduction targets under the Paris Agreement.”
Although existing government policies and initiatives provide some support, increased prioritisation and investment in the cleantech sector are essential to achieving our climate goals, Blanchfield says. “Doing so will not only help meet these obligations but also create high-quality, future-focused jobs, driving long-term economic and environmental benefits for Ireland.”